Essentra
Website:
Essentra
Index:
FTSE Small Cap
EPIC: ESNT
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Industrial Suppliers
Market Cap:
£251.91M
Payout Frequency: Semi-Annual
Essentra Dividend Analysis and Summary
Key dividend details
- Final dividend: 1.2p per share (FY25)
- Total FY25 dividend: 2.0p per share (vs 2.8p in FY24; dividend cut)
- Ex-dividend date: 14/05/2026
- Record date: 15/05/2026
- Payment date: 03/07/2026
- Dividend policy: c.3x cover of adjusted earnings
- FY25 adjusted EPS: 6.1p ? payout ratio c.33%; cover ~3.0x
- Cash cost: final c.£3.4m; FY25 declared total c.£5.7m
- DRIP available; election deadline: 12/06/2026
- Balance sheet: net debt £60.7m; leverage 1.4x ND/adj. EBITDA (target <1.5x)
Analysis: sustainability and outlook
- Sustainability: The dividend is conservatively set and well covered (~3x) by adjusted earnings, with strong cash conversion (FCF £31.5m) and moderate leverage providing support. Cash dividends paid in 2025 (£6.7m) were covered ~4.7x by FCF.
- Growth trajectory: FY25 saw a reset to 2.0p from 2.8p, aligning with the 3x cover policy after a year of margin pressure (adj. op. margin 10.6%, down 260bps). With a medium-term aim to lift margins toward ~18% and order momentum into 2026, modest dividend growth could resume as earnings rebuild; near term, expect a cautious/stable stance.
- Earnings/tax dynamics: The FY25 effective tax rate (underlying) was 15.8%, but guidance is 26–29% medium term, which could trim earnings cover unless offset by margin recovery.
- Cash items: Adjusting/SaaS cash outflows (£19.3m) remain a headwind but are time-bound and reducing, supporting future FCF capacity for distributions.
Structural and capital allocation considerations
- M&A: Acquired Device Technologies (Dec-2025); integration on track. Strategy prioritises bolt-ons (6–8x EBITDA multiples), which may keep the dividend policy conservative while supporting EPS growth.
- Share buyback: Ongoing; 18.5m shares purchased to date (~£31.1m), ~5% of issued shares (ex-treasury) cancelled since launch—marginally supportive for per-share dividends and cover.
- Operations/efficiency: ERP rollout (EMEA) and footprint optimisation (e.g., Costa Rica closure, transfer to Mexico) should aid margin accretion in 2026+ once fully stabilised.
- Funding: RCF extended to July 2030; ample liquidity and 1.4x leverage support ongoing distributions and selective M&A.
- Pensions: Post year-end UK scheme buy-in reduces long-term risk; near-term cash impact appears limited versus plan assets, positive for dividend visibility.
Risks and flags to dividend stability
- Earnings pressure: FY25 adjusted operating profit down ~18–21%; gross margin dilution from mix and ERP disruption. Recovery is assumed in 2026 but not guaranteed.
- Tax rate normalisation to 26–29% could compress cover absent stronger operating leverage.
- Execution risk on ERP rollout and footprint changes (service levels improved, but residual risk remains until full stabilisation).
- Macro/trade: Industrial demand uncertainty, tariff dynamics, Turkish inflation/hyperinflation and FX; management notes potential broader impacts from Middle East tensions (no direct footprint).
- Capital allocation trade-offs: Pace of buybacks is explicitly tied to M&A opportunities; prioritising bolt-ons could cap near-term dividend growth, albeit within a disciplined leverage framework.
