Airea
Website:
Airea
Index:
AIM
EPIC: AIEA
Supersector:
Personal and Household Goods
Sector:
Household Goods and Home Construction
Subsector:
Furnishings
Market Cap:
£9.84M
Payout Frequency: Annual
Airea Dividend Analysis and Summary
Declared Dividend
- Type: Final dividend (no interim paid; this is the total FY25 distribution)
- Amount: 1.00p per share (up 66.7% YoY from 0.60p)
- Record date: 24/04/2026
- Ex-dividend date: 23/04/2026 (derived as one business day before the record date)
- Payment date: 20/05/2026
- Total cash cost: ~£0.39m (implies c. 39m shares)
- Approval: Subject to shareholder approval at the AGM on 06/05/2026
Coverage and Cash Support
- Earnings cover: FY25 EPS 2.54p implies dividend cover of ~2.5x.
- Operating cash flow: £1.63m in FY25 covers the proposed £0.39m c. 4x; however, free cash flow was negative due to elevated capex (£4.9m) tied to the new manufacturing facility.
- Balance sheet: Net cash position at year-end (cash £2.0m vs. loans £0.5m) after repaying the £3.2m trade finance facility using proceeds from investment property disposal (£4.15m). Unutilised bank facility of £1.0m remains available.
Sustainability and Growth Trajectory
- Policy: Fifth consecutive year of dividend growth; Board reiterates a progressive dividend approach.
- Earnings quality: FY25 profit after tax (£1.0m) benefited from a sizeable tax credit (£0.8m); pre-tax profit was only £0.21m, so underlying cover is thinner than EPS suggests.
- Cash outlook: Capex programme is set to complete in H1 2026; non-recurring costs should subside, potentially improving free cash flow and supporting the dividend from FY26 onward.
- Operations: EBITDA improved to £1.7m and operating profit to £0.9m; management cites an “encouraging start to 2026,” albeit with macro caution.
Structural/Capital Allocation Developments Impacting Future Dividends
- Asset disposal and de-leveraging: Divested an investment property and repaid short-term financing, strengthening the balance sheet — supportive of ongoing distributions.
- Manufacturing transformation: New facility nearing completion; if expected efficiencies and margin gains materialise, medium-term dividend capacity should improve.
- Share scheme maturity (May 2026): 1.22m shares to vest to employees and 1.56m EBT shares to be cancelled. Timing means no impact on the May 2026 payment (record date precedes vesting). Longer term, awards moving out of the EBT may modestly increase dividend cash outflow, while the cancellation reduces dilution.
Risks and Flags to Dividend Stability
- Underlying profitability is modest (PBT £0.21m) and FY25 earnings were aided by a one-off tax credit; a repeat is uncertain.
- Free cash flow was negative in FY25 due to heavy capex; while expected to normalise, delays or cost overruns at the new facility would pressure cash generation.
- Defined benefit pension deficit of £3.0m with ongoing cash contributions (~£0.6m in FY25) continues to be a structural cash drain.
- End-market cyclicality and geopolitical/macro headwinds (UK budget uncertainty; international softness) could impact revenue and margins.
- Final dividend remains conditional on AGM approval.
Read more
Airea Annual Dividend Yield - 11.5%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 11/04/2019 |
22/05/2019 |
Final |
2.00p |
GBX |
| 19/09/2019 |
24/10/2019 |
Interim |
0.80p |
GBX |
Total (Annual Dividends Per Share):
2.80p
Dividend Yield =
Annual Dividends Per Share (2.80p)
÷ Share Price (24.35p)
= 11.5%
Airea Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 23/04/2026 |
20/05/2026 |
Final |
1.0000p |
GBX |
| 17/04/2025 |
21/05/2025 |
Final |
0.60p |
GBX |
| 18/04/2024 |
20/05/2024 |
Final |
0.55p |
GBX |
| 20/04/2023 |
18/05/2023 |
Final |
0.50p |
GBX |
| 25/04/2022 |
26/05/2022 |
Final |
0.40p |
GBX |
| 09/04/2020 |
20/05/2020 |
Final |
1.30p |
GBX |
| 19/09/2019 |
24/10/2019 |
Interim |
0.80p |
GBX |
| 11/04/2019 |
22/05/2019 |
Final |
2.00p |
GBX |
| 20/09/2018 |
25/10/2018 |
Interim |
1.75p |
GBX |
| 12/04/2018 |
23/05/2018 |
Special |
5.00p |
GBX |
| 12/10/2017 |
23/11/2017 |
Final |
1.75p |
GBX |
| 27/10/2016 |
24/11/2016 |
Final |
1.50p |
GBX |
| 29/10/2015 |
25/11/2015 |
Final |
0.90p |
GBX |
| 30/10/2014 |
26/11/2014 |
Final |
0.60p |
GBX |
| 30/10/2013 |
27/11/2013 |
Final |
0.55p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
|
0.550 |
|
GBX |
0.550 |
10.000 |
| 2023 |
|
0.500 |
|
GBX |
0.500 |
25.000 |
| 2022 |
|
0.400 |
|
GBX |
0.400 |
-69.230 |
| 2020 |
|
1.300 |
|
GBX |
1.300 |
-53.570 |
| 2019 |
0.800 |
2.000 |
|
GBX |
2.800 |
-58.510 |
| 2018 |
1.750 |
|
5.000 |
GBX |
6.750 |
285.710 |
| 2017 |
|
1.750 |
|
GBX |
1.750 |
16.660 |
| 2016 |
|
1.500 |
|
GBX |
1.500 |
66.660 |
| 2015 |
|
0.900 |
|
GBX |
0.900 |
50.000 |
| 2014 |
|
0.600 |
|
GBX |
0.600 |
9.090 |
| 2013 |
|
0.550 |
|
GBX |
0.550 |
|
Airea Dividend Calculator
Airea Dividend Growth
| Dividend Growth (1Y) |
66.67%
|
| Dividend CAGR (5Y) |
14.87%
|
| Years of Growth |
2
|
| Payout Ratio |
23.52%
|
| Buyback Yield |
–
|
| Shareholder Yield |
4%
|
| P/E Ratio (TTM) | 10.02 |
|---|
| Forward P/E | – |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 9.98% |
|---|
| FCF Yield | -32.08% |
|---|
| ROE | 6.06% |
|---|
| ROCE | 2.5% |
|---|
| Profit Margin | 4.58% |
|---|
| Operating Margin | 2.59% |
|---|
| Gross Margin | 59.71% |
|---|