Volex Group

Volex Group Dividend Analysis and Summary

• Interim dividend: 1.6p per share (up 6.7% year-on-year)
• Ex-dividend date: 27/11/2025
• Record date: 28/11/2025
• Payment date: 08/01/2026
• Scrip option: Available under the Volex plc Scrip Dividend Scheme
  • Reference price to be announced 04/12/2025
  • Election deadline: 5:00 p.m. on 12/12/2025 (CREST elections required per dividend)
• Policy: Board reiterates a progressive dividend policy

• Earnings cover is very strong: underlying basic EPS was 19.7 US cents for H1 FY2026. The interim dividend of 1.6p (~c.2.0 US cents) implies coverage of roughly ~10x on H1 earnings.
• Profitability supports payouts: underlying operating margin held at 9.8% (upper end of the 9–10% target); underlying operating profit rose 20.2% and underlying EPS rose 29.6%.
• Cash generation improving: underlying free cash flow swung to an inflow of $4.8m (vs outflow last year) despite a $32.4m working capital build to support growth. H2 is typically more cash generative.
• Balance sheet headroom: net debt (pre-lease) $151.2m, leverage 1.1x, with a $400m RCF to June 2029 (plus $200m accordion). This provides ample capacity to fund both investment and dividends.
• Scrip reduces cash outflow, further underpinning the interim distribution. Estimated cash cost of the interim dividend is modest (c.£3.0m before scrip uptake).