Annual Report 2011 - Mandarin Oriental Hotel Group

More documents

Recommendations

Info

52 Mandarin Oriental International Limited Notes to the Financial Statements Continued 6 Earnings per share Basic earnings per share are calculated on the profit attributable to shareholders of US$67.5 million (2010: US$44.4 million) and on the weighted average number of 996.1 million (2010: 990.8 million) shares in issue during the year (refer principal accounting policy (U)). Diluted earnings per share are calculated on profit attributable to shareholders of US$67.5 million (2010: US$44.4 million), which is after adjusting for the effects of the conversion of dilutive potential ordinary shares of subsidiaries, associates or joint ventures, and on the weighted average number of 1,002.8 million (2010: 996.1 million) shares in issue during the year (refer principal accounting policy (U)). The weighted average number of shares is arrived at as follows: Ordinary shares in millions 2011 2010 Weighted average number of shares in issue 996.7 991.9 Shares held by the Trustee under the Senior Executive Share Incentive Schemes (0.6 ) (1.1 ) Weighted average number of shares for basic earnings per share calculation Adjustment for shares deemed to be issued for no consideration 996.1 990.8 under the Senior Executive Share Incentive Schemes 6.7 5.3 Weighted average number of shares for diluted earnings per share calculation 1,002.8 996.1 Additional basic and diluted earnings per share are also calculated based on underlying profit attributable to shareholders. A reconciliation of earnings is set out below: 2011 2010 Basic Diluted Basic Diluted earnings earnings earnings earnings per share per share per share per share US$m US¢ US¢ US$m US¢ US¢ Underlying profit attributable to shareholders 59.0 5.92 5.88 44.4 4.48 4.46 Non-trading items (refer note 7) 8.5 0.86 0.85 – – – Profit attributable to shareholders 67.5 6.78 6.73 44.4 4.48 4.46 7 Non-trading items An analysis of non-trading items after interest, tax and non-controlling interests is set out below: 2011 2010 US$m US$m Gain on One Hyde Park lease space 10.1 – Provisions against asset impairment (1.6 ) – 8.5 – In 2011, a long-term leasehold interest, granted to the Group by the developer of The Residences at Mandarin Oriental, London at no cost, was recognized as a non-trading gain based on its market value less costs relating to the transfer of title.
8 Intangible assets Annual Report 2011 53 Leasehold Computer Development Goodwill land software costs Total US$m US$m US$m US$m US$m 2011 Cost 23.9 6.5 7.8 38.9 77.1 Amortization and impairment – (1.3 ) (4.7 ) (3.7 ) (9.7 ) Net book value at 1st January 23.9 5.2 3.1 35.2 67.4 Exchange differences – – (0.1 ) 1.4 1.3 Additions – – 3.0 0.9 3.9 Amortization charge – (0.2 ) (2.1 ) (0.3 ) (2.6 ) Impairment charge – – – (0.9 ) (0.9 ) Reclassification to tangible assets – – – (29.0 ) (29.0 ) Net book value at 31st December 23.9 5.0 3.9 7.3 40.1 Cost 23.9 6.5 15.3 9.4 55.1 Amortization and impairment – (1.5 ) (11.4 ) (2.1 ) (15.0 ) 23.9 5.0 3.9 7.3 40.1 2010 Cost 23.9 6.9 6.0 17.2 54.0 Amortization and impairment – (1.5 ) (2.8 ) (2.8 ) (7.1 ) Net book value at 1st January 23.9 5.4 3.2 14.4 46.9 Exchange differences – – 0.1 (0.3 ) (0.2 ) Additions – – 1.9 22.0 23.9 Amortization charge – (0.2 ) (2.1 ) (0.1 ) (2.4 ) Impairment charge – – – (0.8 ) (0.8 ) Net book value at 31st December 23.9 5.2 3.1 35.2 67.4 Cost 23.9 6.5 7.8 38.9 77.1 Amortization and impairment – (1.3 ) (4.7 ) (3.7 ) (9.7 ) 23.9 5.2 3.1 35.2 67.4 Management has performed an impairment review of the carrying amount of goodwill at 31st December 2011. For the purpose of impairment review, goodwill acquired has been allocated to the respective hotels and is reviewed for impairment based on individual hotel forecast operating performance and cash flows. Cash flow projections for the impairment reviews are based on individual hotel budgets prepared on the basis of assumptions reflective of the prevailing market conditions, and are discounted appropriately. Key assumptions used for value-in-use calculations include average growth rates of between 5% to 17% to extrapolate cash flows over a five year period after which the growth rate is assumed at 8% in perpetuity, which may vary across the Group’s geographical locations, and are based on management expectations of the market development; and pre-tax discount rates of around 10% applied to the cash flow projections. The discount rates used reflect business specific risks relating to the business life-cycle and geographical location. On the basis of these reviews, management concluded that no impairment is required. The amortization charges are all recognized in arriving at operating profit and are included in cost of sales in profit and loss. The remaining amortization periods for intangible assets are as follows: Leasehold land 10 to 30 years Computer software 3 to 5 years Development costs 15 to 40 years
Page 1:
Mandarin Oriental international lim
Page 4 and 5: 2 Mandarin Oriental International L
Page 12 and 13: 10 Mandarin Oriental International
Page 76 and 77: Five Year Summary Consolidated Prof
Page 78 and 79: Corporate Governance Annual Report
Page 80 and 81: Annual Report 2011 79 Senior execut
Page 82 and 83: Annual Report 2011 81 Company in re
Page 84 and 85: Annual Report 2011 83 Key agreement
Page 86 and 87: Mandarin Oriental Hotel Group Conta
Page 88 and 89: Mandarin Oriental, Prague Nebovidsk
Page 90: Mandarin Oriental Hotel Group Reser
show all

Annual Report 2011 - Mandarin Oriental Hotel Group

Create successful ePaper yourself

Delete template?

Save as template?