REG - ITV PLC - ITV Preliminary Results 2016 <Origin Href="QuoteRef">ITV.L</Origin> - Part 9

ITVAnnouncement

01/03/2017 07:07

- Part 9: For the preceding part double click  ID:nRSA1335Yh 

                                                  
 Non-current and current                                                                                                                                            
 Foreign exchange forward contracts and swaps - cash flow hedges                                                                                                    
 Inflow                                                                            3         136           102        34              -               -             
 Outflow                                                                           (4)       (136)         (102)      (34)            -               -             
 Foreign exchange forward contracts and swaps - fair value through profit or loss                                                                                   
 Inflow                                                                            3         253           248        5               -               -             
 Outflow                                                                           (2)       (252)         (247)      (5)             -               -             
 Interest Rate Swaps - fair value through profit or loss                                                                                                            
 Inflow                                                                            9         22            9          13              -               -             
 Outflow                                                                           (6)       (12)          (6)        (6)             -               -             
                                                                                   3         11            4          7               -               -             
 
 
Note vii Share capital 
 
                                                                                  Authorised    Allotted, issued  
                                                                                  2016 & 2015   and fully paid    
                                                                                  £m            2016 & 2015       
                                                                                                £m                
 Authorised ordinary shares of 10 pence each                       8,000,000,000  800                             
 Allotted, issued and fully paid ordinary shares of 10 pence each  4,025,409,194                403               
 Total                                                                            800           403               
 
 
The Company's ordinary shares give shareholders equal rights to vote, receive dividends and to the repayment of capital. 
 
Note viii Equity and dividends 
 
Keeping it simple 
 
ITV plc is a non-trading investment holding company and derives its profits from dividends paid by subsidiary companies. 
 
The Directors consider the Group's capital structure and dividend policy at least twice a year ahead of announcing results
and do so in the context of its ability to continue as a going concern, to execute the strategy and to invest in
opportunities to grow the business and enhance shareholder value. 
 
The dividend policy is influenced by a number of the principal risks as identified on the previous pages that could have a
negative impact on the performance of the Group. 
 
In determining the level of dividend in any year the Directors follow the dividend policy and also consider a number of
other factors that influence the proposed dividend, including: 
 
•  The level of retained distributable reserves in ITV plc the Company, 
 
•  Availability of cash resources (as disclosed in note 4.1 to the consolidated financial statements), 
 
•  Future cash commitments and investment plans, in line with Group's strategic plan. 
 
Equity 
 
The retained earnings reserve includes profit after tax for the year of £1,475 million (2015: £671 million profit) which
includes dividends of £1,500 million from subsidiaries in 2016 (2015: £700 million). Other reserves of £28 million (2015:
£36 million) relate to share-buy backs in prior periods and foreign currency translation net of cashflow hedging. 
 
Dividends 
 
The Directors of the Company propose a final dividend of 7.2p per share and a special dividend of 5p per share. 
 
Distributable reserves 
 
The distributable reserves of ITV plc approximate to the balance of the retained earnings reserve of £1,702 million as at
31 December 2016. 
 
Note ix Contingent liabilities 
 
Keeping it simple 
 
A contingent liability is a liability that is not sufficiently certain to qualify for recognition as a provision where
uncertainty may exist regarding the outcome of future events. 
 
Under a Group registration, the Company is jointly and severally liable for VAT at 31 December 2016 of £47 million (31
December 2015: £59 million). The Company has guaranteed certain finance and operating lease obligations of subsidiary
undertakings. 
 
There are contingent liabilities in respect of certain litigation and guarantees, broadcasting issues, and in respect of
warranties given in connection with certain disposals of businesses. None of these items are expected to have a material
effect on the Company's results or financial position. 
 
Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its
Group, the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the
Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company
will be required to make a payment under the guarantee. 
 
Note x Capital and other commitments 
 
There are no capital commitments at 31 December 2016 (2015: none). 
 
Note xi Related party transactions 
 
Keeping it simple 
 
The related parties identified by the Directors include solely key management, as ITV plc is a holding company with no
commercial activity. 
 
To enable the users of the financial statements to form a view about the effects of related party relationships on the
Company, we disclose the Company's transactions with those during the year. 
 
Transactions with key management personnel 
 
Key management consists of ITV plc Executive Directors. 
 
Key management personnel compensation, on an accounting basis, is as follows: 
 
                               2016  2015  
                               £m    £m    
 Short-term employee benefits  3     3     
 Share-based compensation      2     3     
                               5     6     
 
 
Total emoluments and gains on share options received by key management personnel in the year were: 
 
                                              2016  2015  
                                              £m    £m    
 Emoluments                                   3     3     
 Gains on exercise of share options           2     3     
 Gains on release of restricted share awards  2     3     
                                              7     9     
 
 
Note xii Subsequent events 
 
Keeping it simple 
 
Where the Group receives information in the period between 31 December 2016 and the date of this report about conditions
related to certain events that existed at 31 December 2016, we update our disclosures that relate to those conditions in
light of the new information. Such events can be categorised as adjusting or non-adjusting depending on whether the
condition existed at 31 December 2016. If non-adjusting events are material, non-disclosure could influence the economic
decisions that users make on the basis of the financial statements. Accordingly, for each material category of
non-adjusting event after the reporting period we disclose in this section the nature of the event and an estimate of its
financial effect, or a statement that such an estimate cannot be made. 
 
On 5 January 2017 the £161 Eurobond matured and the Group repaid the capital amount. The related interest rate swap
contracts were settled at the same time. The bond was refinanced earlier in December 2016. 
 
This information is provided by RNS
The company news service from the London Stock Exchange