Share price

1922.00

+17.00p / +0.89%

Financial

A

Adjusted
excluding the effect of special items and any relevant tax.
Assets held for sale
IFRS classification used for assets when their carrying amount will be recovered primarily through a sale transaction rather than continuing use, and management considers a sale is highly probable.

B

Basic earnings per share
earnings available for ordinary shareholders divided by the weighted average number of ordinary shares in issue during the year.
Bond
a long-dated note, being an obligation to repay.

C

Commercial Paper
a negotiable short-term unsecured promissory note, issued by a corporate or other borrower normally for a maximum of one year.
Contingent Liability
a liability that is contingent upon the occurrence of one or more uncertain future events.
Continuing Operations
operations not classified as discontinued and including acquisitions made during the year.
Currency Swap
an exchange of a deposit and a borrowing, each denominated in a different currency, for an agreed period of time.

D

Debenture
a long-term loan, usually secured by property.
Discontinued Operations
IFRS classification used to show the results of operations arising from assets classified as held for sale when the results relate to a separate line of business, or geographical area of operations, or where there is a coordinated plan to dispose of a separate line of business or geographic area of operation.

E

EBITDA
earnings before interest, taxation, depreciation and amortisation and exceptional items.
Exceptional Items
material items deriving from ordinary activities but which are disclosed separately because of their size or incidence. (UK GAAP terminology.)

F

Forward Rate Agreement
a contract to receive or pay the difference between an agreed interest rate and the actual rate at an agreed future date, on a specified notional principal.

G

Gearing
net debt expressed as a percentage of shareholders' funds.
Goodwill
the difference between the consideration given for a business and the total of the values of the separable assets and liabilities comprising that business.
Gross Operating Margin
operating profit before fixed costs and overheads, expressed as a percentage of turnover.

H

Hedging
the reduction of risk, normally in relation to foreign currency or interest rate movements, by making offsetting commitments.

I

IAS
International Accounting Standards. See also IFRS.
IFRS
International Financial Reporting Standards. IHG adopted IFRS from 1 January 2004 in accordance with European Union law. The standards are published by the International Accounting Standards Board (www.iasb.org). Can also be referred to as IAS.
Income-Generating Unit
a portfolio of similar assets that are subject to the same economic and commercial influences.
Interest Rate Swap
an agreement to exchange fixed for floating interest rate streams (or vice versa) on a notional principal.

M

Market Capitalisation
the value attributed to a listed company by multiplying its share price by the number of shares in issue.

N

Net Capital Expenditure
cash expended on fixed assets, less cash received from selling fixed assets, excluding major acquisitions and disposals.
Net Cash Flow
cash flow from all operations, including major and one-off payments and receipts.
Net Debt
borrowings less current asset investments and cash at bank and in hand.
Net Operating Assets
total assets less liabilities, excluding all assets and liabilities of a financing nature.
Normal Cash Flow
cash flow from all operations before major and one-off payments and receipts.

O

Operating Cash Flow
cash flow from operations but before payments for tax and to providers of finance (through interest and dividends), and before major and one-off payments and receipts.
Operating Margin
operating profit expressed as a percentage of turnover.

P

S

Special Items
material items deriving from ordinary activities but which are disclosed separately because of their size or incidence.
Subsidiary Undertaking
a company in which the Group holds a stake and over which it exercises dominant influence.

U

Underlying
adjusted to remove items that distort comparability between both years.
UK GAAP
accounting principles generally accepted in the United Kingdom.
US GAAP
accounting principles generally accepted in the United States.

W

Weighted Average Exchange Rate
the average of the monthly exchange rates, weighted by reference to monthly operating profit.
Working Capital
the sum of stocks, debtors, creditors and accruals of a trading nature, excluding financing items such as corporate taxation and proposed dividends.

Last updated 12 December 2011

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