Earnings per share and dividends
Adjusted basic and diluted earnings were 5.6 and 5.4 pence per share respectively (2016: 4.7 and 4.6 pence per share respectively). The adjusted earnings per share measure uses adjusted earnings.
Basic and diluted earnings per share were 3.3 and 3.2 pence per share respectively (2016: 3.1 and 3.0 pence per share respectively). The increase in the basic and diluted earnings per share is suppressed by the £3.4m deferred tax impact of the reduction in the future UK corporation tax rate in the prior period.
The Board has set out its intention to adopt a progressive dividend policy for the Group, reflecting its strong earnings and cash flow characteristics, while retaining sufficient capital to fund ongoing operational requirements and to invest in the Group's long-term growth plans. We remain committed to paying a significant proportion of after-tax profits as dividends and look to provide approximately a one-third/two-thirds, interim/final dividend split. We are pleased to announce an interim dividend of 2.6 pence per share (2016: 2.2p) an increase of 18.2%, payable to shareholders on the register on 15 December 2017 and which will be paid on 31 January 2018.
