Inchcape
Website:
Inchcape
Index:
FTSE 250
EPIC: INCH
Supersector:
Retail
Sector:
General Retailers
Subsector:
Specialty Retail
Market Cap:
£2.9B
Payout Frequency: Semi-Annual
Inchcape Dividend Analysis and Summary
Headline dividend details
- Final dividend: 22.8p per share (subject to AGM approval on 14/05/2026)
- Full-year DPS (FY2025): 32.3p (+13% YoY; FY2024: 28.5p)
- Payout policy: 40% of adjusted basic EPS; FY2025 payout equals policy (32.3p on 80.8p EPS)
- Ex-dividend date: 07/05/2026
- Record date: 08/05/2026
- Payment date: 15/06/2026
- DRIP election deadline: 22/05/2026
- Dividend cover: c.2.5x on adjusted EPS (80.8p/32.3p); c.2.2x on reported EPS (72.5p/32.3p)
- Cash coverage: FY2025 dividends of c.£121m (32.3p on ~375m shares) vs £315m free cash flow (104% FCF conversion); cash payout ratio ~38%
Dividend sustainability and growth outlook
- Coverage is robust: 2.5x on adjusted earnings and strong FCF coverage. Balance sheet leverage remains low at 0.4x net debt/EBITDA, giving flexibility to maintain dividends through the cycle.
- Policy-driven growth: DPS tracks 40% of adjusted EPS. With FY2026 guidance of >10% EPS growth and c.100% FCF conversion, the trajectory supports continued dividend progression, barring FX or operational shocks.
- Cash discipline: FY2025 free cash flow £315m comfortably covers total dividends (c.£121m). Ongoing buybacks reduce the share count, lowering the absolute cash cost of future dividends at a given DPS.
Support from financial performance and capital allocation
- Operational delivery: FY2025 adjusted basic EPS up +13% to 80.8p; operating margin resilient at 6.2%; ROCE 29%. Currency headwinds mask modest organic revenue growth (+1%).
- Capital allocation: Dividend remains anchored to 40% payout. Completed £250m buyback (c.9% of equity) and announced a new £175m programme; cumulative repurchases since Aug-2024 total c.13% of shares, enhancing per-share metrics and supporting DPS growth via EPS.
- Balance sheet: Net debt £607m (incl. leases), adjusted net debt £264m; ample liquidity and no major fixed-rate corporate maturities before May 2027 (bond due 2028), underpinning dividend capacity.
Structural changes and policy signals affecting future dividends
- Share buybacks: Significant ongoing buybacks (new £175m over 12 months) signal confidence and support EPS/DPS growth under the 40% payout policy.
- Portfolio actions: Value-accretive bolt-on acquisition in Iceland (Askja) and multiple contract wins support medium-term earnings. Non-core divestments and retail network optimisation reinforce capital-light, cash-generative profile.
- Contract dynamics: BYD Belux distribution contract not expected to renew (Q3 2027) but described as financially immaterial; limited direct risk to dividend policy.
Risks and flags to dividend stability
- Regional softness: Ongoing APAC challenges and H1 2026 production disruptions could weigh on volumes/mix; FY2026 performance is H2-weighted, adding execution risk.
- FX headwinds: Translational currency impacts were material in FY2025; a 1% move in key currencies is ~£1m PBT sensitivity.
- Cash flow variability: FY2025 FCF fell to £315m (from £462m), partly due to working capital and inventory needs; management guides c.100% FCF conversion for 2026, but any slippage could tighten headroom for concurrent buybacks and dividends.
- Regulatory/legacy: Potential indemnity exposure related to the FCA motor finance commission review (post-UK retail disposal) is highly uncertain in timing/quantum; low probability but a watchpoint.
- Industry structure: OEM in-sourcing risk highlighted by BYD in Europe (current impact immaterial), and broader macro/geopolitical and supply-chain risks remain.
