Calnex Solutions

Website: Calnex Solutions
Index: AIM
EPIC: CLX
Supersector: Technology
Sector: Technology Hardware and Equipment
Subsector: Telecommunications Equipment
Market Cap: £38.28M
Payout Frequency: Semi-Annual

Calnex Solutions Dividend Analysis and Summary

Headline dividend details

Context and coverage

H1 FY26 performance: revenue £8.0m (+9% YoY); gross margin 76% (+200bps); loss before tax £0.9m (improved from £1.3m loss).
Profitability/cash: Underlying EBITDA -£0.7m; operating cash inflow £2.8m; capitalised R&D £2.8m, leaving negligible free cash flow pre-dividends.
Balance sheet: Net cash of £10.3m, supporting ongoing investment and modest distributions.
Dividend cover: Not covered by earnings in H1 (loss-making). Cash cover is adequate given small dividend outlay relative to cash reserves.

Sustainability and growth outlook

Sustainability: The interim dividend is maintained at 0.31p despite negative earnings and underlying EBITDA. While affordable from cash reserves, ongoing payment relies on continued balance sheet strength and an H2 improvement rather than current-period profits.
Growth trajectory: Flat vs prior year (no growth). With management guiding to deliver FY results “in line with expectations,” scope for near-term dividend growth looks limited until profitability normalises.
Support from strategy: Management is prioritising investment in products, sales channels, and entry into US defence and datacentre markets. If this converts into profitable growth, it should improve dividend cover over time; near term, it keeps distributions deliberately conservative.

Structural changes and policy signals

No structural corporate actions (no demergers, M&A, or share consolidations) disclosed that would directly affect dividend policy.
Channel/partner developments (e.g., Viavi partnership) and expansion into defence/cloud are strategic, not capital-structure changes; potential positive for medium-term earnings and dividend capacity if execution continues.
R&D tax relief now under the merged RDEC scheme adds more predictable recognition to other income; supportive but not a direct driver of dividend capacity.
Note: One section contains a payment date typo (stated as 19/12/2024); elsewhere—and for clarity here—the correct payment date is 19/12/2025.

Risks and flags to dividend stability

Earnings cover: Interim dividend is not covered by earnings; reliance on cash reserves persists while profitability recovers.
Execution risk: Expansion into US defence and cloud carries longer, less predictable sales cycles and order visibility, potentially creating volatility in cash generation.
High R&D investment and capitalisation: Continued heavy R&D spend (capitalised £2.8m in H1) and amortisation burden depress short-term earnings.
Macro/industry sensitivities: Recovery in telecoms spending, FX movements, and potential US tariff impacts on supply/customer pricing could affect margins and cash flow.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
24/07/2025	29/08/2025	Final	0.62p	GBX
27/11/2025	19/12/2025	Interim	0.3100p	GBX

Total (Annual Dividends Per Share): 0.93p

Dividend Yield = Annual Dividends Per Share (0.93p) ÷ Share Price (43.5p) = 2.14%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	19/12/2025	Interim	0.3100p	GBX
24/07/2025	29/08/2025	Final	0.62p	GBX
28/11/2024	16/12/2024	Interim	0.31p	GBX
25/07/2024	30/08/2024	Final	0.62p	GBX
30/11/2023	15/12/2023	Interim	0.31p	GBX
27/07/2023	30/08/2023	Final	0.62p	GBX
01/12/2022	16/12/2022	Interim	0.31p	GBX
28/07/2022	30/08/2022	Final	0.56p	GBX
02/12/2021	17/12/2021	Interim	0.28p	GBX
02/12/2021	17/12/2021	Q2	0.28

Year	Interim	Final	Currency	Total	Change
2024	0.310	0.620	GBX	0.930	0.000
2023	0.310	0.620	GBX	0.930	6.890
2022	0.310	0.560	GBX	0.870	55.350
2021	0.280			0.560

Number of Shares:

Payment	Paid	Amount
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