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:
£1.22B
Payout Frequency: Semi-Annual
Volution Group Dividend Analysis and Summary
Dividend summary
- Dividend type: Interim
- Dividend per share: 4.0p (up +17.6% year-on-year vs 3.4p)
- Ex-dividend date: 26/03/2026 (derived from record date)
- Record date: 27/03/2026
- Payment date: 05/05/2026
- Currency: GBP
- Earnings cover (H1 FY26): interim DPS covered c. 4.6x by adjusted EPS (18.2p); c. 3.6x on statutory EPS (14.5p)
- Context: FY25 dividends were interim 3.4p and final 7.4p (total 10.8p)
Dividend sustainability and growth
- Cash generation: Strong, with adjusted operating cash flow £51.6m and cash conversion 98%. Net leverage at period end 1.3x (ex-leases), expected to be c. 1.8x post ACI acquisition—comfortably within covenants.
- Earnings support: Interim DPS is modest versus earnings (cover ~4.6x on adjusted basis), and the Board guides FY26 adjusted EPS to the top end of 35.0–36.5p, implying ample headroom for a progressive dividend.
- Capital allocation balance: Continued dividend growth (+17.6% interim) alongside M&A and targeted capex (£4.3m) indicates a disciplined approach; returns on invested capital remain high (ROIC 24.6%).
- Trajectory: The uplift in the interim DPS and positive H1 trading/margin resilience suggest scope for another year of full-year DPS growth, barring a sharp deterioration in end markets or acquisition-related cash demands.
Structural changes and policy factors
- M&A: Completion of AC Industries on 2 Feb 2026 for AUD$150.3m upfront (plus up to AUD$28.9m earn-out to FY29). Expected to be earnings-accretive and diversifying (exposure to mining ventilation), but raises leverage near term.
- Prior acquisition: Fantech (Dec 2024) materially boosted revenue; lower margin profile dilutes group margin short term but integration is progressing.
- Financing capacity: Sustainability-linked RCF increased to £270m (accordion £30m), maturity Sept 2028, providing flexibility to fund M&A and dividends.
- Contingent consideration: Potential outflows include DVS (up to NZD 9m, earn-out concluding Mar 2026) and ERI (up to €6m by 2029), which could temporarily absorb cash but are manageable relative to cash generation and facilities.
- No demergers, share consolidations or policy changes disclosed; Board cites dividend increase as a signal of confidence.
Key risks and flags for dividend stability
- End-market softness: Ongoing weakness in UK construction (especially commercial) could weigh on growth if prolonged.
- Acquisition execution and leverage: Post-ACI leverage (~1.8x) and integration risk; higher finance costs (£5.1m adjusted finance costs in H1) could rise if rates or borrowings increase.
- FX and tax mix: Significant AUD/EUR/NZD exposure; higher Australian tax rate lifts effective tax rate (guided 22–25% medium term).
- Margin mix: Continued dilution from lower-margin acquired businesses until efficiency gains/price-mix improvements flow through.
- Geopolitical and macro uncertainty: Management acknowledges heightened risks that could disrupt supply chains or demand.
Read more
Volution Group Annual Dividend Yield - 1.76%
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 (612p)
= 1.76%
Volution Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/03/2026 |
05/05/2026 |
Interim |
4.0000p |
GBX |
| 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) |
18.75%
|
| Dividend CAGR (5Y) |
12.59%
|
| Years of Growth |
10
|
| Payout Ratio |
41.59%
|
| Buyback Yield |
-0.4%
|
| Shareholder Yield |
1.36%
|
| P/E Ratio (TTM) | 23.72 |
|---|
| Forward P/E | 16.82 |
|---|
| P/FCF | 14.35 |
|---|
| Earnings Yield | 4.28% |
|---|
| FCF Yield | 6.97% |
|---|
| ROE | 19.14% |
|---|
| ROCE | 14.57% |
|---|
| Profit Margin | 11.19% |
|---|
| Operating Margin | 18.96% |
|---|
| Gross Margin | 50.2% |
|---|