DEFINING DESIGN
QUALITY
82
Notes to the Financial Statements
31 December 2014
24.
Share capital
Group and Company
Number of
ordinary
shares
issued
Number of
treasury
shares
held
Share
capital
Treasury
shares
Total
$’000
$’000
$’000
At 1 January 2013
194,183,151 (2,537,050)
23,266
(978)
22,288
Reissued pursuant to performance
share scheme
–
1,670,850
–
644
644
At 31 December 2013
194,183,151 (866,200)
23,266
(334)
22,932
Issued pursuant to performance
share scheme
370,110
–
348
–
348
Reissued pursuant to performance
share scheme
–
866,200
–
334
334
At 31 December 2014
194,553,261
–
23,614
–
23,614
The ordinary shares of no par value are fully paid, carry one vote each and have no right to fixed income. The
Company is not subject to any externally imposed capital requirements.
Treasury shares relate to ordinary shares of the Company that are held by the Company. The Company reissued
866,200 (2013: 1,670,850) treasury shares pursuant to its performance share scheme at an average fair value of
$0.929 (2013: $0.884) per share.
Capital management
The objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that it
can continue to provide returns for owners and benefits for other stakeholders, and to provide an adequate return
to owners by pricing the sales commensurately with the level of risk. The management sets the amount of capital
to meet its requirements and the risks taken. There were no changes in the approach to capital management during
the reporting year. The management manages the capital structure and makes adjustments to it where necessary or
possible in the light of changes in conditions and the risk characteristics of the underlying assets. In order to maintain
or adjust the capital structure, the management may adjust the amount of dividends paid to owners, return capital
to owners, issue new shares, or sell assets to reduce debt. Adjusted capital comprises all components of equity (that
is, share capital and reserves).
In order to maintain its listing on the Singapore Exchange Securities Trading Limited, the Company has to have share
capital with a free float of at least 10% of the shares. The Company met the capital requirement on its initial listing
and continue to satisfy that requirement, as it did throughout the reporting year. Management receives a report
from the share registrars frequently on substantial share interests showing the non-free float to ensure continuing
compliance with the 10% limit throughout the reporting year.
The management does not set a target level of gearing but uses capital appropriately to support its business and
to add value for shareholders. The key discipline adopted is to widen the margin between the return on capital
employed and the cost of that capital.
