1. Introduction Tesco plc is one of the largest store retails chains in Britain; it is a British-based international grocery and general merchandising retail chain. It is the largest British retailer by both global sales and domestic market share. Over 30% of the grocery market in the UK has been control by Tesco, nearly to the combined market share of its closest rivals had Asda and Sainsbury’s. In 2007, the Tesco supermarket chain announced over ? 2. 55 billion in profits (Caroline, 2007).
Their business is mainly food and grocery, and also varied into areas ,for example: discount clothes, consumer electronics, consumer financial services, DVDs, GAME, VIDEO selling and renting, CDs selling and music downloads on Internet , broadband dial-up Internet service, telecoms service (mobile top-up & landline), consumer health insurance, consumer dental plans and budget software. From now on, Tesco is going through to family housing market, with a self-advertising website on internet (www. esco. com) to promote their products such as Online Shopping. (Wikipedia). And this report will concentrate four aspects of Tesco to investigate and reflect the company’s financial performance and business conduct. First of all, there are some key indicators of the firm’s financial performance, such as dividend policy, capital market efficiency, and raising finance and risk, return and investments decisions. Second, it is the review of company’s financial statements.
Third, is the external information could influence the performance of its business. Finally, are the conclusion and the recommendation of whether or not the current share price of Tesco Plc represents a ‘fair’ value. All these critical evaluation are help to expatiate the financial management policies of Tesco whether the shareholder’s wealth is to be maximized successfully or not. 2. Situation Analysis Tesco plc is the biggest retail organization in United Kingdom and also is one of UK’s most successful retailers in global world.
Tesco has forceful and strong growth in UK market in 2001; its increase 7. 5% based on like for like strategy in UK sales, to reach ? 30 billion in the year to February 2006, and the operating profit up by 15% to ? 1. 8 billion. Tesco also already gets constructive accomplishment in non-food development; total non-food sales grew 13%, and reaching ? 6. 8 billion. Tesco plc has owned over 20% share non-food sales of whole grocery market and it has been identified also. (Mintel, 2006).
Tesco plc is continue its market share through its multi-format and multi-channel approach to growing up, that provide the chance making more customers satisfy according to being unlike way and use different ways to handle different needs . Also, with fairly good low price policy with better value coupled with more choose leeway and convenience to customers, which are already built up the successful basis. Now, Tesco has managed 1,779 shops according to four forms, which included Express, Metro, Superstore and Extra.
Moreover, Tesco is developing adopted Homeplus banners be the non-food stores, and the first non-food store has already opened in last October (Mintel, 2006). SWOT Analysis |Strengths |Weaknesses | |Market leadership |Too depend on UK market | |Strong self-advertising of Tesco. om |Low returns | |Growing operations in South Korea |Some categories may not mature as many of its more focused and | |Strong brand image |specialized competitors (books, mobile phone and broadband, etc) | |Overseas operations |In-store TV (Farey, 2006) | |Understanding its customers-Club Card | | |Land banks- even it has been complained by many parties (Mintel, 2006)| | Opportunities |Threats | |Expansion in international markets |Intense competition | |UK non-food market |Retail environment in Euro-zone | |Increasing online spending |Increasing labor wages in UK | |Private labels | | |Expanding Indian retail market | | |Retailing services | | |Tesco. com | | |Positive forecast of whole industry (Mintel, 2006) | | Source: Datamonitor, 2006. Competitions Tesco confronted by the intensive competitive rivalry presence both domestic and international grocery industry.
The competitor contains Sainsbury’ s, Marks and Spencer, Asda , Morrison, and a few are small grocery retail dealer in United Kingdom. The main competition is Asda’s low price strategy it has been found in food area competition. (Mintel, 2006); Sainsbury certain extent puts food area on heart position in the store to creates an ideals by paying more focusing in food areas to customers, and shortening price other brands spacing (Business Source Premier, 2004); Marks and Spencer’s own-label food arrange and Waitrose’s quality food all together (Mintel, 2006). These competitions result in more pressures in food area, which seems as with low extension. Tesco’s international competitors relates to Wal-Mart Stores and Carrefour.
