The board of directors monitors the return on capital

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Unformatted text preview: d market confidence and to sustain future development of the business. The board of directors monitors the return on capital, which the Group defines as net operating income attributable to members of the parent entity divided by average shareholders’ equity excluding non-controlling interests. The board also monitors the level of dividends to ordinary shareholders. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position. The Group’s aim is to achieve a minimum return on capital of 15 percent; during the year ended 30 June 2011 the return was 18.3 percent (2010: 14.9 percent). In comparison the weighted average interest expense on interest-bearing loans an...
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This document was uploaded on 02/06/2014.

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