The Great Universal Stores P.L.C.

NOTES TO THE FINANCIAL STATEMENTS CONTINUED

27. SHARE CAPITAL	1999	1998
	Łm	Łm

Ordinary shares of 25p each
Authorised	312.5	312.5

Allotted, called up and fully paid	251.4	251.4

At 31 March 1999, 1,005,769,504 (1998 1,005,767,948) Ordinary shares had been allotted, called up and fully paid. During the year to 31 March 1999, 1,556 Ordinary shares were issued for a consideration of Ł5,423 in connection with the exercise of share options arising from the Argos SAYE share option schemes.


28. SHARE OPTIONS

Following the approval of the 1998 Approved and Non-Approved Executive Share Option Schemes at the 1998 Annual General Meeting, options have been granted for Ordinary shares of 25p each in the Company. At 31 March 1999 there were unexercised options outstanding in respect of 161,664 shares exercisable at a subscription price of 580.2p per share in the period from 9 December 2001 to 8 December 2008. These options include those granted to Mr D.G. Bury and Mr D.A. Tyler, further details of which are contained in the Report on Directors' Remuneration and Related Matters. In addition, in connection with the acquisition of Argos, holders of certain SAYE share options in respect of Argos shares were permitted to surrender these options in exchange for options in respect of Ordinary shares of 25p each in The Great Universal Stores P.L.C. Such options are exercisable on completion of existing five year savings contracts and options outstanding at 31 March 1999 were as follows:

	Number	Subscription price per share

1993 SAYE option holders	822	335.5p
1994 SAYE option holders	117,076	387.7p
1995 SAYE option holders	286,929	427.0p

	404,827


29. RESERVES	The Group		The Company
	Revaluation reserve	Profit and loss account	Revaluation reserve	Profit and loss account
	Revaluation reserve	Profit and loss account	Revaluation reserve	Profit and loss account
	Łm	Łm	Łm	Łm

At 31 March 1998	384.2	1,674.9	2.2	1,752.4
Movements in year:
Goodwill charged		(2.5)
Difference on exchange		(26.5)	0.1
Retained profit/(loss)		115.8		(102.0)
Revaluation of property	11.8		0.3
Revaluation surplus transferred to profit and loss account on sales	(87.8)	87.8

At 31 March 1999	308.2	1,849.5	2.6	1,650.4


Cumulative goodwill charged to reserves on acquisitions before 1 April 1998 comprises:
		Subsidiary undertakings	Associated undertakings	Total
		Łm	Łm	Łm
At 31 March 1998		1,779.1	18.9	1,798.0
Movement in year:
Goodwill charged		2.5		2.5

At 31 March 1999		1,781.6	18.9	1,800.5

Goodwill charged in the year to 31 March 1999 recognises amendments to estimates of employee compensation in respect of the acquisition of Metromail in the year to 31 March 1998, when net assets were included on a provisional basis and the goodwill arising was written off to reserves prior to the adoption of FRS10. Deferred taxation is not provided in respect of profits retained in overseas Group undertakings to the extent that there is either no intention to make a significant distribution or double taxation relief eill eliminate and United Kingdom tax liability. There are no significant statutory, contractual or exchange control restrictions on distributions by Group undertakings.