Elixirr International (LON:ELIX): A Dividend Dynamo With Growth Fuel in its Tank

The world of income investing is full of traps—companies that promise high dividends but lack the earnings to back them up. But what if you found a stock that's raising its payout while its earnings are soaring, all while expanding into new markets? That's Elixirr International (LON:ELIX), a consulting firm turning heads with its 2.7% dividend yield and 30% revenue growth in 2024. Let's dig into why this could be a sweet spot for income seekers—and why you should still keep one eye on the rearview mirror.

The Dividend Story: From Volatility to Sustainability

Elixirr's dividend history hasn't been a straight line. In 2023, its payout swung between interim and final dividends, reflecting some uncertainty. But 2024 marked a turning point. The dividend rose to £0.178 per share, a 20% jump, and the payout ratio stayed at a conservative 51% of earnings. Crucially, free cash flow surged by 74%, giving the dividend a rock-solid safety net.

The numbers don't lie: . With analysts forecasting a 3.7% yield by 2025, this isn't just a dividend player—it's a dividend grower.

The Earnings Engine: How They're Fueling the Fire

Behind the dividend is a company on a roll. Revenue hit £111.3 million in 2024, a 30% leap from 2023, driven by two key moves:
1. The Hypothesis Group Acquisition: Snapping up this U.S. insights firm in late 2024 added 50% of its revenue from the U.S. market. This isn't just geography—it's a play on high-growth sectors like tech and cybersecurity, where Elixirr's expertise is in demand.
2. Strong Client Expansion: The number of clients spending over £1 million annually is up, and the firm is diversifying into Africa and Europe. This isn't a niche play—it's a global scaling strategy.

The earnings story is backed by hard data: Adjusted EBITDA margins hit 28%, and cash flow is so strong that the Board is even talking about a Main Market listing on the London Stock Exchange—a move that could attract bigger institutional investors and boost liquidity.

The Risks: Don't Ignore the Red Flags

No free lunch here. Elixirr's past includes dividend cuts and insider sales—most notably, the founder offloading £10 million in shares. That's a yellow flag for skeptics. Plus, moving to the Main Market requires regulatory approval, and there's always execution risk with expansion.

But here's why I'm not hitting the panic button:
- Payout ratio discipline: At 51%, the dividend isn't bleeding the company dry.
- Contracted revenue: Over 70% of 2025's revenue is already locked in, giving visibility.
- Management's track record: They've turned around underperforming businesses before, like the Hypothesis Group acquisition.

The Bottom Line: A High-Yield Growth Hybrid

Elixirr International is a rare breed—a stock that offers both income and growth. With a dividend yield now above 2.7% (and rising), it's already outperforming the 1.9% average for its sector. Meanwhile, earnings growth is firing on all cylinders, with EPS forecasts jumping 48% in the next year.

Is it perfect? No. The insider sales and past volatility mean this isn't for the faint of heart. But for income investors willing to look past the noise, ELIX is a buy. The combination of a sustainable dividend, strong cash flow, and smart acquisitions makes it a sweet spot for portfolios needing both yield and growth.

Action to take: Buy ELIX now, but set a stop-loss at £2.10—that's 15% below its June 2025 price—to protect against sudden dips. And keep an eye on that August 20 dividend payment—it's a key milestone for this dividend star.

Invest wisely,
The Mad Stock Genius