notes to the financial statements - Investor Relations

CWT Limited
100
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
23 NON-CURRENT ASSETS HELD-FOR-SALE
Group
2011 2010
$’000 $’000
Property, plant and equipment 2,345 –
During the year, the Group entered into a sale and purchase agreement to dispose of a warehouse property. The sale was
completed on 6 February 2012 (see note 45(b)).
24 SHARE CAPITAL
2011 2011 2010 2010
No. of
No. of
Company
shares
shares
(’000) $’000 (’000) $’000
Issued and fully paid, with no par value:
At 1 January 590,305 161,965 574,305 149,390
Shares issued 10,000 12,373 16,000 12,575
At 31 December 600,305 174,338 590,305 161,965
Issue of ordinary shares
During the year, 10,000,000 ordinary shares were issued for $12,373,000, being partial settlement of the purchase
consideration for the acquisition of MRI Trading AG (see note 40a) (2010: 16,000 ordinary shares were issued for cash of
$12,575,000).
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per
share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
Capital management
The Board defines “Capital” to include share capital, reserves and non-controlling interests. The Board’s policy is to maintain
a sound capital base to sustain the future development and expansion of the Group’s business, so as to maintain investor
and creditor confidence in the Group. The Board of Directors monitors the level of dividend payment by taking into account
the Group’s business expansion requirements.
The Board of Directors also seeks to maintain an optimal mix of equity and debt with a view to optimise financial return to
shareholders. The Group targets to achieve a return on shareholders’ equity (“ROE”) of between 13.0% and 18.0%. In 2011,
the Group achieved a ROE of 12% (2010: 40.8%).
The Group monitors capital on the basis of the debt to equity ratio. This ratio is calculated as total borrowings divided by
equity. Total borrowings refer to “financial liabilities” as shown in the consolidated statement of financial position; and equity
refers to share capital, reserves and non-controlling interests as shown in the consolidated statement of financial position.
The Group’s strategy, which is unchanged from 2010, is to maintain the debt to equity ratio under 1.0. The debt to equity
ratio at 31 December 2011 and 2010 were as follows:
Group
2011 2010
$’000 $’000
Debt to equity ratio 0.77 0.04
There were no changes in the Group’s approach to capital management during the year.