Morgan Advanced Materials

Next Morgan Advanced Materials Dividend

Morgan Advanced Materials next goes ex-dividend on 09/04/2026. This will be the Final dividend for 2026.

The dividend per share amount is 6.8000p (GBP) and the payment date is 12/05/2026.

Declared dividend details

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.

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 (201.5p) = 6.05%

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

Number of Shares:

Payment	Paid	Amount
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