Adcock Ingram Integrated Report 2018

67 ADCOCK INGRAM  Integrated Report 2018 The directors have pleasure in submitting their report to shareholders, together with the audited annual financial statements for the year ended 30 June 2018 which are set out from page 69. PRINCIPAL ACTIVITIES AND BUSINESS REVIEW Adcock Ingram is a leading South African healthcare group, operating in three geographical areas, namely southern Africa, Rest of Africa and India. The southern African business consists of four principal divisions: • a Consumer division selling a range of products mainly through FMCG retailers; • an Over the counter (OTC) division selling a range of OTC products that can be purchased without a prescription mainly through pharmacies; • a Prescription division selling a range of branded and generic prescription products including specialised instrument and surgical products; and • a Hospital products and services division. BUSINESS COMBINATIONS ACQUISITIONS In January 2018, the Group acquired Genop Holdings Proprietary Limited, a highly specialised instrument, surgical and pharmaceutical products company focused on the ophthalmic, optometry, skincare, aesthetic and plastic surgery segments in Southern Africa (note 1.1). During the 2017 financial year, the Group acquired Virtual Logistics Proprietary Limited, a national and cross-border fine distribution company purchased in April 2017 (note 1.2). SHARE CAPITAL Details of the authorised and issued share capital are set out in note 18 to the annual financial statements and in the statement of changes in equity. Details of ordinary treasury shares held by Group entities are as follows: 30 June 2018 30 June 2017 Adcock Ingram Limited 4 285 163 4 285 163 Mpho ea Bophelo Trust* 5 168 592 5 168 592 Adcock Ingram Holdings Limited Employee Share Trust (2008) 6 740 – * Held indirectly DIVIDENDS TO SHAREHOLDERS POLICY The Board intends to declare a distribution on at least an annual basis, which it currently envisages will be covered between two to three times by headline earnings. INTERIM AND FINAL 2018 An interim dividend of 86 cents per share was declared and paid in relation to the six-month period ended 31 December 2017. A final dividend of 86 cents per share was declared following the results of the year ended 30 June 2018. 2017 An interim dividend of 63 cents per share was declared and paid in relation to the six-month period ended 31 December 2016. A final dividend of 76 cents per share was declared and paid following the results of the year ended 30 June 2017. SHAREHOLDERS Please refer to the shareholder analysis on pages 144 of the Integrated Report. EVENTS AFTER 30 JUNE 2018 There were no significant events after year-end. Directors’ report