Moreover, as Tesco’s expansion in non-food area and Internet, many new competitors appeared, for instance, Waterstone, Boots, HMV and Acado, etc (Datamonitor 2006, Mintel 2006). PEST Analysis PEST analysis will composes the external factors focusing on the plan being able to affect corporation, and also affecting communication plan constituting. Recently, there have health and healthy diets by to pay more attention to, therefore Tesco have set their campaign at healthy ranges, such as product packaging and healthy organic products (Mintel, 2006). Moreover, environmental policies also urge Tesco to move their PR campaign to that recycling carry bags and reducing the energy sources.
Furthermore, according to Mintel report (2006), the number of people eating in the outside number is rapid increase by; with the food competition retail has become more intensive. These factors may lead to Tesco difficult in food area development. Finally, online shopping is start by as more and more people (Black, 2005), Tesco has started online retail since 2002. Tesco’s competitions position has extended to online, hence the communication issues have to concern online as well. 3. Key Indicators of the Firm’s Financial Performance 3. 1 Dividend Policy There are a number of dividend policies for different companies. Based on Tesco’s performance, Tesco’s has chosen unceasingly and steadily increasing dividend policy.
Keeping dividends constant or steadily increasing that means company wants to show confidence to public and investors. However, this can cause major problems if they want prudence (Denzil, 2004). Denzil (2004) also stated dividend payments are the amount of earnings to be retained by company and the amount to be distributed to shareholders. It is the ways to maximize shareholders wealth that because the more dividends to shareholders, the more wealth of shareholders will be maximized. But there is ‘a delay between the announcement of dividends and the cash actual payment gives rise to the terms cum dividend and ex-dividend when quoting share prices. When a dividend is announced, company’s share price will change.
This change will reflect the market’s attitude to the dividend. The share price will then continue to be cum dividend for a short period. That means if someone purchasing the share during that period, they could receive the dividend when it is paid. But if someone purchasing the share on or after the share price goes ex-dividend, they won’t get the payments. ’ So that may change the value of the share. William (1997) analyses that there are some factors could affect dividend payments, especially, is the reactions of stock market and taxes. First of all, if the stock market reacts positively, the dividend will increase, otherwise, will decrease.
When company announces regular dividend payments or some raise in the dividend per share, the share price of company will increase typically. According to the past 5 year’s financial reports of Tesco plc for dividend payments that show when announcements issued, share price would be affected. Base in 5 years’ performance of Tesco plc’s dividend per share and share price that proved the reacts of stock markets could influence dividend payments. The dividend payments of Tesco plc have been increasing every period based on result from annual reports (2007) for past 5 years, while share price has been rising as well so that attracting more positive investments. Therefore, there will be a very good cycle for Tesco plc in order to maximize shareholders wealth.
Secondly, it is tax. Tax seems obviously that levying the income taxes from investors that would be reduce the demand of dividends and so companies retain a larger share of their profits. Thus, high tax rates causes companies stop paying dividends. If cut of tax rate, the demand of shareholders for dividends could retain or increase so that the shareholders’ wealth will be people in that apparent income tax, actually taking back off them with income increases. So should pay the lowest cash dividend they could get away with. As a result, effects on the taxes could influence dividend payments as well as shareholders’ wealth. 3. 2 Capital Market Efficiency
Denzil (2004, pp32) stated that ‘capital markets are markets for trading long-term financial securities. ’ And there is no stock market is perfect but investors and companies need market to be efficiency. Glen (2005) analyzed that there are two main reasons show the value of efficiency market is important. First, if share markets are efficient this could encourage share buying when shares are priced fairly and present the attraction of company. Another value of efficient markets is to give correct signals to company managers. The objective of the company is to maximize shareholders’ wealth. ’ this can be represented by share price in an efficiency market’ (Glen, 2005, pp688).
Financial decision making relies on company’s implication of decisions is signaled to shareholders’ wealth; managers should assure that the implication of decisions is signaled to shareholders and management through the implication of share price. It is very important for mangers receive feedback on their decisions from stock market so that they could encourage pursuing shareholders wealth strategies. If share price goes down, it won’t raise the wealth of the owners. According to the 5 years’ share price of Tesco plc (Appendix); it is continuously increasing . This result proved stock market has positive performance. And the market value of Tesco Plc is increasing as well, which indicates the true and positive value of the company. For capital market efficiency there are three levels: weak from efficiency, semi-strong efficiency and strong form efficiency.
