The Volex Board's dividend policy, while factoring in earnings cover, also takes into account other factors such as the expected underlying growth of the business, capital expenditure and other investment requirements. The strength of the Group's balance sheet and its ability to generate cash are also considered.
A final dividend of 3.0 pence per share (FY2024: 2.8 pence) will be recommended to shareholders at the Annual General Meeting, reflecting the Board's confidence and the Group's robust financial position. The cash cost of this dividend is expected to be, approximately, $7.1 million, assuming no take-up of the scrip dividend.
Together with an interim dividend of 1.5 pence per share paid in December 2024, this equates to a full-year dividend of 4.5 pence per share (FY2024: 4.2 pence per share), an increase of 7.1%. If approved, the final dividend will be paid on 5 September 2025 to all shareholders on the register at 1 August 2025. The ex-dividend date will be 31 July 2025.
Other financial highlights:
- Group revenue increased by 19.0% to $1,086.5m (FY2024: $912.8m), with organic growth of 11.1%, driven by particularly strong performance in Electric Vehicles and Consumer Electricals
- Underlying operating profit rose by 18.4% to $106.2 million (FY2024: $89.7 million), supported by volume growth and the full-year benefit of the Murat Ticaret acquisition
- Cash conversion remained robust at 67.2% (FY2024: 89.6%), helping to generate underlying free cash flow of $42.2 million (FY2024: $56.8 million). FY2024 included a working capital inflow as inventory normalised due to improved supply chain conditions
- Underlying operating margin sustained at 9.8% (FY2024: 9.8%), at the upper end of its target range of 9-10% reflecting pricing power and its ongoing focus on operational efficiency
- Year-end net debt covenant leverage was maintained at 1.0x, providing significant financial flexibility
- Continued strategic investments in global manufacturing capability, including new capacity in Mexico, Indonesia, India and Türkiye
- Ongoing integration in Türkiye, focused on cost base optimisation and productivity enhancements to counteract inflationary pressure on labour costs
