CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2026
1. Reporting entity and authorisation of Financial Statements The consolidated Financial Statements, which comprise the results of discoverIE Group plc (“the Company”) and its subsidiaries (collectively referred to as “the Group”), for the year ended 31 March 2026 were authorised for issue by the Board of Directors on 2 June 2026. discoverIE Group plc is a public limited company incorporated and domiciled in England, UK and the registered office is disclosed on page 212. The Company’s ordinary shares are traded on the London Stock Exchange. The material accounting policies adopted by the Group are set out in note 2 and have been applied consistently to all years presented in these consolidated Financial Statements. NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
2026 £m
2025 £m
Notes
Net cash flow from operating activities Investing activities Acquisition of businesses, net of cash acquired
45.3
24
46.4
(4.7) (2.8)
(27.7)
Contingent consideration related to business acquisitions
(2.3)
–
Proceeds from business disposals
13.3
2. Accounting policies Statement of compliance
0.1
Shares issued
–
(5.7) (0.9)
Purchase of property, plant and equipment Purchase of intangible assets – software
(5.4) (0.7)
The Group's consolidated Financial Statements have been prepared and approved by the Directors in accordance with UK- adopted International Accounting Standards (“UK-adopted IAS”) in conformity with the requirements of the Companies Act 2006 and the Disclosure Guidance and Transparency rules sourcebook of the United Kingdom’s Financial Conduct Authority. The separate Financial Statements of the Company have been prepared and approved by the Directors in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”). On publishing the Company’s Financial Statements here together with the Group’s Financial Statements, the Company is taking advantage of the exemption in section 408 of the Companies Act 2006 not to present its individual Statement of Profit or Loss and related notes that form a part of these approved Financial Statements. The following exemptions from the requirements of the UK-adopted IAS have been applied in the preparation of the Company’s Financial Statements, in accordance with FRS 101: ■ Cash Flow Statement and respective disclosures and information;
2.7
Interest received
3.5
Net cash used in investing activities
(11.3)
(19.3)
Financing activities Proceeds from borrowings Repayment of borrowings Payment of lease liabilities
27.1
37.5
(57.4) (6.6) (12.2) (49.1) (15.1)
(33.2) (6.5) (11.7) (13.9)
Dividends paid
12
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents 1
13.2 31.5
43.7
Net cash and cash equivalents at 1 April Effect of exchange rate fluctuations Net cash and cash equivalents at 31 March
0.4
(1.0)
■ Disclosures in relation to capital management; ■ Disclosures in relation to financial instruments;
29.0
43.7
■ Disclosures in respect of the compensation of key management personnel; and ■ Disclosures in respect of transactions between two or more members of the Group. For the following disclosures, as the Group’s consolidated Financial Statements include the equivalent disclosures, the Company has taken the exemptions available under FRS 101: ■ IFRS 2 Share-based Payments in respect of Group equity-settled share-based payments; ■ Certain disclosures required by IFRS 13 Fair Value Measurement. Basis of preparation The Group’s consolidated Financial Statements and the Company’s Financial Statements are prepared under the historical cost convention, unless otherwise stated. The Group’s and Company’s Financial Statements are presented in Pounds Sterling and all values are rounded to the nearest hundred thousand except as otherwise indicated. Impact of climate change The Group has engaged in an ongoing review of expected climate change impacts on the business and its assets and liabilities to establish any adjustments required and any reporting necessary in its consolidated Financial Statements for the year ended 31 March 2026. The ongoing risk assessment is detailed within the climate-related risks and opportunities section on page 80 of the Risk Management section and on pages 60 to 63 of the Strategy section within the Climate Analysis Report on pages 57 to 73, in accordance with the requirements of the TCFD. The process has involved a review of all balance sheet line items and future cash flows, to identify if any of these items are expected to be materially impacted in a negative or positive way by weather, legislative, societal or revenue/cost changes. The conclusion of the review was that, whilst there will undoubtedly be impacts on the Group, the highly disaggregated nature of the operations of the Group and the target markets in which the Group operates, significantly reduce the risk profile of the Group to impacts from weather-related changes. The changes necessary to achieve the Group’s net-zero by 2030 commitment are not expected to have a materially adverse impact on the cash flows of the Group and, indeed, warmer climates may present enhanced opportunities in our target markets as disclosed on pages 22 to 23 of this report. Societal and legislative impacts are not considered to have a material impact on any one segment such that the Group needs to report in a different way to previous years. The related judgements are not considered to be significant, although, clearly, understanding of climate change continues to evolve with time. The area involving the greatest level of judgement is goodwill impairment testing and a description is given in note 17 of the incremental processes undertaken to assess the
Reconciliation to cash and cash equivalents in the consolidated Statement of Financial Position Net cash and cash equivalents shown above
29.0 96.3
43.7 95.6
Add back: bank overdrafts
22
Cash and cash equivalents presented in current assets in the consolidated Statement of Financial Position
125.3
21
139.3
1 Further information on the consolidated Statement of Cash Flows is provided in notes 23 and 24.
The above consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
154
155
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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