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

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Notes to the Company Accounts continued
9 Share capital
2012
£000
2011
£000
Allotted, called up and fully paid
124,349,531 ordinary shares of 0.25p each (2011: 121,247,380 ordinary shares of 0.25p each) 311 303
During the year, 3,102,151 ordinary shares of 0.25p each (2011: 2,755,469 ordinary shares) with an aggregate nominal value of £7,755 (2011: £6,889)
were issued as follows: 2,381,410 ordinary shares (2011: 2,226,089) under the company’s 2009 scrip dividend alternative for a cash consideration of
£nil (2011: £nil); and 720,741 ordinary shares (2011: 529,380 ordinary shares) following the exercise of share options granted under the company’s
share option schemes for a cash consideration of £1,058,834 (2011: £718,392).
10 Share-based payments
An explanation of the company’s share-based payment arrangements are set out in the Directors’ Remuneration Report on pages 42 to 45. The number
of shares under option, the fair value per option granted and the assumptions used to determine their values is given in note 24 to the group accounts.
Their dilutive effect on the number of weighted average shares of the company is given in note 11 to the group accounts.
Share option schemes
The executive and Save as You Earn (SAYE) Options were valued using the Black–Scholes option-pricing model. Expected volatility was determined by
calculating the historical volatility of the group’s share price over a 15 year period. The executive options’ fair values have been discounted at a rate
of 10% to reflect their performance conditions. The expected term of the option used in the model has been adjusted, based on management’s best
estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The charge recognised in the year in respect of these
options was £97,000 (2011: £96,000). Details of the executive and SAYE options are set out in note 24 to the group accounts.
Capital Appreciation Plan 2004 (CAP 2004)
The CAP 2004 options were valued using a fair value model that adjusted the share price at the date of grant for the net present value of
expected future dividend streams up to the date of expected exercise. The expected term of the option used in the models has been adjusted,
based on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The
share-based credit in the year for the CAP 2004 options was £1,809,000 (2011: £nil). Details of the CAP 2004 options are set out in note 24 to the
group accounts.
Capital Appreciation Plan 2010 (CAP 2010) and Company Share Option Plan 2010 (CSOP 2010)
The CAP 2010 and CSOP 2010 options were valued using a fair value model that adjusted the share price at the date of grant for the net present value
of expected future dividend streams up to the date of expected exercise. The expected term of the option used in the models has been adjusted, based
on management’s best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. The share-based expense
recognised in the year for the CAP 2010 and CSOP 2010 options was £nil (2011: £nil). Details of the CAP 2010 and CSOP 2010 options are set out in
note 24 to the group accounts (excludes ISI and cash-settled options).
There is no cost or liability for the cash element of the CAP 2010 option scheme. These are borne by the company’s subsidiary undertakings.
A reconciliation of the options outstanding at September 30 2012 is detailed in note 24 to the group accounts.
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