Savills plc 2012 Annual Report - (PDF) - Investor relations

The effective tax rate of the Group for the year ended 31 December 2012 is 28.4% (2011: 33.0%).The Finance Act 2012 substantively enacted on 17 July 2012 included legislation reducing the UK corporation tax rate from 26% to24% with effect from 1 April 2012 and to 23% on 1 April 2013.Deferred tax expected to reverse in the year ended 31 December 2013 has been remeasured using the effective rate that is expectedto apply in the period (23.25%) and at 23% for reversals expected after that date.Our business Our governance Our resultsA further reduction to the UK tax rate has been announced. The change, which is expected to be enacted next year, proposes toreduce the rate by a further 2% to 21% on 1 April 2014. The change has not been substantively enacted at the balance sheet dateand, therefore, is not recognised in these financial statements.The tax (charged)/credited to other comprehensive income is as follows:Group2012£m2011£mCompany2012£mCurrent tax credit on employee benefits 2.5 3.4 – 0.2Current tax credit/(charge) on foreign exchange reserves 0.2 (0.2) – –Current tax credit on retirement benefits 1.7 1.6 0.1 0.1Deferred tax credit/(charge) on pension actuarial losses/(gains) – 5.4 (0.1) 0.2Deferred tax on pension additional contributions (1.7) (1.6) – –Deferred tax on pension – effect of tax rate change (0.6) (0.6) – –Deferred tax (charge)/credit on employee benefits (0.5) (3.3) 0.2 (0.1)Deferred tax (charge)/credit on revaluations of available-for-sale investments (0.2) 0.2 – –Deferred tax credit on foreign exchange reserves – 0.1 – –Tax on items relating to components of other comprehensive income 1.4 5.0 0.2 0.412. Dividends – Group and CompanyAmounts recognised as distribution to owners in the year:Ordinary final dividend for 2011 of 6.35p per share (2010: 6.0p) 7.8 7.4Supplemental interim dividend for 2011 of 4.0p per share (2010: 4.0p) 5.0 5.0Interim dividend of 3.3p per share (2011: 3.15p) 4.1 3.916.9 16.3The Board recommends a final dividend of 6.7p (net) per ordinary share (amounting to £8.5m) is paid, alongside the supplementalinterim dividend of 6.0p per ordinary share (amounting to £7.5m), to be paid on 13 May 2013 to shareholders on the register at12 April 2013. These financial statements do not reflect this dividend payable.Under the terms of the Savills plc 1992 Employee Benefit Trust (the ‘EBT’), the Trustee has waived all but 0.01p of any dividend on eachshare held by the Trust.13(a). Basic and diluted earnings per shareBasic earnings per share are based on the profit attributable to owners of the Company and the weighted average number of ordinaryshares in issue during the year, excluding the shares held by the EBT, 7,183,049 shares (2011: 9,198,857 shares).For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of dilutivepotential ordinary shares, being the share options granted to employees where the exercise price is less than the average market priceof the Company’s ordinary shares during the year and where performance conditions have been met.The earnings and the shares used in the calculations are as follows:2012Earnings£m2012Sharesmillion2012EPSpence2011Earnings£mBasic earnings per share 38.5 124.8 30.8 26.5 123.3 21.5Effect of additional shares issuable under option – 5.7 (1.3) – 3.4 (0.6)Diluted earnings per share 38.5 130.5 29.5 26.5 126.7 20.92012£m2011Sharesmillion2011£m2011£m2011EPSpenceSavills plc Report and Accounts 2012 85