According to the study on William (1997), the stock market is semi-strong from efficiency in current period. That means share prices not only reflect by past price movements but also by announcements of right issues, earnings and dividends and so on. Fox example, when company announced the right issue or earning per share and dividend per share of annual reports could influence company’s share price. Or when pubic news has been reported, share price could increase by positive news, otherwise will decline. In addition, at the end of every year, Tesco plc would publish annual reports to show Company’s financial performance such like earning per share and dividend per share. That information indicates there were some movements during that period.
All these results explained that share price of Tesco Plc reflected by the historical information and public news announcements. And the most important result is share price has been increasing, the dividend per share and earning per share are increasing every year as well. That means the wealth of Tesco Plc shareholders maximized successfully. 3. 3 Raising Finance 3. 31 Long term Debt Finance Denzil (2004) and Glen (2005) argues compared to the property right finance that, the long-term debt finance, for example loan stock and the rise fund and is not more expensive than equity finance, because of the lower costs of raising funds and the less annual return required equity.
And there is less risk for investors invest in a firm via debt finance than via shares because interest is paid out before dividends are paid so there is greater certainty of receiving a return than there would be for equity holders. Also, if the firm goes into liquidation, the holders of a debt type of financial security are paid back before shareholders receive anything. 3. 32 Equity Finance In a recent study Denzil (2004) argued that ordinary shares are bought and sold regularly on stock exchange markets, because it represent the equity share capital of firms and the owners of the companies want a satisfactory return on their investment. There are three ways of raising equity finance: First, retained profit is the more effectively way rather than share issues, because profits certainly lead to a net increase in funds.
Right issues are another way that is cheaper in terms of issuing costs than an offer for sale shares to the public . Last way is equity issues to the public. Such issues are relatively rare in practice and do not for a very large proportion . While there are not many such issues and seen to occur most with businesses that have newly been listed by the Stock Exchange (Eddie McLaney, 2003, pp215) According to the research on Tesco plc’s past 5 years’ financial statements (Appendix), these results proved retained profits and issuing shares are the efficiency way for raising equity finance than borrowing, because there is no obligation to pay dividends.
And also, the capital doesn’t have to be repaid as shares don’t have a redemption date and when the original sum invested is repaid to the shareholders. As results, companies have enough money pay dividends to shareholders and the shareholders ‘wealth will be maximized. However, there are also some disadvantages of share issues: First, the cost of issuing shares is usually higher than the cost of borrowing, because of the direct costs of issue and the cost represented by the return required satisfying shareholders. Secondly, dividends can’t be used to reduce the taxable profit because the dividends are paid after tax. Last is an important one, the entrepreneurs could loss the control of the company. (Glen, 2005) 3. Risk, Return and Investment Decisions In corporate finance theory, risk and return play an important role for investors and companies. They aim to minimize the risk and they face for a given return they expect to get back. Denzil (2004) argued that the Capital Asset Pricing Model (CAPM) is that systemic risk, as measured by beta to value shares. The beta of a security measures the sensitivity of the returns on the security to changes in systematic factors. For example,’ If the beta is less than 1, and the market return increases by 10 %( i. e. 0. 7), the security’s return will increase by 7%. If the market return decreases by 10%, the return of the security decreases by 7%.
This security represents as defensive security and is most attractive to investors when the stock exchange is falling. However, for a beta is more than 1(i. e. 1. 7), if the return of the market increase by 10%, the return of security will decrease 17%. This is termed an aggressive security and is most attractive to investors when the market is rising ‘(Denzil ,2004,pp254). Tesco plc’s beta is 0. 795 (Finance, Yahoo. 28/12/07). So, if the markets return increases by 10%, the Tesco Plc’s security return will increase 7. 95%; if the market return decreases by 10%, the return of security will decrease 7. 95%. That shows the securities of Tesco Plc is termed an aggressive security and there is more attractive to investors when the market is rising. he more investors buying their shares, the more profits the firm earned and the more dividends payable and capital gains to shareholders. Investors held securities because they want positive return . There is a relationship between risk and return: high risk, high return; low risk, low return . And some investors expected high return, they would like to invest high risk business; however, not all investors are risk-taker. Those investors are rational, they want to maximize their utility but they don’t take risk. They would invest their business at the risk-free rate or low risk level and to make sure they won’t loss their capital . All that decisions are made by investors that influence the performance of firm so that could affect shareholders’ wealth as well.
