Delta plc is a listed business in the ‘general retailers’ section of the market. Its most recent income statement and statement of financial position are outlined as follows:

A dividend totalling £30 million was paid to shareholders in respect of the year.

At the end of the year the ordinary shares were quoted on the London Stock Exchange at £2.50 each.

Required:

Calculate, and comment on, each of the following ratios for Delta plc:

1. Dividend payout;
2. Dividend yield;
3. Earnings per share;
4. Price/earnings ratio.

Where relevant, compare these ratios with the averages for general retailers, given in Exercise 9.1.

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Income statement for the year Revenue Profit before taxation Taxation Profit for the year £m 224 81 (16) 65