Bisichi

Bisichi Dividend Analysis and Summary

• Declared dividend: Interim dividend of 3.0p per share (unchanged vs H1 2024).
• Payment date: 06/02/2026.
• Record date: 09/01/2026.
• Ex-dividend date: 08/01/2026.
• Estimated cash cost: ~£320k (based on 10,676,839 shares).
• Context: FY2024 final dividend of 4.0p (paid 25/07/2025) implies a FY2024 total of 7.0p (3p interim + 4p final). FY2025 final is not yet declared.

• Coverage by earnings: Not covered in H1 2025. EPS was -9.38p and the Group posted a £1.5m net loss with Adjusted EBITDA £0.09m (vs £6.65m in H1 2024). The 3p interim is therefore reliant on cash generation and balance sheet/facilities rather than current earnings.
• Coverage by cash flow: H1 operating cash flow was £0.93m (after £1.43m tax paid). The interim dividend (~£0.32m) appears covered by H1 cash flow, but end-period liquidity was tight (cash £1.70m, bank overdrafts £1.37m; net cash after overdrafts ~£0.33m), and total borrowings were ~£5.1m.
• Business backdrop: Mining performance weakened due to lower production and higher costs at Black Wattle, plus softer coal prices (API4 averaging $92/t in H1, now <$85/t). Property rental income remained stable (£0.53m), and investment income was modest (£0.12m dividends). These ancillary cash flows help but are small relative to mining cyclicality.
• Growth trajectory: The interim dividend is maintained (flat). Management plans to transition to lower-cost, higher-quality mining areas by early 2026, which could improve margins and underpin future dividends if execution is smooth and coal prices stabilise. Until then, dividend growth prospects look constrained.
• Capital allocation stance: Continuing to pay a 3p interim despite a loss signals a commitment to distributions, but raises caution on sustainability if coal markets remain weak. The company also maintains property development exposure (West Ealing) and a listed equities portfolio, indicating a diversified but somewhat volatile capital allocation mix.