Cavendish
Website:
Cavendish
Index:
AIM
EPIC: CAV
Supersector:
Financial Services
Sector:
Investment Banking and Brokerage Services
Subsector:
Investment Services
Market Cap:
£31.89M
Payout Frequency: Semi-Annual
Cavendish Dividend Analysis and Summary
Dividend details
- Announcement date: 30/10/2025
- Type: Interim dividend
- Amount: 0.3p per share (unchanged vs H1’25: 0.3p)
- Record date: 21/11/2025
- Ex-dividend date: 20/11/2025
- Payment date: 10/12/2025
- Currency: GBP
- Context: FY’25 total DPS was 0.55p; this interim suggests a flat run-rate vs last year’s interim.
Coverage and financial support
- H1’26 adjusted EPS: 0.4p; statutory EPS: 0.21p. The interim dividend of 0.3p is covered ~1.3x by adjusted EPS, but not by statutory EPS.
- Adjusted PBT: £2.0m (margin 7.0%); statutory PBT: £1.1m.
- Cash: £19.8m at 30 Sep 2025; strong liquidity and management states “surplus capital.”
- Estimated cash cost of interim dividend: ~£1.0m (based on ~338m basic shares), readily covered by cash resources.
- Other capital returns: purchase of own shares of £0.7m in H1’26; dividends paid in the period of ~£1.8m (final FY’25).
Sustainability and growth outlook
- Sustainability: Supported by solid cash and an improving adjusted margin; however, earnings remain modest and variable for an investment bank. Interim payout is prudent rather than aggressive.
- Growth trajectory: Interim DPS is flat YoY (0.3p). With a “strong pipeline” and higher Equities revenue (+78% YoY), there is potential for full-year improvement, but management stops short of signaling DPS growth.
- Operational levers: Cost discipline (non-employee costs -9%) and selective hiring support medium-term profitability; retainer income and transaction volumes remain the key swing factors.
- Capital allocation: Balanced between dividends and small-scale buybacks (EBT purchases), while maintaining liquidity. No change to policy beyond a commitment to returning value.
Structural changes and policy signals
- No demergers, M&A, or share consolidation disclosed in this RNS.
- Ongoing integration/legacy references (pre-merger share schemes rolling off) but no new structural actions that would alter dividend mechanics.
- Regional expansion continues (Manchester, Birmingham), but this is operational rather than a capital structure change.
Risks and flags for dividend stability
- Cyclical, transaction-driven revenue model: deal timing and market activity can materially affect earnings and dividend cover.
- Statutory earnings coverage of the interim is thin (EPS 0.21p vs 0.3p DPS); reliance on adjusted metrics raises sensitivity to costs and fair value items.
- Market and macro uncertainty flagged by management (delayed Budget, sentiment uneven in small/mid caps) could slow near-term activity.
- Working capital volatility typical for the business (large movements in receivables/payables) can affect cash generation around reporting dates.
Read more
Cavendish Annual Dividend Yield - 5.44%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 18/09/2025 |
14/10/2025 |
Final |
0.50p |
GBX |
| 20/11/2025 |
10/12/2025 |
Interim |
0.0300p |
GBX |
Total (Annual Dividends Per Share):
0.53p
Dividend Yield =
Annual Dividends Per Share (0.53p)
÷ Share Price (9.74p)
= 5.44%
Cavendish Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 20/11/2025 |
10/12/2025 |
Interim |
0.0300p |
GBX |
| 18/09/2025 |
14/10/2025 |
Final |
0.50p |
GBX |
| 21/11/2024 |
11/12/2024 |
Interim |
0.30p |
GBX |
| 19/09/2024 |
15/10/2024 |
Final |
0.25p |
GBX |
| 22/09/2022 |
07/10/2022 |
Final |
1.15p |
GBX |
| 06/01/2022 |
21/01/2022 |
Interim |
0.60p |
GBX |
| 29/07/2021 |
13/08/2021 |
2nd Interim |
1.00p |
GBX |
| 03/12/2020 |
18/12/2020 |
Interim |
0.50p |
GBX |
Cavendish Dividend Calculator
Cavendish Dividend Growth
| Dividend Growth (1Y) |
45.45%
|
| Dividend CAGR (5Y) |
9.86%
|
| Years of Growth |
–
|
| Payout Ratio |
133.22%
|
| Buyback Yield |
-16.39%
|
| Shareholder Yield |
-10.07%
|
| P/E Ratio (TTM) | 24.74 |
|---|
| Forward P/E | 11.45 |
|---|
| P/FCF | 3.55 |
|---|
| Earnings Yield | 4.56% |
|---|
| FCF Yield | 28.19% |
|---|
| ROE | 3.69% |
|---|
| ROCE | – |
|---|
| Profit Margin | 2.58% |
|---|
| Operating Margin | 3.06% |
|---|
| Gross Margin | 100% |
|---|