Science Group
Website:
Science Group
Index:
AIM
EPIC: SAG
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£240.08M
Payout Frequency: Annual
Science Group Dividend Analysis and Summary
Headline dividend details
- Dividend: 10.0 pence per share (final), up 25% year-on-year (from 8.0p)
- Ex-dividend date: 21/05/2026 (derived from record date)
- Record date: 22/05/2026
- Payment date: 02/07/2026
- Shareholder approval: at AGM on 20/05/2026
- Estimated cash cost: ~£4.3m (c. 43.1m shares in issue, excluding treasury)
- Indicative yield: ~1.8% at 547.5p (31 Dec 2025 share price)
Dividend sustainability and cover
- Adjusted EPS (2025): 40.2p; dividend cover ~4.0x; payout ratio ~25%.
- Cash generation: operating cash flow £31.8m vs dividend cost ~£4.3m (cash cover ~7x).
- Balance sheet: net funds £61.2m; undrawn £30m RCF; strong liquidity supports ongoing distributions.
- Statutory EPS of 75.1p includes a one-off corporate investment gain; dividend is nonetheless well covered by underlying earnings and cash flow.
Dividend growth trajectory
- Proposed DPS uplift of +25% to 10.0p reflects multi-year EPS expansion and high-margin, cash-generative model.
- Low payout ratio suggests room for steady growth, though management appears to favour a conservative dividend alongside meaningful buybacks.
Capital allocation and support
- Share buy-backs: £10.7m in 2025 (c. 5.0% of shares since last AGM); Board expects a broadly similar level in 2026.
- Additional authority: proposal to enable repurchase of up to a further 10% (combined buy-back cap £50m) if the standard 10% is fully utilised.
- Financing: two new 10-year term loans hedged to a fixed effective rate of ~7.3%; £30m RCF undrawn, preserving flexibility.
- Net effect: robust cash and buybacks support DPS affordability and could reduce share count, lowering total dividend cash outlay at a given DPS.
Potential impacts and structural considerations
- No demerger/M&A altering dividend flow. 2025’s Ricardo gain is non-recurring and realised.
- Ongoing reshaping of Defence activities away from low-margin pass-through supports margins and cash conversion—positive for dividend resilience.
- AGM proposals to extend buyback capacity could tilt capital returns mix toward repurchases rather than aggressive DPS hikes.
Risks and flags to monitor
- End-market and macro exposure: Consumer electronics cyclicality (Frontier), Defence timing, USD FX volatility, memory cost inflation, and potential Middle East shipping disruption.
- Provisions: includes an estimated ~£1.3m contractual settlement within “other” provisions; manageable vs cash but worth tracking.
- Exceptional gains: 2025 investment gain will not repeat; dividend reliance should remain on core operations (which are strong).
- Interest expense certainty at a fixed ~7.3% on term loans; if rates fall, fixed cost could weigh modestly versus interest income on cash balances.
Read more
Science Group Annual Dividend Yield - 1.13%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 21/05/2020 |
12/06/2020 |
Final |
4.60p |
GBX |
| 24/09/2020 |
23/10/2020 |
Interim |
2.00p |
GBX |
Total (Annual Dividends Per Share):
6.60p
Dividend Yield =
Annual Dividends Per Share (6.60p)
÷ Share Price (584.62p)
= 1.13%
Science Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 21/05/2026 |
02/07/2026 |
Final |
10.0000p |
GBX |
| 22/05/2025 |
04/07/2025 |
Final |
8.00p |
GBX |
| 20/06/2024 |
19/07/2024 |
Final |
8.00p |
GBX |
| 18/05/2023 |
16/06/2023 |
Final |
5.00p |
GBX |
| 19/05/2022 |
17/06/2022 |
Final |
5.00p |
GBX |
| 20/05/2021 |
18/06/2021 |
Final |
4.00p |
GBX |
| 24/09/2020 |
23/10/2020 |
Interim |
2.00p |
GBX |
| 21/05/2020 |
12/06/2020 |
Final |
4.60p |
GBX |
| 25/04/2019 |
17/05/2019 |
Final |
4.60p |
GBX |
| 19/04/2018 |
11/05/2018 |
Final |
4.40p |
GBX |
| 18/05/2017 |
09/06/2017 |
Final |
4.20p |
GBX |
| 19/05/2016 |
10/06/2016 |
Final |
4.00p |
GBX |
| 21/05/2015 |
12/06/2015 |
Final |
4.00p |
GBX |
| 21/05/2014 |
12/06/2014 |
Final |
1.10p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
|
8.000 |
GBX |
8.000 |
60.000 |
| 2023 |
|
5.000 |
GBX |
5.000 |
0.000 |
| 2022 |
|
5.000 |
GBX |
5.000 |
25.000 |
| 2021 |
|
4.000 |
GBX |
4.000 |
-39.390 |
| 2020 |
2.000 |
4.600 |
GBX |
6.600 |
43.470 |
| 2019 |
|
4.600 |
GBX |
4.600 |
4.540 |
| 2018 |
|
4.400 |
GBX |
4.400 |
4.760 |
| 2017 |
|
4.200 |
GBX |
4.200 |
5.000 |
| 2016 |
|
4.000 |
GBX |
4.000 |
0.000 |
| 2015 |
|
4.000 |
GBX |
4.000 |
263.630 |
| 2014 |
|
1.100 |
GBX |
1.100 |
|
Science Group Dividend Calculator
Science Group Dividend Growth
| Dividend Growth (1Y) |
25%
|
| Dividend CAGR (5Y) |
10.76%
|
| Years of Growth |
–
|
| Payout Ratio |
13.59%
|
| Buyback Yield |
2.29%
|
| Shareholder Yield |
4.01%
|
| P/E Ratio (TTM) | 7.95 |
|---|
| Forward P/E | 14.01 |
|---|
| P/FCF | 10.38 |
|---|
| Earnings Yield | 13.86% |
|---|
| FCF Yield | 9.63% |
|---|
| ROE | 35.52% |
|---|
| ROCE | 14% |
|---|
| Profit Margin | 29.8% |
|---|
| Operating Margin | 15.12% |
|---|
| Gross Margin | 41.23% |
|---|