Brickability Group

Brickability Group Dividend Analysis and Summary

• Dividend: Interim
• Amount: 1.12p per share (maintained vs H1 FY25)
• Ex-dividend date: 22/01/2026
• Record date: 23/01/2026
• Payment date: 19/02/2026
• Estimated cash cost: c.£3.6m (c.322m shares)
• Earnings cover (H1 FY26):
  • By adjusted EPS: ~4.3x (4.79p / 1.12p)
  • By statutory EPS: ~2.3x (2.62p / 1.12p)

• Sustainability: Coverage is solid on both adjusted and statutory earnings. H1 operating cash flow of £8.3m (after a typical seasonal working-capital outflow) comfortably underpins the c.£3.6m interim payout.
• Growth trajectory: The interim is flat year-on-year, and management explicitly prioritises debt reduction within capital allocation. Near-term dividend growth therefore looks constrained until leverage moderates.
• Financial support: H1 Adjusted EBITDA before SBP of £28.1m and consensus FY26 EBITDA before SBP of ~£52.3m indicate adequate headroom. Net debt rose to £66.8m (includes £7.2m deferred/contingent acquisition payments), implying c.~1.2x net debt/EBITDA on an annualised basis—manageable but trending higher.
• Capital allocation: Cash uses include dividends (£7.7m final paid in H1), interest (£3.9m), tax (£5.5m), and deferred/contingent consideration (£6.1m). The Board’s stated tilt toward de-leveraging suggests a conservative dividend stance until working-capital normalises and acquisition-related obligations reduce.