NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
2. Accounting policies continued
5. Operating segment information The reportable operating segments of the Group include two distinct divisions, Magnetics & Controls (“M&C”) and Sensing & Connectivity (“S&C”). Operating segments are reported in a manner consistent with internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board. Within each of these reportable operating segments are aggregated business units with similar characteristics such as the nature of customers, products, risk profile and economic characteristics. Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is reported and evaluated based on adjusted operating profit earned by each segment. During the year, to enhance alignment and commonality across our businesses, one business was reclassified from M&C to S&C and one business from S&C to M&C. Prior year figures have been restated to reflect these reclassifications. There is no impact on the Group results. Segment revenue and results
Critical accounting judgements and key sources of estimation uncertainty The preparation of the Financial Statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and other applicable factors, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results may differ from these estimates and any revisions to estimates are recognised prospectively. Information about judgements, assumptions and estimation uncertainties as at 31 March 2026 that could result in a material adjustment to the carrying amount of assets and liabilities in the next financial year is addressed as follows: Key sources of estimation uncertainty ■ Fair value of contingent consideration in a business combination (Group only): Estimates are made in the assessment of the fair value of the contingent consideration for its initial recognition and its subsequent measurement. Estimates used include discount rate and trading forecasts. Note 27 provides details on the sensitivity of contingent consideration to changes in these estimates. 3. New accounting standards and financial reporting requirements New standards applied The Group has applied the following standards and amendments for the first time for its annual reporting period commencing 1 April 2025: ■ Amendments to IAS 21 – Lack of Exchangeability These and other amendments, changes and improvements to IFRS issued by the International Accounting Standards Board (“IASB”) have had no material impact on the Group’s and Company’s current financial results or financial position. New standards not yet applied Certain new accounting standards, amendments to accounting standards and interpretations have been published that are not mandatory for the 31 March 2026 reporting period and have not been early adopted by the Group. The impact of IFRS 18 Presentation and Disclosure in Financial Statements is currently being assessed and it is not yet practicable to quantify the effect. IFRS 18 will be applicable for the Group for the year ending 31 March 2028, with 31 March 2027 comparatives restated. 4. Revenue Group revenue is analysed below:
Magnetics & Controls £m
Sensing & Connectivity £m
Unallocated Costs £m
Total £m 443.3
2026
Revenue
267.0
176.3
–
Result Adjusted operating profit/(loss)
41.7
31.4
(12.1) (0.4)
61.0
(0.7) (9.2)
1.6
0.5
Net acquisition and disposal (expenses)/credit Amortisation of acquired intangible assets
(7.1)
–
(16.3)
Operating profit/(loss)
31.8
25.9
(12.5)
45.2
Magnetics & Controls £m
Sensing & Connectivity £m
Unallocated Costs £m
Total £m
2025 (restated)
Revenue
260.8
162.1
–
422.9
Result Adjusted operating profit/(loss)
43.0
29.3
(11.8)
60.5
Net acquisition and disposal (expenses)/credit Amortisation of acquired intangible assets
(2.1) (9.3)
0.2
– –
(1.9)
(6.9)
(16.2) 42.4
2026 £m 437.8
2025 £m
Operating profit/(loss)
31.6
22.6
(11.8)
Sale of goods
417.7
5.5
Rendering of services
5.2
Total revenue
443.3
422.9
164
165
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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