During the period under review, the K3 Capital Board has revised its intended dividend policy in light of the strategy of the enlarged Group following the recent significant acquisitions. It is the Board's intention to retain an attractive dividend policy in the spirit of that which was implemented on AIM listing, however the policy has been modified to allow sufficient cash reserves to build over future years in order to satisfy contingent payments linked to acquisitions, whilst also reserving cash to fund potential future acquisitions.
As such, the Board is committed to a progressive fixed dividend policy over three financial years, being a 9.1p dividend per share ("DPS") in FY21, 12.1p DPS in FY22 and 15.5p DPS in FY23. As per previous years, this will be paid approximately 1/3 on interim results and the balance on annual results.
In light of the 3.0p DPS paid on interim results, the Board is recommending a 6.1p final dividend per share (FY20: 3.8p final DPS). Subject to approval by shareholders, the final dividend will be paid on 30 November 2021 to shareholders on the Company's register at close of business on 18 November 2021. If the final dividend is approved, the total dividends paid by the Company relating to FY21 will be 9.10p per eligible ordinary share, a 22% increase on the prior year (2020: 7.47p).
