Annual Report 2012 - Development Securities PLC

More documents

Recommendations

Info

Financial Statements continued Notes to the Company Financial Statements continued For the 14-month period ended 29th February 2012 37 Called up share capital 29th February 31st December Issued, called up and fully paid 2012 £’000 2010 £’000 122,352,504 Ordinary shares of 50 pence (31st December 2010: 122,352,504 Ordinary shares of 50 pence) 61,176 61,176 Number of shares Shares in issue at the date of this report 122,352,504 The Company has one class of Ordinary shares which carry no right to fixed income. The movement in share capital is set out in note 38. Share option schemes As at 29th February 2012 and at the date of this report, the options outstanding under the Company’s share option schemes were exercisable as set out below (price stated in pence per share). The share options are more fully described in the Remuneration Report on pages 57 to 64. Executive share option scheme 1995: Date of grant 112 Development Securities PLC / Annual Report 2012 Number 29.02.12 Number 01.05.12 Exercise dates Price 19th April 2004 69,382 69,382 19th April 2007 to 18th April 2014 347.50 69,382 69,382 Executive share option plan 2005: Date of grant Number 29.02.12 Number 01.05.12 Exercise dates Price 27th October 2005 41,435 41,435 27th October 2008 to 26th October 2015 430.25 28th April 2006 41,435 41,435 28th April 2009 to 27th April 2016 559.75 8th May 2009 103,587 103,587 8th May 2012 to 7th May 2019 275.00 31st August 2010 120,000 120,000 31st August 2013 to 30th August 2020 248.00 306,457 306,457 Save as you earn option plan 2005: Date of grant Number 29.02.12 Number 01.05.12 Exercise dates Price 28th October 2008 3,501 3,501 1st December 2011 to 31st May 2012 274.16 24th October 2011 192,021 192,021 1st December 2014 to 31st May 2015 152.00 195,522 195,522 Share-based payments The following table illustrates the number and weighted average exercise prices of, and movements in, share options during the period: Number 29th February 2012 Weighted average exercise price (pence) Number 31st December 2010 Weighted average exercise price (pence) At 1st January 528,647 325.3 418,447 346.2 Options granted 193,205 152.0 120,000 248.0 Options lapsed (76,914) 361.1 (7,281) 274.2 Options cancelled (73,577) 272.2 (2,519) 274.2 571,361 268.7 528,647 325.3
Financial Statements Any options granted on or before 7th November 2002 have not been recognised under FRS 20 under the exemption in that standard. These options have not been subsequently modified and therefore do not need to be accounted for in accordance with FRS 20. The weighted average fair value of options granted during the period was £0.50 (31st December 2010: £0.50). The average share price during the period was 194.1 pence (31st December 2010: 255.0 pence). Of the 571,361 (31st December 2010: 528,647) outstanding options at 29th February 2012, 155,753 were exercisable (31st December 2010: 229,166). The options outstanding at 29th February 2012 were exercisable between 152.0 pence and 559.8 pence per share and have a weighted average remaining contractual life of 5.3 years (31st December 2010: 4.2 years). The fair value of grants is measured at the grant date using a Black-Scholes pricing model, taking into account the terms and conditions upon which the instruments were granted. The services received and a liability to pay for those services are recognised over the expected vesting period. The main assumptions of the Black-Scholes pricing model are as follows: Grant date 24.10.11 31.08.10 08.05.09 28.10.08 28.04.06 27.10.05 19.04.04 Exercise price (pence) 152.0 248.0 275.0 274.16 559.75 430.25 347.5 Term (years) 3 7 7 3 7 7 7 Expected volatility 41% 23% 79% 90% 22% 20% 10% Expected dividend yield p.a. 3.2% 1.9% 2.0% 2.0% 1.5% 1.5% 1.5% Risk-free rate 0.9% 2.9% 1.5% 3.5% 4.5% 4.5% 4.5% Expected forfeiture p.a. Nil Nil Nil Nil Nil Nil Nil Expected volatility was determined by calculating the historical volatility of the Development Securities PLC share price over multiple time periods. