discoverIE Annual Report 2026

NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026

7. Operating profit

8. Employee costs and Directors’ emoluments

2026 £m 443.3

2025 £m 422.9

2026 £m 109.9

2025 £m

Revenue

Wages and salaries Social security costs Other pension costs

99.6

(244.5)

15.1 4.0

Direct materials/direct labour Other cost of goods sold Selling and distribution costs Administrative expenses

(236.8)

13.1 4.1 2.0

(6.3) (41.6)

(4.6)

1.4

(40.9) (98.2)

Share-based payments (note 30)

(105.7)

130.4

118.8

Operating profit

45.2

42.4

The average monthly number of employees (including Executive Directors) during the year was as follows:

Operating costs are as follows:

2025 (restated)

2026

2026 £m 130.4

2025 £m

515

Sales and marketing

471

3,287

Employee costs (note 8)

118.8

Manufacturing and services

3,350

5.1

368

Depreciation of property, plant and equipment (note 14) Depreciation of right-of-use assets (note 15) Amortisation of other intangible assets (note 18)

4.5 7.3

Administration

345

7.4

4,170 4,166 The average monthly number of employees for the prior year has been restated by 229, decreasing from 4,395 to 4,166, to reflect headcount on an average basis rather than full-time equivalent (FTE). At 31 March 2026 the Group had 4,200 employees (2025: 4,176).

16.6

16.6

Gain related to disposal group Expected credit losses (note 20) Net foreign exchange differences

(2.1)

(0.3) (0.7)

0.2

(0.4)

2026 £

2025 £

Inventories:

Directors’ emoluments

200.2

Cost of inventories

196.0

1,522,570

Aggregate emoluments in respect of qualifying services

1,580,707

0.2

Write-down of inventories to net realisable value

0.5

Aggregate employer contribution to a defined contribution pension scheme and pay in lieu of pension for two Directors

39.2

Other expenses Operating costs

39.1

74,840

70,165

398.1

380.5

1,597,410

1,650,872

Highest paid Director Emoluments in respect of qualifying services

2026 £m 398.1

2025 £m 380.5

934,021 45,160 979,181

985,059 42,407 1,027,466

Employer contribution to a defined contribution pension scheme and pay in lieu of pension

Operating costs

(5.3)

Less:

Net acquisition and disposal expenses

(3.6)

5.8

Contingent consideration

1.7

Aggregate emoluments for the Non-Executive Directors were £398,170 (2025: £415,325). Further details of all Directors’ emoluments are provided in the Remuneration Report on pages 116 to 137. 9. Finance income/(costs)

(16.3)

Amortisation of acquired intangibles

(16.2)

Adjusted operating costs

382.3

362.4

2026 £m

2025 £m

2.7 2.7

Interest receivable and similar income

3.7 3.7

Finance income

(9.9) (1.3) (0.6) (11.8)

Finance costs on bank loans and overdrafts

(12.5) (1.0) (0.6) (14.1)

Finance costs on lease liabilities Amortisation of borrowing costs

Finance costs

172

173

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

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