Annual report 2010 - Imperial Tobacco Group

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Notes to the Imperial Tobacco Group PLCBalance SheetStrategy Performance Governance FinancialsBasis of PreparationThe financial statements have been prepared on the going concern basis in accordance with the historical cost convention,the Companies Act 2006 and UK Generally Accepted Accounting Principles.As permitted by section 408 of the Companies Act 2006, no separate profit and loss account has been presented for theCompany. As permitted under FRS 1 (revised 1996) Cash Flow Statements the Company has not presented a cash flowstatement. As permitted by FRS 29, the Company has elected not to present FRS 29 Financial Instruments: Disclosuresin the notes to its individual financial statements as full equivalent disclosures are presented in the consolidated financialstatements. As permitted by FRS 8 Related Party Disclosures the Company has not disclosed transactions with whollyowned subsidiaries.The principal accounting policies are set out below.Investments Held as Fixed AssetsInvestments held as fixed assets comprise the Company’s investment in subsidiaries and are shown at cost less anyprovision for impairment.DividendsFinal dividends are recognised in the Company’s financial statements in the period in which the dividends are approvedby shareholders, while interim dividends are recognised in the period in which the dividends are paid.Financial InstrumentsNon-derivative financial assets are classified as cash and debtors. Debtors are initially recognised at fair value and aresubsequently stated at amortised cost using the effective interest method, subject to reduction for allowances for estimatedirrecoverable amounts. A provision for impairment of receivables is established when there is objective evidence that theCompany will not be able to collect all amounts due according to the original terms of those receivables. The amount of theprovision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, and isrecognised in the profit and loss account. For interest-bearing assets, the carrying value includes accrued interest receivable.(i) DividendsAmounts recognised as distributions to ordinary equity holders in the year:Dividend per share in respect of financial yearPence 2010 2009 2008Interim 24.3 21.0 20.9Final 60.0 52.0 42.2Total 84.3 73.0 63.1Final dividends are recognised as a liability in the period in which the dividends are approved by shareholders, while interimdividends are recognised in the period in which the dividends are paid. Consequently Imperial Tobacco Group’s interimdividends are paid and recognised in the second half of the year, and final dividends in respect of a year are paid andrecognised in the following financial period.Amounts recognised as distributions to ordinary equity holders in the year£ million 2010 2009Final dividend paid in the period in respect of previous financial year 527 427Interim dividend 246 213773 640The proposed final dividend for the year ended 30 September 2010 of 60.0p per share amounts to a proposed final dividendpayment of £609 million based on the number of shares ranking for dividend at 30 September 2010, and is subject toshareholder approval. If approved, the total dividend paid in respect of 2010 will be £855 million (2009: £740 million).(ii) Investments Held as Fixed AssetsCost of shares in Imperial Tobacco Holdings (2007) Limited£ million 2010 2009At 1 October 1,035 1,035Additions 2,000 –At 30 September 3,035 1,035A list of the principal subsidiaries of the Company is shown on pages 157 and 158.154
(iii) Debtors: Amounts Falling Due Within One Year£ million 2010 2009Amounts owed by Group undertakings 3,976 6,015Amounts owed by Group undertakings are unsecured, have no fixed date for repayment and are repayable on demand.(iv) Creditors: Amounts Falling Due Within One Year£ million 2010 2009Bank overdrafts – 208(v) Called Up Share Capital£ million 2010 2009Authorised56,040,000,000 ordinary shares of 10p each (2009: 56,040,000,000) 5,604 5,604Issued and fully paid1,067,942,881 ordinary shares of 10p each (2009: 1,067,942,881) 107 107(vi) ReservesShare premiumaccountProfit and lossaccount£ millionAt 1 October 2009 5,833 902Profit for the year – 990Dividends – (773)At 30 September 2010 5,833 1,119Profit for the yearAs permitted by section 408(3) of the Companies Act 2006, the profit and loss account of the Company is not presented.The profit attributable to shareholders, dealt with in the financial statements of the Company, is £990 million (2009: £826 million).Treasury sharesA total of 51,717,000 Imperial Tobacco ordinary shares was purchased through a share buy back programme at a totalcost (including expenses) of £862 million before the programme’s suspension on 8 February 2007. The shares purchasedwere not cancelled but were held in a separate treasury reserve and represent a deduction from equity shareholders’funds. The total number of shares held in treasury at 30 September 2010 is 49,569,000 (2009: 51,481,000), representing4.6 per cent (2009: 4.8 per cent) of the issued share capital, following the gifting to the Employee Share Ownership Trustsof 1,912,000 shares in 2010 (2009: 236,000).(vii) Reconciliation of Movements in Shareholders’ Funds£ million 2010 2009Profit for the year 990 826Dividends (773) (640)Movements in equity shareholders’ funds 217 186Opening equity shareholders’ funds 6,842 6,656Closing equity shareholders’ funds 7,059 6,842155
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Imperial Tobacco Group PLCAnnual Re
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…to deliver sustainableshareholde
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Operational HighlightsDelivering Su
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and product portfolio to evolving c
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In this section9 Strategic Review10
