REG - Hargreaves Lansdown - Annual Financial Report <Origin Href="QuoteRef">HRGV.L</Origin> - Part 3
23/09/2015 11:10
- Part 3: For the preceding part double click ID:nRSW9423Zb
following transactions with directors within the
Hargreaves Lansdown Group and related parties who are not members of the
Group:
During the years ended 30 June 2015 and 30 June 2014 the Company has been
party to a lease with P K Hargreaves, a director until 14 April 2015, for
rental of the old head office premises at Kendal House. A ten-year lease was
signed on 6 April 2011 for a rental of part of the building, to be used for
disaster recovery purposes at a market rate rent of £105,000 per annum. No
amount was outstanding at either year-end.
During the year the Company settled certain personal expenses on behalf of one
director, all of which were subject to subsequent reimbursement from the
director. At the year end the amount outstanding was £nil (2014: £4,999).
On 7 November 2014, the Group agreed to purchase 30 shares in its subsidiary,
Library Information Services Ltd (LIS), in an arm's length transaction;
increasing the Group's share-holding from 75% to 78%. The shares were
purchased from Stuart Louden the founder director of LIS and currently the
only other shareholder, who is an employee of Hargreaves Lansdown Asset
Management Limited. The price paid per share was £35,405. There is no readily
available market for these shares and hence a valuation was arrived at based
on a multiple of operating profit. The directors of Hargreaves Lansdown plc
deemed this to be a fair price in the circumstances. The total amount paid was
£1,062,150 and this was settled in cash on 17 December 2014.
During the years ended 30 June 2015 and 30 June 2014 the Group has provided a
range of investment services in the normal course of business to shareholders
on normal third party business terms. Directors and staff are eligible for a
slight discount on some of the services provided.
Remuneration of key management personnel
The remuneration of the key management personnel of the Group, being those
personnel who were either a member of the Board of a Group company or a member
of the Executive Committee during the relevant year shown below, is set out
below in aggregate for each of the categories specified in IAS 24 Related
Party Disclosures.
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Short-term employee benefits 5,787 8,813
Post-employment benefits 378 590
Termination benefits 183 50
Share-based payments 924 1,141
7,272 10,594
In addition to the amounts above, 3 key management personnel (2014: 9) received gains of £3,685,000 (2014: £12,168,000) as a result of exercising share options. During the year awards under the long term incentive schemes were made to 9 key management personnel (2014: 10).
Included within the previous table are the following amounts paid to directors
of the Company who served during the relevant year. Full details of
directors' remuneration including numbers of shares exercised are shown in the
Remuneration Committee report.
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Short-term employee benefits 1,723 3,318
Post-employment benefits 83 108
Termination benefits 183 -
Share-based payments 170 278
2,159 3,704
In addition to the amounts above, directors of the Company received gains £nil relating to the exercise of share options (2014: £9,016,000).
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Emoluments of the highest paid director 1,392 2,036
No. No.
Number of directors who exercised share options during the year - 2
Number of directors who were members of money purchase pension schemes 2 2
Any amounts outstanding with related parties are unsecured and will be settled
in cash. No guarantees have been given or received in respect of amounts
outstanding. No provisions have been made for doubtful debts in respect of
the amounts owed by the related parties.
Related party transactions
The Company has a related party relationship with its subsidiaries, and with
its directors and members of the Executive Committee (the "key management
personnel"). Transactions between the Company and its key management personnel
are disclosed below. Details of transactions between the Company and other
related parties are also disclosed below.
Trading transactions
The Company entered into the following transactions with directors within the
Hargreaves Lansdown Group and related parties who are not members of the
Group:
During the years ended 30 June 2015 and 30 June 2014 the Company has been
party to a lease with P K Hargreaves, a director until 14 April 2015, for
rental of the old head office premises at Kendal House. A ten-year lease was
signed on 6 April 2011 for a rental of part of the building, to be used for
disaster recovery purposes at a market rate rent of £105,000 per annum. No
amount was outstanding at either year-end.
During the year the Company settled certain personal expenses on behalf of one
director, all of which were subject to subsequent reimbursement from the
director. At the year end the amount outstanding was £nil (2014: £4,999).
On 7 November 2014, the Group agreed to purchase 30 shares in its subsidiary,
Library Information Services Ltd (LIS), in an arm's length transaction;
increasing the Group's share-holding from 75% to 78%. The shares were
purchased from Stuart Louden the founder director of LIS and currently the
only other shareholder, who is an employee of Hargreaves Lansdown Asset
Management Limited. The price paid per share was £35,405. There is no readily
available market for these shares and hence a valuation was arrived at based
on a multiple of operating profit. The directors of Hargreaves Lansdown plc
deemed this to be a fair price in the circumstances. The total amount paid was
£1,062,150 and this was settled in cash on 17 December 2014.
During the years ended 30 June 2015 and 30 June 2014 the Group has provided a
range of investment services in the normal course of business to shareholders
on normal third party business terms. Directors and staff are eligible for a
slight discount on some of the services provided.
Remuneration of key management personnel
The remuneration of the key management personnel of the Group, being those
personnel who were either a member of the Board of a Group company or a member
of the Executive Committee during the relevant year shown below, is set out
below in aggregate for each of the categories specified in IAS 24 Related
Party Disclosures.
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Short-term employee benefits 5,787 8,813
Post-employment benefits 378 590
Termination benefits 183 50
Share-based payments 924 1,141
7,272 10,594
In addition to the amounts above, 3 key management personnel (2014: 9) received gains of £3,685,000 (2014: £12,168,000) as a result of exercising share options. During the year awards under the long term incentive schemes were made to 9 key management personnel (2014: 10).
Included within the previous table are the following amounts paid to directors
of the Company who served during the relevant year. Full details of
directors' remuneration including numbers of shares exercised are shown in the
Remuneration Committee report.
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Short-term employee benefits 1,723 3,318
Post-employment benefits 83 108
Termination benefits 183 -
Share-based payments 170 278
2,159 3,704
In addition to the amounts above, directors of the Company received gains £nil relating to the exercise of share options (2014: £9,016,000).
Year ended 30 June 2015 Year ended 30 June 2014
£'000 £'000
Emoluments of the highest paid director 1,392 2,036
No. No.
Number of directors who exercised share options during the year - 2
Number of directors who were members of money purchase pension schemes 2 2
Any amounts outstanding with related parties are unsecured and will be settled
in cash. No guarantees have been given or received in respect of amounts
outstanding. No provisions have been made for doubtful debts in respect of
the amounts owed by the related parties.
This information is provided by RNS
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