- Strategy & performance
In this section we give an overview of our performance in 2010, plus objectives and our outlook for 2011.
- Business review
Find out about how each of our businesses have performed this year, plus our outlook for each in 2011.
Business overview
For an at a glance overview of the performance of each of our businesses.
- Governance
Find out about how we govern the company, our remuneration policies, the director’s report and a statement of their responsibilities.
- Financials
Including consolidated statements, the auditor’s report, notes to the accounts and a five year summary.
- Shareholder
information
For useful share management and investor information, including key dates for the diary and contact information.
Annual General Meeting
Will be held on Wednesday 11 May 2011 at 11.00 am
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Attributable to equity holders of the company |
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| For the year ended 31 December |
Called up share capital £m |
Share premium account £m |
Other reserves £m |
Retained earnings £m |
Non controlling interests £m |
Total equity £m |
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| At 1 January 2009 | 18.1 | 6.8 | (1,798.5) | 1,702.7 | 9.0 | (61.9) | |
| Profit for the year | – | – | – | 47.6 | 1.3 | 48.9 | |
| Other comprehensive income: |
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| Net exchange adjustments offset in reserves | – | – | 26.5 | – | 2.2 | 28.7 | |
| Actuarial loss on defined benefit pension plans | – | – | – | (211.4) | – | (211.4) | |
| Revaluation of available-for-sale investments | – | – | (2.5) | – | – | (2.5) | |
| Movement on cash flow hedge reserve | – | – | (0.8) | – | – | (0.8) | |
| Tax on items taken directly to reserves | – | – | – | 49.0 | – | 49.0 | |
| Cumulative exchange recycled to income statement on disposal of foreign operations | – | – | (2.0) | – | – | (2.0) | |
| Total comprehensive expense for the year | – | – | 21.2 | (114.8) | 3.5 | (90.1) | |
| Transactions with owners: |
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| Cost of share options and long-term incentive plan | – | – | – | 5.1 | – | 5.1 | |
| Transactions with non controlling interests: |
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| Acquisition of non controlling interests | – | – | – | – | (0.7) | (0.7) | |
| Dividends paid to non controlling interests | – | – | – | – | (2.5) | (2.5) | |
| At 31 December 2009 | 18.1 | 6.8 | (1,777.3) | 1,593.0 | 9.3 | (150.1) | |
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Attributable to equity holders of the company |
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|---|---|---|---|---|---|---|---|
| For the year ended 31 December |
Called up share capital £m |
Share premium account £m |
Other reserves £m |
Retained earnings £m |
Non controlling interests £m |
Total equity £m |
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| At 1 January 2010 | 18.1 | 6.8 | (1,777.3) | 1,593.0 | 9.3 | (150.1) | |
| Loss for the year | – | – | – | (23.4) | 3.1 | (20.3) | |
| Other comprehensive income: |
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| Net exchange adjustments offset in reserves | – | – | 32.4 | – | 1.1 | 33.5 | |
| Actuarial gain on defined benefit pension plans | – | – | – | 15.4 | – | 15.4 | |
| Revaluation of available-for-sale investments | – | – | 1.1 | – | – | 1.1 | |
| Movement on cash flow hedge reserve | – | – | (1.3) | – | – | (1.3) | |
| Tax on items taken directly to reserves | – | – | – | (4.2) | – | (4.2) | |
| Cumulative exchange recycled to income statement on disposal of foreign operations | – | – | (2.3) | – | – | (2.3) | |
| Total comprehensive income for the year | – | – | 29.9 | (12.2) | 4.2 | 21.9 | |
| Transactions with owners: |
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| Cost of share options and long-term incentive plan | – | – | – | 6.0 | – | 6.0 | |
| Transactions with non controlling interests: |
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| Acquisition of non controlling interests | – | – | – | – | (0.4) | (0.4) | |
| Dividends paid to non controlling interests | – | – | – | – | (2.6) | (2.6) | |
| At 31 December 2010 | 18.1 | 6.8 | (1,747.4) | 1,586.8 | 10.5 | (125.2) | |
Treasury shares of £11.1m (2009: £11.1m) have been netted against retained earnings. Treasury shares represent 7.4 million (2009: 7.4 million) shares held by the Rentokil Initial Employee Share Trust. The market value of these shares at 31 December 2010 was £7.2m (2009: £8.6m). Dividend income from, and voting rights on, the shares held by the Trust have been waived.
Analysis of other reserves
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Capital reduction reserve £m |
Legal £m |
Cash flow hedge reserve £m |
Translation reserve £m |
Available for sale £m |
Total £m |
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| At 1 January 2009 | (1,722.7) | 10.4 | (4.2) | (84.3) | 2.3 | (1,798.5) |
| Net exchange adjustments offset in reserves | – | – | – | 26.5 | – | 26.5 |
| Revaluation of available-for-sale investments | – | – | – | – | (2.5) | (2.5) |
| Movement on cash flow hedge reserve | – | – | (0.8) | – | – | (0.8) |
| Cumulative exchange recycled to income statement on disposal of foreign operations | – | – | – | (2.0) | – | (2.0) |
| Total comprehensive income for the year | – | – | (0.8) | 24.5 | (2.5) | 21.2 |
| At 31 December 2009 | (1,722.7) | 10.4 | (5.0) | (59.8) | (0.2) | (1,777.3) |
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Capital reduction reserve £m |
Legal £m |
Cash flow hedge reserve £m |
Translation reserve £m |
Available for sale £m |
Total £m |
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| At 1 January 2010 | (1,722.7) | 10.4 | (5.0) | (59.8) | (0.2) | (1,777.3) |
| Net exchange adjustments offset in reserves | – | – | – | 32.4 | – | 32.4 |
| Revaluation of available-for-sale investments | – | – | – | – | 1.1 | 1.1 |
| Movement on cash flow hedge reserve | – | – | (1.3) | – | – | (1.3) |
| Cumulative exchange recycled to income statement on disposal of foreign operations | – | – | – | (2.3) | – | (2.3) |
| Total comprehensive income for the year | – | – | (1.3) | 30.1 | 1.1 | 29.9 |
| At 31 December 2010 | (1,722.7) | 10.4 | (6.3) | (29.7) | 0.9 | (1,747.4) |
The capital reduction reserve arose in 2005 as a result of the scheme of arrangement of Rentokil Initial 1927 plc under section 425 of the Companies Act 1982 to introduce a new holding company, Rentokil Initial plc, and the subsequent reduction in capital approved by the High Court whereby the nominal value of each ordinary share was reduced from 100p to 1p. The effect of this capital reorganisation transaction, which was treated as a reverse acquisition in the group financial statements, was to increase distributable reserves by £1,792.3m.