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Our StrategyWe are focused on deliv
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Total Tobacco5 % Our Powerful Brand
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Our global strategic cigarette bran
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Our global team is fully aligned be
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Satisfying consumers and aligning o
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We are a responsive business with s
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Operating responsibly, combined wit
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Our growth drivers of sales growth,
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Principal Risks and UncertaintiesA
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Competition LawOverviewWe take comp
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Reconciliation of Adjusted Performa
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Key Performance Indicators (KPIs) 1
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Lambert & Butler and Richmond remai
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Within this the travel retail marke
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OutlookThe strength of our portfoli
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Blondes. In the Middle East, we aga
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Corporate ResponsibilityOur Corpora
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Corporate Responsibility and our St
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We have revised our IMS and employe
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Environmental Performance 1Absolute
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across the business. More informati
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Supplier RelationshipsOur main supp
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Non-financial performance indicator
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“High standards of corporategover
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5. Pierre Jungels, CBE (HON), PHD,
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Management and Corporate StructureB
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Meetings of the Board, Board Commit
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and supplemented by our Non-Executi
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6 Performance evaluation: How do we
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The Board recognises that we operat
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Assurance process for financial rep
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- receiving reports from, and quest
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Directors’ Report: Other Informat
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- state whether IFRSs as adopted by
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We understand that a purported coll
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This Report covers the following:1
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2 Directors’ Emoluments for the Y
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Directors’ Interests in Ordinary
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Executive Directors’ Service Agre
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When setting base salary the Remune
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First ElementFifty per cent of the
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In respect of the October 2007 - Oc
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Any annual bonus earned up to 100 p
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Benefit Trusts have also been provi
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Independent Auditors’ Reportto th
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Consolidated Statement ofComprehens
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Consolidated Statement of Changes i
Page 105 and 106: Accounting PoliciesBasis of Prepara
Page 107 and 108: Duty and Similar ItemsDuty and simi
Page 109 and 110: InventoriesInventories are stated a
Page 111 and 112: Restructuring CostsSignificant one-
Page 113 and 114: Property, Plant and Equipment and I
Page 115 and 116: Tobacco net revenue£ million 2010
Page 117 and 118: 3 Restructuring Costs£ million 201
Page 119 and 120: Factors affecting the tax charge fo
Page 121 and 122: 9 Intangible Assets2010£ million G
Page 123 and 124: 10 Property, Plant and Equipment201
Page 125 and 126: 13 Trade and Other Receivables2010
Page 127 and 128: Sensitivity analysisIFRS 7 requires
Page 129 and 130: At 30 September 2009Balance sheetam
Page 131 and 132: (iii) Currency analysis and effecti
Page 133 and 134: (iv) Derivative financial instrumen
Page 135 and 136: Matures in financial year ending in
Page 137 and 138: The following tables are provided i
Page 139 and 140: Matures in financial year ending in
Page 141 and 142: (vi) Hedge of net investments in fo
Page 143 and 144: 18 Retirement Benefit SchemesThe Gr
Page 145 and 146: Assumptions regarding future mortal
Page 147 and 148: 21 Share SchemesThe Group recognise
Page 149 and 150: Year from 1 October 2008 to 30 Sept
Page 151 and 152: 23 CommitmentsCapital commitments£
Page 153 and 154: 27 Reconciliation of Cash Flow to M
Page 155: Imperial Tobacco Group PLC Balance
Page 159 and 160: Principal SubsidiariesThe principal
Page 161 and 162: Shareholder InformationRegistered O
Page 163 and 164: IndexAAccounting Policies 103Acquis
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Annual report 2010 - Imperial Tobacco Group

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