Page 104 - 17720_ITE_AR12_WEB_V2_19.12.12

Financial Statements
102 ITE Group plc Annual Report and Accounts 2012
1 Basis of accounting continued
Foreign currencies
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies at the balance sheet date are retranslated at the rates of exchange prevailing at
that date. Non-monetary assets and liabilities are translated at the rate prevailing at the date the fair value was determined.
Gains and losses arising on retranslation of monetary assets are included in profit or loss for the period.
Employee Share Trust
The financial statements include the assets and liabilities of the Employee Share Trust (‘ESOT’). Shares in the Company held
by the ESOT have been valued at cost and are held in equity. The costs of administration of the ESOT are written off to
profit or loss as incurred.
Where such shares are subsequently sold, any net consideration received is included in equity attributable to the
Company’s equity holders.
Share-based payments
The Company issues equity-settled share-based payments to certain employees. These are measured at fair value
(excluding the effect of non-market-based vesting conditions) at the date of grant. The fair value determined at the grant
date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the
Company’s estimate of shares that will eventually vest and adjusted for the effect of non-market-based vesting conditions.
Fair value is measured using a Black-Scholes model. The expected life used in the model has been adjusted, for the effects
of non-transferability, exercise restrictions and behavioural considerations based on management’s best estimate.
2 Profit for the year
The profit after tax for the year ended 30 September 2012 was £21.0 million (2011: loss of £2.5 million). As permitted by
Section 408 of the Companies Act 2006, no separate profit and loss account is presented in respect of the Company.
The auditor’s remuneration for audit and other services is disclosed in note 6 to the consolidated financial statements.
3 Staff costs
a) Number of employees
The average number of persons (including Directors) employed by the Company during the year was as follows:
2012
Number
2011
Number
Directors 7 7
b) Employee costs
Their aggregate remuneration comprised:
2012
£000
2011
£000
Wages and salaries 1,981 2,163
Social security costs 203 281
Share-based payments 738 581
2,922 3,025
Highest paid Director 784 808
Notes to the Company accounts continued
For the year ended 30 September 2012