BOC Report and accounts 2005 - Alle jaarverslagen

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124 The BOC Group plc Annual report and accounts 2005 Notes to the financial statements 21. Financial instruments continued ii) Financial liabilities The interest rate and currency profile of the Group’s financial liabilities including swaps (excluding short-term creditors) at 30 September 2005 is shown below.The categories of the Group’s financial liabilities are shown in note 21 b) i). 2005 2004 Financial Financial liabilities on liabilities on Floating rate Fixed rate which no Total Floating rate Fixed rate which no Total financial financial interest financial financial financial interest financial liabilities liabilities is paid liabilities liabilities liabilities is paid liabilities £ million £ million £ million £ million £ million £ million £ million £ million Sterling (106.3) 297.9 2.1 193.7 (120.7) 296.8 2.5 178.6 US dollar 62.8 222.8 4.7 290.3 99.3 279.1 4.8 383.2 Australian dollar 105.6 0.2 – 105.8 92.0 0.1 – 92.1 South African rand – 46.6 – 46.6 101.8 38.0 – 139.8 Japanese yen 29.9 125.6 0.3 155.8 5.0 151.7 0.7 157.4 Canadian dollar 19.2 25.6 – 44.8 18.9 22.8 – 41.7 Thai baht – 35.8 0.3 36.1 – 54.9 10.9 65.8 Other 124.1 48.6 9.6 182.3 108.3 53.1 7.9 169.3 Total 235.3 803.1 17.0 1,055.4 304.6 896.5 26.8 1,227.9 2005 2004 Fixed rate financial liabilities Fixed rate financial liabilities Weighted Weighted average average Weighted period for Weighted period for average which rate is average which rate is interest rate fixed interest rate fixed % years % years Sterling 9.2 11.0 9.2 11.9 US dollar 6.8 1.3 5.8 2.0 Australian dollar 3.1 0.9 5.7 1.8 South African rand 8.3 1.9 12.8 3.3 Japanese yen 1.0 1.1 0.9 1.9 Canadian dollar 4.9 3.0 4.7 4.0 Thai baht 4.3 0.9 3.7 1.4 Other 5.5 1.5 6.0 2.6 The floating rate financial liabilities principally comprise debt which carries interest based on different benchmark rates depending on the currency of the balance. The principal benchmark rates for floating rate financial liabilities are LIBOR for sterling balances, US LIBOR for US dollar balances,Australian bank bill rate for Australian dollar balances, South African prime rate for South African rand balances and Japanese yen LIBOR for Japanese yen balances. The maturity profile of borrowings is set out in note 20 b). Floating rate financial liabilities other than borrowings are mainly employee incentive provisions.These are expected to be utilised over the period to 2016 depending on the future choices of the relevant employees. Financial liabilities on which no interest is paid principally relate to creditors due after more than one year.The majority of the amount relates to deposits for cylinder rentals. It is not anticipated that this balance will reduce significantly in the short to medium term.The remaining balances falling due after more than one year are expected to be paid or utilised by 2009. 22. Provisions for liabilities and charges Deferred tax Other provisions Incentive and other Deemployee Uninsured commissioning provisions losses Environmental Warranty obligations Other Total £ million £ million £ million £ million £ million £ million £ million £ million At 1 October 2004 253.0 21.2 20.7 22.4 15.1 – 12.8 92.2 Exchange adjustment 6.6 0.2 0.7 0.7 0.4 – – 2.0 Provided in the year – 3.6 8.4 4.2 9.6 – 1.1 26.9 Released in the year (4.7) – – – – – (2.4) (2.4) Utilised in the year – (6.4) (0.6) (1.6) (7.6) – (6.3) (22.5) Other movements 1 (13.0) 0.1 – – (0.2) 20.2 2.6 22.7 At 30 September 2005 241.9 18.7 29.2 25.7 17.3 20.2 7.8 118.9 1. The other movements in deferred tax relate mainly to transfers to current tax.
