Facilities By ADF

Website: Facilities By ADF
Index: AIM
EPIC: ADF
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Recreational Services
Market Cap: £18.87M
Payout Frequency: Semi-Annual

Facilities By ADF Dividend Analysis and Summary

Declared Dividend

Type: Interim dividend
Amount: 0.3 pence per share (vs 0.5p prior interim)
Ex-dividend date: 08/01/2026
Record date: 09/01/2026
Payment date: 30/01/2026
Estimated cash cost: ~£0.323m
Policy: Board reiterates a progressive dividend policy and “intends to pay an increased final dividend” subject to H2 performance
Recent history: FY24 total dividend 1.0p (final 0.5p paid 13 Aug 2025)

Coverage and Cash Flow Support

H1-FY25 EPS: -1.04p (loss-making) — interim dividend is not covered by earnings
H1 Adjusted EBITDA: £2.18m; interim dividend cash outlay (~£0.32m) is c.15% of H1 Adjusted EBITDA
Net debt (ex-IFRS 16) at 30 Jun 2025: £13.2m (improved from £13.8m); cash £1.4m; undrawn overdraft £1.0m
Company guidance: expects to be cash generative in FY25; utilisation and momentum improved into H2

Analyst View: Sustainability and Growth

Sustainability: The reduced interim (0.3p) is modest in cash terms and appears manageable against EBITDA and expected H2 cash generation. However, negative EPS, thin cash, and elevated finance/lease costs temper confidence. Near-term sustainability is acceptable if H2 trading and cash conversion deliver as guided.
Growth trajectory: The interim is down vs last year (0.5p), but the Board signals an “increased final dividend.” A progressive policy is credible only if the normalisation in production activity sustains into FY26; otherwise, total FY25 dividend may remain below FY24.
Support from financial performance: H1 saw margin pressure, lower Adjusted EBITDA and a statutory loss. Management actions (cost discipline, fleet decommissioning, limited capex) help liquidity, but stronger H2 execution is needed to underpin any final dividend uplift.
Capital allocation: Capex curtailed (mostly Autotrak panels financed via HP), net debt edged down, and the Group may dispose of assets to optimise the fleet. These moves support near-term dividends but must be balanced against lease/HP obligations and contingent consideration.

Structural Changes and Policy Signals

M&A/integration: Continued integration of Autotrak (acquired Sep-24); contingent consideration of £6.65m outstanding may absorb cash over time.
Operational footprint: ~20% of core fleet placed in temporary storage to cut maintenance; exploring selective disposals.
Leadership changes: CEO stepped down (Jul-25); Executive Chairman in place; CFO leaving 31 Oct 2025. Governance stable per Board, but transitions bear watching for capital allocation consistency.
Dividend policy: Board reaffirms a progressive policy with intent to raise the final dividend, contingent on H2 performance.

Key Risks and Flags for Dividend Stability

Industry volatility: HETV/film production timing and budgets remain uncertain; shorter lead times increase planning risk.
Margin pressure and cost inflation: Higher employer NI and National Living Wage, plus competitive pricing, weighed on H1 margins.
Leverage and fixed charges: Significant lease liabilities of ~£25.0m and HP interest; net finance expense rose to £0.97m in H1.
Liquidity: Cash of £1.4m at period end (undrawn £1.0m overdraft available); careful cash management required around working capital swings.
Customer concentration: Top five customers accounted for ~69% of H1 revenue.
Contingent consideration: Autotrak earn-out accrual and associated interest (~£0.19m in H1) could constrain future free cash flow.
Management turnover: CEO and CFO changes introduce execution risk during a recovery phase.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
04/07/2024	19/07/2024	Final	0.90p	GBX
03/10/2024	25/10/2024	Interim	0.50p	GBX

Total (Annual Dividends Per Share): 1.40p

Dividend Yield = Annual Dividends Per Share (1.40p) ÷ Share Price (17.5p) = 8%

Ex Dividend Date	Payment Date	Type	Amount	Currency
08/01/2026	30/01/2026	Interim	0.30p	GBX
24/07/2025	13/08/2025	Final	0.90p	GBX
03/10/2024	25/10/2024	Interim	0.50p	GBX
04/07/2024	19/07/2024	Final	0.90p	GBX
05/10/2023	27/10/2023	Interim	0.50p	GBX
15/06/2023	30/06/2023	Final	0.90p	GBX
13/10/2022	30/10/2022	Interim	0.46p	GBX

Year	Interim	Final	Currency	Total	Change
2024	0.500	0.900	GBX	1.400	0.000
2023	0.500	0.900	GBX	1.400	204.340
2022	0.460		GBX	0.460

Number of Shares:

Payment	Paid	Amount
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