Laura Ashley Plc - dividends paid out in excess of retained earnings?

PLC paying dividends in excess or retained earning

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I was looking through Laura Ashley plc's financial statements for the last few years and it looks like in some years they have been paying dividends in excess of the retained earnings in the balance sheet. Is there any way possible that a plc can do this from retained earnings? I have come across companies that transferred share premium to retained earnings but this is not the case here.

I would be interested if anybody can answer.


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By WhichTyler
12th Oct 2016 15:48

It must be OK because Philip Green did it (and borrowed to pay the dividend...)

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12th Oct 2016 16:34

If you look at the balance sheets the consolidated accounts show cumulative losses but the holding company shows retained earnings. The dividends come from the holding company, the losses are somewhere else in the group.

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By Comptable
13th Oct 2016 17:10

Good isn't it!
You make huge management charges to the subs who incur losses but giving the parent company a profit from which it can pay a dividend.
For tax you use group relief to set the subs tax losses against the parents tax profits and pay no corp tax.
You move shed loads of cash and loans around and around.
Then the whole lot goes t*ts up and everybody loses out - except Tina!
Easy peasy, Phil is greasy.

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