Dividends

The directors have adopted a progressive dividend policy, which reflects the long-term earnings and cash flow potential of the group.

The Company’s dividend policy was changed during the year ended 31 May 2007 whereby the dividend payout proportion was increased from 50% to approximately 60% of earnings. This policy will be kept under review, but the Company’s current intention is to pay out a similar proportion of earnings in future.

Interim and final dividends are usually paid in February and October respectively.

During the year ended 31 May 2011, the company paid an interim dividend of 5.25p per share and a final dividend of 14.75p per share amounting to £72.6 million in aggregate. This is an 8% increase on last year.

The group may revise its dividend policy from time to time. If the group accumulates surplus capital, the directors will give due consideration to returning it to shareholders.