9 Taxation continued Application of IFRIC agenda decisions
During the year, the Group has reviewed its accounting policy to align with IFRIC guidance issued in April 2021 in relation to Software-as-a-Service (SaaS) costs previously capitalised; following this review certain costs previously capitalised in relation to cloud-based arrangements have been expensed and amortisation charged on those assets has been reversed. This had the impact on the UK tax charge in the prior year of £1.2m. See Note 34 for further details on this prior year restatement. Tax uncertainties The tax expense reported for the current year and prior year is affected by certain positions taken by management where there may be uncertainty. The most significant source of uncertainty arises from claims for US R&D tax credits relating to historical periods. Uncertainty arises as a result of a degree of uncertainty concerning interpretation of US legislation and because the statute of limitations has not expired. For the periods ending 31 May 2017 to 31 May 2021, the aggregate net current tax benefit to the Income Statement relating to the US R&D tax credits is £2.7m (2020: £4.3m). The gross deferred tax asset relating to the US R&D tax credits is £1.0m (2020: £0.8m), although due to the uncertainty we have made a partial provision of £0.6m (2020: £0.8m) against this asset. The aggregate gross amount of US R&D tax credits recognised amounts to £8.2m (2020: £5.1m) and we have made a provision of £5.1m (2020: £0.8m) against this gross position.
10 Dividends
2021 £m
2020 £m
13.0
Dividends paid and recognised in the year
12.9
4.65p 3.15p
Dividends per share paid and recognised in the year Dividends per share proposed but not recognised in the year
4.65p 3.15p
The proposed final dividend for the year ended 31 May 2021 of 3.15p per ordinary share on approximately 309.8m ordinary shares (approximately £10m) was approved by the Board on 14 September 2021 and will be recommended to shareholders at the AGM on 4 November 2021. The dividend has not been included as a liability as at 31 May 2021. The payment of this dividend will not have any tax consequences for the Group.
11 Earnings per ordinary share Earnings per ordinary share are shown on a statutory and an adjusted basis to assist in the understanding of the performance of the Group.
2020 (restated) 2 £m
2021 £m
10.0
Statutory earnings (A)
6.4
Number of shares m
Number of shares m
281.2
Basic weighted average number of shares in issue (C)
278.0
1.5
Dilutive effect of share options
2.5
282.7
Diluted weighted average shares in issue (D)
280.5
For the purposes of calculating the dilutive effect of share options, the average market value is based on quoted market prices for the period during which the options are outstanding.
2020 (restated) 2 Pence
2021 Pence
Earnings per ordinary share Basic (A/C)
3.6 3.5
2.3 2.3
Diluted (A/D)
NCC Group plc — Annual report and accounts for the year ended 31 May 2021
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