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| I am very pleased to
announce, for the second
consecutive year, double-digit
profit growth: it is also
our fifth consecutive
half year of profit improvement
since we embarked upon
our ambitious Business
Transformation Programme
at the end of 2000. Over
the same period we have
made great progress against
our key corporate objectives
of radically updating
and upgrading our business
including strengthening
our management team significantly. |
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| As a result the Board proposes a final dividend
of 11.36 pence per share which is an increase of
5 per cent over last year. The total proposed dividend
for the year is 15.58 pence which represents an
increase of 5 per cent on last year and dividend
cover of 1.52 times. This increase reflects the
Directors’ aim to continue to deliver double-digit
profit growth during the coming year and, if achieved,
to increase the dividend by 5 per cent, thereby
recognising the need to restore dividend cover.
With the improvements made to date we now have the
capacity to grow the business further as the benefits
from our change programme begin to accrue. |
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| I was also pleased to
announce in March that
Sir Peter Davis has agreed
to extend his time with
the Group and will assume
the role of Chairman in
March 2004 when I retire.
We have also started a
formal process to recruit
a new Chief Executive,
either internally or externally,
by this date and have
initiated a search for
an independent Non-Executive
Deputy Chairman to be
appointed during next
year, with the intention
that this individual will
become Non-Executive Chairman
in due course. |
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| At the end of December 2002, Ian Coull, Chief
Executive of our property division and a Board Director,
left to become Chief Executive of Slough Estates.
He made a major contribution to Sainsbury’s during
the 15 years he was here and we thank him and wish
him well. |
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