Softcat

Softcat Dividend Analysis and Summary

• Type: Interim ordinary dividend
• Amount: 9.9p per share (up 11.2% year-on-year)
• Ex-dividend date: 09/04/2026
• Record date: 10/04/2026
• Payment date: 20/05/2026
• DRIP election deadline: 28/04/2026
• Total cash cost: £19.5m
• Policy: Interim set at one-third of prior year’s total ordinary dividend; implies FY2025 ordinary dividend of ~29.7p.
• Indicative ordinary yield: ~2.2% using 29.7p and the recent buyback VWAP of 1,333p (excludes specials).
• Cover: H1 underlying EPS 36.1p (statutory 32.8p) vs 9.9p interim; c.3.6x (statutory c.3.3x).

• Cash generation: Underlying cash conversion 147.6% (ex one-off upfront receipt: 102.4%), with net cash of £206m; comfortably funds the ordinary dividend.
• Earnings momentum: Gross profit +22.6%, underlying operating profit +27.3% in H1; FY2026 guidance raised to high single-digit underlying OP growth.
• Capital allocation: Progressive ordinary dividend maintained; excess capital directed to buybacks/specials/M&A. A £45m buyback completed in Feb-26 (c.1.67% share count reduction) modestly lifts DPS and lowers future cash cost.
• Liquidity and flexibility: New undrawn £50m RCF enhances flexibility; balance sheet remains net cash.
• Assessment: Ordinary dividend appears well-covered and sustainable; DPS growth trajectory remains positive under the progressive policy and upgraded earnings outlook.