Traminer plc provides software solutions for the airline industry. At present, shares in the business are held by the senior managers and by a venture capital business. However, Traminer plc intends to seek a Stock Exchange listing and to make 75 per cent of the ordinary shares available to the investing public. The board of directors recently met to decide upon a dividend policy for the business once it has become listed. However, the meeting ended without agreement.

Information relating to the business over the past five years is set out below:

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Year ended 30 April 2012 2013 2014 2015 2016 Ordinary shares in issue 000 500 500 800 1,000 1,000 Profit for the year 000 840 1,190 1,420 1,940 2,560 Ordinary share dividends 000 420 580 340 450 970 Required: Evaluate the dividend policy pursued by Traminer plc over the past five years and discuss whether any changes to this policy are required.