INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF discoverIE Group plc
3. Summary of our audit approach
Report on the audit of the financial statements 1. Opinion
Key audit matters
The key audit matter that we identified in the current year was the appropriateness of revenue recognised in the correct accounting period (revenue ‘cut-off’). The materiality that we used for the Group financial statements was £2.3m (2025: £2.3m) which was determined on the basis of adjusted profit before tax. We used component auditors to test specific account balances in 25 (2025: 28) reporting units across 13 countries and the Group engagement team performed audits on 7 (2025: 7) reporting units at group level including the Company. This covered 71% (2025: 72%) of Group revenue, 82% (2025: 84%) of profit before tax and 84% (2025: 79%) of net assets. The extent of our audit testing is comparable with the previous year. There are no other significant changes in our approach, as compared to 2025.
Materiality
In our opinion: ■ the financial statements of discoverIE Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) give a true and fair view of the state of the Group’s and of the Company’s affairs as at 31 March 2026 and of the Group’s profit for the year then ended; ■ the Group financial statements have been properly prepared in accordance with United Kingdom adopted international accounting standards; ■ the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 “Reduced Disclosure Framework”); and ■ the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
Scoping
Changes to our approach
4. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group’s and Company’s ability to continue to adopt the going concern basis of accounting included: ■ obtaining an understanding of the processes and controls underpinning the directors’ forecasting of financial performance and cash flows; ■ assessing the Group’s borrowing facilities explained in note 26 to the Group financial statements, including the total amounts available, the repayment dates, and related covenants; ■ testing the mechanical and logical accuracy of management’s forecasts, and liquidity and sensitivity calculations; ■ assessing the forecasts in comparison to historical performance, industry expectations, and external data points; ■ challenging the downside scenarios modelled by the Group, including their reverse stress tests, in consideration of recent experience and whether they were sufficiently severe; ■ evaluating whether other events or conditions, for example potential trade volatility arising from changing tariff regimes and the conflict in the Middle-East, are appropriately considered in forecasts and downside scenarios; ■ assessing the requirements of the financial covenants and the potential risk of a covenant breach; and ■ assessing the appropriateness of the disclosures provided in note 2 of the Group financial statements. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. In relation to the reporting on how the Group has applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
We have audited the financial statements which comprise: ■ the Consolidated Statement of Profit or Loss; ■ the Consolidated Statement of Comprehensive Income;
■ the Consolidated Statement of Financial Position; ■ the Consolidated Statement of Changes in Equity; ■ the Consolidated Statement of Cash Flows; ■ the related notes 1 to 35 to the Consolidated financial statements, including the material accounting policy information; ■ the Company Statement of Financial Position; ■ the Company Statement of Changes in Equity; and ■ the related notes 1 to 12 to the Company financial statements, including the material accounting policy information. The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and United Kingdom adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice). 2. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ”FRC’s”) Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services provided to the Group and Company for the year are disclosed in note 32 to the Group financial statements. We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to the Group or the Company. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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