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Loki

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lolo lolol lolol lolo The graph also demonstrates the historically high rating the shares currently enjoy. In our Annual Report last year we set out the criteria by which we would decide the maximum price we would pay to buy back shares.
We introduced the concept of Equivalent Rate of Return (ERR). ERR is the return required from an alternative investment, if that investment were to produce the same level of earnings enhancement as the proposed buyback.
We set the minimum ERR at 8%, which we consider a reasonable target for a return on equity investments. In
November last year, as our shares continued to rise, the ERR on share buybacks fell below the 8% threshold.
As a result, we introduced rolling special dividends in place of buybacks. We intend to continue distributing surplus cash through special dividends, paid on a quarterly basis, until such time as the ERR rises above 8%.
Whilst the underlying financial objective of the Group remains unchanged in principle, the introduction of special dividends mean that our financial goal is now better expressed as the delivery of long term sustainable growth in Total Shareholder Returns; where Total Shareholder Returns are defined as growth in EPS added to the total annual dividend yield. The graph also demonstrates the historically high rating the shares currently enjoy. In our Annual Report last year we set out the criteria by which we would decide the maximum price we would pay to buy back shares.
We introduced the concept of Equivalent Rate of Return (ERR). ERR is the return required from an alternative investment, if that investment were to produce the same level of earnings enhancement as the proposed buyback.
We set the minimum ERR at 8%, which we consider a reasonable target for a return on equity investments. In
November last year, as our shares continued to rise, the ERR on share

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