Dividend Information
Recent Dividends
The Board declared an interim dividend of 19.2 cents per share in respect of the year ending January 31, 2009 which was paid on November 7, 2008 to shareholders on the register on September 26, 2008.
The sterling exchange rate used for shareholders electing to receive a sterling dividend, was 1.8432, being the rate derived from ThomsonReuters at 4.00 pm on the record date.
The Board recommended a final dividend for the year ended February 2, 2008 of 126.34(1) cents per share (fiscal 2007: 126.34(1) cents), which was paid on July 3, 2008 to shareholders on the register on May 23, 2008.
| Fiscal | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
|---|---|---|---|---|---|---|---|
| Interim Dividend per share(1) | 11.42c(3) | 13.95c(3) | 14.85c(3) | 16.84c(3) | 19.20c | 19.20c | |
| Paid | 7 Nov 03 | 5 Nov 04 | 4 Nov 05 | 3 Nov 06 | 9 Nov 07 | 7 Nov 08 | |
| Record Date | 10 Oct 03 | 8 Oct 04 | 7 Oct 05 | 22 Sep 06 | 28 Sep 07 | 26 Sep 08 | |
| Final Dividend per share(1) | 72.58c(3) | 97.65c(3) | 103.95c(3) | 126.34c(4) | 126.34c | - | |
| Paid | 2 Jul 04 | 8 Jul 05 | 7 Jul 06 | 6 Jul 07 | 3 Jul 08 | n/a | |
| Record Date | 4 Jun 04 | 10 Jun 05 | 2 Jun 06 | 1 Jun 07 | 23 May 08 | n/a | |
| Total Dividend per share(1) | 84.00c(3) | 111.60c(3) | 118.80c(3) | 143.19c | 145.54c | 19.20c | |
| Dividend Cover(2) | 3.0x | 2.6x | 2.3x | 2.3x | 1.7x |
(1) Historic dividends quoted have been adjusted for the 20:1 share consolidation undertaken as part of the move of the primary listing of the parent company's shares, effective September 11, 2008.
(2) Dividend Cover = Net income/dividends.
(3) Historic dividends were payable in pounds sterling and have been translated at the average exchange rate applicable to the respective financial year.
(4) Based on the exchange rate on 1 June 2007, the final dividend of 126.34 cents was equivalent to 63.798p.
Policy
The Board evaluated dividend policy in light of the substantial increase in economic and financial sector uncertainties and the needs of the business, taking into consideration the significant competitive advantages of a strong balance sheet and financial flexibility. Subsequent to this evaluation the Group entered into amended borrowing agreements which included restrictions on making shareholders returns. Under the amended facility agreement no “Shareholder Returns” (defined as including dividends, share buybacks or other similar payments) shall be made in fiscal 2010 or fiscal 2011, and thereafter such returns may only be made if the fixed charge cover is above 1.7:1, the Group is in compliance with the amended facility and the Group can demonstrate projected compliance with the fixed charge cover for the following 12 months. In addition to the $100 million plus accrued interest of notes prepaid at par on March 18, 2009, subsequent prepayment offers, at par, are to be made in February of each of the following calendar years—2010, 2011, 2012 and 2013. The minimum amount of each such offer being the Note holders’ pro rata share of 60% of any reduction in net debt that occurred over the preceding fiscal year. Any proportion of the February 2011 or 2012 offer rejected by Note holders may be applied to Shareholder Returns as defined in the Amended Facility Agreement; and subsequent to January 2013, Shareholder Returns may only be made if an offer has been made to prepay $190 million of the Notes inclusive of the $100 million March 18, 2009 prepayment and that an additional prepayment offer at a 2% premium to par has been made, in which case the shareholder returns may be no greater than the proportion of the additional offer rejected by the Note holders.