Our performance in 2009 - Sappi

2009 annual report
17. Ordinary share capital and share premium continued
Since March 1994, 2,970,582 (September 2008: 6,752,522) shares have been allocated to the Scheme participants and
paid for and 11,910,172 (September 2008: 5,772,812) shares have been allocated to the Scheme participants and not yet
paid for. In terms of the Plan, 9,736,450 (September 2008: 3,961,100) shares have been allocated and remain unpaid for
and 165,491 shares have been allocated and paid for by the Plan participants.
Shares allocated and accepted more than ten years ago are added back to the number of shares that the Scheme and/or
the Plan may acquire.
The net after tax loss on sale of treasury shares to participants written off against share premium for September 2009 was
US$0.5 million (September 2008: US$1 million).
Capital risk management
The capital structure of the group consists of:
– issued share capital and premium and accumulated profits disclosed above and in the statement of changes in equity
respectively;
– debt, which includes interest-bearing borrowings and obligations due under finance leases disclosed under note 20; and
– cash and cash equivalents.
The group’s capital management objective is to achieve an optimal weighted average cost of capital while continuing to
safeguard the group’s ability to meet its liquidity requirements (including capital expenditure commitments), repay borrowings
as they fall due and continue as a going concern.
The group monitors its gearing through a ratio of net debt (interest-bearing borrowings and overdraft less cash and cash
equivalents) to total capitalisation (shareholders’ equity plus net debt).
The group has entered into a number of debt facilities which contain certain terms and conditions in respect of capital management.
During fiscal 2009 and 2008, we were in compliance with the financial covenants relating to the material loans payable.
The group’s strategy with regard to capital risk management remains unchanged from 2008.
139
financials