Parent Company Financial Statements

Transcription

1 IHG Annual Report and Form 20-F Parent Company Financial Statements 156 Parent company balance sheet 157 Notes to the Parent Company Financial Statements Stay Guest Journey Step four The Stay phase of the Guest Journey is where we welcome guests to our hotels and deliver our brand promise through our talented people. This step includes the arrival and departure of our guests, as well as the stay in the hotel room itself; its public areas; food and beverage; and guest services. Page 154: Crowne Plaza London The City, UK Page 155: Hotel Indigo Paris Opera, France 154

2 STRATEGIC REPORT GOVERNANCE GROUP PARENT COMPANY ADDITIONAL INFORMATION 155

3 IHG Annual Report and Form 20-F Parent Company Financial Statements Parent company balance sheet 31 December Note Fixed assets Investments 3 2,985 2,968 Current assets Debtors Creditors: amounts falling due within one year 5 (1,133) (484) Net current liabilities (1,110) (456) Total assets less current liabilities 1,875 2,512 Creditors: amounts falling due after one year 5 (646) (645) Net assets 1,229 1,867 Capital and reserves Called up share capital Share premium account Capital redemption reserve Share-based payment reserve Profit and loss account ,545 Equity shareholders funds 1,229 1,867 Signed on behalf of the Board Paul Edgecliffe-Johnson 16 February 2015 No profit and loss account is presented for InterContinental Hotels Group PLC as permitted by Section 408 of the Companies Act Loss on ordinary activities after taxation amounts to 34m ( profit 1,487m). Notes on pages 157 to 159 form an integral part of these Financial Statements. 156

4 Notes to the Parent Company Financial Statements 1. Accounting policies Basis of accounting The Financial Statements are prepared under the historical cost convention and on a going concern basis. They have been drawn up to comply with applicable accounting standards in the United Kingdom (UK GAAP). These accounts are for the Company and are not consolidated financial statements. Fixed asset investments Fixed asset investments are stated at cost plus deemed capital contributions arising from share-based payment transactions less any provision for impairment. The Company records an increase in its investments in subsidiaries equal to the share-based payments charge recognised by its subsidiaries with a corresponding credit to equity. Details of the Group s share-based payments are set out in note 26 of the Group Financial Statements on pages 146 to 148. Borrowings Borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. They are subsequently measured at amortised cost. Finance charges, including the transaction costs and any discount or premium on issue, are charged to the profit and loss account using the effective interest rate method. Borrowings are classified as due after more than one year when the repayment date is more than 12 months from the balance sheet date. Financial risk management policies Financial risk management policies are set out in note 20 of the Group Financial Statements on pages 135 and 136. Capital risk management The Group s capital risk management policy is set out in note 20 of the Group Financial Statements on page 136. Related party transactions The Company takes advantage of the exemption under FRS 8 and does not disclose transactions with wholly owned subsidiaries. Treasury shares Own shares repurchased by the Company and not cancelled (treasury shares) are recognised at cost and deducted from retained earnings. If reissued, any excess of consideration over carrying amount is recognised in the share premium reserve. STRATEGIC REPORT GOVERNANCE 2. Directors Number of Directors Directors emoluments ¹ Base salaries, fees, performance payments and benefits Pension benefits under defined contribution plan ¹ Excludes ICETUS cash-out payment of 9.4m (see Directors Remuneration Report, page 85). Detailed information on the emoluments, pensions, option holdings and shareholdings for each Director is shown in the Directors Remuneration Report on pages 76 to Investments At 1 January 2,968 Share-based payments capital contribution 17 At 31 December 2,985 The Company is the beneficial owner of all of the equity share capital of InterContinental Hotels Limited. The principal operating subsidiary undertakings of that company are listed in note 34 of the Group Financial Statements. GROUP PARENT COMPANY ADDITIONAL INFORMATION 157