Tesco plc investments show company correct decisions and good performance, so they would get more turnover and profits which give to shareholders as dividends and would influence the share price as well . As a result , Tesco Plc’s shareholder’s wealth will be maximized successfully. 4. Review of financial statements Denzil (2004) stated that shareholders, investor and financial managers have a great deal of information about companies from their financial statements, because the analysis of financial statements could provide useful information for these group people; for shareholders, it could help them to make decisions for buying and selling. They could compare their investments performance with other companies and assessing whether mangers as their agents have been maximizing their wealth.
Investors such as banks, they can use that information to inform decisions about whether to agree to invest or request for debt finance. And company managers could use financial analysis to compare current and previous performance, and against the performance of competitors. 4. 1 Ratios Analysis Until now, EPS per share has already increased to 23. 60 pence (Yahoo, finance), up to 17. 64%. Therefore, the increasing trends give confidence and attractive to investors and public. Gearing ratio is a measure of financial leverage, demonstrating the degree to which a firm’s degree by owner’s funds versus creditor’s funds. The higher the company’s degree of leverage, the more the company is considered high debt risk.
The level of risk of Tesco Plc’s business is increasing. The higher risk they have, the higher return they gain. 4. 2 Account Analysis In addition, according to the annual reports of Tesco Plc for the past 5 years (Appendix) stated that total share return, which is measured as the percentage increase in the share price, plus the dividend paid, has increased by 36% in 2006/07. Over the last five years, the increase has been 102% compared to the increase in the average for FTSE100 companies of just 50%. 5. External Information 5. 1 The Economy The health of economy has a basic effect on companies businesses, because it is responsible for driving the profits of firms.
If economy is growing, companies’ profits and share price will have better performance. Otherwise, the share price will fall down in accordance with its financial performance. Before investors invest businesses, they not only look at the target’s financial performance, but also look at what is going to happen to economy data, they will analysis the major partners, such as US and Europe. What happens in these economies will have impact on UK, too. Inflation and GDP are two of macroeconomic indicator could influence performance of company. While the UK GDP is growing, showing UK’s economy is health so that could give positive impact on companies listed, such as Tesco Plc. In addition, inflation rate in UK rises to 2. % in February because of an increase in taxes. All these could influence the share price and investors’ decision for businesses, therefore, could have significant impact on shareholders’ wealth. 5. 2 Company News The company news is another major influence company performance. For example, if company put out a warning that means company faces problems, share price of this firm will drop; if company announced directors buy share in the firm and maybe this is a signal that business is improving . Beside that ,takeover and merger or company restructuring that also affect company performance as well as shareholders’ wealth. 6. Conclusion and Recommendations
In conclusion, as a result showed in the last few years, Tesco Plc’s performance is positive and the actions of their business have contributed on maximizing the wealth of company’s shareholders successfully. That is because the following characteristics: first of all, Tesco Plc use retained profits and issuing shares as the effective ways to raising their equity value. The consequence from annual report proved that raising finance by using retained profits and share issue are the efficient way than borrowing that is because when company has negative income, they have enough money for paying dividends so that it won’t affect shareholders’ wealth. However, when company issue shares, they usually have to pay the higher cost and also loss control of the company so Tesco Plc has to limit the number of shares issued.
Compared with equity finance, there is another way to raise finance is debt finance. It carries less expensive than equity finance because the lower costs of raising funds and less annual return required equity and also it has fewer risks than via shares. Secondly, capital market efficiency: if the markets are efficient this would encourage shares buying and selling which could represent the attraction of company. At the same time, it could give financial managers correct signals to show their decisions are right and assure the shareholders benefits from the movement of share price ,so they have chance to continue pursuing shareholders wealth strategies.
In the semi-strong efficiency stock market in this period, share price reflect by historical information and current news related to company. Tesco Plc’s share price is influence by the past information and current public news. Even though there is some negative news, the main trend of shares is increasing so that they could attract more investors and gain more profits for dividends. Therefore, the wealth of shareholders will be maximized. Thirdly, dividend payment is one of ways to maximize shareholder’s wealth; the more dividends paid to shareholders, the more successfully their wealth will be maximized. However, there are some reasons could affect the dividend payment, such as stock market react and tax.
The positive stock market reacts will give positive performance of share price as well as shareholders’ wealth, otherwise, will be negative. High tax is also an important factor to stop paying dividends to shareholders. If UK taxes keep going up, the companies in the LSX would be influence. Fourthly ,’high risk ,high return; low risk ,low return ‘ that present the relationship between risk and return . According to the Tesco Plc’s beta value that shows company is termed an aggressive security and is most attractive to investors when the market is rising. If the company attractive more positive investments, the more profits they will gain for dividend payments.
