Eleco
Website:
Eleco
Index:
AIM
EPIC: ELCO
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Building Materials and Fixtures
Market Cap:
£111.11M
Payout Frequency: Semi-Annual
Eleco Dividend Analysis and Summary
Dividend snapshot (Eleco plc)
- Declared dividend: Final 0.85p per share for FY2025
- Total FY2025 dividend: 1.20p per share (Interim 0.35p + Final 0.85p), up +20% year on year (FY2024: 1.00p)
- Ex-dividend date: 18/06/2026
- Record date: 19/06/2026
- Payment date: 03/07/2026
- Policy: Board reiterates a progressive and sustainable dividend policy
- Yield: Not stated in RNS (depends on prevailing share price)
Coverage and affordability
- Adjusted EPS: 6.3p; payout ratio on FY2025 total dividend ˜ 19%
- Statutory EPS: 1.6p; payout ratio ˜ 75% (inflated by one-off impairment and tax mix)
- Free cash flow (FY2025): £8.2m; implied cash cover of the c.£1.0m FY2025 dividend is ~8x
- Balance sheet: £16.3m cash, no debt
Sustainability and growth outlook
- Earnings quality improving: Recurring revenue now 81% of total; ARR up +29% to £34.3m; deferred income up +39% to £16.8m—all supportive of forward dividend visibility.
- Operating momentum: Adjusted EBITDA up +32% to £10.2m; adjusted PBT up +35%; strong FCF conversion.
- Capital allocation: Dividends rising in tandem with cash generation while funding M&A from internal resources; policy described as progressive and sustainable.
- Statutory earnings were dampened by a non-cash impairment of the divested Veeuze unit; underlying cash and adjusted profits comfortably support the dividend.
Structural changes and implications for dividends
- M&A: Acquisition of Pemac (Jan 2025) and Kivue (Feb 2026). Both are SaaS/PPM assets that expand recurring revenue and should strengthen medium-term dividend capacity once integrated.
- Portfolio simplification: Post-year-end disposal of Veeuze (visualisation) via MBO. This removes a loss-making, non-core unit and should improve earnings quality and cash profile.
- Cash commitments:
- Contingent consideration for Pemac (fair value liability: £1.14m) payable across 2026/27, manageable versus cash/FCF.
- Financing package to Veeuze of €1.5m (ECB + 5.85% interest) creates some counterparty risk until repaid.
- Small equity issuance for Kivue (~337k shares) is immaterial for dividend per share.
Risks and flags for dividend stability
- Statutory profit volatility: FY2025 statutory EPS fell due to a one-off impairment and a high effective tax rate (53.8%). If elevated tax persists, statutory cover remains thinner, though adjusted and cash metrics are strong.
- Execution risk: Integration of Pemac/Kivue and delivery of targeted synergies.
- Cash outflows: Earn-out payments and the Veeuze loan reduce headroom but appear well covered by cash and FCF.
- Macro exposure: Ongoing sector/geography variability (e.g., past German weakness). Currency and share-based payment costs (rising to £0.7m) are additional considerations.
Bottom line
- The 0.85p final dividend (FY total 1.20p) with ex-div on 18/06/2026 is well supported by strong recurring revenue growth, robust free cash flow, and a debt-free balance sheet.
- Dividend growth appears sustainable on adjusted and cash measures, with portfolio actions (Veeuze exit, Pemac/Kivue additions) improving the quality and visibility of future earnings.
Read more
Eleco Annual Dividend Yield - 0.8%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/06/2025 |
27/06/2025 |
Final |
0.70p |
GBX |
| 25/09/2025 |
13/10/2025 |
Interim |
0.35p |
GBX |
Total (Annual Dividends Per Share):
1.05p
Dividend Yield =
Annual Dividends Per Share (1.05p)
÷ Share Price (132.06p)
= 0.8%
Eleco Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 18/06/2026 |
03/07/2026 |
Final |
0.8500p |
GBX |
| 25/09/2025 |
13/10/2025 |
Interim |
0.35p |
GBX |
| 12/06/2025 |
27/06/2025 |
Final |
0.70p |
GBX |
| 19/09/2024 |
04/10/2024 |
Interim |
0.30p |
GBX |
| 13/06/2024 |
28/06/2024 |
Final |
0.55p |
GBX |
| 21/09/2023 |
06/10/2023 |
Interim |
0.25p |
GBX |
| 18/05/2023 |
02/06/2023 |
Special |
0.58p |
GBX |
| 18/05/2023 |
02/06/2023 |
Final |
0.50p |
GBX |
| 22/09/2022 |
07/10/2022 |
Interim |
0.20p |
GBX |
| 01/06/2022 |
20/06/2022 |
Final |
0.40p |
GBX |
| 23/09/2021 |
22/10/2021 |
Interim |
0.20p |
GBX |
| 13/05/2021 |
11/06/2021 |
Final |
0.40p |
GBX |
| 03/10/2019 |
31/10/2019 |
Interim |
0.30p |
GBX |
| 28/03/2019 |
31/05/2019 |
Final |
0.40p |
GBX |
| 20/09/2018 |
17/10/2018 |
Interim |
0.28p |
GBX |
| 05/04/2018 |
31/05/2018 |
Final |
0.40p |
GBX |
| 05/10/2017 |
06/11/2017 |
Interim |
0.20p |
GBX |
| 06/04/2017 |
24/05/2017 |
Final |
0.25p |
GBX |
| 06/10/2016 |
04/11/2016 |
Interim |
0.15p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
0.300 |
0.550 |
|
GBX |
0.850 |
-36.090 |
| 2023 |
0.250 |
0.500 |
0.580 |
GBX |
1.330 |
121.660 |
| 2022 |
0.200 |
0.400 |
|
GBX |
0.600 |
0.000 |
| 2021 |
0.200 |
0.400 |
|
GBX |
0.600 |
100.000 |
| 2019 |
0.300 |
|
|
GBX |
0.300 |
-72.220 |
| 2018 |
0.280 |
0.800 |
|
GBX |
1.080 |
140.000 |
| 2017 |
0.200 |
0.250 |
|
GBX |
0.450 |
200.000 |
| 2016 |
0.150 |
|
|
GBX |
0.150 |
|
Eleco Dividend Calculator
Eleco Dividend Growth
| Dividend Growth (1Y) |
20%
|
| Dividend CAGR (5Y) |
24.57%
|
| Years of Growth |
1
|
| Payout Ratio |
65.91%
|
| Buyback Yield |
-0.36%
|
| Shareholder Yield |
0.54%
|
| P/E Ratio (TTM) | 83.73 |
|---|
| Forward P/E | 19.39 |
|---|
| P/FCF | 9.21 |
|---|
| Earnings Yield | 1.19% |
|---|
| FCF Yield | 10.86% |
|---|
| ROE | 4.26% |
|---|
| ROCE | 7.76% |
|---|
| Profit Margin | 3.39% |
|---|
| Operating Margin | 14.13% |
|---|
| Gross Margin | 89.61% |
|---|