International Personal Finance

International Personal Finance Dividend Analysis and Summary

• Proposed final dividend: 9.0p per share (FY24: 8.0p), up 12.5%.
• Full-year ordinary dividend (FY25): 12.8p per share (FY24: 11.4p), up 12.3%.
• Ex-dividend date: 26/03/2026.
• Record date: 27/03/2026.
• Payment date: 08/05/2026.
• Earnings cover: FY25 pre-exceptional EPS 26.3p implies c.2.1x cover of the full-year dividend.
• Payout ratio: c.49% of pre-exceptional earnings.
• Takeover context: Under the agreed scheme with BasePoint, shareholders remain entitled to the 9.0p final (“Permitted Dividend”). If the scheme completes, IPF also expects to pay a separate 15.0p special dividend within 14 days of the effective date (in addition to the 235p cash from the acquirer).

• Coverage and policy: A ~2.1x earnings cover and stated progressive dividend policy support ongoing ordinary dividends.
• Earnings/credit quality: Pre-exceptional PBT rose to £88.6m (+4%); pre-exceptional EPS up 5.6% to 26.3p. Group impairment rate improved to 9.0% (from 9.6%), indicating robust credit quality.
• Capital and liquidity: £129m headroom on facilities/cash and an equity-to-receivables ratio of 51% (target 40%) provide balance sheet capacity to support dividends alongside growth.
• Cash generation and investment: FY25 operating cash flow was modestly negative due to receivables growth and higher investment, but the Group plans disciplined growth with manageable leverage (gearing 1.2x, within covenants). Management reaffirmed commitment to a progressive dividend while funding growth.
• Trajectory: Ordinary DPS grew 12.3% YoY. Near-term dividend growth may be steadier as the Group ramps investment, but cover and capital headroom are solid.