Morgan Advanced Materials
Website:
Morgan Advanced Materials
Index:
FTSE 250
EPIC: MGAM
Supersector:
Industrial Goods and Services
Sector:
Electronic and Electrical Equipment
Subsector:
Electrical Components and Equipment
Market Cap:
£604.54M
Payout Frequency: Semi-Annual
Morgan Advanced Materials Dividend Analysis and Summary
Declared dividend details
- Final dividend: 6.8p per share (ordinary)
- Ex-dividend date: 09/04/2026
- Record date: 10/04/2026
- Payment date: 12/05/2026
- Interim dividend already paid: 5.4p on 17/11/2025
- Total dividend for FY2025: 12.2p (flat year-on-year)
Coverage and cash flow support
- Adjusted EPS: 15.9p; dividend cover: ~1.3x (company target is ~2.5x over time)
- Cash generated from operations: £168.6m
- Free cash flow: £45.4m vs cash dividends paid to shareholders: £34.1m (FCF cover ~1.3x)
- Net debt/EBITDA (headline): 1.8x (continuing: 1.9x); guidance to move toward ~1.7x by end-2026 as MMS proceeds are realised
- Net financing costs expected in 2026: £22–26m
Outlook and dividend policy
- 2026 guidance: organic revenue growth 1–2%; adjusted operating margin ~10%
- Capex guidance: £50–55m p.a. for the next three years
- Policy: dividends to be maintained then grown with adjusted earnings at around 2.5x cover over time
Structural and capital allocation updates (potential dividend implications)
- MMS disposal completed (Nov 2025); consideration includes listed Indian shares valued at £47.2m at year-end; management intends to sell in due course (supports deleveraging/liquidity)
- Strategic review of Thermal Products underway, including a potential disposal (could reshape earnings/cash flows and ultimately dividend capacity)
- Share buyback paused after purchasing ~£20m of shares to prioritise balance sheet resilience
- ERP programme roll-out; 2026 exceptional cash costs guided at £22–24m (temporary cash headwind)
- Working capital actions: supplier finance and factoring provided a combined benefit of £37.2m at year-end (cash flow timing effects)
- Upcoming debt maturities: $97m and €25m due Oct 2026 (to be managed with existing facilities)
Analyst’s take: sustainability, growth trajectory, and support
- Sustainability: The final dividend is modest and covered by both adjusted earnings (~1.3x) and free cash flow (~1.3x), but cover is thin versus the stated ~2.5x target. Leverage is moderate and expected to improve with MMS proceeds, offering some buffer. However, 2026 cash demands (ERP, capex, interest) will compete with distributions.
- Growth trajectory: DPS held flat at 12.2p despite weaker earnings. With 2026 guidance pointing to low-single-digit growth and margin ~10%, scope for near-term dividend growth looks limited until cover rebuilds toward policy levels.
- Financial/capital allocation support: Cash generation improved (working capital actions helped) and buybacks are paused, both supportive for dividend maintenance. Potential disposals (Thermal Products review) and monetisation of MMS consideration shares could enhance balance sheet strength, but timing/values are uncertain.
Risks and flags to dividend stability
- Low cover (1.3x) vs 2.5x policy target limits headroom if trading underperforms.
- Non-recurring benefit: ~£5.2m trading receipts in Performance Carbon will not repeat in 2026.
- Cyclical exposure: Semiconductor and European industrial markets remain sensitive; recent impairment in Semiconductor assets underlines uncertainty.
- Execution and cash outflow risk: ERP roll-out and site turnarounds; 2026 exceptional ERP cash costs £22–24m.
- Working capital financing reliance: Supplier finance and factoring boosted year-end cash by £37.2m; partial reversal would tighten FCF.
- Interest costs rising (£22–26m expected in 2026) and FX headwinds could pressure earnings and cash.