Read more
Essentra Annual Dividend Yield - 2.64%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 15/05/2025 |
03/07/2025 |
Final |
1.55p |
GBX |
| 18/09/2025 |
24/10/2025 |
Interim |
0.80p |
GBX |
Total (Annual Dividends Per Share):
2.35p
Dividend Yield =
Annual Dividends Per Share (2.35p)
÷ Share Price (88.9p)
= 2.64%
Essentra Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/05/2026 |
03/07/2026 |
Final |
1.2000p |
GBX |
| 18/09/2025 |
24/10/2025 |
Interim |
0.80p |
GBX |
| 15/05/2025 |
03/07/2025 |
Final |
1.55p |
GBX |
| 19/09/2024 |
25/10/2024 |
Interim |
1.25p |
GBX |
| 16/05/2024 |
05/07/2024 |
Final |
2.40p |
GBX |
| 21/09/2023 |
27/10/2023 |
Interim |
1.20p |
GBX |
| 18/05/2023 |
30/06/2023 |
Final |
1.00p |
GBX |
| 20/03/2023 |
27/04/2023 |
Special |
29.80p |
GBX |
| 22/09/2022 |
28/10/2022 |
Interim |
2.30p |
GBX |
| 21/04/2022 |
01/06/2022 |
Final |
4.00p |
GBX |
| 23/09/2021 |
29/10/2021 |
Interim |
2.00p |
GBX |
| 22/04/2021 |
01/06/2021 |
Final |
3.30p |
GBX |
| 23/04/2020 |
01/06/2020 |
Final |
14.40p |
GBX |
| 26/09/2019 |
30/10/2019 |
Interim |
6.30p |
GBX |
| 25/04/2019 |
03/06/2019 |
Final |
14.40p |
GBX |
| 27/09/2018 |
31/10/2018 |
Interim |
6.30p |
GBX |
| 15/03/2018 |
01/05/2018 |
Final |
14.40p |
GBX |
| 28/09/2017 |
30/10/2017 |
Interim |
6.30p |
GBX |
| 16/03/2017 |
02/05/2017 |
Final |
14.40p |
GBX |
| 29/09/2016 |
31/10/2016 |
Interim |
6.30p |
GBX |
| 17/03/2016 |
03/05/2016 |
Final |
14.40p |
GBX |
| 24/09/2015 |
30/10/2015 |
Interim |
6.30p |
GBX |
| 26/03/2015 |
01/05/2015 |
Final |
12.60p |
GBX |
| 24/09/2014 |
30/10/2014 |
Interim |
5.70p |
GBX |
| 09/04/2014 |
02/05/2014 |
Final |
10.60p |
GBX |
| 25/09/2013 |
28/10/2013 |
Interim |
4.80p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
1.250 |
2.400 |
|
GBX |
3.650 |
-88.590 |
| 2023 |
1.200 |
1.000 |
29.800 |
GBX |
32.000 |
407.930 |
| 2022 |
2.300 |
4.000 |
|
GBX |
6.300 |
18.860 |
| 2021 |
2.000 |
3.300 |
|
GBX |
5.300 |
-63.190 |
| 2020 |
|
14.400 |
|
GBX |
14.400 |
-30.430 |
| 2019 |
6.300 |
14.400 |
|
GBX |
20.700 |
228.570 |
| 2018 |
6.300 |
|
|
GBX |
6.300 |
-69.560 |
| 2017 |
6.300 |
14.400 |
|
GBX |
20.700 |
0.000 |
| 2016 |
6.300 |
14.400 |
|
GBX |
20.700 |
0.000 |
| 2015 |
6.300 |
14.400 |
|
GBX |
20.700 |
-28.370 |
| 2014 |
5.700 |
23.200 |
|
GBX |
28.900 |
502.080 |
| 2013 |
4.800 |
|
|
GBX |
4.800 |
|
Essentra Dividend Calculator
Essentra Dividend Growth
| Dividend Growth (1Y) |
-28.57%
|
| Dividend CAGR (5Y) |
-9.53%
|
| Years of Growth |
–
|
| Payout Ratio |
319.05%
|
| Buyback Yield |
0.48%
|
| Shareholder Yield |
2.75%
|
| P/E Ratio (TTM) | 126.57 |
|---|
| Forward P/E | 13.53 |
|---|
| P/FCF | 16.99 |
|---|
| Earnings Yield | 0.83% |
|---|
| FCF Yield | 5.88% |
|---|
| ROE | 0.78% |
|---|
| ROCE | 2.78% |
|---|
| Profit Margin | 0.7% |
|---|
| Operating Margin | 3.71% |
|---|
| Gross Margin | 43.68% |
|---|