Annual report and accounts 2008Annual report and accounts 2008

Notes contentsNotes to the company financial statements


8. Treasury shares


  Number
of shares
000s		 £m
At 1 January 2007 8,761 65
Purchase of treasury shares 4,900 40
Contribution from subsidiaries — (23)
Release of treasury shares (1,900) (29)
Prior year contributions applied to release of shares — 29
At 31 December 2007 11,761 82
Purchase of treasury shares 2,028 12
Contribution from subsidiaries — —
Release of treasury shares (3,341) (41)
Prior year contributions applied to release of shares — 10
At 31 December 2008 10,448 63

The company holds its own shares in trust to satisfy its obligations under its restricted share plans. These shares are treated as treasury shares for accounting purposes and have a par value of 25p per share. The nominal value of the company’s treasury shares amounts to £2.6m (2007: £2.9m). At 31 December 2008 the market value of the company’s treasury shares was £67.0m (2007: £86.1m).