Read more
Morgan Advanced Materials Annual Dividend Yield - 5.62%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/04/2025 |
13/05/2025 |
Final |
6.80p |
GBX |
| 23/10/2025 |
17/11/2025 |
Interim |
5.40p |
GBX |
Total (Annual Dividends Per Share):
12.20p
Dividend Yield =
Annual Dividends Per Share (12.20p)
÷ Share Price (217p)
= 5.62%
Morgan Advanced Materials Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/04/2026 |
12/05/2026 |
Final |
6.8000p |
GBX |
| 23/10/2025 |
17/11/2025 |
Interim |
5.40p |
GBX |
| 10/04/2025 |
13/05/2025 |
Final |
6.80p |
GBX |
| 24/10/2024 |
15/11/2024 |
Interim |
5.40p |
GBX |
| 25/04/2024 |
17/05/2024 |
Final |
6.70p |
GBX |
| 26/10/2023 |
17/11/2023 |
Interim |
5.30p |
GBX |
| 08/06/2023 |
03/07/2023 |
Final |
6.70p |
GBX |
| 27/10/2022 |
18/11/2022 |
Interim |
5.30p |
GBX |
| 28/04/2022 |
20/05/2022 |
Final |
5.90p |
GBX |
| 28/10/2021 |
19/11/2021 |
Interim |
3.20p |
GBX |
| 29/04/2021 |
21/05/2021 |
Final |
3.50p |
GBX |
| 19/11/2020 |
11/12/2020 |
Interim |
2.00p |
GBX |
| 30/04/2020 |
22/05/2020 |
Final |
7.00p |
GBX |
| 31/10/2019 |
22/11/2019 |
Interim |
4.00p |
GBX |
| 02/05/2019 |
24/05/2019 |
Final |
7.00p |
GBX |
| 01/11/2018 |
23/11/2018 |
Interim |
4.00p |
GBX |
| 03/05/2018 |
25/05/2018 |
Final |
7.00p |
GBX |
| 02/11/2017 |
24/11/2017 |
Interim |
4.00p |
GBX |
| 04/05/2017 |
26/05/2017 |
Final |
7.00p |
GBX |
| 03/11/2016 |
25/11/2016 |
Interim |
4.00p |
GBX |
| 05/05/2016 |
27/05/2016 |
Final |
7.00p |
GBX |
| 05/11/2015 |
27/11/2015 |
Interim |
4.00p |
GBX |
| 07/05/2015 |
29/05/2015 |
Final |
7.00p |
GBX |
| 06/11/2014 |
28/11/2014 |
Interim |
3.90p |
GBX |
| 14/05/2014 |
30/05/2014 |
Final |
6.70p |
GBX |
| 23/10/2013 |
29/11/2013 |
Interim |
3.80p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
5.400 |
6.700 |
GBX |
12.100 |
0.830 |
| 2023 |
5.300 |
6.700 |
GBX |
12.000 |
7.140 |
| 2022 |
5.300 |
5.900 |
GBX |
11.200 |
67.160 |
| 2021 |
3.200 |
3.500 |
GBX |
6.700 |
-25.550 |
| 2020 |
2.000 |
7.000 |
GBX |
9.000 |
-18.180 |
| 2019 |
4.000 |
7.000 |
GBX |
11.000 |
0.000 |
| 2018 |
4.000 |
7.000 |
GBX |
11.000 |
0.000 |
| 2017 |
4.000 |
7.000 |
GBX |
11.000 |
0.000 |
| 2016 |
4.000 |
7.000 |
GBX |
11.000 |
0.000 |
| 2015 |
4.000 |
7.000 |
GBX |
11.000 |
3.770 |
| 2014 |
3.900 |
6.700 |
GBX |
10.600 |
178.940 |
| 2013 |
3.800 |
|
GBX |
3.800 |
|
Morgan Advanced Materials Dividend Calculator
Morgan Advanced Materials Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
17.27%
|
| Years of Growth |
5
|
| Payout Ratio |
161.61%
|
| Buyback Yield |
3%
|
| Shareholder Yield |
8.69%
|
| P/E Ratio (TTM) | 27.97 |
|---|
| Forward P/E | 12.34 |
|---|
| P/FCF | 11.64 |
|---|
| Earnings Yield | 3.57% |
|---|
| FCF Yield | 8.59% |
|---|
| ROE | 1.38% |
|---|
| ROCE | 13.17% |
|---|
| Profit Margin | 2.12% |
|---|
| Operating Margin | 8.55% |
|---|
| Gross Margin | 8.73% |
|---|