Notes to the accounts
10. Dividends
In accordance with IAS 10 'Events after the balance sheet date' proposed dividends are not provided for until they are formally approved.
| 2008 $m |
2007 $m |
2006 $m |
|
|---|---|---|---|
| Final dividend paid of 6.317c per share (2007: 2.8875p; 2006: 2.625p) | 107.6 | 94.2 | 81.9 |
| Interim dividend paid of 0.96c per share (2007: 0.4434p; 2006: 0.4125p) | 16.3 | 14.5 | 13.0 |
| 123.9 | 108.7 | 94.9 |
During 2007/08, a dividend of 6.317 cents per share was paid on 6 July 2007 in respect of the final dividend declared for the 53 week period ended 3 February 2007. An interim dividend of 0.96 cents for the 52 week period ended 2 February 2008 was also paid on 9 November 2007. The 2006/07 interim dividend was translated at the exchange rate on 3 November 2006.
Subject to shareholder approval, a proposed final dividend of 6.317 cents per share will be paid on 3 July 2008 to those shareholders on the register of members at the close of business on 23 May 2008. The accounts for the 52 week period ended 2 February 2008 do not reflect this proposed dividend, which will be treated as an appropriation of retained earnings in the 52 week period ending 31 January 2009. For shareholders who wish to receive the proposed final dividend in pounds sterling, the actual amount will be calculated using the exchange rate as derived from Reuters at 4.00 p.m. on the record date of 23 May 2008.
Dividends received by individual US shareholders from qualified foreign corporations are subject to US federal income tax at a reduced rate of 15%. Dividends paid by the Group to individual US holders of shares or ADSs should qualify for this preferential dividend treatment. This US tax legislation only applies to individuals subject to US federal income taxes and therefore the tax position of UK shareholders is unaffected. Individual US holders of shares and ADSs are urged to consult their tax advisors regarding the application of this US tax legislation to their particular circumstances.