Beside that, some external information also could influence the financial performance of company, such as the global economy and industrial news. In addition, shareholders make decisions by assessing ratios analysis from financial statements. The increasing trends of dividend per assessing ratios analysis from financial statements . The increasing trends of dividend per share and EPS give confidence to shareholders, the management and other stakeholders. High turnover and profit for dividends show Tesco Plc have sufficient money to maximize shareholders’ wealth. However, the high gearing ratio and beta explain the Tesco Plc’s business is facing high risk, therefore, it have to solve debt problems to reduce the risk of its business.
Finally, the characteristics of Tesco Plc’s business and the results for comparisons among Tesco plc, FTST 100 and other supermarkets in UK show that Tesco Plc has satisfied performance from many aspects, i. e. sales, profits ,dividend per share earning per share etc. On the other hand, they have some debt problems and high beta value, but it is highly risky and while gets high returns. So in my own opinion, the current share price of Tesco Plc is representing a fair value. Bibliography Caroline, S (April, 2007) Tesco announces profits of ? 2. 55bn. Farmers Weekly. Retrieved April 17, 2007. From:http://www. fwi. co. uk/Articles/2007/04/17/103008/tesco-announces-profits-of-255bn. html Wikipedia, From: http://en. wikipedia. org/wiki/Tesco#_note-2
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Penman(2004),Financial Statements Analysis and Security Valuation ,Second Edition ,Mc Graw-Hill Education Richard A. Brealey and Stewart C. Myers, (1996), Principles of Corporate of Finance, fifth Edition, Dartmouth Publishing http://www. tescocorporate. com/page. aspx? pointerid=14F28D6E0F584823BBB3DDDBE9B14EB4 http://www. tescocorporate. com/page. aspx? pointerid=DB2E8C9EAA4440E8A95D6392E742F565&&from=1/1/2002&to=1/1/2007&returnPeriod=7 http://www. tescocorporate. com/page. aspx? pointerid=CC7BA049FAFA4998B81842A2A2FEB02E&&from=1/1/2002&to=1/1/2007&returnPeriod=4 http://www. tescocorporate. com/page. aspx? pointerid=B7FBB04AE47A4250BFC95451CD139E72 ttp://www. tescocorporate. com/images/TESCO_FULL%20low. pdf Tesco set to take crown as UK’s largest non-food retailer. (2006) Full-text [online] Business Source Premier. URL: http://search. ebscohost. com/login. aspx? direct=true=buh=22334692=bsi-live Food Retailing – UK. (2006) Full-text [online]. Mintel. URL: http://academic. mintel. com/sinatra/academic/search_results/show&&type=RCItem=0=0/display/id=173677 Tesco Annual Report. (2006) [online] Tesco plc. URL: http://www. tescocorporate. com/images/Tesco_Report_2006_Full. pdf. Tesco PLC (2006) [online]. Datamonitor URL: http://search. ebscohost. com/login. aspx? irect=true=buh=dmhco=1674=bsi-live Black, G. S. (2005) ‘Predictors of consumer trust: likelihood to pay online’. Marketing Intelligence & Planning. 23 (7). pp. 648-658 http://uk. finance. yahoo. com/q/tt? s=TSCO. L Appendix: Figure 1: Sales by food retailers, 2001-06 |? m (excl. VAT) | | | |UK GAAP | |IFRS | | | | |2002 | |2003 | |2004 | |53 wks | |2005 | |20051 | |20062 | | | |Financial statistics | | | | | | | | | | | | | | | |Group sales | |25,401 | |28,280 | |33,557 | |37,070 | |36,957 | |43,137 | | | |Revenue excluding VAT | | | | | | | | | | | | | | |UK | |19,821 | |21,309 | |24,760 | |27,146 | |27,146 | |29,990 | | | |Rest of Europe | |2,181 | |2,664 | |3,385 | |3,818 | |3,818 | |5,095 | | | |Asia | |1,398 | |2,031 | |2,669 | |3,010 | |2,902 | |4,369 | | | | | |23,400 | |26,004 | |30,814 | |33,974 | 33,866 | |39,454 | | | |Operating profit 3 | | | | | | | | | | | | | | | |UK | |1,215 | |1,289 | |1,486 | |1,666 | |1,556 | |1,788 | | | |Rest of Europe | |90 | |134 | |171 | |249 | |243 | |263 | | | |Asia | |17 | |69 | |121 | |149 |153 | |229 | | | |Total Group | |1,322 | |1,492 | |1,778 | |2,064 | |1,952 | |2,280 | | | |Underlying profit – UK GAAP 4 | |1,221 | |1,401 | |1,708 | |2,029 | |NA | |NA | | | |New underlying profit – IFRS 5 | |NA | |NA | |NA | |NA | |1,925 | |2,277 | | | |Diluted earnings per share 6 | |11. 