Supreme
Website:
Supreme
Index:
AIM
EPIC: SUP
Supersector:
Industrial Goods and Services
Sector:
Electronic and Electrical Equipment
Subsector:
Electrical Components and Equipment
Market Cap:
£174.8M
Payout Frequency: Semi-Annual
Supreme Dividend Analysis and Summary
Key Dividend Details
- Dividend: 1.6p per share (interim)
- Ex-dividend date: 04/12/2025
- Record date: 05/12/2025
- Payment date: 09/01/2026
- Policy: 25% of profit after tax (annual payout framework)
- Comparison: prior interim 1.8p (down 11% year-on-year)
- Cover (H1 basis): basic EPS 7.7p and adjusted EPS 9.1p imply dividend cover of ~4.8x (basic) / ~5.7x (adjusted); payout ratio ~21% of basic H1 EPS
- Estimated cash cost: c.£1.9m (based on ~117.3m shares)
Quick Take
- The declared interim dividend aligns with the stated 25% of PAT policy at the annual level, but is set lower than last year’s interim, reflecting softer earnings and capital deployment into M&A.
- Ex-dividend on 04 Dec 2025; holders on 05 Dec 2025 will receive payment on 09 Jan 2026.
Dividend Sustainability
- Earnings support: H1 FY26 basic EPS 7.7p and adjusted EPS 9.1p comfortably cover the 1.6p interim (coverage >4x). However, headline profitability softened: adjusted PBT -13%, adjusted EPS -18%.
- Cash flow and leverage: Operating cash flow fell to £3.8m (vs £11.3m) on working capital outflows; adjusted net debt moved to £4.1m (ex-IFRS 16) and £20.0m including leases. Liquidity remains sound with £34.2m of undrawn ABL facilities.
- Policy anchor: The payout remains tied to 25% of full-year PAT, which naturally flexes with earnings. Management guides FY26 trading to be in line with consensus (revenue £245m, adj. EBITDA £37m), supporting continuation of the policy.
Growth Trajectory and Support from Strategy
- Portfolio diversification: Vaping revenue grew +13% to £76.9m despite a margin-dilutive shift from disposables to pods; Drinks & Wellness nearly doubled revenue to £32.9m on acquisitions and NPD.
- M&A acceleration: Addition of 1001 (Sep) and SlimFast UK & Europe (Oct) broadens non-vape exposure, with c.£30m annualised revenue combined (plus SlimFast). This should reduce dividend risk concentration over time.
- Capital allocation balance: Continued dividends alongside capex, integration spend, and working capital absorption. The lower interim vs last year suggests a cautious stance while executing turnarounds (Typhoo, Clearly Drinks) and integrating new brands.
Structural/Corporate Actions Relevant to Dividends
- Acquisitions: 1001 (Sep 2025) and SlimFast UK & Europe (Oct 2025) – earnings-enhancing targets but with integration and execution demands.
- Financing: Refinanced into an asset-based lending facility in March 2025; £34.2m headroom at 30 Sep 2025, supporting liquidity for both M&A and dividends.
- Operational transition: Vapes moving from disposables to pod systems (lower margin), and category re-segmentation; Typhoo manufacturing brought in-house; new canning lines at Clearly Drinks.
Risks and Flags for Dividend Stability
- Margin pressure: Vaping shift to pods reduces gross margin; Electricals & Household weak, with lighting price deflation and volume declines.
- Working capital and cash conversion: H1 saw a larger inventory build and freight mix change, depressing operating cash flow; watch H2 unwinds.
- Integration/execution risk: Typhoo turnaround slower than hoped in key retailers; Clearly Drinks’ contract manufacturing volumes fell; SlimFast/1001 require integration and brand development.
- Market/regulatory exposure: Ongoing evolution of UK vaping regulation and category dynamics; battery category disruption (Panasonic exit) requires brand transitions.
Read more
Supreme Annual Dividend Yield - 3.47%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 05/12/2024 |
10/01/2025 |
Interim |
1.80p |
GBX |
| 21/08/2025 |
23/09/2025 |
Final |
3.40p |
GBX |
Total (Annual Dividends Per Share):
5.20p
Dividend Yield =
Annual Dividends Per Share (5.20p)
÷ Share Price (150p)
= 3.47%
Supreme Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/12/2025 |
09/01/2026 |
Interim |
1.6000p |
GBX |
| 21/08/2025 |
23/09/2025 |
Final |
3.40p |
GBX |
| 05/12/2024 |
10/01/2025 |
Interim |
1.80p |
GBX |
| 22/08/2024 |
24/09/2024 |
Final |
3.20p |
GBX |
| 07/12/2023 |
12/01/2024 |
Interim |
1.50p |
GBX |
| 31/08/2023 |
29/09/2023 |
Final |
2.20p |
GBX |
| 15/12/2022 |
13/01/2023 |
Interim |
0.80p |
GBX |
| 01/09/2022 |
30/09/2022 |
Final |
3.80p |
GBX |
| 16/12/2021 |
14/01/2022 |
Interim |
2.20p |
GBX |
Supreme Dividend Calculator
Supreme Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
–
|
| Years of Growth |
–
|
| Payout Ratio |
27.63%
|
| Buyback Yield |
1.12%
|
| Shareholder Yield |
4.48%
|
| P/E Ratio (TTM) | 8.23 |
|---|
| Forward P/E | 8.08 |
|---|
| P/FCF | 13.52 |
|---|
| Earnings Yield | 12.46% |
|---|
| FCF Yield | 7.4% |
|---|
| ROE | 29.91% |
|---|
| ROCE | 29.39% |
|---|
| Profit Margin | 8.69% |
|---|
| Operating Margin | 11.55% |
|---|
| Gross Margin | 31.12% |
|---|