Wilmington

Wilmington Dividend Analysis and Summary

• Interim dividend: 3.10p per share (up 3% from 3.00p).
• Ex-dividend date: 12/03/2026.
• Record date: 13/03/2026.
• Payment date: 14/04/2026.
• Policy/cover: Board aims to maintain =2.0x dividend cover for the full year; commitment to “growing our dividend payments.”
• Earnings context: H1 adjusted basic EPS 9.93p (ongoing adjusted EPS 9.92p) implies comfortable interim cover (~3.2x on H1 adjusted EPS).

• Underlying support: Ongoing revenue up 17% (organic +4%); repeat revenues 73%, organic recurring revenues 38% with very high retention (e.g., 99% in key units). This underpins cash flow visibility and dividend resilience.
• Profitability: Ongoing adjusted EBITA up 9%; margins down 4ppt (acquisition mix), as expected. Ongoing adjusted PBT flat, but earnings still comfortably cover the interim payout.
• Cash generation: Operating cash conversion 70% (72% LY). H1 free cash flow of £4.5m vs dividends paid of £7.6m reflects seasonality (major subscription collections in H2). Management guides to stronger H2 cash, supporting the interim payment.
• Balance sheet/leverage: Net debt £65.0m (<2.0x EBITDA) after the Conversia acquisition; management expects “strong cash generation” to reduce leverage. The targeted full-year cover of =2x appears achievable if H2 trading and cash collection land as guided.
• Growth trajectory: Interim DPS up 3%, consistent with a progressive stance while preserving =2x cover. Continued portfolio quality improvements (more recurring/subscription revenues) support medium-term dividend growth potential.