Fevara

Website: Fevara
Index: FTSE Small Cap
EPIC: FVA
Supersector: Food, Beverage and Tobacco
Sector: Food Producers
Subsector: Food Producers
Market Cap: £67.84M
Payout Frequency: Semi-Annual

Fevara Dividend Analysis and Summary

Declared Dividend

Key Dates

Policy and Guidance

Progressive dividend policy targeting =2x cover.
Board indicates that, if the year concludes as anticipated, a modest increase in the final dividend is expected.

Coverage and Affordability

H1 FY26 adjusted EPS: 11.0p; basic EPS (continuing): 8.9p. Against a 1.2p interim, this implies very strong interim cover.
Net (unrestricted) cash at 28 Feb 2026: £1.4m; RCF headroom and maturity support liquidity.
Operating cash generation from continuing operations (H1): £3.7m.

Capital Structure and Liquidity

RCF: £20m committed to Nov 2028 (plus £10m uncommitted); target gearing <1x.
Large FY25 tender offer significantly reduced shares outstanding, lowering future dividend cash outflows while lifting per-share metrics.

Structural and Strategic Developments Relevant to Dividends

Brazil entry: Acquisition of Macal (Dec 2025, £5.0m initial) and post-period purchase of a São Paulo facility (Mar 2026, £4.3m); planned £4.0m LMB line capex for early 2027 start-up.
Engineering division sale completed in FY25; remaining Chirton Engineering held for sale with disposal targeted in H2 CY2026.
Exit from Iowa JV (21 Apr 2026) with no material negative impact expected.
FY25 tender offer/share cancellation materially reduced share count, supporting DPS sustainability by lowering aggregate cash dividend.
Ongoing pension buy-in process and £3.4m escrow; final buy-out expected early 2027.

Analyst’s View: Sustainability and Growth

Sustainability: The 1.2p interim looks well supported by H1 profitability (adj. operating profit +22% y/y) and strong EPS cover. Liquidity is adequate with net cash, undrawn RCF and a conservative gearing target.
Growth trajectory: DPS has been held flat, but management signals scope for a modest final dividend increase if trading stays on track. Medium-term ambitions (EBIT margin 10%, ROCE 20%) and a =2x cover policy suggest room for gradual dividend growth, subject to execution.
Financial and capital allocation support: Cash deployment into Brazil (M&A plus capex) and pension de-risking are near-term claims on cash, but the reduced share count and disciplined gearing provide a buffer. The policy emphasis on =2x cover is prudent and aligns with a progressive yet sustainable path.

Risks and Flags to Dividend Stability

Seasonality and weather risk: H2 is seasonally weaker; unusual winter warmth hurt Northern US volumes in H1. Weather variability can impact earnings and dividend headroom.
Brazil execution/capex: Integration and the planned £4.0m production line add execution and ramp-up risk; near-term cash absorption could temper dividend growth if returns are slower than expected.
Pension and one-offs: Ongoing pension buy-in and related costs, plus adjusting items (e.g., M&A, financing costs), could intermittently affect free cash flow.
Working capital and raw materials: While key inputs are contract-covered through FY26, commodity and FX swings remain a background risk.
Disposals timing: Chirton Engineering sale timing and proceeds are uncertain; slippage could modestly affect cash planning.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
22/01/2026	13/03/2026	Final	1.2000p	GBX
14/05/2026	19/06/2026	Interim	1.2000p	GBX

Total (Annual Dividends Per Share): 2.40p

Dividend Yield = Annual Dividends Per Share (2.40p) ÷ Share Price (130.5p) = 1.84%

Ex Dividend Date	Payment Date	Type	Amount	Currency
14/05/2026	19/06/2026	Interim	1.2000p	GBX
22/01/2026	13/03/2026	Final	1.2000p	GBX
15/05/2025	20/06/2025	Interim	1.2000p	GBX
23/01/2025	10/03/2025	Final	2.8500p	GBX
02/05/2024	05/06/2024	Interim	2.3500p	GBX
25/01/2024	01/03/2024	Final	2.8500p	GBX
24/08/2023	29/09/2023	2nd Interim	1.1750p	GBX
11/05/2023	19/06/2023	1st Interim	1.1750p	GBX
13/04/2023	12/05/2023	Final	2.8500p	GBX
25/08/2022	30/09/2022	2nd Interim	1.1750p	GBX
28/04/2022	07/06/2022	1st Interim	1.1750p	GBX

Year

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–