Three Singapore-listed small caps are raising their interim dividends in the week starting 31 August 2026, with Nordic Group (SGX: MR7) leading the pack via a 25% hike.
A dividend bump shows what a board decided, but it doesn’t tell you how the payout was funded.
Free cash flow remains the lifeblood of any payout.
When you put these three companies to the test, their underlying financial strength tells very different stories.
Does Info-Tech’s cash flow cover a bigger dividend?
Info-Tech Systems (SGX: ITS) offers cloud-based HR, accounting, and CRM software, alongside AI training through its Info-Tech Academy.
Since listing on the SGX Mainboard in July 2025, the group has shown strong operational momentum.
For the first half of 2026 (1H2026), revenue grew 22% year on year (YoY) to S$27.3 million.
AI training demand surged, pushing services revenue up 116% to S$4.9 million, while subscription revenue rose 12% to S$21.2 million.
Net profit attributable to owners jumped 89% to S$9.7 million, though one-off items exaggerated the leap.
Info-Tech received a S$1 million Enterprise Singapore GEMS grant in January 2026, and last year’s S$2 million in listing expenses did not repeat.
Stripping those out, adjusted profit after tax still climbed a solid 20% to S$8.7 million.
Free cash flow more than doubled to S$15.1 million from S$6.1 million, largely aided by a S$6.9 million release from trade receivables.
While that working capital benefit won’t happen every quarter, the core business continues to generate heavy cash.
The board raised the interim dividend to S$0.0168 per share from S$0.0155, which will cost S$4.3 million – a sum covered roughly three and a half times over by free cash flow.
With S$76.6 million in cash as of 30 June 2026, no debt, and just S$5.1 million in lease liabilities, Info-Tech is well-positioned for its 1 September 2026 payout as customer additions fuel second-half expectations.
Can Nordic keep paying more on lower cash flow?
Nordic Group provides engineering and maintenance services across marine & offshore, petrochemical & infrastructure, semiconductor, defence and industrial technology.
1H2026 revenue edged up 3% YoY to S$87.2 million.
Gross margin expanded from 22.6% to 23.6%, lifting gross profit 7% to S$20.6 million.
Net profit attributable to shareholders grew 21% to S$10.0 million, bolstered by lower finance costs after reducing debt and a smaller foreign exchange loss of S$0.8 million compared to S$1.4 million previously.
However, free cash flow dropped 28% to S$10.2 million.
This decline wasn’t driven by falling earnings, as operating cash flow before working capital changes actually rose to S$14.9 million.
Instead, working capital shifted to an outflow, coupled with higher tax payments and capital expenditure.
Even so, Nordic’s balance sheet remains healthy.
Cash stood at S$46.5 million as of 30 June 2026 against total debt of S$36.3 million, giving it a net cash position of S$10.2 million, up from S$4.1 million at the end of 2025.
The board boosted the interim dividend by 25% to S$0.010, payable on 4 September 2026.
Backed by a record order book of S$254.3 million – most of which will be delivered over the next 36 months – the business has visibility, even as management keeps a watchful eye on currency and geopolitical headwinds.
What is funding ValueMax’s bigger payout?
ValueMax Group (SGX: T6I) operates in pawnbroking, secured moneylending, and gold and jewellery retail.
Revenue for 1H2026 surged 38.2% YoY to S$370.7 million.
Retail and trading contributed an extra S$85.1 million, pawnbroking brought in S$12.0 million more, and moneylending added S$5.3 million.
Net profit attributable to shareholders rose 30.4% to S$62.6 million.
Earnings lagged revenue growth slightly as gross margins squeezed from 30.2% to 27.0%, shifted by a higher proportion of lower-margin gold trading.
The primary point of difference lies in cash generation.
Free cash flow registered an outflow of S$34.1 million, deepening from an outflow of S$14.5 million a year earlier.
This cash burn was driven by a S$192.7 million expansion in trade and other receivables as the group expanded its loan book.
By nature, a growing lending business absorbs cash upfront.
ValueMax is funding its higher dividend through balance sheet expansion rather than organic cash surplus.
Total borrowings excluding leases reached S$1.05 billion – up 18.1% from December 2025 – against cash balances of S$18.8 million.
Nevertheless, the board increased the interim dividend by 15% to S$0.0138 per share, payable on 3 September 2026.
Management remains cautious, noting increased competition and volatile gold prices following peaks near US$5,300 an ounce in March 2026.
Get Smart: Trace the Cash Before You Trust the Raise
Boardrooms decide to raise dividends, but cash flow decides whether those raises actually stick.
Before celebrating a higher payout, work backwards through the figures.
Look at the free cash flow generated over the period, compare it directly to the total cost of the distribution, and examine where that cash originated.
Recurring operational cash flow builds sustainable dividends, whereas working capital swings or debt-funded expansion can obscure underlying liquidity.
A cash flow check doesn’t offer a simple pass or fail grade.
Instead, it reveals exactly what you are relying on as an investor – allowing you to decide if you are comfortable holding that risk before the next dividend cycle arrives.
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Disclosure: Calvina L. does not own shares of any stocks mentioned. Chin Hui Leong contributed to this article and does not own shares of any stocks mentioned.
