Latham James

Latham James Dividend Analysis and Summary

• Declared dividend: 8.1p per share (interim)
• Ex-dividend date: 02/01/2026
• Record date: 05/01/2026
• Payment date: 23/01/2026
• Year-on-year change: +1.9% (vs 7.95p)
• Total cash cost: £1.633m
• Earnings cover (H1): EPS 47.9p ? cover of roughly 5.9x the interim dividend
• Cash flow and liquidity context: H1 operating cash flow £7.0m; cash and equivalents £59.8m; capex in H1 £7.9m

• Sustainability: The interim dividend is modest relative to earnings (c. 17% of H1 EPS) and strongly covered by operating cash flow and a sizeable net cash position. Even with higher capex, immediate payout risk appears low.
• Growth: The interim is up 1.9% YoY—incremental rather than aggressive. Given flat margins and macro headwinds, this cautious uplift is consistent with a disciplined, progressive approach.
• Financial support: H1 revenue rose 5.5% with volumes up 6.8%, though EPS dipped ~5% as finance income fell and margins edged slightly lower. Nonetheless, PBT of £12.8m and cash of £59.8m comfortably underpin the interim distribution.
• Capital allocation: Elevated investment (notably the National Distribution Centre) is absorbing cash and reducing finance income, but the balance sheet remains strong. The interim dividend quantum (c. £1.63m) is small relative to cash resources, suggesting ongoing capacity to maintain a progressive policy barring a sharp downturn.