Heavitree Brewery

Heavitree Brewery Dividend Analysis and Summary

• Final dividend: 3.85p per Ordinary and ‘A’ Limited Voting share (unchanged YoY)
• Ex-dividend date: 12/03/2026 (derived from record date)
• Record date: 13/03/2026
• Payment date: 24/04/2026 (subject to AGM approval on 15/04/2026)
• Full-year dividend trajectory: Company states the total dividend for FY25 will be up 8.1% when combining the increased half-year distribution with the proposed final
• Cash cost (proposed final): c. £193k
• Earnings cover: FY25 EPS 54.2p; implied cover on an estimated FY DPS of c. 6.6p is ~8.2x (note: EPS includes one-off gains)
• Cash flow cover: Operating cash flow £1.33m vs equity dividends paid £0.32m in the year (>4x)
• Balance sheet support: Year-end cash £2.31m; financial liabilities £1.64m (net cash position c. £0.7m)

• Sustainability: The final dividend is maintained, reflecting a cautious stance amid sector pressures. Coverage is robust on reported earnings and cash flow. However, FY25 profit was flattered by £1.06m of property sale gains and an £0.88m insurance receipt; underlying operating profit fell 3.3% to £1.38m. Even on a more normalised basis, dividend cover remains comfortable.
• Growth trajectory: Management signals a full-year increase (8.1%) driven by a higher half-year payout, but the final is flat. With forecasts assuming volume pressure (wet sales -3.5%, rental -3.0%) and no planned capital disposals in the coming year, dividend growth is likely to remain measured near term.
• Financial and capital allocation support: Continued deleveraging (term loan down to £1.52m) and a new 5-year banking facility with >£2.5m headroom underpin capacity to maintain the dividend. The £0.88m insurance proceeds are ring-fenced for the Jolly Sailor site, limiting reliance on them for distributions. Repair spend moderated to £0.80m, aiding cash generation.