MS International

Website: MS International
Index: AIM
EPIC: MSI
Supersector: Industrial Goods and Services
Sector: Industrial Engineering
Subsector: Industrial Machinery
Market Cap: £210.8M
Payout Frequency: Semi-Annual

MS International Dividend Analysis and Summary

Dividend details

Type: Interim dividend
Amount: 6.0p per share (up from 5.0p; +20% YoY)
Ex-dividend date: 22/01/2026
Record date: 23/01/2026
Payment date: 20/02/2026
Cash cost: ~£0.984m (per company disclosure)
Recent dividend history: Final FY25 dividend 18.0p (vs 16.5p prior year), paid during the period
Earnings cover: H1 basic EPS 38.5p covers the 6.0p interim by ~6.4x; indicative payout on H1 earnings ~16%
Balance sheet: Cash and cash equivalents £34.3m (plus £1.4m restricted)

Brief financial context

H1 revenue £55.8m (+2% YoY); PBT £8.47m (vs £8.77m). On a like-for-like basis excluding derivative fair value movements, profit £9.28m (up from £7.98m).
Operating cash flow strong: £13.1m inflow; net cash up by £10.5m in the half.
Contract liabilities (customer advances/order book indicator) remain high: current £31.3m, non-current £15.7m.
FX derivatives generated a non-cash loss of £0.8m (hedge accounting not adopted), causing earnings volatility but not impacting cash generation.

Dividend sustainability and growth

Coverage and cash: The 6.0p interim is very well covered by H1 EPS and robust operating cash flow; the £34.3m cash balance and minimal lease liabilities provide ample headroom.
Growth trajectory: Interim up +20%; last final up +9%. The Board’s willingness to raise the interim despite a “slower” year (timing of defence orders) signals confidence and a de facto progressive stance.
Earnings quality: Underlying profit growth (ex-derivatives) and a large order book support future cash generation; FX accounting introduces P&L noise but cash protection via forwards is in place.
Capital allocation: Recent period focused on dividends and organic investment (capex £2.1m); no buybacks in H1 (vs £4.5m prior period), preserving flexibility while funding growth in the US and Europe.

Structural changes and potential impact on dividends

Strategic refocus: The Group intends to dispose of non-core divisions (‘Forgings’ and ‘Petrol Station Superstructures & Branding’) to focus on ‘Defence & Security’. Dialogues with financial and potential trade buyers are ongoing in 2026.
Implications: Disposals could release cash (supporting special returns, debt-free growth, or higher ordinary dividends) but would increase reliance on defence end markets, raising concentration risk.
Operational changes: Integration of Branding with Petrol Station Superstructures completed; management strengthened; US Navy follow-on 30mm programme secured and US/EU footprints expanded—supportive for medium-term earnings and dividend capacity.

Risks and flags to dividend stability

Timing risk in defence orders and revenue recognition could cause near-term earnings lumpiness (flagged by the Chairman as a “slower” current year).
FX exposure (USD contracts) managed with forwards; absence of hedge accounting creates reported earnings volatility, though cash is largely hedged.
Strategic disposal execution: Valuation, timing and transitional costs of divestments may affect near-term cash flows; post-disposal business will be less diversified.
Macro/political risk: Defence budgets are supportive long term, but decision-making and funding timing by governments can be unpredictable.
Performance bonds/guarantees are routine but present contingent obligations (secured by £1.4m escrow); no material losses expected per management.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
19/12/2024	17/01/2025	Interim	5.00p	GBX
17/07/2025	22/08/2025	Final	18.0000p	GBX
17/07/2025	22/08/2025	Interim	18.00p	GBX

Total (Annual Dividends Per Share): 41.00p

Dividend Yield = Annual Dividends Per Share (41.00p) ÷ Share Price (1330p) = 3.08%

Ex Dividend Date	Payment Date	Type	Amount	Currency
22/01/2026	20/02/2026	Interim	6.0000p	GBX
17/07/2025	22/08/2025	Final	18.0000p	GBX
17/07/2025	22/08/2025	Interim	18.00p	GBX
19/12/2024	17/01/2025	Interim	5.00p	GBX
11/07/2024	23/08/2024	Final	16.50p	GBX
21/12/2023	19/01/2024	Interim	3.00p	GBX
06/07/2023	18/08/2023	Final	13.00p	GBX
15/12/2022	13/01/2023	Interim	2.00p	GBX
14/07/2022	12/08/2022	Final	7.50p	GBX
16/12/2021	14/01/2022	Interim	1.75p	GBX
15/07/2021	10/08/2021	Final	6.50p	GBX
24/12/2020	19/01/2021	Interim	1.75p	GBX
16/07/2020	14/08/2020	Final	1.75p	GBX
19/12/2019	10/01/2020	Interim	1.75p	GBX
20/06/2019	25/07/2019	Final	6.50p	GBX
13/12/2018	04/01/2019	Interim	1.75p	GBX
21/06/2018	24/07/2018	Final	6.50p	GBX
07/12/2017	29/12/2017	Interim	1.75p	GBX
22/06/2017	24/07/2017	Final	6.50p	GBX
01/12/2016	23/12/2016	Interim	1.50p	GBX
23/06/2016	21/07/2016	Final	6.50p	GBX
10/12/2015	04/01/2016	Interim	1.50p	GBX
25/06/2015	24/07/2015	Final	6.50p	GBX
04/12/2014	31/12/2014	Interim	1.50p	GBX
25/06/2014	18/07/2014	Final	6.50p	GBX
11/12/2013	03/01/2014	Interim	1.50p	GBX

Year	Interim	Final	Currency	Total	Change
2024	5.000	16.500	GBX	21.500	34.370
2023	3.000	13.000	GBX	16.000	68.420
2022	2.000	7.500	GBX	9.500	15.150
2021	1.750	6.500	GBX	8.250	135.710
2020	1.750	1.750	GBX	3.500	-57.570
2019	1.750	6.500	GBX	8.250	0.000
2018	1.750	6.500	GBX	8.250	0.000
2017	1.750	6.500	GBX	8.250	3.120
2016	1.500	6.500	GBX	8.000	0.000
2015	1.500	6.500	GBX	8.000	0.000
2014	1.500	6.500	GBX	8.000	433.330
2013	1.500		GBX	1.500

Number of Shares:

Payment	Paid	Amount
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