Financial Position and Resources
Equity dividends
The table below sets out the amounts of interim, final and total cash dividends paid or, in the case of the final dividend for the 2008 financial year, proposed, in respect of each financial year, indicated in pence per ordinary share.
| Pence per ordinary share | |||
|---|---|---|---|
| Year ended 31 March | Interim | Final | Total |
| 2004 | 0.9535 | 1.0780 | 2.0315 |
| 2005 | 1.91 | 2.16 | 4.07 |
| 2006 | 2.20 | 3.87 | 6.07 |
| 2007 | 2.35 | 4.41 | 6.76 |
| 2008 | 2.49 | 5.02(1) | 7.51 |
| Note: | |
|---|---|
| (1) | The final dividend for the year ended 31 March 2008 was proposed on 27 May 2008 and is payable on 1 August 2008 to holders of record as of 6 June 2008. For American Depositary Share ("ADS") holders, the dividend will be payable in US dollars under the terms of the ADS depositary agreement. |
The Company has historically paid dividends semi-annually, with a regular interim dividend in respect of the first six months of the financial year payable in February and a final dividend payable in August. The Board expects that the Company will continue to pay dividends semi-annually. In November 2007, the directors announced an interim dividend of 2.49 pence per share, representing a 6.0% increase over last year’s interim dividend.
In considering the level of dividends, the Board takes account of the outlook for earnings growth, operating cash flow generation, capital expenditure requirements, acquisitions and divestments, together with the amount of debt and share purchases.
The Board remains committed to its existing policy of distributing 60% of adjusted earnings per share by way of dividend. The Group targets a low single A rating in line with the policy established by the Board in 2006. The Group has no current plans for share purchases or one-time returns.
Accordingly, the directors announced a proposed final dividend of 5.02 pence per share, representing a 13.8% increase on last year’s final dividend.
Cash dividends, if any, will be paid by the Company in respect of ordinary shares in pounds sterling or, to holders of ordinary shares with a registered address in a country which has adopted the euro as its national currency, in euro, unless shareholders wish to elect to continue to receive dividends in sterling, are participating in the Company’s Dividend Reinvestment Plan, or have mandated their dividend payment to be paid directly into a bank or building society account in the UK. In accordance with the Company’s Articles of Association, the sterling: euro exchange rate will be determined by the Company shortly before the payment date.
The Company will pay the ADS Depositary, The Bank of New York, its dividend in US dollars. The sterling: US dollar exchange rate for this purpose will be determined by the Company up to ten New York and London business days prior to the payment date. Cash dividends to ADS holders will be paid by the ADS Depositary in US dollars.