NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
6. Adjusted performance measures continued
6. Adjusted performance measures continued ROCE / ROTCE ROCE and ROTCE are calculated as follows:
Adjusted profit after tax / Adjusted earnings per share Adjusted profit after tax and earnings per share are calculated as follows:
2026 £m
2025 £m
2026 £m 328.6
2025 £m 308.0
29.0
Profit for the year
24.6
Net assets
5.3
–
Add back:
Net acquisition and disposal expenses
3.6
Less:
Deferred consideration in relation to disposed businesses
(0.3)
(5.8)
80.5
Contingent consideration
(1.7)
Net debt
94.3
16.3
0.2
Amortisation of acquired intangible assets
16.2
IAS 19 pension liability
0.5
(5.1)
Capital employed
409.3
Tax charge relating to the above adjustments
(4.6)
402.5
Adjusted profit after tax
39.7
(249.2)
38.1
Less:
Goodwill
(244.2)
(79.1)
Acquired intangible assets
(90.4)
9.8 5.3
Deferred tax assets and liabilities Current tax assets and liabilities
10.9
2026 Number 96,108,648 2,405,124 98,513,772
2025 Number 96,028,934 2,398,601 98,427,535
6.7
34.0
Lease liabilities
27.4
Weighted average number of shares for basic earnings per share
8.1
Provisions
9.0
Effect of dilution – share options
Trading capital employed
138.2
121.9
Weighted average number of shares for diluted earnings per share
Adjusted earnings per share – diluted Adjusted earnings per share – basic
40.3p 41.3p
38.7p 39.7p
61.0
Adjusted operating profit
60.5
1.3
Add:
Annualisation of acquired businesses
3.0
Adjusted operating cash flow / Free cash flow
62.3
Annualised operating profit
63.5
ROCE
15.2%
15.8%
2026 £m
2025 £m
ROTCE
45.1%
52.1%
Adjusted EBITDA
67.6
68.1
(5.5) (6.6)
Changes in working capital
0.3
Organic and CER revenue growth Organic and CER revenue growth are calculated as follows:
Capital expenditure
(6.1)
Adjusted operating cash flow
55.5
62.3
(7.2)
Net interest paid Tax payments
(9.0) (10.6)
2026 £m 443.3
2025 £m 422.9
(10.7)
(1.0)
Legacy pension scheme funding
(2.3)
Revenue
Free cash flow
36.6
40.4
–
FX translation impact Adjusted (CER) revenue Acquisitions and disposals
0.4
443.3
423.3
(16.0)
(3.9)
427.3
Organic revenue
419.4
Organic growth for the Group compared with last year is calculated at constant exchange rates (“CER”) and is shown excluding the first 12 months of acquisitions post completion (Hivolt in August 2024, Burster in January 2025 and Storm in December 2025) and the results of the Santon solar business unit disposal. Gearing ratio Gearing ratio is calculated as follows:
2026 £m
2025 £m
Net debt
80.5 67.6
94.3 68.1
Adjusted EBITDA
1.3
Annualisation of acquired businesses
3.0 71.1
Covenant EBITDA
68.9
Gearing ratio
1.2
1.3
170
171
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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