Fonix Mobile
Website:
Fonix Mobile
Index:
AIM
EPIC: FNX
Supersector:
Technology
Sector:
Software and Computer Services
Subsector:
Computer Services
Market Cap:
£171.05M
Payout Frequency: Semi-Annual
Fonix Mobile Dividend Analysis and Summary
Dividend details
- Type: Interim dividend
- Amount: 3.10p per share (up +6.9% vs prior interim 2.90p)
- Ex-dividend date: 26/03/2026
- Record date: 27/03/2026
- Payment date: 02/04/2026
- Policy: Progressive; pay out at least 75% of adjusted EPS as ordinary dividends
- H1 FY26 adjusted EPS: 6.2p; interim DPS = ~2.0x EPS cover
- Estimated cash cost: c. £3.1m (c. 99.1m shares ex-treasury)
Financial support for the dividend
- H1 performance: Gross profit £10.5m (+7.1%), Adjusted EBITDA £8.3m (+6.4%), Adjusted PBT £8.0m (+2.6%).
- Cash: Underlying cash at period end £9.2m (down from £11.0m YoY, reflecting higher shareholder distributions and prior special dividend).
- Cash generation: Underlying operating cash flow H1 £5.6m, which would cover the newly declared interim (~£3.1m) by ~1.8x.
- Balance sheet: No external debt; actual cash (incl. client monies) £27.1m.
Track record and recent distributions
- Interim DPS raised to 3.10p (consistent with progressive policy).
- Cash out in H1 for dividends was £5.85m (likely FY25 final), broadly matched by underlying operating cash flow.
- Prior special dividend of £3m paid in H2 FY25 underscores management’s willingness to return surplus cash.
Analysis: sustainability and growth outlook
- Sustainability: High-quality earnings profile with >99% repeating income, long-standing media relationships (ITV contract extended), and 100% platform uptime. Interim DPS is well covered by both EPS and underlying cash flow, with an adequate cash buffer and no leverage.
- Growth trajectory: Interim DPS growth of +6.9% is supported by H1 operational growth (all service lines up; international expansion gaining traction). Management reiterates a progressive policy targeting =75% payout of adjusted EPS at the annual level.
- Capital allocation: Balanced between shareholder returns and investment. Continued spend on product (capitalised dev £0.72m) and European expansion increases opex, but EBITDA still advancing. Falling interest income and a slightly higher tax rate temper net earnings momentum but do not threaten the current dividend level.
Structural changes or items affecting future dividends
- Operational expansion: New subsidiaries and a legal entity established in additional European markets; consolidation presented for the first time. No demergers, M&A, or share consolidation announced.
- Contract visibility: ITV contract extension supports forward revenue visibility, a positive underpin for dividends.
Risks and flags to dividend stability
- Sector exposure: UK tax changes affecting gaming operators (sector now <6% of gross profit); some customer exits already seen, though volumes may consolidate to remaining operators.
- Customer concentration: 3 customers account for >10% of revenue/gross profit, creating concentration risk.
- Execution/regulatory risk: European market entries entail regulatory approvals and operator integrations; potential timing and cost risks.
- Cash dynamics: Underlying cash down 16.4% YoY after elevated shareholder distributions; continued expansion spend and lower interest income could modestly reduce free cash cover if growth underdelivers.
- Tax/R&D: Reduced R&D credits and a higher effective tax rate slightly pressure post-tax cash generation.
Read more
Fonix Mobile Annual Dividend Yield - 6.83%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 30/01/2025 |
12/02/2025 |
Special |
3.00p |
GBX |
| 27/03/2025 |
04/04/2025 |
Interim |
2.90p |
GBX |
| 20/11/2025 |
28/11/2025 |
Final |
5.90p |
GBX |
Total (Annual Dividends Per Share):
11.80p
Dividend Yield =
Annual Dividends Per Share (11.80p)
÷ Share Price (172.67p)
= 6.83%
Fonix Mobile Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/03/2026 |
02/04/2026 |
Interim |
3.1000p |
GBX |
| 20/11/2025 |
28/11/2025 |
Final |
5.90p |
GBX |
| 27/03/2025 |
04/04/2025 |
Interim |
2.90p |
GBX |
| 30/01/2025 |
12/02/2025 |
Special |
3.00p |
GBX |
| 21/11/2024 |
29/11/2024 |
Final |
5.70p |
GBX |
| 21/03/2024 |
02/04/2024 |
Interim |
2.60p |
GBX |
| 16/11/2023 |
30/11/2023 |
Final |
4.89p |
GBX |
| 23/03/2023 |
31/03/2023 |
Interim |
2.36p |
GBX |
| 24/11/2022 |
30/11/2022 |
Final |
4.50p |
GBX |
| 24/03/2022 |
31/03/2022 |
Interim |
2.00p |
GBX |
| 18/11/2021 |
30/11/2021 |
Final |
3.53p |
GBX |
| 04/03/2021 |
19/03/2021 |
Interim |
1.70p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
2.600 |
5.700 |
GBX |
8.300 |
14.480 |
| 2023 |
2.360 |
4.890 |
GBX |
7.250 |
11.530 |
| 2022 |
2.000 |
4.500 |
GBX |
6.500 |
24.280 |
| 2021 |
1.700 |
3.530 |
GBX |
5.230 |
|
Fonix Mobile Dividend Calculator
Fonix Mobile Dividend Growth
| Dividend Growth (1Y) |
-22.41%
|
| Dividend CAGR (5Y) |
11.47%
|
| Years of Growth |
5
|
| Payout Ratio |
77.89%
|
| Buyback Yield |
0.36%
|
| Shareholder Yield |
5.44%
|
| P/E Ratio (TTM) | 15.45 |
|---|
| Forward P/E | 15.34 |
|---|
| P/FCF | 11.74 |
|---|
| Earnings Yield | 6.55% |
|---|
| FCF Yield | 8.52% |
|---|
| ROE | 101.26% |
|---|
| ROCE | 124.53% |
|---|
| Profit Margin | 14.66% |
|---|
| Operating Margin | 18.18% |
|---|
| Gross Margin | 25.4% |
|---|