Distributions

Distribution policy

The Board has previously stated that the Group will pay a stable amount (£50 million) by way of ordinary dividends each year (the base dividend) subject to availability of cash and appropriate reserves. In addition to the base dividend, the Board has also previously stated that substantially all of any remaining cash flow, subject to the availability of reserves and after making provision for debt payments, debt service requirements (if any), capital expenditure and other expected business requirements, will be distributed to shareholders.

Dividends paid

On 7 March 2007, the Board resolved to pay a final dividend for the year ended 31 December 2006 of 9.1 pence per share (equivalent to £34 million). Also on 7 March 2007, the Board resolved, subject to the approval by shareholders of a resolution to effect a share consolidation considered at the Annual General Meeting on 26 April 2007, to pay a further interim dividend as a special dividend of 32.9 pence per share (equivalent to £121 million). The share consolidation, under which shareholders received 64 new ordinary shares of 11¹⁶⁄29 pence each for every 67 existing ordinary shares of 11¹⁄29 pence, became effective on 30 April 2007. These final and special dividends were subsequently paid on 16 May 2007.

On 5 September 2007, the Board resolved to pay an interim dividend for the six months ended 30 June 2007 of 4.7 pence per share (equivalent to approximately £16 million). This interim dividend was subsequently paid on 24 October 2007.

Special distribution – share buy-back programme (completed)

On 5 September 2007, the Board resolved to make a special distribution of approximately £83 million to be undertaken through the introduction of a share buy-back programme. The buy-back programme represented approximately 3.5% of the Company’s issued capital as of 6 September 2007. The programme was completed between 7 September 2007 and 13 December 2007, and resulted in the repurchase and cancellation of 13,005,304 ordinary shares for an aggregate consideration (inclusive of all expenses) of £83.5 million.

Dividends proposed

At the forthcoming Annual General Meeting the Board is recommending to shareholders that a resolution is passed to approve payment of a final dividend for the year ended 31 December 2007 of 9.9 pence per share (equivalent to £33.6 million) payable on or before 7 May 2008. Shares will be marked ex-final dividend on 16 April 2008.

The Board has declared a further interim dividend (payable as a special dividend) of 7.8 pence per share (equivalent to £26.5 million), also payable on or before 7 May 2008. Shares will be marked ex-special dividend on 16 April 2008.

This review was approved by the Board on 3 March 2008.


Gordon Boyd
Finance Director
3 March 2008