Thorn-EMI 1995 Annual Report

Notes to the account3
15. lnvestmentr: own shares
The Employee BenefitTrust (EBT) was established in July 1993 in order to hedge the furure
obligations ofthe Group in respect ofshares awarded under the Senior Executiye Incentive Plan
(SEIP), the EMI Music Long Term Incentive Plan (LTIP) and other share-based plans. The Trustee
of the EBT, THORN EMI Trustees (Guernsey) Ltd, either purchases the Company's Ordinary
Shares in the open market or is granted an option to purchase Ordinary Shares purchased in the
open market by National Westminster Bank Plc (NWB Plc) under a !65m facility guaranteed by
the Company. The Company has an obligation to fund purchases ofshares fiom NWB Plc by
the EBT at the average purchase price and also to meet the net financing costs ofthe EBT.
Group and Company
N.t book
CostAmortisation value
At 31 March 1994
Purchases
Scrip dividends
Charge for the year
2,183,7 t7
2,820,500
16,540
0.6
0.7
23.1
29.8
(4.e) t8.2
- 29.8
(e.2) (e.2)
5,020,757 1.3 52.9 (r4.1) 38.8
At 31 March 1995 f4.9m (1994: f4.9m) had been loaned by the Company to the EBT to finance
the purchase of Ordinary Shares. A further f49.7m (1994: L18.2m) has been drawn down under
the NWB Plc facility and, under FRS 5, must be shown as borrowings in the Group balance
sheet. Borrowings in 1994 have accordingly been restated by !18.2m.
The market value ofthe Ordinary Shares held in the EBT, which are listed in the UK at 31 March
1995, was f55.0m (!994: 923.2m).