Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Our Performance
29 Related party transactions continued
(v)
In February 2011, the company provided a US$70 million short-term loan facility to DMGH. The loan was repaid on February 17 2011. There were
no amounts outstanding at September 30 2012.
2012
US$000
2012
£000
2011
US$000
2011
£000
Amounts paid – – (70,000) 43,750
Amounts received – – 70,041 (43,776)
Interest expense – – (41) (26)
(vi) During the year DMGT group companies surrendered tax losses to Euromoney Consortium Limited under an agreement between the two groups.
These tax losses are relievable against UK taxable profits of the group under HMRC’s consortium relief rules.
Amounts payable 2,584 831
Tax losses with tax value 3,445 1,109
Amounts owed to DMGT Group at September 30 – 831
(vii) During the year DMGT group companies surrendered tax losses to Euromoney Consortium 2 Limited under an agreement between the two
groups. These tax losses are relievable against UK taxable profits of the group under HMRC’s consortium relief rules.
Amounts payable 631 232
Tax losses with tax value 841 309
Amounts owed to DMGT Group at September 30 – 232
(viii) There is an annual put option agreement over the sale of Internet Securities, Inc. (ISI) shares between the company and the minority shareholders
of ISI. The annual put option value is based on the valuation of ISI as determined under a methodology provided by an independent financial
adviser. Under the terms of the put option agreement consideration caps have been put in place that require the maximum consideration payable
to option holders to be capped at an amount such that the results of any relevant class tests would, at the relevant time, fall below the requirement
for shareholder approval. In February 2012, under this put option mechanism, the group purchased 1.12% of the equity share capital of ISI for a
cash consideration of US$1,326,000 (£840,000). The group’s equity shareholding in ISI increased to 99.92%.
(ix) NF Osborn serves on the management board of A&N International Media Limited and both DMG Events and dmgi, fellow group companies, for
which he received fees for the year to September 30 2012 of £25,000 and US$45,000 respectively (2011: £25,000 and US$40,000 respectively).
(x)
PM Fallon served as a director on the executive board of DMGT, the group’s parent. During the year he earned non-executive director fees of
£24,500 (2011: £19,500) and received short-term employee benefits of £8,749 (2011: £6,907). PM Fallon died on October 14 2012.
(xi) During the year the group received a dividend of £291,000 (2011: £656,000) from Capital Net Limited, an associate of the group.
2012
£000
2012
£000
2011
£000
2011
£000
Notes to the Consolidated Financial Statements
Company Accounts Group Accounts Our Governance
119