27  Other Reserves

Group

Company

Cumulative

translation

Reserves

£’000

Warrant

reserve

£’000

Warrant

Total

£’000

reserve

£’000

At 1 July 2007

(415)

686

271

686

Exchange differences arising on translation of overseas subsidiaries

3,927

–

3,927

–

At 30 June 2008

3,512

686

4,198

686

Exchange differences arising on translation of overseas subsidiaries

2,330

–

2,330

–

At 30 June 2009

5,842

686

6,528

686

Warrant reserve

Other reserves arose on the grant of 784,875 warrants in settlement of the National Insurance liability on certain warrants and unapproved share options that were issued by the company.

During the year ended 30 June 2004, the Company entered into a joint election with the holders of certain warrants for the transfer of the employer’s National Insurance liability arising on the exercise of the warrants. In consideration for the transfer of this liability, the Company granted additional warrants over units to subscribe for shares, which, as at the date of grant, provided the warrant holders with a right to subscribe for 784,875 shares.

The warrants were granted at the same exercise price as the warrants that attracted National Insurance liability, which was less than market value ion the date of grant reflecting the value of the National Insurance liability transferred to the holders. Accordingly, the intrinsic value (the difference between market price and the grant price) was transferred from the National Insurance provision and is included in the warrant reserve, which is released to the profit and loss account reserve as the underlying warrants are exercised.