Volex plc Introduces Scrip Dividend Option for 2026 Final Dividend Payment

Volex’s Dividend Strategy and 2026 Final Dividend Proposal

Volex plc has proposed a final dividend of 3.2 pence per ordinary share for the financial year ending 31 March 2026, pending approval at the Annual General Meeting on 25 August 2026. This dividend reflects the company’s trading results and offers shareholders a return on their investment while allowing Volex to retain capital for operational and strategic purposes.

The scrip dividend option highlights Volex’s commitment to flexible shareholder returns by allowing investors to reinvest dividends into additional shares. This alternative benefits shareholders preferring cash payments as well as those seeking to increase their equity exposure without incurring transaction costs associated with market purchases.

Scrip Dividend Process and Reference Price Announcement

The scrip dividend scheme enables shareholders to convert their cash dividend into newly issued ordinary shares. The reference price determining the share allocation for scrip participants will be announced on 20 August 2026, providing shareholders with adequate time to make informed decisions. This price typically reflects the company’s market valuation during a defined period prior to the announcement, ensuring fairness between cash and share recipients.

MUFG Corporate Markets has been appointed to administer the scheme, offering shareholders multiple submission options including traditional mandate forms, an online portal, and electronic CREST system messages. These options accommodate a diverse shareholder base ranging from private investors to institutional holders.

Election Submission Guidelines and Deadlines

Shareholders must submit their scrip dividend elections by 5.00 p.m. on 28 August 2026, three days after the AGM. This deadline applies across all submission methods, ensuring consistent treatment. Shareholders with existing standing mandates do not need to resubmit for the 2026 final dividend unless they hold shares in CREST, where a fresh election is required for each dividend.

Volex’s Position in Critical Infrastructure Manufacturing

Volex plc operates as a specialist integrated manufacturer focused on critical power and data transmission products serving global industries such as telecommunications, industrial automation, renewable energy, and medical sectors. Its integrated design and production capabilities provide customised solutions for applications where reliability and safety are paramount, creating high barriers to entry and fostering strong customer loyalty.

This market positioning supports resilience through business cycles and recurring revenue streams from established client relationships.

Contact Information and Additional Resources

Shareholders seeking further information about the scrip dividend scheme can contact Volex’s investor relations team led by CEO Lord Rothschild and CFO Jon Boaden at +44 (0) 1256 442570 or [email protected]. Group General Counsel and Company Secretary Chris Bedford is also available for enquiries. Comprehensive scheme terms are available on the company website, and the online election portal can be accessed at https://uk.investorcentre.mpms.mufg.com/Login/Login.

Peel Hunt LLP and Jefferies serve as the company’s nominated advisers and brokers, respectively, while Sodali & Co handles media enquiries, ensuring thorough support and transparency for shareholders.

Timing and Considerations for Scrip Dividend Elections

The period between the reference price announcement on 20 August 2026 and the election deadline on 28 August 2026 gives shareholders eight days to evaluate the scrip option against their investment goals. Factors such as tax implications, portfolio exposure preferences, and views on Volex’s future valuation should guide their decisions.

The scrip option allows reinvestment without dealing costs but involves share dilution, which shareholders should consider alongside their investment strategy.

Shareholder Approval and AGM Conditionality

The final dividend of 3.2 pence per share is subject to approval at the 25 August 2026 AGM, ensuring shareholder oversight of capital distribution. Following approval, shareholders can choose their preferred dividend payment method, reinforcing strong corporate governance practices.

Differences Between CREST and Non-CREST Shareholders in Scrip Elections

Shareholders holding shares electronically via CREST must submit a new dividend election for each distribution, while those holding certificated shares can establish standing mandates that persist across dividends. This distinction reflects differing administrative requirements and settlement systems.

Investment Risks and Market Disclosures

Electing to receive shares through the scrip dividend exposes shareholders to equity market risks, including share price volatility and dilution effects. The reference price sets the conversion ratio but does not guarantee the shares’ future value. Shareholders should seek independent financial advice and consider their tax and investment circumstances before participating.