AGM
Annual General Meeting. The meeting, normally held in June each year, at which the Company’s shareholders are invited to approve certain routine matters, such as the re-election of directors and the approval of the Company’s Annual Report.
Base rate
Annual interest rate on which lending charges are calculated by British banks.
Bid price
The price at which securities may be bought in the market.
Capital gain
Profit made on the sale of shares, commodities, property or land; in the UK, capital gains tax may be payable on the profit.
Cash flow
Measure of the cash generated by the Company and its subsidiaries. ‘Cash flow from operations’ is calculated by taking operating profit and adjusting for various items including depreciation and movements in working capital and provisions.
Closed period
A period, such as prior to the Company's release of its Interim or Preliminary results, during which the directors are generally not permitted to trade in the shares of the Company.
Current assets
Those assets which can be realised in cash, sold or consumed within one year; these include cash, cash equivalents, receivables, inventories and prepaid expenses.
Current liabilities
Liabilities that are expected to be discharged within one year; these include accounts payable, short term debt and taxes payable.
Debt/equity ratio
A ratio which describes the leverage or gearing of the Company and is calculated as total debt divided by total equity, and which is normally expressed as a percentage.
Depreciation
The reduction in the balance sheet value of an asset, such as plant or equipment, to reflect its loss of value through age and wear and tear.
Earnings per share (eps)
Profit available to ordinary shareholders, after all operating expenses, interest charges and taxes have been deducted, divided by the number of ordinary shares outstanding. Diluted earnings per share adjusts the number of shares to reflect the potential number of shares outstanding after the exercise of options.
EGM
Extraordinary General Meeting. A meeting of shareholders called to approve special events such as a major acquisition.
Equity
The voting capital in the Company, which comprises ordinary shares.
Ex dividend, ex rights, ex cap, ex all
Purchase of a share ex dividend (xd) means that the buyer of a share is not entitled to the next dividend payment; ex rights means that the purchaser is not entitled to shares from a forthcoming rights issue; ex cap means that the purchaser is not entitled to a scrip issue; ex all means not entitled to any of these.
Financing charge
The interest and similar charges payable to banks and other parties which have lent money to the Company or its subsidiaries.
Hedging
Reducing exposure to risk of loss resulting from fluctuations in, for example, exchange rates, commodity prices or interest rates.
Holding company
Charter plc is a holding company as its main assets are shareholdings in other companies.
Institutional investor
Large financial institutions such as pension funds, unit or investment trusts and insurance companies.
Intangible assets
Assets that do not have a physical, tangible existence. Examples of intangible assets include goodwill, computer software and development costs.
Interim results
The Company’s consolidated results for the six months to 30 June each year.
Inventories
Also known as stock, this relates to items that have been manufactured or acquired for resale, work not yet completed and raw materials. Appears as a current asset on the balance sheet.
Liabilities
Debts, amounts payable and other financial obligations; the opposite of assets.
Liquidity
The proportion of cash or cash equivalents relative to total assets. The term can also be a measure of the volume of shares being traded, which may affect the ability of buyers or sellers to build/unwind large holdings without a substantial impact on the price.
Long term debt
All interest-bearing financial obligations which mature in more than a year.
Margins
Profit margin is profit as a percentage of revenue. It is calculated before interest charges and tax.
Market Price
The price at which a share can currently be traded in the market.
Market capitalisation
Value at current market prices of the Company’s equity capital. It is calculated by multiplying the current share price by the number of shares outstanding.
Mid Price
The mid point between the bid and offer price quote in the market.
Nominal return
Return that takes no account of the effects of inflation.
Operating profit
The difference between revenue (or turnover) and the expenses incurred during operations for a particular accounting period; operating profit is calculated before deducting the net financing charge and tax on profit.
Option
The right (but not the obligation) to buy or sell securities at a given price (exercise or strike price) before a given date (expiry date).
Ordinary Share
The Company has only one class of share, being ordinary shares of 2 pence each.
Preliminary results
The release of the Company’s results on a regulatory news service. Generally, the Company’s results for its financial year (which ends on 31 December) are released in the following March.
Profit
The surplus of revenue generated over expenses incurred for a particular accounting period.
Profit before tax
The surplus of revenue generated over expenses incurred for a particular accounting period after deducting all expenses and charges other than tax on profit.
Prospectus
A document, published prior to the issue of shares, which sets out information in relation to the Company’s business, its results and prospects and the securities being offered for sale.
Return on assets
The profit generated relative to its assets.
Rights issue
An offer of new shares to existing shareholders in the Company to raise money.
Risk premium
The prospective excess return over a risk-free asset (e.g. a gilt) which investors require to compensate them for the higher risk associated with holding an asset like an equity.
Share capital
The product of the number of shares outstanding and the nominal value of the shares.
Share option
See Option.
Short
The term to describe the position of investors that have sold shares they do not possess, in the hope of buying them later at a lower price.
Short term debt
Debt that is repayable within one year; it is found under current liabilities on the Company’s balance sheet.
Stock split
The term used to describe the division of shares into a larger number of shares with a lower nominal value. There is no change to the proportional holding of shares.
Tangible assets
Tangible fixed assets include property, plant and equipment; they are shown on the Company’s balance sheet after the deduction of depreciation.
TSR
Total shareholder return, being the uplift in the value of the Company’s shares over a given period, plus the dividends paid to shareholders over the same period.