Qantas 2016 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2016 Qantas annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Notes to the Financial Statements continued
For the year ended 30 June 2016
6 DIVIDENDS AND OTHER SHAREHOLDER DISTRIBUTIONS
(A) DIVIDENDS DECLARED AND PAID
The Directors have declared a fully franked final dividend of seven cents per ordinary share for the current year, totalling
$134million (2015: nil). Dividends are paid from the retained earnings and profits of Qantas Airways Limited, as the parent
oftheGroup (refer to note 28).
For the year ended 30 June 2016, no dividends (2015:$4 million) were declared and paid to non-controlling interest shareholders
bynon-wholly owned controlled entities.
(B) OTHER SHAREHOLDER DISTRIBUTIONS
In addition to the dividend totalling $134 million above, the directors have announced an on-market share buy-back of up to
$366million. Shareholder approval will be sought at the Annual General Meeting on 21 October 2016 to buy back more than
10percent of shares on issue within a 12 month period.
In line with the Group’s Financial Framework, the Qantas Group has returned over $1 billion in surplus capital to shareholders
in2015/16.
In November 2015, the Group undertook a capital management initiative for Qantas shareholders comprising a distribution to
shareholders of 23 cents per share and a related share consolidation. This resulted in a capital return of $505 million being paid
toshareholders and an equal and proportionate share consolidation through the conversion of each share into 0.939 shares resulting
in134 million less shares on issue.
On 10 June 2016, the Qantas Group completed a $500 million on-market share buy-back which was announced in February 2016.
TheGroup purchased 143 million shares for a weighted average price of $3.4819.
The $500 million on-market share buy-back combined with the $505 million capital return and associated share consolidation has
resulted in the ordinary shares on issue decreasing by 12.6 per cent between 30 June 2015 and 30 June 2016.
(C) FRANKING ACCOUNT
2016
$M
2015
$M
Total franking account balance at 30 per cent 84 84
The above amount represents the balance of the franking account as at 30 June, after taking into account adjustments for:
–Franking credits that will arise from the payment of income tax payable for the current year
–Franking credits that will arise from the receipt of dividends recognised as receivables at the year end
–Franking credits that may be prevented from being distributed in subsequent years
The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare dividends.
(D) EARNINGS PER SHARE
2016
Cents
2015
Cents
Basic/diluted earnings per share 49.4 25.4
$M $M
Statutory profit attributable to members of Qantas 1,029 557
Number
M
Number
M
WEIGHTED AVERAGE NUMBER OF SHARES
Issued shares as at 1 July 2,196 2,196
Share consolidation (134) –
Shares bought back and cancelled (143) –
Issued shares as at 30 June 1,919 2,196
Weighted average number of shares (basic and diluted) as at 30 June 2,083 2,196
65
QANTAS ANNUAL REPORT 2016