Pearson

Annual Report and Accounts 2010

Notes to the consolidated financial statements

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27. Share capital and share premium

Number of shares 000s Ordinary shares £m Share premium £m
At 1 January 2009 809,276 202 2,505
Issue of ordinary shares – share option schemes 1,523 1 7
At 31 December 2009 810,799 203 2,512
Issue of ordinary shares – share option schemes 1,878 12
At 31 December 2010 812,677 203 2,524

The ordinary shares have a par value of 25p per share (2009: 25p per share). All issued shares are fully paid. All shares have the same rights.

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.

The capital structure of the Group consists of debt (see note 18), cash and cash equivalents (see note 17) and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.

The Group reviews its capital structure on a regular basis and will balance its overall capital structure through payments of dividends, new share issues as well as the issue of new debt or the redemption of existing debt in line with the financial risk policies outlined in note 19.