5 IHG Annual Report and Form 20-F Notes to the Parent Company Financial Statements continued 4. Debtors Amounts due from subsidiary undertakings 8 14 Corporate taxation Creditors Amounts falling due within one year Bank overdraft 1 Amounts due to subsidiary undertakings 1, Amounts falling due after more than one year 1, m 6% bonds m 3.875% bonds The 6% fixed interest sterling bonds were issued on 9 December 2009 and are repayable in full on 9 December Interest is payable annually on 9 December in each year commencing 9 December 2010 to the maturity date. The bonds were initially priced at % of face value and are unsecured. The 3.875% fixed interest sterling bonds were issued on 28 November 2012 and are repayable on 28 November Interest is payable annually on 28 November in each year commencing 28 November to the maturity date. The bonds were initially priced at % of face value and are unsecured. 6. Share capital Allotted, called up and fully paid Number of shares millions At 1 January (ordinary shares of p each) Share capital consolidation (20) Repurchased and cancelled under repurchase programme (1) At 31 December (ordinary shares of p each) Under the authority granted by shareholders at the General Meeting (GM) held on 8 October 2012, the share repurchase programme commenced in November m shares were repurchased in the year to 31 December for a total consideration of 67m. The authority given to the Company at the GM held on 30 June to purchase its own shares was still valid at 31 December. A resolution to renew the authority will be put to shareholders at the Annual General Meeting (AGM) on 8 May The Company no longer has an authorised share capital. The aggregate consideration in respect of ordinary shares issued under option schemes during the year was nil ( 3m). Further details of the share capital consolidation are set out in note 27 of the Group Financial Statements on page 149. Thousands Options to subscribe for ordinary shares At 1 January 60 Exercised 1 (60) At 31 December Option exercise price per ordinary share (pence) The weighted average option price was 541.3p for shares exercised under the Executive Share Option Plan. 158

6 7. Movements in reserves Share premium account Capital redemption reserve Share-based payments reserve Profit and loss account At 1 January ,545 Premium on allotment of ordinary shares Repurchase of shares (67) Loss after tax (34) Transaction costs relating to shareholder returns (1) Share-based payments capital contribution 17 Dividends (553) At 31 December At 31 December, 11,538,456 shares with a nominal value of 1,823,707 were held as treasury shares at cost. 8. Reconciliation of movements in shareholders funds Earnings available for shareholders Dividends Issue of ordinary shares Repurchase of shares (34) 1,487 (553) (342) (587) 1,145 3 (67) (181) Transaction costs relating to shareholder returns (1) Share-based payments capital contribution Net movement in shareholders funds (638) 984 Shareholders funds at 1 January 1, Shareholders funds at 31 December 1,229 1,867 STRATEGIC REPORT GOVERNANCE 9. Profit and dividends Loss on ordinary activities after tax amounts to 34m ( profit 1,487m). A final dividend, declared in the previous year, of 28.1p ( 27.7p) per share was paid during the year, amounting to 72m ( 74m). An interim dividend of 14.8p ( 15.1p) per share was paid during the year, amounting to 35m ( 40m). A special interim dividend of 174.9p ( 87.1p) per share was paid during the year, amounting to 446m ( 228m). A final dividend of 33.8p ( 28.1p) per share, amounting to 79m ( 72m), is proposed for approval at the AGM. The proposed final dividend is payable on shares in issue at 7 April The audit fee of 0.02m ( 0.02m) was borne by a subsidiary undertaking in both years. GROUP 10. Contingencies Contingent liabilities of 231m ( nil) in respect of the guarantees of the liabilities of subsidiaries have not been provided for in these financial statements. On 16 January 2015, the Company entered into a further guarantee of 256m in relation to a loan drawn down by a subsidiary to finance the acquisition of Kimpton Hotel & Restaurant Group, LLC (see note 33 to the Group Financial Statements). PARENT COMPANY ADDITIONAL INFORMATION 159