PageGroup

Website: PageGroup
Index: FTSE 250
EPIC: PAGE
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Training and Employment Agencies
Market Cap: £407.82M
Payout Frequency: Semi-Annual

PageGroup Dividend Analysis and Summary

Key Dividend Details

Coverage and Cash Context

Basic EPS FY25: 2.9p; dividend cover on FY25 DPS of 8.57p is ~0.34x (final dividend alone ~1.1x EPS).
Operating cash flow FY25: £49.6m; net capex ~£11.4m ? indicative pre-lease free cash flow ~£38m, covering FY25 cash dividends (~£26.7m for the 5.36p interim + 3.21p final) by ~1.4x.
Year-end net cash: £31.4m (vs £95.3m prior year); undrawn £80m RCF (matures Dec 2028) and up to £50m invoice facility.

Dividend Policy Signals

Policy: grow the ordinary dividend over the cycle, subject to affordability; supplementary returns (specials/buybacks) only with surplus cash.
Board has flexed payout materially lower amid weaker trading, prioritising balance sheet strength and investment capacity.

Analysis: Sustainability and Growth Outlook

Near-term sustainability: The final 3.21p looks cautiously set and broadly covered by earnings and cash generation, but the full-year DPS (8.57p) exceeded FY25 earnings, relying on cash rather than profits. This indicates limited headroom if trading remains subdued.
Cash support: Positive operating cash flow and modest capex support ordinary dividends, but IFRS 16 lease principal repayments (£41.6m) and lower cash balance tighten overall coverage.
Trajectory: FY25 DPS is down ~50% YoY, resetting the base. Management targets ordinary dividend growth “over the cycle,” implying future increases depend on profit recovery (conversion rate only 2.7%) and improved markets, notably in EMEA/UK.
Operational levers: Cost optimisation savings of ~£15m annualised from 2026 should bolster earnings and dividend capacity if maintained, partially offsetting soft revenue.

Support from Financial Performance and Capital Allocation

Profitability under pressure: Operating profit £20.9m (-59%) and EPS 2.9p constrain dividend capacity; tax rate elevated (44%).
Balance sheet/liquidity: Net cash positive with ample undrawn facilities; prudent stance on distributions aligns with stated capital allocation framework.
No supplementary returns: No buybacks/specials signalled; focus remains on ordinary dividend affordability and reinvestment.

Structural/Policy Developments Relevant to Dividends

Cost optimisation completed in 2025 (one-off ~£15m), delivering ~£15m p.a. savings from 2026—supportive for future dividend cover.
RCF maturity extended to Dec 2028; strengthens liquidity runway.
UK brand migration (Page Personnel into Michael Page) completed Jan 2025—operational simplification, not a capital structure change; no demergers/M&A/share consolidation disclosed.

Risks/Flags to Dividend Stability

Weak coverage on FY25 DPS (0.34x EPS) and lower net cash balance.
Cyclical exposure: Continued softness in EMEA/UK; UK posted an operating loss; conversion rate remains low.
High effective tax rate reduces distributable profits.
Lease liabilities (£132m) require ongoing cash outflows; including leases, cash coverage tightens.
Final dividend remains subject to AGM approval; policy could adjust if trading deteriorates or macro uncertainty persists.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
15/05/2025	23/06/2025	Final	11.75p	GBX
28/08/2025	10/10/2025	Interim	5.36p	GBX

Total (Annual Dividends Per Share): 17.11p

Dividend Yield = Annual Dividends Per Share (17.11p) ÷ Share Price (121.5p) = 14.08%

Ex Dividend Date	Payment Date	Type	Amount	Currency
14/05/2026	17/06/2026	Final	3.2100p	GBX
28/08/2025	10/10/2025	Interim	5.36p	GBX
15/05/2025	23/06/2025	Final	11.75p	GBX
29/08/2024	11/10/2024	Interim	5.36p	GBX
16/05/2024	21/06/2024	Final	11.24p	GBX
31/08/2023	13/10/2023	Interim	5.13p	GBX
31/08/2023	13/10/2023	Special	15.87p	GBX
18/05/2023	19/06/2023	Final	10.76p	GBX
01/09/2022	14/10/2022	Interim	4.91p	GBX
01/09/2022	14/10/2022	Special	26.71p	GBX
19/05/2022	17/06/2022	Final	10.30p	GBX
02/09/2021	13/10/2021	Interim	4.70p	GBX
02/09/2021	13/10/2021	Special	26.71p	GBX
21/05/2020	19/06/2020	Final	9.40p	GBX
05/09/2019	09/10/2019	Interim	4.30p	GBX
05/09/2019	09/10/2019	Special	12.73p	GBX
16/05/2019	17/06/2019	Final	9.00p	GBX
06/09/2018	10/10/2018	Interim	4.10p	GBX
06/09/2018	10/10/2018	Special	12.73p	GBX
17/05/2018	18/06/2018	Final	8.60p	GBX
07/09/2017	11/10/2017	Interim	3.90p	GBX
07/09/2017	11/10/2017	Special	12.73p	GBX
18/05/2017	19/06/2017	Final	8.23p	GBX
08/09/2016	12/10/2016	Interim	3.75p	GBX
08/09/2016	12/10/2016	Special	6.46p	GBX
19/05/2016	20/06/2016	Final	7.90p	GBX
03/09/2015	02/10/2015	Interim	3.60p	GBX
03/09/2015	02/10/2015	Special	16.00p	GBX
21/05/2015	22/06/2015	Final	7.58p	GBX
03/09/2014	03/10/2014	Interim	3.42p	GBX
21/05/2014	23/06/2014	Final	7.25p	GBX
04/09/2013	04/10/2013	Interim	3.25p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	5.360	11.240		GBX	16.600	-47.730
2023	5.130	10.760	15.870	GBX	31.760	-24.230
2022	4.910	10.300	26.710	GBX	41.920	33.460
2021	4.700		26.710	GBX	31.410	234.140
2020		9.400		GBX	9.400	-63.880
2019	4.300	9.000	12.730	GBX	26.030	2.350
2018	4.100	8.600	12.730	GBX	25.430	2.290
2017	3.900	8.230	12.730	GBX	24.860	37.270
2016	3.750	7.900	6.460	GBX	18.110	-33.370
2015	3.600	7.580	16.000	GBX	27.180	154.730
2014	3.420	7.250		GBX	10.670	228.300
2013	3.250			GBX	3.250

Number of Shares:

Payment	Paid	Amount
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