Disclosure of dividend policy following UK FRC report

Marston’s PLC – Annual report – 30 September 2017

Industry: leisure


Group Operating and Financial Review (extract)


The proposed final dividend of 4.8 pence per share provides a total dividend for the year of 7.5 pence per share, and represents a 2.7% increase on 2016. Dividend cover was 1.9 times (2016: 1.9 times). In light of the Financial Reporting Council’s recommendations on disclosure in respect of dividend policy and sustainability, we have set out below the key considerations in establishing the dividend proposal.

Dividend policy

Our dividend policy remains to target consistent progressive increases in the dividend at a cover of around two times over the medium term. This policy has remained consistent in recent years and is annually reviewed by the Board.

Distributable profit

The Company balance sheet (page 109) demonstrates sufficient headroom in terms of available distributable profits for both current and future delivery of dividends under the policy stated above.

Debt covenants

The Group has sufficient headroom on its financing covenants for both current and future delivery of dividends.

Viability Statement

The dividend policy is underpinned by the Viability Statement shown on page 24.