Chemring Group PLC |Annual Report and Accounts 2012

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Financial statements
Notes to the group financial statements
29. Own shares
Balance at 1 November 2011 6.6 7.2
Acquired in the year 4.8 1.5
Issued in the year to satisfy employee share awards (1.8) (2.1)
Balance at 31 October 2012 9.6 6.6
The own shares reserve represents the cost of shares in Chemring Group PLC purchased in the market and held by the Group to satisfy
awards under the Group’s share-based incentive schemes (see note 31). During the year, 1,215,000 (2011: 300,000) ordinary shares
were acquired, and 359,331 (2011: 456,855) ordinary shares were distributed following the vesting of awards under the Chemring Group
Performance Share Plan. The total number of ordinary shares held in treasury at 31 October 2012 was 2,198,814 (2011: 1,343,145), with an
average cost of £4.39 (2011: £4.89) per share. This represents 1.1% of the total issued and fully-paid ordinary share capital.
30. Obligations under non-cancellable operating leases
Minimum lease payments under operating leases recognised in the income statement in the year 1.9 2.5
At the balance sheet date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating
leases, which fall due as follows:
Within one year 3.7 4.0
Two to five years 7.0 10.8
2012
£m
2012
£m
2012
£m
2011
£m
2011
£m
2011
£m
10.7 14.8
Operating lease payments represent rentals payable by the Group. Leases are negotiated for an average term of three years and rentals
are fixed for the lease period, with an option to extend for a further period at the then prevailing market rate.
31. Share-based payments
The Group operates share-based compensation arrangements to provide incentives to the Group’s senior management and other
eligible employees.
The Group recognised a net charge of £0.1 million (2011: £0.2 million) in respect of share-based payment transactions during the year.
Details of the three schemes which operated during the year are as follows:
The Chemring Group Performance Share Plan (the “PSP”)
Under the PSP, conditional awards of ordinary shares are made at nil cost. Awards ordinarily vest on the third anniversary of the award
date. The scheme commenced in March 2006.
Number of conditional shares awarded
2012 2011
Outstanding at the beginning of the year 1,792,977 1,741,095
Awarded during the year 1,785,720 711,212
Vested during the year (359,331) (456,855)
Lapsed during the year (987,973) (202,475)
Outstanding at the end of the year 2,231,393 1,792,977
Subject to vesting at the end of the year - -
Chemring Group PLC Report and Accounts 2012