Microlise Group

Microlise Group Dividend Analysis and Summary

• Declared: Final dividend of 1.30p per share (FY25), subject to AGM approval on 24/06/2026.
• Payment date: 24/07/2026
• Record date: 03/07/2026
• Ex-dividend date: 02/07/2026 (derived as one business day before the record date)
• Interim dividend already paid (FY25): 0.60p
• Total FY25 dividend: 1.90p per share (vs FY24 total 1.81p; c. 5% YoY increase), consistent with the Board’s progressive policy
• Total cash dividends paid during FY25: £2.1m

• Coverage by earnings: FY25 Adjusted EPS 1.72p vs total dividend 1.90p implies >100% payout on adjusted earnings; statutory EPS is a loss. EPS cover is therefore thin on earnings metrics.
• Coverage by cash flow: Strong cash generation supports the dividend. Net cash from operations was £11.9m; after capex and development spend (~£5.3m) and lease/interest (~£1.7m), free cash flow comfortably covers the ~£2.1m dividend (c. 2–2.5x).
• Balance sheet support: Year-end cash £16.7m, no drawn debt, and an undrawn £10m RCF (+£20m accordion) provide additional headroom.
• Quality of revenues: Recurring revenue of £58.8m (11% statutory growth) with direct customer NRR of 108% and very low churn (1.4%) underpins medium-term visibility.
• Outlook and investment: Management will accelerate investment in FY26 (cloud platform, TMS, mid-market and sales). Guidance is for FY26 revenue slightly below prior expectations and adjusted EBITDA at the lower end of expectations, which may constrain near-term dividend growth despite the progressive policy.