The Board has kept the Group’s dividend policy under review since listing on the London Stock Exchange in 2010.
The introduction of a dividend policy acknowledges the Board’s confidence in the brand as well as the Group’s ability to deliver sustainable profitable growth, cash generation and return on capital.
The policy also recognises the significant range of investment opportunities available to the Group to grow shareholder value and provides flexibility for the organic and other opportunities that may require investment concentrated within a short time period.
The Board has concluded that the payment of dividends will commence with an interim dividend payment in FY16. Key parameters of the dividend policy are as follows:
- the Board intends to adopt a progressive dividend policy at a prudent cover targeting 3.0x – 3.5x;
- the Board also intends to adopt a dividend formula so that the interim dividend will be the equivalent of approximately one third of the total dividend for the previous year; and
- if, over an extended period, excess capital has not been deployed, the Board will consider one-off returns to shareholders whilst maintaining flexibility through a positive cash balance.