Key Highlights

  • Celebrus Technologies PLC (LSE:CLBS) offers a Dividend Yield of 6.85%.
  • The total dividend for the year to 31 March 2026 rose 3.7% to 3.39 pence per share.
  • The shares fell 39% after an October 2026 trading update that disclosed the loss of a customer.
  • The group has no meaningful Debt and held cash of around $24.6 million in its latest reported figures.

Company Overview

Celebrus Technologies PLC (LSE:CLBS) is an AIM-quoted data technology company that helps brands capture and use first-party customer data to improve Marketing effectiveness and prevent fraud. Headquartered in Sunbury-on-Thames, it serves large organisations in financial services, retail, telecoms and other sectors, with a Business model increasingly based on annual recurring revenue.

The shares offer a dividend yield of 6.85%. That figure is unusually high for a software company and is mainly the result of a sharp fall in the share price rather than a large increase in the payout.

Dividend Growth Record

Celebrus has a long history of steady dividend increases. For the year to 31 March 2026, it paid an Interim Dividend of 0.98 pence, up 3.2%, and a final dividend of 2.41 pence, up 3.9% from 2.32 pence. The total of 3.39 pence was 3.7% higher than 3.27 pence the year before. The final was paid on 21 August 2026 after an ex-dividend date of 23 July 2026.

Dividend growth has averaged close to 4% a year over five years. In 2022, the company also paid a Special Dividend of 12.5 pence, demonstrating a willingness to return surplus cash when available.

Why the Yield Has Jumped

The share price collapse explains the yield. Earlier in 2026, the shares traded above 100 pence and were at 145 pence at one stage, with a 52-week high of about 155 pence. In April 2026, the company warned it expected a full-year pretax loss after revenue fell following a change in accounting treatment. Results for the year to March 2026 confirmed a swing to a loss, although annual Recurring Revenue increased.

In October 2026, a further trading update disclosed the loss of a customer, which management linked to imperfect execution and a lack of consistency in performance. The shares fell 39% on the day and have since traded at about 50 pence. At that price, the 3.39 pence dividend produces a yield of 6.85%.

Cash Position and Payout Cover

The Balance Sheet is the main support for the dividend. Cash stood at $27.3 million at the half-year point to September 2025 and was around $24.6 million in more recent figures, with only minimal debt. With a Market Value of roughly £20 million, the company's cash pile is larger than its stock market valuation in sterling terms.

The annual cash cost of the dividend is modest relative to that cash balance, at roughly £1.3 million based on the current share count. Even without Earnings cover, the company can fund the dividend from cash for several years.

Share Buybacks

Celebrus has also been buying back its own shares, with purchases held in treasury. The programme was extended during 2026 and continued through the autumn. Buybacks at depressed prices can enhance value per share, but they also use cash that would otherwise support the dividend.

Earnings Outlook

The key question is whether profitability can recover. New business has underperformed, and the customer loss reduces recurring revenue. Management has said the focus is on executing in the second half to prove the business's value. Interim results for the six months to September 2026 are expected in December 2026 and will give a clearer picture of revenue, costs and cash.

Risks to the Dividend

The main risks are further customer losses, continued losses at the operating level and a decision by the board to preserve cash for restructuring or growth. Because earnings no longer cover the payout, the dividend relies on the balance sheet. A smaller company also faces higher key person and contract concentration risk.

Is the Dividend Sustainable?

In the short term, the dividend at Celebrus Technologies PLC (LSE:CLBS) appears affordable thanks to a large cash balance and minimal debt. The 6.85% yield, however, reflects investor concern about the business rather than income strength. Long-term sustainability depends on a return to profit and recurring revenue growth. Investors should watch the December interim results closely for any change in dividend policy.