Northamber

Website: Northamber
Index: AIM
EPIC: NAR
Supersector: Technology
Sector: Technology Hardware and Equipment
Subsector: Computer Hardware
Market Cap: £7.32M
Payout Frequency: Semi-Annual

Northamber Dividend Analysis and Summary

Declared Dividend

Type: Interim dividend
Amount: 0.3p per share (total cash cost £81,340)
Payment date: 23/04/2026
Record date: 10/04/2026
Ex-dividend date: 09/04/2026 (derived as one business day before the record date)

Context and Coverage

H1 FY26 performance: revenue up 22% to £39.4m; gross profit up 14% to £5.9m; returned to positive unadjusted EBITDA of £210k, but reported an operating loss of £226k and a loss before tax of £378k.
Cash and balance sheet: cash of £2.8m; net assets £17.7m; property backing highlighted; modest leverage.
Cash flow: H1 operating cash outflow of £1.21m, driven by working-capital movements (notably inventory increase following the NUC acquisition).
Dividend coverage: not covered by earnings (basic EPS -1.38p in H1). The dividend is small in absolute terms and easily serviceable from current cash resources, but not covered by statutory profits.

Outlook and Guidance Relevant to Dividends

Management indicates Q3 has returned to operating profitability and expects a “materially stronger” H2, aided by the full-period contribution from NUC, FY25 cost actions, and improving operating leverage.
Interim dividend level is unchanged “as in previous years,” implying a stable dividend stance despite transitional integration costs.

Dividend Sustainability Assessment

Sustainability: Near-term coverage is weak on a statutory basis given the H1 loss and negative operating cash flow. However, the small cash cost (~£81k) versus cash on hand (£2.8m) and property-backed balance sheet suggests the interim is affordable in the short term.
Growth trajectory: The interim is flat at 0.3p, consistent with prior years. With management targeting stronger H2 profitability and improved scale/recurring revenues, modest dividend progression could resume only if these improvements translate into sustained positive free cash flow.
Support from financial performance and capital allocation: Strategy is focused on scaling higher-margin, recurring revenue categories and absorbing fixed central costs. That, plus disciplined M&A, is directionally supportive, but current working-capital intensity and integration spend temper near-term dividend growth potential.

Structural Changes and Policy Signals

M&A: December 2025 acquisition of NUC Distribution (c. £29m revenue, 11% gross margin). Consideration is deferred over 25 months, designed to be cash-flow friendly and performance-aligned.
Portfolio actions: Two office buildings are being marketed for sale to release working capital and improve capital efficiency.
Share capital: No explicit change to dividend policy and no announced share consolidation. A small treasury share purchase occurred in FY25; no buyback activity indicated in H1 FY26.

Risks and Flags to Dividend Stability

Earnings cover: Interim dividend not covered by earnings (H1 loss) and delivered alongside a negative operating cash flow.
Integration and execution: Ongoing integration costs and execution risk around the NUC combination and broader European expansion.
Working capital intensity: Significant inventory build and elevated payables increase cash flow volatility; deferred consideration over 25 months competes for cash.
Macro and market: Management notes mixed UK trading conditions; exposure to supplier, FX, inflation, credit, and liquidity risks as per the risk disclosure.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
08/01/2026	17/02/2026	Final	0.3000p	GBX
09/04/2026	23/04/2026	Interim	0.0300p	GBX

Total (Annual Dividends Per Share): 0.33p

Dividend Yield = Annual Dividends Per Share (0.33p) ÷ Share Price (27.45p) = 1.2%

Ex Dividend Date	Payment Date	Type	Amount	Currency
09/04/2026	23/04/2026	Interim	0.0300p	GBX
08/01/2026	17/02/2026	Final	0.3000p	GBX
10/04/2025	25/04/2025	Interim	0.30p	GBX
12/12/2024	17/01/2025	Final	0.30p	GBX
11/04/2024	26/04/2024	Interim	0.30p	GBX
14/12/2023	19/01/2024	Final	0.30p	GBX
06/04/2023	25/04/2023	Interim	0.30p	GBX
15/12/2022	18/01/2023	Final	0.30p	GBX
07/04/2022	28/04/2022	Interim	0.30p	GBX
16/12/2021	19/01/2022	Final	0.40p	GBX
29/04/2021	27/05/2021	Interim	0.30p	GBX
11/02/2021	18/03/2021	Final	0.30p	GBX
16/04/2020	15/05/2020	Interim	0.30p	GBX
12/12/2019	17/01/2020	Final	0.30p	GBX
11/04/2019	13/05/2019	Interim	0.10p	GBX
06/12/2018	18/01/2019	Final	0.10p	GBX
19/04/2018	11/05/2018	Interim	0.10p	GBX
07/12/2017	18/01/2018	Final	0.10p	GBX
13/04/2017	12/05/2017	Interim	0.10p	GBX
08/12/2016	18/01/2017	Final	0.10p	GBX
14/04/2016	12/05/2016	Interim	0.10p	GBX
03/12/2015	15/01/2016	Final	0.30p	GBX
16/04/2015	12/05/2015	Interim	0.30p	GBX
04/12/2014	15/01/2015	Final	0.30p	GBX
09/04/2014	12/05/2014	Interim	0.30p	GBX

Year	Interim	Final	Currency	Total	Change
2024	0.300	0.300	GBX	0.600	0.000
2023	0.300	0.300	GBX	0.600	0.000
2022	0.300	0.300	GBX	0.600	-14.280
2021	0.300	0.400	GBX	0.700	16.660
2020	0.300	0.300	GBX	0.600	50.000
2019	0.100	0.300	GBX	0.400	100.000
2018	0.100	0.100	GBX	0.200	0.000
2017	0.100	0.100	GBX	0.200	0.000
2016	0.100	0.100	GBX	0.200	-66.660
2015	0.300	0.300	GBX	0.600	0.000
2014	0.300	0.300	GBX	0.600

Number of Shares:

Payment	Paid	Amount
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