Notes to the Company accounts

10 Share premium account and reserves

	Share premium £m	Capital redemption reserve £m	Revaluation reserve £m	Merger reserve £m	Profit and loss account £m
At 6 August 2006	224.1		0.5	180.5	1,428.1
Premium on allotments	74.9
Purchase of own shares					(7.0)
Return of capital to shareholders and redemption of B shares	(10.0)	5.7			(2,104.6)
Profit for the period					3,003.3
Transfer			(0.5)		0.5
Dividends paid to equity shareholders					(182.4)
Actuarial gain on retirement benefits					27.1
Deferred tax charge related thereto					(8.0)
Share-based payment					7.2
At 31 July 2007	289.0	5.7		180.5	2,164.2

The retained profit of the Company represents a profit for the year of £3,003.3m less dividends paid of £182.4m.

The profit and loss account includes the purchase of Smiths Group plc shares by the Smiths Industries Employee Benefit Trust. The consideration paid was £7.0m and £3.5m was received by the Trust as a result of the redemption of B shares. At 31 July 2007 the trust held 634,274 ordinary shares with a nominal value of £0.2m and a market value of £6.6m.

The Company’s profit and loss reserve of £2,164.2m includes £919.6m not available for distribution as dividend.

During the year, the Company received £77.7m (2006: £27.5m) on the issue of shares in respect of the exercise of options awarded under various share option schemes.

Smiths Group divisions:
Smiths Detection, Smiths Medical, Smiths Specialty Engineering