Notes forming part of the financial statements (continued)
Parent entity Parent entity
2007 2006 2007 2006
Number of shares $’000 $’000
Note 24. Contributed equity
Paid up capital
Ordinary shares – fully paid 84,778,815 84,772,315 148,028 150,298
Ordinary shares – called to 20 cents 60,500 67,000 12 13
84,839,315 84,839,315 148,040 150,311
Movements in contributed equity
Opening balance
Share issue
Bonus share plan
Final September 2006 at $2.74
(September 2005 at $2.75)
Final September 2006 at $2.73
(September 2005 at nil)
Interim April 2007 at $3.25 (March 2006 at $3.53)
Shares bought back
Options exercised
Payments on partly paid shares
84,839,315
—
92,499
406,823
262,756
(762,078)
—
—
84,637,315
2,000
115,553
—
94,001
(209,554)
200,000
—
150,311
—
—
—
—
(2,290)
—
19
150,290
5
—
—
—
(629)
532
113
Closing balance 84,839,315 84,839,315 148,040 150,311
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion to the number
of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in
person or by proxy, is entitled to one vote, and upon a poll
each share is entitled to one vote.
At 30 June 2007 there were 60,500 (2006: 67,000) ordinary shares called to
20 cents. These are shares issued to employees under the
Wattyl Employees Share Scheme.
Dividend reinvestment plan
The dividend reinvestment plan remains suspended.
Bonus share plan
The company has established a bonus share plan (BSP) under which holders of
ordinary shares may elect to forego all or part of their
dividend entitlements and in lieu thereof receive new ordinary fully paid bonus
shares. Bonus shares are issued out of the notional share
premium reserve which forms part of the paid up capital account. The BSP applies
without discount. Participation in the BSP may only be
varied prior to the date on which a dividend is declared. The company intends
to buy back an equivalent amount of shares issued under
the BSP to prevent the dilutive effect of the issue of shares under the scheme.
Share buy-back
The company completed the buy-back of 499,322 ordinary shares in September
2006 and 262,756 ordinary shares in April 2007,
representing 0.59% and 0.31%, respectively, of ordinary shares on issue on
those dates. The total consideration of shares bought back on
market was $2,290,000, being an average, including incidental costs, of $3.00
per share.
Employee share scheme
Information relating to the employee share scheme, including details of shares issued under the plan, is set out in note 29.
Consolidated Parent entity
2007
$’000
2006
$’000
2007
$’000
2006
$’000
Note 25. Reserves and retained profits
(a) Reserves
Foreign currency translation reserve
Share based payment reserve
Hedging reserve – cash flow hedges
(1,774)
347
3
(2,442)
208
—
—
347
—
—
208
—
(1,424) (2,234) 347 208
Movements
Foreign currency translation
Balance 30 June 2006
Net gain/(loss) on translation of overseas controlled entities
(2,442)
668
(24)
(2,418)
—
—
—
—
Balance 30 June 2007 (1,774) (2,442) — —
Share based payment
Balance 30 June 2006
Performance rights expense
208
139
106
102
208
139
106
102
Balance 30 June 2007 347 208 347 208
Hedging – cash flow hedges
Balance 30 June 2006
Revaluation
—
3
—
—
—
—
—
—
Balance 30 June 2007 3 — — —
(b) Retained profits
Movements in retained profits were as follows:
Balance 1 July
Adjustment on adoption of AASB 132 and AASB 139, net of tax
Actuarial gain on defined benefit plan net of tax
Net profit for the year
Dividends
9,866
—
956
16,588
(43,564)
15,543
522
1,750
4,084
(12,033)
88,740
—
—
13,967
(43,564)
18,875
—
—
81,898
(12,033)
Balance 30 June (16,154) 9,866 59,143 88,740
(c) Nature and purpose of reserves
Foreign currency translation reserve
Exchange differences arising on translation of the foreign controlled entities
are taken to the foreign currency translation reserve as
described in accounting policy note 1(k).
Share based payment reserve
The share based payment reserve is used to recognise the fair value of performance
rights issued but not exercised to senior executives of
the group.
Hedging – cash flow reserve
The hedging – cash flow reserve is used to record gains or losses on a hedging
instrument in a cash flow hedge that are recognised
directly in equity, as described in notes 10 and 39. Amounts are recognised
in profit and loss when the associated hedging transaction
affects profit and loss.
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