Peachtree 2013 Annual Report Download - page 35

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Post-share consolidation Pre-share consolidation
2013 2012 Growth (%) 2013 2012 Growth (%)
Interim 3.88p 3.66p 6% 3.69p 3.48p 6%
Final 7.44p 7.02p 6% 7.07p 6.67p 6%
Total 11.32p 10.68p 6% 10.76p 10.15p 6%
Special 17.99p –n/a 17.10p –n/a
Total (incl. special) 29.31p 10.68p 174% 27.86p 10.15p 174%
Capital structure and dividend
At our interim results in May 2013, we announced the
return of approximately £200m to shareholders through
a special dividend, which was paid in June 2013.
This ensured that the company achieved its leverage
commitment of 1x EBITDA having returned almost
£1bn to shareholders in the preceding 18 months.
With our consistent and strong cash flows,
we retain considerable financial flexibility going
forward. The Board’s main strategic priority remains
an acceleration of growth, both organically and
through targeted acquisitions, and we will invest
in support of that aim. This will enable us to support
our sustainable progressive dividend policy, with any
surplus capital being returned to shareholders from
time to time.
Consistent with this policy, the Board is proposing
a 6% increase in total dividend per share for the year
to 11.32p per share (2012: 10.68p per share), which
is in excess of our rate of profit growth for the year.
The ordinary dividend for the year is covered 2x
by underlying earnings per share.
Dividends per share for the current and prior year have
been adjusted to take account of the 77 for 81 share
consolidation that accompanied the special dividend,
as set out in the table above.
Archer Capital
On 14 November 2011, the Group reported a claim for
damages made by Archer Capital (“Archer”) following
the termination of discussions between the Group
and Archer relating to the potential purchase of MYOB.
The Group strongly rejects the claim, which it calculates
to be in the region of £82.9m (A$143.5m), and will
defend itself vigorously. The claim is currently being
heard by the Court.
Going concern
Based on normal business planning and control
procedures, the directors have a reasonable expectation
that the Company and the Group have adequate
resources to continue in operational existence for
the foreseeable future. For this reason, the directors
continue to adopt the going concern basis in preparing
the financial statements.
Events after the reporting period
On 11 November 2013, the Group announced
the appointment of Steve Hare as Chief Financial
Officer, who will join the Sage Board with effect from
3 January 2014.
Darren Fisher, Acting Chief Financial Officer
33The Sage Group plc | Annual Report & Accounts 2013
Financial statementsGovernanceStrategic report