Diales

Website: Diales
Index: AIM
EPIC: DIAL
Supersector: Industrial Goods and Services
Sector: Industrial Support Services
Subsector: Professional Business Support Services
Market Cap: £10.46M
Payout Frequency: Semi-Annual

Next Diales Dividend

Diales next goes ex-dividend on 26/02/2026. This will be the Final dividend for 2026.

The dividend per share amount is 0.7500p (GBP) and the payment date is 09/04/2026.

Dividend details

Coverage and affordability

Reported EPS (total): 1.3p vs DPS 1.5p ? cover c.0.9x
EPS from continuing operations: 1.7p ? cover c.1.1x
Underlying EPS: 2.0p ? cover c.1.3x
Operating cash flow (post tax/WC): £0.4m vs dividends paid £0.8m ? not covered by FY25 free cash flow
Year-end net cash: £3.0m (no debt; £1m undrawn overdraft)
Distributable reserves: £2.4m

Context from results

Structural or policy-related items

Ongoing share buyback programme (~£0.25m launched June 2024; £0.1m extension in March 2025; £0.2m spent in FY25); Board may allocate further cash
Operational reshaping: closure of US office completed; continued “hub-and-spoke” model and tech investment to drive margins
Board changes: new Chair (Sept 2025) and new NED (Nov 2025) – no direct change to dividend policy signalled

Risks and flags for dividend stability

Thin dividend cover on a reported basis (DPS exceeds total EPS) and limited free cash flow coverage in FY25
Working capital sensitivity: collections critical; receivables impairment provision remains elevated (£1.7m)
Regional variability: APAC weakness and UK housing slowdown; ongoing impact of higher UK employer NICs
Discontinued operations losses reduced but still present; continued rationalisation needed
Liquidity adequate but not abundant: £3.0m net cash and £1m overdraft; buybacks, if increased, could compete with dividends for cash

Analyst view: sustainability and trajectory

Maintenance of the full-year 1.5p dividend appears supported by improving underlying earnings and margin progress, but cover is tight on a reported basis and free cash flow did not cover FY25 distributions.
Underlying EPS cover (~1.3x) and £2.4m distributable reserves provide some buffer; ongoing net cash position is a positive.
Near-term sustainability hinges on continued margin expansion, disciplined cash collection, and stable utilisation. Management’s tech-enabled efficiency drive and solid H2 momentum support maintaining the dividend, with limited near-term scope for growth until free cash flow consistently exceeds distributions.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
27/02/2025	10/04/2025	Final	0.75p	GBX
18/09/2025	24/10/2025	Interim	0.75p	GBX

Total (Annual Dividends Per Share): 1.50p

Dividend Yield = Annual Dividends Per Share (1.50p) ÷ Share Price (19.64p) = 7.64%

Ex Dividend Date	Payment Date	Type	Amount	Currency
26/02/2026	09/04/2026	Final	0.7500p	GBX
18/09/2025	24/10/2025	Interim	0.75p	GBX
27/02/2025	10/04/2025	Final	0.75p	GBX
19/09/2024	25/10/2024	Interim	0.75p	GBX
29/02/2024	11/04/2024	Final	0.75p	GBX
21/09/2023	27/10/2023	Interim	0.75p	GBX
02/03/2023	13/04/2023	Final	0.75p	GBX
22/09/2022	27/10/2022	Interim	0.75p	GBX
24/02/2022	06/04/2022	Final	0.75p	GBX
23/09/2021	27/10/2021	Interim	0.75p	GBX
18/02/2021	23/03/2021	Final	0.75p	GBX

Year	Interim	Final	Currency	Total	Change
2024	0.750	0.750	GBX	1.500	0.000
2023	0.750	0.750	GBX	1.500	0.000
2022	0.750	0.750	GBX	1.500	0.000
2021	0.750	0.750	GBX	1.500	100.000
2020		0.750	GBX	0.750

Number of Shares:

Payment	Paid	Amount
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