Volution Group
Website:
Volution Group
Index:
FTSE 250
EPIC: FAN
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Building Materials and Fixtures
Market Cap:
£1.23B
Payout Frequency: Semi-Annual
Volution Group Dividend Analysis and Summary
Headline dividend details
- Final dividend: 7.4p per share (FY24 final: 6.2p)
- Total FY25 dividend: 10.8p per share (FY24: 9.0p), up +20.0%
- Dividend cover (adjusted EPS basis): 3.1x (unchanged YoY); implied payout ratio c.33%
- Adjusted EPS: 33.1p (+18.2% YoY)
- Ex-dividend date: 20/11/2025 (derived from record date)
- Record date: 21/11/2025
- Payment date: 16/12/2025 (subject to AGM approval on 10/12/2025)
- Policy: Board reiterates a commitment to progressive dividend growth
Dividend sustainability and growth outlook
- Coverage is strong at 3.1x on adjusted earnings, supported by robust cash generation (adjusted operating cash flow £104.5m, cash conversion 109%).
- FY25 dividend growth (+20%) aligns with adjusted EPS growth (+18.2%), indicating prudent distribution and scope for continued progression if earnings compound.
- Operating profile remains resilient: adjusted operating margin 22.3% (>20% target) despite dilution from Fantech, and ROIC a still-high 25.2%.
- Leverage at year-end is modest (1.2x net debt/EBITDA), with ample liquidity (undrawn RCF £85.3m plus £70m accordion). This comfortably supports ordinary dividends alongside organic capex.
Support from financial performance and capital allocation
- Top-line and earnings momentum: revenue +20.6%, adjusted PBT +18.7%, with volume-led organic growth and M&A contribution.
- Disciplined capital allocation: ordinary dividend payout ~one-third of adjusted earnings; organic capex modest at £8.4m; focus on =20% margins and >20% medium-term ROIC maintained.
- Financing headroom: Sustainability-linked RCF extended to September 2028; interest cover strong (13.6x), mitigating higher interest costs.
Structural changes and policy signals
- M&A: Completed the Fantech acquisition (Australasia) and bought the remaining 24.35% of ClimaRad. Integration progressing; Fantech is margin-dilutive initially but expected to enhance scale and growth.
- Deferred consideration: Fantech non-contingent deferred payment of AUD$60m due in December 2025 is a near-term cash outflow to factor alongside the final dividend.
- Facilities: New sustainability-linked RCF (£200m after extension) provides flexibility to continue progressive dividends while pursuing bolt-on M&A.
- Dividend policy: Explicit ambition to grow dividends progressively is reaffirmed; FY25 outcome (20% DPS growth) is consistent with that stance.
Risks and flags to dividend stability
- Cash commitments: The sizable AUD$60m Fantech deferred payment in Dec-2025 and ongoing M&A pipeline increase near-term funding needs; however, leverage and headroom appear sufficient.
- Margin dilution and integration: Fantech currently dilutes margin; slower-than-expected synergy capture could modestly constrain dividend growth pace.
- Interest and FX: Higher interest costs (adjusted net finance costs up 40% YoY) and FX headwinds can pressure free cash flow.
- End-market exposure: Commercial/new-build cyclicality and macro softness could temper organic growth, partially mitigated by supportive regulations and resilient refurbishment demand.
- Contingent consideration: New ERI earn-out (to 2029) introduces additional potential future cash calls, though current liability is modest.
Read more
Volution Group Annual Dividend Yield - 1.71%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/03/2025 |
06/05/2025 |
Interim |
3.40p |
GBX |
| 20/11/2025 |
16/12/2025 |
Final |
7.40p |
GBX |
Total (Annual Dividends Per Share):
10.80p
Dividend Yield =
Annual Dividends Per Share (10.80p)
÷ Share Price (630p)
= 1.71%
Volution Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 20/11/2025 |
16/12/2025 |
Final |
7.40p |
GBX |
| 27/03/2025 |
06/05/2025 |
Interim |
3.40p |
GBX |
| 21/11/2024 |
17/12/2024 |
Final |
6.20p |
GBX |
| 28/03/2024 |
07/05/2024 |
Interim |
2.80p |
GBX |
| 23/11/2023 |
19/12/2023 |
Final |
5.50p |
GBX |
| 23/03/2023 |
02/05/2023 |
Interim |
2.50p |
GBX |
| 24/11/2022 |
20/12/2022 |
Final |
5.00p |
GBX |
| 24/03/2022 |
03/05/2022 |
Interim |
2.30p |
GBX |
| 18/11/2021 |
16/12/2021 |
Final |
4.40p |
GBX |
| 25/03/2021 |
04/05/2021 |
Interim |
1.90p |
GBX |
| 26/03/2020 |
05/05/2020 |
Interim |
1.71p |
GBX |
| 21/11/2019 |
18/12/2019 |
Final |
3.30p |
GBX |
| 28/03/2019 |
03/05/2019 |
Interim |
1.60p |
GBX |
| 22/11/2018 |
18/12/2018 |
Final |
2.98p |
GBX |
| 29/03/2018 |
03/05/2018 |
Interim |
1.46p |
GBX |
| 23/11/2017 |
18/12/2017 |
Final |
2.80p |
GBX |
| 30/03/2017 |
04/05/2017 |
Interim |
1.35p |
GBX |
| 17/11/2016 |
14/12/2016 |
Final |
2.60p |
GBX |
| 31/03/2016 |
05/05/2016 |
Interim |
1.20p |
GBX |
| 26/11/2015 |
18/12/2015 |
Final |
2.25p |
GBX |
| 02/04/2015 |
14/05/2015 |
Interim |
1.05p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
2.800 |
6.200 |
GBX |
9.000 |
12.500 |
| 2023 |
2.500 |
5.500 |
GBX |
8.000 |
9.580 |
| 2022 |
2.300 |
5.000 |
GBX |
7.300 |
15.870 |
| 2021 |
1.900 |
4.400 |
GBX |
6.300 |
268.420 |
| 2020 |
1.710 |
|
GBX |
1.710 |
-65.100 |
| 2019 |
1.600 |
3.300 |
GBX |
4.900 |
10.360 |
| 2018 |
1.460 |
2.980 |
GBX |
4.440 |
6.980 |
| 2017 |
1.350 |
2.800 |
GBX |
4.150 |
9.210 |
| 2016 |
1.200 |
2.600 |
GBX |
3.800 |
15.150 |
| 2015 |
1.050 |
2.250 |
GBX |
3.300 |
|
Volution Group Dividend Calculator
Volution Group Dividend Growth
| Dividend Growth (1Y) |
20%
|
| Dividend CAGR (5Y) |
41.56%
|
| Years of Growth |
9
|
| Payout Ratio |
45.76%
|
| Buyback Yield |
-0.4%
|
| Shareholder Yield |
1.34%
|
| P/E Ratio (TTM) | 30.05 |
|---|
| Forward P/E | 17.56 |
|---|
| P/FCF | 15.74 |
|---|
| Earnings Yield | 3.37% |
|---|
| FCF Yield | 6.35% |
|---|
| ROE | 16.1% |
|---|
| ROCE | 15.79% |
|---|
| Profit Margin | 9.91% |
|---|
| Operating Margin | 17.91% |
|---|
| Gross Margin | 49.06% |
|---|