James Halstead

James Halstead Dividend Analysis and Summary

• Final dividend per share: 6.05p (FY24: 6.0p)
• Total dividend for FY25: 8.80p (FY24: 8.50p), up 3.5%
• Ex-dividend date: 13/11/2025 (derived from record date)
• Record date: 14/11/2025
• Payment date: 12/12/2025
• Status: Final dividend proposed, subject to shareholder approval
• Dividend track record: 49th consecutive annual increase
• Earnings per share (EPS): 9.7p (FY24: 10.0p)
• Dividend cover (EPS/DPS): ~1.10x (tight)
• Cash dividend paid in year: £36.5m (FY24: £34.4m); Year-end cash: £68.4m

• Growth trajectory: Total DPS rose 3.5%, ahead of EPS which fell ~3%; the final DPS edged up 0.8%. The multi-decade progressive policy remains intact but increases are modest.
• Earnings cover: Cover at ~1.10x is thin, reflecting lower EPS and continued DPS growth. This implies less headroom for shocks.
• Cash flow support: Cash generated from operations before tax was £50.0m; after tax and capex (~£31.8m FCF proxy) it was below the £36.5m dividend paid, implying <1x cash cover in FY25 and a small draw on cash reserves. However, net cash of £68.4m provides a meaningful buffer.
• Operational backdrop: Revenue down 4.7%, PBT down 1.9%, but gross margin improved to 44.5%. Cost control helped, yet Europe and APAC headwinds persist. The Board still guides to further progress in FY26.
• Capital allocation: Modest capex (£3.9m), no net debt, continued investment in process/product, and a clear prioritisation of the progressive dividend. Given the tight cover, future dividend growth likely to remain low-to-mid single digits unless earnings re-accelerate.