Reach
Website:
Reach
Index:
FTSE Small Cap
EPIC: RCH
Supersector:
Media
Sector:
Media
Subsector:
Publishing
Market Cap:
£185.27M
Payout Frequency: Semi-Annual
Reach Dividend Analysis and Summary
Dividend declaration and key dates
- Final dividend (FY2025): 4.46p per share (unchanged year-on-year).
- Total FY2025 dividend: 7.34p per share (maintained).
- AGM approval: 06/05/2026.
- Record date: 01/05/2026 (Friday).
- Ex-dividend date: 30/04/2026 (Thursday) (derived as the business day before the record date).
- Payment date: 29/05/2026.
- Estimated final cash outlay: ~£14.1m; total dividends paid in 2025: £23.2m.
Coverage and cash support
- Adjusted EPS (FY2025): 26.8p ? dividend cover ˜ 3.7x; payout ratio ˜ 27%.
- Adjusted operating cash flow: £103.5m vs dividends paid £23.2m ? cash cover ˜ 4.5x.
- Net debt: £34.9m (leverage ~0.3x); RCF £145m extended to Dec 2029.
- Ongoing defined benefit pension contributions remain material: £59m expected in 2026 (step down from £64m in 2025), £58m in 2027; reductions expected from 2028.
Analysis: sustainability and growth
- Sustainability: The dividend appears well covered by earnings and cash, supported by strong cash conversion (99%) and modest leverage. The dividend has been maintained, not increased, reflecting a cautious stance amid digital headwinds and high pension outflows.
- Growth trajectory: Flat in FY2025 (7.34p). Near-term growth looks limited given a cautious 2026 outlook (consensus adj. operating profit £96.4m vs £104.7m in 2025) and a planned ~£25m cash cost for print site closures. Medium-term potential improves as pension contributions step down from 2028 and cost actions/print consolidation deliver savings.
- Financial support/capital allocation: Management is prioritising cost reduction (target 5–6% in 2026), de-risking pensions (Trinity buy-in cutting scheduled contributions by £8.6m), and selective investment in video/subscriptions. Non-cash impairment drove a statutory loss but does not pressure cash distributions.
Structural changes and implications
- Print consolidation: Closure of Saltire and Watford print sites in 2026; two-year payback, lowers operational risk and supports future cost savings. Near-term cash cost of change ~£25m in 2026; property disposals targeted in 2027.
- Pension de-risking: Trinity Scheme buy-in eliminates remaining scheduled funding contributions for that scheme, easing cash burden vs prior schedules.
- Digital strategy shift: Expanded video output and roll-out of paid digital subscriptions (target >75k subscribers in 2026) and an AI content deal with AWS introduce more diversified and recurring revenues over time.
- No demergers, M&A or share consolidation disclosed.
Risks and flags to dividend stability
- Digital headwinds: Material decline in Google referrals in H2 2025; cautious 2026 digital outlook. If monetisation or audience recovery lags, earnings cover could tighten.
- Cash outflows in 2026: One-off ~£25m print closure costs plus £59m pension contributions dilute free cash available for distributions in the near term.
- Legacy/legal: Historical legal issues provision remains at £4.7m (range £2–8m), albeit reduced vs prior periods.
- Structural print decline/macros: Print volumes falling; advertising softness; execution risk around cost savings and subscription/video monetisation.
- Cyber/platform risk: Elevated cybersecurity threats and platform dependency remain ongoing considerations.
Read more
Reach Annual Dividend Yield - 12.66%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 01/05/2025 |
30/05/2025 |
Final |
4.46p |
GBX |
| 14/08/2025 |
19/09/2025 |
Interim |
2.88p |
GBX |
Total (Annual Dividends Per Share):
7.34p
Dividend Yield =
Annual Dividends Per Share (7.34p)
÷ Share Price (58p)
= 12.66%
Reach Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 30/04/2026 |
29/05/2026 |
Final |
4.4600p |
GBX |
| 14/08/2025 |
19/09/2025 |
Interim |
2.88p |
GBX |
| 01/05/2025 |
30/05/2025 |
Final |
4.46p |
GBX |
| 15/08/2024 |
20/09/2024 |
Interim |
2.88p |
GBX |
| 09/05/2024 |
31/05/2024 |
Final |
4.46p |
GBX |
| 10/08/2023 |
22/09/2023 |
Interim |
2.88p |
GBX |
| 11/05/2023 |
02/06/2023 |
Final |
4.46p |
GBX |
| 11/08/2022 |
23/09/2022 |
Interim |
2.88p |
GBX |
| 12/05/2022 |
10/06/2022 |
Final |
4.46p |
GBX |
| 12/08/2021 |
24/09/2021 |
Interim |
2.75p |
GBX |
| 13/05/2021 |
04/06/2021 |
Final |
4.26p |
GBX |
| 07/05/2020 |
05/06/2020 |
Final |
4.05p |
GBX |
| 05/09/2019 |
27/09/2019 |
Interim |
2.50p |
GBX |
| 09/05/2019 |
07/06/2019 |
Final |
3.77p |
GBX |
| 06/09/2018 |
28/09/2018 |
Interim |
2.37p |
GBX |
| 10/05/2018 |
08/06/2018 |
Final |
3.55p |
GBX |
| 07/09/2017 |
29/09/2017 |
Interim |
2.25p |
GBX |
| 11/05/2017 |
09/06/2017 |
Final |
3.35p |
GBX |
| 03/11/2016 |
25/11/2016 |
Interim |
2.10p |
GBX |
| 12/05/2016 |
10/06/2016 |
Final |
3.15p |
GBX |
| 01/10/2015 |
30/11/2015 |
Interim |
2.00p |
GBX |
| 07/05/2015 |
04/06/2015 |
Final |
3.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2023 |
2.880 |
4.460 |
GBX |
7.340 |
0.000 |
| 2022 |
2.880 |
4.460 |
GBX |
7.340 |
4.700 |
| 2021 |
2.750 |
4.260 |
GBX |
7.010 |
73.080 |
| 2020 |
|
4.050 |
GBX |
4.050 |
-35.400 |
| 2019 |
2.500 |
3.770 |
GBX |
6.270 |
5.910 |
| 2018 |
2.370 |
3.550 |
GBX |
5.920 |
5.710 |
| 2017 |
2.250 |
3.350 |
GBX |
5.600 |
6.660 |
| 2016 |
2.100 |
3.150 |
GBX |
5.250 |
5.000 |
| 2015 |
2.000 |
3.000 |
GBX |
5.000 |
|
Reach Dividend Calculator
Reach Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
11.5%
|
| Years of Growth |
–
|
| Payout Ratio |
–
|
| Buyback Yield |
1.3%
|
| Shareholder Yield |
12.73%
|
| P/E Ratio (TTM) | – |
|---|
| Forward P/E | 2.8 |
|---|
| P/FCF | 10.41 |
|---|
| Earnings Yield | -65.52% |
|---|
| FCF Yield | 9.61% |
|---|
| ROE | -21.96% |
|---|
| ROCE | 11.59% |
|---|
| Profit Margin | -25.52% |
|---|
| Operating Margin | 17.77% |
|---|
| Gross Margin | 42.09% |
|---|