Read more
Inchcape Annual Dividend Yield - 3.25%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 01/05/2025 |
16/06/2025 |
Final |
17.20p |
GBX |
| 07/08/2025 |
05/09/2025 |
Interim |
9.50p |
GBX |
Total (Annual Dividends Per Share):
26.70p
Dividend Yield =
Annual Dividends Per Share (26.70p)
÷ Share Price (820.5p)
= 3.25%
Inchcape Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 07/05/2026 |
15/06/2026 |
Final |
22.8000p |
GBX |
| 07/08/2025 |
05/09/2025 |
Interim |
9.50p |
GBX |
| 01/05/2025 |
16/06/2025 |
Final |
17.20p |
GBX |
| 08/08/2024 |
06/09/2024 |
Interim |
11.30p |
GBX |
| 02/05/2024 |
17/06/2024 |
Final |
24.30p |
GBX |
| 03/08/2023 |
01/09/2023 |
Interim |
9.60p |
GBX |
| 11/05/2023 |
19/06/2023 |
Final |
21.30p |
GBX |
| 04/08/2022 |
02/09/2022 |
Interim |
7.50p |
GBX |
| 12/05/2022 |
21/06/2022 |
Final |
16.10p |
GBX |
| 05/08/2021 |
03/09/2021 |
Interim |
6.40p |
GBX |
| 13/05/2021 |
21/06/2021 |
Final |
6.90p |
GBX |
| 14/05/2020 |
19/06/2020 |
Final |
17.90p |
GBX |
| 01/08/2019 |
04/09/2019 |
Interim |
8.90p |
GBX |
| 16/05/2019 |
21/06/2019 |
Final |
17.90p |
GBX |
| 02/08/2018 |
05/09/2018 |
Interim |
8.90p |
GBX |
| 17/05/2018 |
22/06/2018 |
Final |
18.90p |
GBX |
| 03/08/2017 |
06/09/2017 |
Interim |
7.90p |
GBX |
| 18/05/2017 |
23/06/2017 |
Final |
16.80p |
GBX |
| 04/08/2016 |
07/09/2016 |
Interim |
7.00p |
GBX |
| 26/05/2016 |
24/06/2016 |
Final |
14.10p |
GBX |
| 06/08/2015 |
04/09/2015 |
Interim |
6.80p |
GBX |
| 28/05/2015 |
25/06/2015 |
Final |
13.80p |
GBX |
| 06/08/2014 |
05/09/2014 |
Interim |
6.30p |
GBX |
| 28/05/2014 |
24/06/2014 |
Final |
11.70p |
GBX |
| 14/08/2013 |
12/09/2013 |
Interim |
5.70p |
GBX |
| 22/05/2013 |
19/06/2013 |
Final |
10.50p |
GBX |
| 08/08/2012 |
04/09/2012 |
Interim |
4.00p |
GBX |
| 16/05/2012 |
12/06/2012 |
Final |
7.40p |
GBX |
| 03/08/2011 |
05/09/2011 |
Interim |
3.60p |
GBX |
| 18/05/2011 |
14/06/2011 |
Final |
6.60p |
GBX |
| 06/08/2008 |
04/09/2008 |
Interim |
5.46p |
GBX |
| 21/05/2008 |
17/06/2008 |
Final |
10.50p |
GBX |
| 08/08/2007 |
10/09/2007 |
Interim |
5.25p |
GBX |
| 16/05/2007 |
15/06/2007 |
Final |
10.00p |
GBX |
| 09/08/2006 |
11/09/2006 |
Interim |
5.00p |
GBX |
| 17/05/2006 |
16/06/2006 |
Final |
38.00p |
GBX |
| 10/08/2005 |
12/09/2005 |
Interim |
19.00p |
GBX |
| 18/05/2005 |
16/06/2005 |
Final |
35.00p |
GBX |
| 11/08/2004 |
13/09/2004 |
Interim |
15.00p |
GBX |
| 19/05/2004 |
17/06/2004 |
Final |
26.00p |
GBX |
| 13/08/2003 |
15/09/2003 |
Interim |
12.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
11.300 |
24.300 |
GBX |
35.600 |
15.210 |
| 2023 |
9.600 |
21.300 |
GBX |
30.900 |
30.930 |
| 2022 |
7.500 |
16.100 |
GBX |
23.600 |
77.440 |
| 2021 |
6.400 |
6.900 |
GBX |
13.300 |
-25.690 |
| 2020 |
|
17.900 |
GBX |
17.900 |
-33.200 |
| 2019 |
8.900 |
17.900 |
GBX |
26.800 |
-3.590 |
| 2018 |
8.900 |
18.900 |
GBX |
27.800 |
12.550 |
| 2017 |
7.900 |
16.800 |
GBX |
24.700 |
17.060 |
| 2016 |
7.000 |
14.100 |
GBX |
21.100 |
2.420 |
| 2015 |
6.800 |
13.800 |
GBX |
20.600 |
14.440 |
| 2014 |
6.300 |
11.700 |
GBX |
18.000 |
11.110 |
| 2013 |
5.700 |
10.500 |
GBX |
16.200 |
42.100 |
| 2012 |
4.000 |
7.400 |
GBX |
11.400 |
11.760 |
| 2011 |
3.600 |
6.600 |
GBX |
10.200 |
-36.090 |
| 2008 |
5.460 |
10.500 |
GBX |
15.960 |
4.650 |
| 2007 |
5.250 |
10.000 |
GBX |
15.250 |
-64.530 |
| 2006 |
5.000 |
38.000 |
GBX |
43.000 |
-20.370 |
| 2005 |
19.000 |
35.000 |
GBX |
54.000 |
31.700 |
| 2004 |
15.000 |
26.000 |
GBX |
41.000 |
241.660 |
| 2003 |
12.000 |
|
GBX |
12.000 |
|
Inchcape Dividend Calculator
Inchcape Dividend Growth
| Dividend Growth (1Y) |
13.33%
|
| Dividend CAGR (5Y) |
36.17%
|
| Years of Growth |
–
|
| Payout Ratio |
37.13%
|
| Buyback Yield |
8.06%
|
| Shareholder Yield |
11.97%
|
| P/E Ratio (TTM) | 11.46 |
|---|
| Forward P/E | 9.31 |
|---|
| P/FCF | 8.58 |
|---|
| Earnings Yield | 9.38% |
|---|
| FCF Yield | 11.66% |
|---|
| ROE | 19.4% |
|---|
| ROCE | 22.47% |
|---|
| Profit Margin | 2.99% |
|---|
| Operating Margin | 6.21% |
|---|
| Gross Margin | 17.03% |
|---|