30 Reserves

The following describes the nature and purpose of each reserve within shareholders’ equity:

Reserve

Description and purpose

Share premium Amount subscribed for share capital in excess of nominal value less directly attributable issue costs.
Other Premium on the issue of shares as equity consideration for the acquisition of London Merchant Securities plc (LMS).
Fair value of equity instruments granted but not yet exercised under share-based payments.
Foreign exchange reserve amounting to £4.0m at 31st December 2009 (2008: £7.6m) which relates to gains or losses arising on retranslating the net assets of overseas operations.
Retained earnings Cumulative net gains and losses recognised in the group income statement.