For the year ended 31 December 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
21 Provisions continued Employee obligations
Long service non-pension and other employee related obligations arising primarily in the Group’s continental European subsidiaries amount to £21 million (2014: £23 million). Utilisation of the provision due in more than one year is estimated as £6 million in 2017 and £12 million from 2018.
Other provisions include £1 million (2014: £2 million) in relation to previous reorganisation arising from the Group’s strategic restructuring programmes and £8 million (2014: £11 million) relating to other customer and supplier exposures. Utilisation of the provision due in more than one year is estimated as nil in 2017 and £2 million from 2018.
22 Share capital
Issued and fully paid
2015 £m 2014 £m
Ordinary shares of 10p each
2015 Number 000s
2014 Number 000s
Ordinary shares of 10p each At 1 January Shares issued At 31 December
1,660,530 1,660,530 65,574 – 1,726,104 1,660,530
At 31 December 2015, there were 12,168,928 ordinary shares of 10p each, with a total nominal value of £1 million, held as treasury shares (2014: 17,797,916 ordinary shares of 10p each, with a total nominal value of £2 million). A total of 5,628,988 (2014: 2,760,865) shares were transferred out of treasury during 2015 to satisfy the exercise of options by participants under share option schemes. The remaining treasury shares, which represented 0.7% (2014: 1.1%) of the called up share capital at the end of the year, have not been cancelled but are held as treasury shares and represent a deduction from shareholders’ equity. At 31 December 2015, the GKN Employee Share Ownership Plan Trust (‘the Trust’) held 2,518,624 ordinary shares (2014: 186,652). A total of 2,476,894 shares were purchased by the Trust in the open market during 2015 for cash consideration of £7 million (2014: 130,000 shares were purchased for cash consideration of less than £1 million). During the year a total of 144,922 (2014: 1,831,013) shares were transferred out of the Trust to satisfy the vesting and exercise of awards of ordinary shares made under the Group’s share-based incentive arrangements. The remaining Trust shares will be used to satisfy future exercises. A dividend waiver operates in respect of shares held by the Trust. During the year shares issued from Treasury under share incentive schemes generated a cash inflow of £2 million (2014: £1 million). On 30 July 2015 the Company conducted an equity placing of 65,573,771 ordinary shares of 10p each with a total nominal value of £7 million, at a price of £3.05 per share, to raise a total of £200 million before transaction costs of £2 million, which have been taken to the Share Premium Account, as a deduction from equity.
GKN plc Annual Report and Accounts 2015