Strength & Stability - ECS Holdings Limited

15 Share Capital
Group and Company
No. of shares
2008 2007
’000 ’000
Issued and fully paid:
At 1 January 365,360 363,599
Issue of shares - 1,761
At 31 December 365,360 365,360
In 2007, the Group has issued share options under its ECS Share Option Scheme II.
At 31 December 2008, there were nil (2007: 110,000) outstanding share options of unissued ordinary shares of the Company
granted under the ECS Share Option Scheme II.
Capital Management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of Directors monitors the return on capital, which the Group defines as net operating
income divided by total shareholders’ equity excluding minority interest. The Board also monitors the level of dividends to ordinary
shareholders.
The Group has a share buy-back mandate to purchase its own shares on the market; the timing of these purchases depends on market
prices. Primarily, the shares purchased are intended to be used for issuing shares under the Group’s share option programme. Buy
and sell decisions are made on a specific transaction basis by the Board. No shares have been purchased to date.
There were no changes in the Group’s approach to capital management during the year.
The Group is subject to externally imposed capital requirements which involve financial covenants relating to consolidated tangible
net worth as stipulated by its bankers in respect of credit facilities. The Group ensures its compliance by monitoring such financial
covenants on a regular basis.
Notes to the
Financial Statements
These notes form an integral part of the financial statements.
Annual Report 2008
p.
75