Earnings per share and dividends

Earnings per share

Underlying basic earnings per share was 23.8p (2008: 20.4p), an improvement of 17%. Basic loss per share from continuing operations was 1.0p (2008: 24.4p).

Dividends

The Board is recommending a final dividend of 7.7p per share (2008: 6.9p). On 19 May 2009, the Board recommended an interim dividend of 3.0p per share (2008: 2.8p), making a full year dividend of 10.7p per share (2008: 9.7p). This represents a payout ratio of 45% of underlying basic earnings per share. The final dividend will be paid on 1 April 2010 to holders of relevant shares on the register at 12 March 2010.

The Group’s policy is to maintain underlying dividend cover at around two times. We intend to continue to operate a dividend re-investment plan as an alternative to receiving a cash dividend.