Travelex Holdings Limited Annual report & consolidated financial ...

Notes to the financial statements continued
for the year ended 31 December 2001
57
Travelex Holdings Limited
On 25 January 2001, Travelex Holdings Limited acquired all of the issued shares of Travelex plc, by issuing an equal number
of shares in Travelex Holdings Limited to the shareholders of Travelex plc. The classification of and rights attaching to the share
capital of Travelex Holdings Limited was not changed.
The holders of ‘A’ ordinary £1 shares (3i Group plc) are entitled to a fixed dividend at a rate of 10% (net) per annum on the paid
up amount including share premium. The holders of ‘A’ ordinary shares shall be entitled to a participating dividend equal to a
sum which added to the aggregate fixed dividend payable in each financial year is equal to 8% of profit after tax, such dividend
to accrue from 30 September 2003. The holders of the ‘A’ ordinary shares are also entitled to the same ordinary dividend as
the ordinary shareholders on a pari passu basis. The holders of ‘A’ ordinary £1 shares may at any time, with the agreement
of a qualified class majority, convert the whole of their ‘A’ ordinary £1 shares into a like number of £1 ordinary shares.
29 Reconciliation of movement in equity shareholders’ funds
Profit
Share Share and loss Other
capital premium reserve reserves Total
Group
At beginning of year 900 19,100 1,679 – 21,679
Profit retained for period – – 17,150 – 17,150
Exchange adjustment – – (767) – (767)
Other movement (1) – (19,100) – 19,100 –
At end of year 900 – 18,062 19,100 38,062
Company
At beginning of year – – – – –
Profit retained for period – – 6,353 – 6,353
Shares issued in year 900 – – – 900
At end of year 900 – 6,353 – 7,253
(1) The movement of £19.1 million from share premium reserve to other reserves reflects the reclassification of the share
premium in Travelex plc (as presented as comparative information in accordance with merger accounting principles).
30 Related party transactions
Mr L M Dorfman is the controlling party, highest paid director and he has a continuous service contract with a notice period
of 12 months. 3i Group plc own all ‘A’ ordinary shares and received a dividend totalling £33,200. Additionally 3i Group plc
received a management fee of £12,000 in 2001.