| Own shares held £m |
Retained earnings £m |
Total £m |
|||
| At 1 January 2006 | (0.7) | 113.0 | 112.3 | ||
| Retained profit for the year | – | 3.2 | 3.2 | ||
| Own shares released on vesting of share awards | 0.2 | – | 0.2 | ||
| At 31 December 2006 | (0.5) | 116.2 | 115.7 | ||
| At 1 January 2007 | (0.5) | 116.2 | 115.7 | ||
| Retained profit for the year | – | 1.6 | 1.6 | ||
| Increase in equity reserve arising from charge to income for share options in the year | – | 2.1 | 2.1 | ||
| Purchase of own shares | (2.1) | – | (2.1) | ||
| Own shares released on vesting of share awards | 0.2 | – | 0.2 | ||
| At 31 December 2007 | (2.4) | 119.9 | 117.5 |
As allowed under section 230 of the Companies Act 1985, no profit and loss account is presented in respect of the Company. The profit of the Company for the year was £1.6 million (2006: £3.2 million).
In accordance with FRS 20, for share options that were issued after 7 November 2002, and which had not vested at 1 January 2005, the fair value of the employee service received in exchange for the grant of the option is recognised in the Profit and Loss Account over the related performance period. The Company recharges these expenses to the relevant Group company in which the individual is employed.