86p | |13. 42p | |14. 3p | |17. 50p | |17. 30p | |19. 92p | | | |Basic earning per share 6 | |12. 05p | |13. 4p | |15. 05p | |17. 72p | |17. 52p | |20. 20p | | | |Dividend per share 7 | |5. 0p | |6. 20p | |6. 84p | |7. 56p | |7. 56p | |8. 63p | | | |Return on capital employed 8 | |10. 8% | |10. % | |10. 4% | |11. 5% | |11. 8% | |12. 7% | | | |Group statistics | | | | | | | | | | | | | | |Number of stores 9 | |979 | |2,291 | |2,318 | |2,334 | |2,334 | |2,672 | | | |Total sales area – 000 sq ft 9,10 | |32,491 | |39,944 | |45,402 | |49,135 | |49,135 | |55,215 | | | |Full–time equivalent employees | |171,794 | |188,182 | |223,335 | |242,980 | |242,980 | |273,024 | | | |UK retail statistics | | | | | | | | | | | | | | |Number of stores | |729 | |1,982 | |1,878 | |1,780 | |1,780 | |1,898 | | | |Total sales area – 000 sq ft 10 | |18,822 | |21,829 | |23,291 | |24,207 | |24,207 | |25,919 | | | |Revenue per employee 11 | |163,443 | |160,157 | |162,459 | |166,534 | |166,534 | |170,923 | | | |Weekly sales per sq ft 12 | |22. 43 | |21. 86 | |22. 48 | |23. 89 | |23. 89 | |25. 6 | | | |The 2005 IFRS financial statistics have been restated to remove the Taiwanese business which is held for sale. | |Results for the year ended 25 February 2006 include 52 weeks for the UK and ROI and 14 months for International. | |Operating profit includes integration costs and profit/(loss) arising on sale of property related items. | |UK GAAP underlying profit excluded net profit/(loss) on disposal of fixed assets, integration costs and goodwill | |amortisation. | |IFRS underlying profit excludes IAS 32 and IAS 39 and the IAS 19 charge for defined benefit pension schemes, which is | |replaced by the normal cash contributions. |Diluted and basic earnings per share are on a continuing operations basis. | |Dividend per share relating to the interim and proposed final dividend. | |The numerator is profit before interest, less tax. The denominator is the calculated average of net assets plus net debt | |plus dividend creditor less net assets held for sale. | |In addition there are 39 stores operated by our Hymall joint venture in China, which have 3,505,000 sq ft of sales area. | |Store sizes exclude lobby and restaurant areas. | |Based on average number of full–time equivalent employees in the UK, and revenue exclusive of VAT. | |Based on weighted average sales area and sales excluding property development. |[pic] | Source:http://www. tescocorporate. com/page. aspx? pointerid=14F28D6E0F584823BBB3DDDBE9B14EB4 |Share Price Charting Tool | |[pic] | Source:http://www. tescocorporate. com/page. aspx? pointerid=DB2E8C9EAA4440E8A95D6392E742F565&&from=1/1/2002=1/1/2007=7 |Shareholder Return Chart | |[pic] | Source:http://www. tescocorporate. com/page. aspx? ointerid=CC7BA049FAFA4998B81842A2A2FEB02E&&from=1/1/2002=1/1/2007=4 |Historical Dividend Prices | |Type |Ex Dividend |Payment Date |Amount (p) | |Interim |10/10/07 |21/12/07 |3. 20 | |Final |25/04/07 |06/07/07 |6. 83 | |Interim |11/10/06 |22/12/06 |2. 1 | |Final |03/05/06 |14/07/06 |6. 10 | |Interim |28/09/05 |09/12/05 |2. 53 | |Final |20/04/05 |01/07/05 |5. 27 | |Interim |29/09/04 |26/11/04 |2. 29 | |Final |28/04/04 |25/06/04 |4. 77