MHA

Website: MHA
Index: AIM
EPIC: MHA
Supersector: Industrial Goods and Services
Sector: Industrial Support Services
Subsector: Industrial Support Services
Market Cap: £398.4M
Payout Frequency: -

MHA Dividend Analysis and Summary

Dividend declaration and key dates

Dividend: Interim dividend of 1.0p per share (FY to 31/03/2026)
Ex-dividend date: 27/11/2025
Record date: 28/11/2025
Payment date: 29/12/2025
Currency: GBP
Eligibility: Ordinary shareholders on the register at the record date; note the Company’s EBT does not have an entitlement to dividends

Context and coverage

H1 FY26 adjusted basic EPS: 5.8p vs interim dividend 1.0p ? indicative H1 earnings cover of ~5.8x (unadjusted basic EPS 7.3p ? ~7.3x).
Cash generation: H1 operating cash inflow £36.1m; period-end net cash £25.7m.
Profitability: Adjusted EBITDA £21.8m (margin ~18%); recurring fees ~87% of revenue.
Indicative cash cost of the interim dividend: based on shares in issue and EBT holdings disclosed, c. £2.5–£2.6m (estimate, depends on shares entitled on the record date).

Brief financial backdrop

H1 revenue up 13.2% to £121.3m; adjusted PBT up 8.8% to £18.5m.
Guidance reference: market expectations for FY26 of £249.5m revenue and £44.0m adjusted EBITDA.
Balance sheet: minimal borrowings; deferred consideration £4.7m; continued investment in tech/data and selective M&A.

Analysis: sustainability, growth and capital allocation

Sustainability: The interim dividend appears conservative relative to H1 earnings and strong cash generation. High recurring revenue (87%) and net cash position support payment capacity.
Growth trajectory: First interim dividend post-IPO sets a modest base. With double-digit revenue growth and stable margins, there is headroom for gradual increases if trading remains in line with guidance.
Support from performance: Adjusted EBITDA margin (~18%) and robust operating cash flow comfortably cover the dividend. Management reiterates full-year expectations, reinforcing visibility.
Capital allocation: Management prioritises organic investment (technology, AI/data), talent, and selective M&A. Given this, a disciplined, low payout policy is sensible; the dividend is well-backed without constraining growth initiatives.

Structural changes and policy considerations

IPO and group reorganisation completed in April 2025; first consolidated interim results as a plc.
M&A: Acquisition of Baker Tilly South-East Europe (BTSEE) completed August 2025; integration progressing. Post-period share issuance to vendors completed in October 2025.
EBT established; the EBT holds shares and does not receive dividends, modestly reducing the cash cost of dividends versus gross shares outstanding.
Dividend policy: stated as “in line with the Admission Document”; no explicit payout ratio disclosed, implying continued prudence while growth investments are prioritised.

Risks and flags to dividend stability

Working capital: Lock-up increased to 88 days (from 80), partly due to acquisition terms; still manageable but worth monitoring for cash conversion.
Integration/execution risk: Ongoing BTSEE integration and a healthy M&A pipeline increase operational complexity; discipline remains key.
Deferred consideration (£4.7m) and continued tech/M&A investment create competing cash uses, supporting a conservative payout stance.
Regulatory and macro backdrop: While regulation drives demand, changes can also add cost/complexity; broader macro uncertainty persists.
Accounting effects: Non-underlying items (e.g., bargain purchase gains, deemed remuneration amortisation, IPO costs, LTIP charges) can add noise to reported earnings, but do not impair cash dividend capacity.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency

Total (Annual Dividends Per Share): 0.00p

Dividend Yield = Annual Dividends Per Share (0.00p) ÷ Share Price (155p) = 0%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	29/12/2025	1st Interim	1.0000p	GBX

Year

Number of Shares:

Payment	Paid	Amount
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