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may not necessarily be the actual outcome. The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. Conditional awards under the Performance Share Plan The terms of the Performance Share Plan are set out in the Remuneration Report on pages 57 to 64. Ordinary shares conditionally awarded under the Performance Share Plan are valued at their fair value on the date of the award, using an Equal Probability Model, which takes into account the probability of the Ordinary shares vesting based on an equal probability of achieving appropriate total shareholder return ranking as determined under the performance condition. The principal assumptions for calculating the fair value of the Ordinary shares conditionally awarded are: 29th February 2012 31st December 2010 Ordinary shares conditionally awarded (no. of shares) 624,508 527,621 Date of award 22nd March 23rd April Share price (pence) 229.3 264.0 Percentage probability applied for fair value 52.00% 36.88% Vesting period (months) 32 32 The expense recognised for equity-settled share-based payments in respect of employee services received during the period is £21,000 (31st December 2010: £nil). The credit recognised for cash-settled share-based payments during the period due to historic cash-settled options lapsing is £15,000 (31st December 2010: expense of £19,000). Development Securities PLC / Annual Report 2012 113
Page 1 and 2:
Developing value Annual Report 2012
Page 3 and 4:
Financial Highlights Demonstrable o
Page 5 and 6:
annualreport2012. developmentsecuri
Page 7 and 8:
Page 9 and 10:
From left to right: Michael Marx Ch
Page 11 and 12:
Page 13 and 14:
Operating Review Developing value T
Page 15 and 16:
Westminster Palace Gardens, London
Page 17 and 18:
Development Securities PLC / Annual
Page 19 and 20:
Bexleyheath, Kent A prominent retai
Page 21 and 22:
Development Securities PLC / Annual
Page 23 and 24:
328 Sandbanks Road, Dorset A single
Page 25 and 26:
Page 27 and 28:
Development and trading assets Watf
Page 29 and 30:
Investment assets Property Manchest
Page 31 and 32:
Bannerbrook Coventry Braehead Glasg
Page 33 and 34:
Investment property - key statistic
Page 35 and 36:
Case study St Andrew’s Club Earli
Page 37 and 38:
Case study Who Owns the City In Nov
Page 39 and 40:
Page 41 and 42:
The £15.6 million bank loan to the
Page 43 and 44:
Result for the period and movement
Page 45 and 46:
The Group’s share of joint ventur
Page 47 and 48:
Page 49 and 50:
details of the share option schemes
Page 51 and 52:
The Directors have no present inten
Page 53 and 54:
Disclosure of information to audito
Page 55 and 56:
Company. V M Mitchell chaired a mee
Page 57 and 58:
Internal control The Directors ackn
Page 59 and 60:
Remuneration Report Dear Shareholde
Page 61 and 62:
) Annual bonus The non-pensionable
Page 63 and 64: In addition, the Committee must be
Page 65 and 66: l) Retirement benefits Qualifying m
Page 67 and 68: Financial Statements Group Independ
Page 69 and 70: Consolidated Balance Sheet As at 29
Page 71 and 72: Consolidated Cash Flow Statement Fo
Page 73 and 74: staff to manage the property (over
Page 75 and 76: g) Intangible assets (i) Goodwill G
Page 77 and 78: Available-for-sale financial assets
Page 79 and 80: Financial Statements 2 Segmental an
Page 81 and 82: Investment £’000 Development and
Page 83 and 84: 6 Finance income and costs a) Finan
Page 85 and 86: 14-month period ended 29th February
Page 87 and 88: 12 Intangible assets Financial Stat
Page 89 and 90: The Group’s share of assets and l
Page 91 and 92: Financial Statements In July 2011,
Page 93 and 94: Financial Statements Included in th
Page 95 and 96: Available-for-sale financial assets
Page 97 and 98: £38,000,000 variable rate loan £2
Page 99 and 100: Liquidity risk A review of the Grou
Page 101 and 102: Financial Statements 19 Deferred in
Page 103 and 104: Share-based payments The following
Page 105 and 106: 23 Financial commitments and operat
Page 107 and 108: 28 Post balance sheet events Since
Page 109 and 110: Company Balance Sheet As at 29th Fe
Page 111 and 112: No expense is recognised for awards
Page 113: 35 Financial assets Financial State
Page 117 and 118: Financial Calendar and Advisors Fin
Page 120: Development Securities PLC Portland
show all

Annual Report 2012 - Development Securities PLC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?