The Kindred Group’s Board of Directors’ dividend policy is to pay a dividend and/or share buy-backs of up to 50 per cent of the Group’s free cash flow (defined as cash flow from operations, adjusted for movements in working capital, capital investments and tax payments).
In addition to the dividend described above, which would normally be in the form of annual cash dividends, the Board can also decide to distribute one-off dividends or execute share buy-backs, where management and the Board consider that the Group has generated surplus cash that it does not require either to fund its normal operations, acquisitions or other corporate development projects.
When considering both regular and one-off distributions, the Board will take into account the overall cash requirement to ensure that an appropriate capital cash structure is maintained.
The Board of Directors proposes a dividend of GBP 0.310 (2015: 0.235) per share/SDR, which is approximately SEK 3.46 (2015: SEK 2.87 paid out 23 May 2016) using the exchange rate 11.165 GBP/SEK at 13 February 2017, to be paid to holders of ordinary shares and SDRs.
If approved at the Annual General Meeting (AGM), thedividend will be paid on 23 May 2017 and amounts to a total of GBP 71.4 (2015: GBP 54.0) million, which is approximately 75 per cent of the Group’s free cash flow for 2016. The Board has reviewed the projected cash requirements for 2017 and is proposing to increase the dividend this year above the 50 per cent of free cash flow policy. This is in line with the dividend policy to distribute surplus cash. No dividend is paid on the shares/SDRs held by the Company following the share buy-back programme.