Camellia

Website: Camellia
Index: AIM
EPIC: CAM
Supersector: Financial Services
Sector: Financial Services
Subsector: Specialty Finance
Market Cap: £137.76M
Payout Frequency: Annual

Camellia Dividend Analysis and Summary

Headline dividend details

Dividend: Final ordinary dividend of 260p per share for FY25 (maintained vs FY24)
Total cash outflow: c. £6.5m (explicitly funded from reserves)
Status: Subject to shareholder approval at the AGM on 04/06/2026
Indicative yield: not stated in the RNS

Key dates

Payout context and coverage

Earnings: FY25 EPS (continuing & discontinued) -186.7p; dividend is not covered by earnings.
Operating performance: Trading profit improved to £1.0m (from a £5.5m loss); EBITDA £11.3m.
Cash generation: Operating cash flow £7.0m vs proposed dividend £6.5m (~1.1x pre-capex); capex of £11.9m implies negative free cash flow before asset sales.
Balance sheet support: Net cash/treasury deposits/gilts/money market investments £133.6m; net assets £329.5m. Disposals generated £20m in FY25 and a further £14.7m post year-end.

Dividend sustainability and growth outlook

Sustainability: The dividend is currently balance-sheet supported (reserves and liquidity) rather than earnings-funded. Continuation at this level relies on ongoing disposals and improved operating results.
Growth trajectory: Payout held flat at 260p. Upside likely contingent on the Value Enhancement Plan (VEP) delivering sustainable profitability and reduced volatility; until then, limited scope for growth.
Capital allocation posture: Alongside the dividend, the company executed a 2025 tender/buyback (£12.7m) and is committing ~£15m to growth projects (2026–2031), with anticipated capex of £15–25m in coming years. This prioritisation suggests dividends will remain disciplined until cash generation strengthens.

Structural or strategic factors affecting future dividends

VEP transformation: Ongoing portfolio reshaping (efficiency drives, reduced tea exposure, diversification into avocados, citrus, blueberries) aims to improve returns and smooth earnings—supportive for future dividend cover if executed.
Asset disposals: UK investment property sales largely complete; Linton Park and artwork sold post year-end for £14.7m. Further tea garden sales in India under way. While bolstering liquidity now, disposals may reduce recurring income, keeping pressure on operating improvement to fund dividends.
Shareholder returns mix: Reinstated dividend plus the 2025 tender offer/buybacks signal a balanced approach, but with dividends clearly funded from reserves pending profit recovery.
Governance changes: Board refresh (one INED retiring at the 04/06/2026 AGM) and strengthened leadership to support VEP execution; no explicit dividend policy change stated.

Risks and flags to dividend stability

Earnings cover: Negative EPS and thin operating profits; dividend not covered by earnings or post-capex free cash flow.
Commodity, weather, and geopolitical exposure: Tea/avocado/macadamia price volatility; weather risk (mitigated partly by irrigation); management highlights Middle East-related logistics and input cost risks.
Execution risk: Delivering targeted disposals, efficiency gains, and ramp-up of new crop projects (avocado/citrus/blueberries) on time and budget.
Capital demands: Planned capex of £15–25m in coming years competes with distributions until operating cash flows improve.
Tax and inflation: Elevated tax charge in FY25 and cost inflation could compress margins and cash generation.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
15/06/2023	26/07/2023	Final	102.00p	GBX
14/09/2023	13/10/2023	Interim	44.00p	GBX

Total (Annual Dividends Per Share): 146.00p

Dividend Yield = Annual Dividends Per Share (146.00p) ÷ Share Price (5550p) = 2.63%

Ex Dividend Date	Payment Date	Type	Amount	Currency
02/07/2026	30/07/2026	Final	260.0000p	GBX
03/07/2025	31/07/2025	Final	260.00p	GBX
14/09/2023	13/10/2023	Interim	44.00p	GBX
15/06/2023	26/07/2023	Final	102.00p	GBX
08/09/2022	07/10/2022	Interim	44.00p	GBX
07/07/2022	29/07/2022	Final	102.00p	GBX
09/09/2021	08/10/2021	Interim	44.00p	GBX
10/06/2021	09/07/2021	Final	144.00p	GBX
08/10/2020	07/11/2020	Special	102.00p	GBX
29/08/2019	27/09/2019	Interim	42.00p	GBX
13/06/2019	12/07/2019	Final	102.00p	GBX
06/09/2018	05/10/2018	Interim	40.0p	GBX
14/06/2018	13/07/2018	Final	98.00p	GBX
07/09/2017	06/10/2017	Interim	37.00p	GBX
08/06/2017	07/07/2017	Final	95.00p	GBX
08/09/2016	07/10/2016	Interim	35.00p	GBX
09/06/2016	01/07/2016	Final	95.00p	GBX
10/09/2015	02/10/2015	Interim	34.00p	GBX
11/06/2015	03/07/2015	Final	92.00p	GBX
03/09/2014	03/10/2014	Interim	34.00p	GBX
11/06/2014	04/07/2014	Final	91.00p	GBX
04/09/2013	04/10/2013	Interim	34.00p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2023	44.000	102.000		GBX	146.000	0.000
2022	44.000	102.000		GBX	146.000	-22.340
2021	44.000	144.000		GBX	188.000	84.310
2020			102.000	GBX	102.000	-29.160
2019	42.000	102.000		GBX	144.000	4.340
2018	40.000	98.000		GBX	138.000	4.540
2017	37.000	95.000		GBX	132.000	1.530
2016	35.000	95.000		GBX	130.000	3.170
2015	34.000	92.000		GBX	126.000	0.800
2014	34.000	91.000		GBX	125.000	267.640
2013	34.000			GBX	34.000

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–