Notes to the financial statements

(b) Issued share capital

During the year 0.4m (2008 – 1m) ordinary shares of 10p each were issued following the exercise of options held under employee share schemes for a consideration of £0.4m (2008 – £1m).

The number of ordinary shares of 10p each in issue at 31 March 2009 was 649,769,826 (2008 – 649,398,965) with 2,034,739 (2008 – 1,051,169) held as Treasury Shares and 14,510,959 (2008 – 12,306,939) held in employee share trusts. The cost of Treasury Shares is deducted from retained earnings (note 27). The cost of shares held in employee share trusts is loaned to the trusts by the Company and is treated as other receivables.

(c) Potential issues of share capital

Certain employees hold options over the Company’s shares, which are potentially issuable as follows:

* Year end 31 December. All other year ends are 31 March.

Shares that have been issued, but are held in employee share trusts for employee share options are not included in the above. Full details of share option schemes are given in
note 26.

(d) Shares held in trust for employee share schemes

The Company has established employee share trusts in respect of the SEEPP, BSMP, LTIP and Traiana Plan which are funded by the Company and have the power to acquire shares in the open market to meet the Company’s future obligations under these schemes. As at 31 March 2009 these trusts owned 14,510,959 ordinary 10p shares in the Company (2008 – 12,306,939) with a market value of £45m as at 31 March 2009 (2008 – £70m).

(e) Treasury Shares

During the year the Company purchased 2,620,000 (2008 – 1,850,000) of its own shares for £9m (2008 – £9m) to be held as Treasury Shares and re-issued 1,636,430 (2008 – 2,687,231) to satisfy employee share options exercised for £2m (2008 £6m). As at 31 March 2009 the number of shares held as Treasury Shares was 2,034,739 (2008 – 1,051,169). Losses made on the reissue of Treasury Shares are recognised directly in equity.