An American Depositary Receipt (ADR, also known as an ADS) is a negotiable certificate that represents a non-U.S. company's publicly traded shares or debt. Depositary Receipts are created when a broker purchases the non-U.S. company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank, such as The Bank of New York, to issue Depositary Receipts to the investor. Depositary Receipts trade as freely as any other U.S. security. They are priced and quoted in U.S. dollars, trade on either an exchange or over-the-counter market and settle according to U.S. standards. Depositary Receipts can also trade in markets outside the U.S. and can be used to raise capital in the U.S. or in markets outside of the U.S.
Tate & Lyle's ADR programme is administered by the Bank of New York Mellon. Each ADR represents four Tate & Lyle PLC ordinary shares.
Annual General Meeting, held once a year for shareholders to receive the report and accounts, and approve the final dividend, and vote on any resolutions (such as the re-election of directors).
The difference between the price the market maker (q.v.) is willing to buy the stock at (the bid price) and the price the market maker is willing to sell the stock at (the offer price).
Depreciation spreads the cost of property, plant and equipment over the periods they are expected to benefit. Amortisation is the writing off of an intangible asset over the projected life of that asset. Depreciation is a decline in the value of property, plant and equipment due to general wear and tear or obsolescence.
The part of a company's after-tax earnings which is distributed to shareholders, generally in a cash payment. Tate & Lyle currently has historically paid dividends twice a year: the interim, for the six months to September, is typically paid in January, and the final, for the six months to March, is typically paid in August.
Dividend yields are used as a measure of the income return on shares. They are calculated by adding together the dividends paid during one year divided by the share price and multiplied by 100 to get a percentage. Dividend yields are sometimes said to be "historic" (i.e. based on those already paid) or "forecast" (based on what stockbrokers' analysts expect dividends for the next year to be).
The number of times a company's after-tax earnings would pay the dividend. For example, a company with earnings of 20p per share and a dividend of 10p would have dividend cover of 2 times.
Dividend Cover before goodwill amortisation and exceptional items
= EPS (basic)
Total ordinary dividend/share
Earnings are defined as profit after tax, minority interests, and payment of any preference share dividend, but before payment of dividends on ordinary shares.
These are a Company's earnings divided by the weighted average of the number of ordinary shares in issue in the financial period in question to give earnings per share (usually expressed in pence).
The market value of a company’s equity plus the value of its outstanding debt.
The ratio of a company's debt to its equity (shareholders funds).
= Net borrowing
Total net assets
A ratio used to determine how easily a company can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) of one period by the company's interest expenses of the same period:
Interest cover before amortisation and exceptional items
= Operating profit before amortisation and exceptional items
Net interest payable
This is the total value of a Company as per the current share price quoted on a stock exchange. Market capitalisation is calculated by multiplying the total number of shares in issue by the share price.
An individual or firm that trades on their own account in one or more shares at quoted bid and ask prices.
The rights of outside shareholders of subsidiary companies of the group to a proportion of the group's profits or assets.
A metric that shows a company's overall debt situation by netting the value of a company's liabilities and debts with its cash and other similar liquid assets.
= Short Term Debt + Long Term Debt - Cash and Cash Equivalents
A traditional measure of valuing a company. The historic price/earnings ratio is calculated by dividing the Company's earnings in the last 12 month period by the latest closing share price. Forecast price/earnings ratios are calculated with reference to analysts' forecast earnings for a company.
Return on Net Operating Assets
= Profit before interest, tax and exceptional items
Average net operating assets
Net operating assets are calculated as:
Total net assets
Add back: Net borrowings
Deduct unallocated assets – dividends & tax
Volume weighted average price. This is the average price that shares have been bought and sold at during a day's trading.
Answers to some of your frequently asked questions
Corporate and Investor Relations, Company Secretariat, Treasury, Finance
Tate & Lyle PLC
London WC2B 6AT
T: (+44) (0)20 7257 2100
F: (+44) (0)20 7257 2200
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