Subject to shareholder approval each year, the Company will pay an ordinary dividend of approximately 7.5% of Group net assets, which will be at least £250 million per annum. This is intended to provide a reliable minimum annual return to shareholders throughout the cycle, including through a 'normal downturn', and will be paid equally as a final dividend (in May) and as an interim dividend (in November). This Ordinary Dividend Policy was subject to prudent and comprehensive stress testing against various downside scenarios, which also included a reduction of 20% in average selling prices and a 30% reduction in volumes.
The payment of ordinary dividends will continue to be supplemented by additional significant special dividends at appropriate times in the cycle. Their Special Dividend Policy will pay out to shareholders the free cash generated by the Group after land investment, all working capital, taxation and other cash requirements of the business in executing their strategy in the medium term, and once the Group's ordinary dividends have been met. They have paid a special dividend in each of the last six years. Over the past six years they have paid a total of £2.3 billion in ordinary and special dividends to shareholders.
Other financial highlights include:
2019 results in line with expectations with clear progress against strategic priorities
5% increase in Group completions to 16,042 (2018: 15,275) including joint ventures
Revenue increased by 6.4% to £4,341.3 million (2018: £4,082.0 million)
Operating profit of £850.5 million (2018: £880.2 million), reflecting strong volume growth offset by rising build costs and flat house prices, delivering an operating profit margin of 19.6% (2018: 21.6%)
Profit before tax and exceptional items of £821.6 million (2018: £856.8 million)
Profit for the year of £673.9 million (2018: £656.6 million)
Basic earnings per share of 20.6 pence (2018: 20.1 pence)
Net cash of £545.7 million (2018: £644.1 million)
