Retailer Next has admitted that it has infringed the Companies Act over dividend payments, announcing that a "procedural oversight" saw it award several payments over 2014 and 2015, constituting a "technical infringement" of the 2006 Act.
"The issue is of an historic nature and there is no change to the financial outlook of the company as a consequence of this technical matter," reports Next plc company secretary, SL Anderson. "It also has no impact on the company's intentions or ability to continue returning its surplus cash flow to shareholders via future special dividends or share buybacks. The Company's past accounts will not need to be restated and no dividends are expected to be repaid.
"Whilst the company always had sufficient reserves to pay the relevant distributions at the time that they were made, the Act required this to be demonstrated by reference to interim accounts filed at Companies House prior to payment. Regrettably, those interim accounts were not filed with Companies House until after the relevant distributions had been paid and after the lapse had been identified. No fines or other penalties have been incurred by the company.
"The steps being proposed are also in line with those taken by other listed companies that have encountered similar issues in the past."
