directors report and accounts 2006 - Dividends per share declared


 Dividends per share declared

Adjusted diluted earnings per share
Dividends per share declared

With the recommended final dividend of 40.2p, the total dividends per share declared for 2006 are 55.9p, up 19 per cent on the prior year. Under IFRS, the recommended final dividend in respect of a year is only provided in the accounts of the following year. Therefore, the 2006 accounts reflect the 2005 final dividend and the 2006 interim dividend amounting to 48.7p (£1,008 million) in total (2005: 43.2p – £910 million). The table below shows the dividends declared in respect of 2006 and 2005.

As explained in the Chairman’s Statement, the previous policy was to pay out as dividends at least 50 per cent of long term sustainable earnings but the Board has decided to raise the ratio to 65 per cent by 2008 in progressive steps. Dividends per share declared for 2006 represent 57.0 per cent of adjusted fully diluted earnings per share (2005: 52.6 per cent).

Click here to view the Adjusted diluted earnings per share data
Click here to view the Dividends per share declared data 

Total equity was £189 million lower at £6,688 million. The profit retained after payment of dividends exceeded the impact of the share buy-back by £388 million. However, this was more than offset by a £580 million adverse impact from exchange movements, reflecting the general strength of sterling.

Dividends declared
per share
per share
Ordinary shares    
Interim 2006 paid 13 September 2006 (see Summary financial statement and notes)15.7 323 14.0 293
Final 2006 payable 3 May 200740.2 821 33.0 685
 55.9 1,144 47.0 978