Notes to the financial statements 125 22. Provisions for liabilities and charges continued Incentive and other employee provisions include long-term share incentive awards and deferred compensation plans. Note 7 contains further details of the long-term share incentive units. Provision for uninsured losses covers third party liabilities or claims. Due to the time frame that is often involved in such claims, a significant part of this provision is subject to actuarial valuation.Where this is not appropriate, other external assessments are used. Environmental provisions have been set aside to cover the costs of remediation for a number of hazardous waste sites.The costs are expected to be incurred between 2006 and 2030. Due to the period over which this expenditure is likely to be incurred, the provision has been discounted at a rate of four per cent.The effect of discounting is £5 million. Management expects that payments will be approximately £7 million in 2006, approximately £3 million each year for the next four years and £12 million in total thereafter. Management uses its judgement and experience to make an appropriate provision. Management believes that there is no reasonable possibility of a loss materially in excess of the amounts provided. During the year, the provision for de-commissioning costs was reviewed.As a result of revising previous estimates, an amount of £20.2 million was recognised for future obligations with a corresponding increase in the carrying value of tangible fixed assets. Due to the period over which this expenditure is likely to be incurred, between 2006 and 2054, and the different regions in which it will be incurred, the provision has been discounted at rates of between four and six per cent.The effect of discounting is £32 million.The timing of actual expenditure will vary depending on contractual supply arrangements with customers. Further information on deferred tax is disclosed in note 4. 23. Share capital Number of shares 2005 2004 2005 2004 i) Analysis at 30 September million million £ million £ million Equity capital: Issued capital – Ordinary shares of 25p each, called up and fully paid 502.5 498.8 125.6 124.7 Unissued capital – unclassified shares of 25p each 87.5 91.2 21.9 22.8 Authorised 147.5 147.5 ii) Share issues Number million Issues of Ordinary shares of 25p each during the year were: Under the savings related share option scheme 0.7 Under the senior executives share option scheme 3.0 24. Reserves a) Group Share Joint premium Revaluation Profit and Pensions’ ventures’ Associates’ Own account reserves loss account reserves reserves reserves shares Total £ million £ million £ million £ million £ million £ million £ million £ million At 1 October 2004 374.9 30.1 1,181.5 (253.6) 238.0 26.0 (46.3) 1,550.6 Total recognised gains and losses for the year – (3.8) 419.9 – 14.7 6.3 – 437.1 Transfers in relation to pensions – – (33.1) 31.9 1.2 – – – Reversal of goodwill on disposal of a business – – 1.0 – – – – 1.0 Consideration paid for the purchase of own shares held in an ESOP trust – – – – – – (8.2) (8.2) Consideration received for the sale of own shares held in an ESOP trust – – – – – – 4.0 4.0 Credit in respect of employee share schemes – – 4.3 – – – – 4.3 Dividends – – (204.1) – – – – (204.1) Premium on share issues (net) 31.7 – – – – – – 31.7 At 30 September 2005 406.6 26.3 1,369.5 (221.7) 253.9 32.3 (50.5) 1,816.4 i) The undistributed profits of Group undertakings may be liable to overseas and/or UK tax (after allowing for double tax relief) if distributed as dividends. There are no material exchange control restrictions on the remittance of funds to the UK. ii) Goodwill written off against reserves in respect of continuing businesses acquired prior to 30 September 1998 amounts to £160.4 million (2004: £154.0 million). iii) In accordance with the Group’s accounting policy, exchange losses (net of gains) on net borrowings charged to reserves in the year amounted to £5.8 million (2004: £59.7 million gain). iv) There are no non-equity shareholders’ interests in the share capital and reserves of the Group. v) The amount of the pensions’ reserves is equivalent to the net pensions liabilities (see note 8) adjusted for current tax of £42.1 million (2004: £22.0 million, 2003: £nil). vi) Own shares At 30 September 2005, 5.3 million shares in the company were held pending the exercise of share options. Based on the company’s share price at 30 September 2005 of 1153p, the market value of own shares held was £61.4 million.This compares with the acquisition cost above.The amount paid for the shares reduces profit available for distribution. Information on share option schemes appears in the report on remuneration and in notes 7 and 23.
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BOC Report and accounts 2005
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01 The BOC Group plc is a public li
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Financial highlights 03 Dividends p
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Chairman’s statement 05 Conduct a
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Chief executive’s review 07 Indus
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Board of directors 09 08 09 10 11 1
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Executive management board 11 09 10
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Group five year record 13 Capital e
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Group profile 15 Analysis of result
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Group profile 17 Principal industri
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Group profile 19 In China, signific
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Group profile 21 Sales opportunitie
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Employees 23 At 30 September 2005 t
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Employees 25 Retirement benefit pla
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Social, environmental and ethical p
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Research, development and informati
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Risk factors 39 BOC relies on devel
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Operating review 41 Exceptional ite
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Operating review (comparing 2005 wi
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Financial review 55 Net debt/equity
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Financial review 57 The balance she
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Financial review 59 Manganese litig
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Financial review 61 Current asset p
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Financial review 63 Average exchang
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Corporate governance 65 During the
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Corporate governance 67 Performance
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Corporate governance 69 During the
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Corporate governance 71 There is a
Page 75 and 76: Report on remuneration 73 Variable
Page 77 and 78: Report on remuneration 75 Current m
Page 79 and 80: Report on remuneration 77 Individua
Page 81 and 82: Report on remuneration 79 Executive
Page 83 and 84: Report on remuneration 81 Opening m
Page 85 and 86: Report on remuneration 83 Mr Médor
Page 87 and 88: Report by the independent auditors
Page 89 and 90: Group balance sheet At 30 September
Page 91 and 92: Total recognised gains and losses Y
Page 93 and 94: Accounting policies 91 General •
Page 95 and 96: Notes to the financial statements 9
Page 125: Notes to the financial statements 1
Page 141 and 142: Group undertakings 139 Principal Gr
Page 143 and 144: Shareholder information 141 The tab
Page 145 and 146: Shareholder information 143 Taxatio
Page 147 and 148: Shareholder information 145 Payment
Page 149 and 150: Glossary of terms 147 Terms used in
Page 151 and 152: ©The BOC Group plc 2005. Designed
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