NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
11. Business combinations Acquisitions in the year ended 31 March 2026 Acquisition of Keymat Technology Limited (“Storm”)
11. Business combinations continued
The goodwill is attributable to the workforce and the high profitability of the acquired business. It will not be deductible for tax purposes. Included in the £2.9m of goodwill recognised above are certain intangible assets that cannot be individually separated and reliably measured, due to their nature. These include the value of expected operational benefits. All the acquired receivables are expected to be collected. Acquisitions in the year ended 31 March 2025 There have been no changes to the provisional fair values of the assets and liabilities acquired in the prior year. Acquisition of Hivolt On 1 August 2024, the Group completed the acquisition of 100% of the outstanding ordinary shares of Hivolt Capacitors Limited (“Hivolt”), a company incorporated in the United Kingdom. Hivolt is a designer and manufacturer of custom-built capacitors for specialised applications involving high voltages and the acquisition has strengthened the Group’s position in the electronics market and enhanced its offering across key target sectors, including medical and transportation. Hivolt was acquired for an initial consideration of £3.8m on a cash-free, debt-free basis, before expenses, funded from the Group's existing debt facilities. The cash consideration paid of £8.5m includes cash acquired of £5.0m net of deductions for accrued tax and other liabilities and adjustments of £0.3m. In addition, during the year ended 31 March 2026, the contingent payment of £0.9m was paid based on the performance of the business for the period between 1 April 2024 and 31 March 2025. The fair values of the identifiable assets and liabilities of Hivolt at the date of acquisition were:
On 18 December 2025, the Group completed the acquisition of 100% of the share capital of Keymat Technology Limited operating under the trading name Storm Interface (“Storm”), a company incorporated in the United Kingdom. Storm is a UK-based designer and manufacturer of differentiated assistive HMI products. These are primarily tactile and audible content navigation devices for visually impaired people, for sale in the UK and internationally. The need for such products is being driven by the roll out of legislation in Europe, UK and Americas that requires assistive interfaces in electronic equipment. Storm was acquired for an initial consideration of £5.5m on a cash-free, debt-free basis, before expenses, funded from the Group's existing debt facilities. The initial cash consideration paid of £7.7m includes a net adjustment of £2.2m (cash acquired offset by other debt-like items). In addition, a contingent payment of up to £2.2m will be payable subject to Storm achieving certain financial performance conditions over the period between 1 April 2025 and 31 March 2026. The fair values of the identifiable assets and liabilities of Storm at the date of acquisition were:
Fair value recognised at acquisition £m
Intangible assets – other (incl. customer relationships)
4.8 0.2 0.2
Fair value recognised at acquisition £m
Property, plant and equipment
Right-of-use assets
Inventories
1.3
Trade and other receivables
0.2 3.8
Intangible assets – other (incl. customer relationships)
2.6 0.1 0.2 0.6 0.2 5.0
Cash acquired
Property, plant and equipment
Trade and other payables
(0.9) (1.9) (0.2)
Right-of-use assets
Current and deferred tax liabilities
Inventories
Lease liabilities
Trade and other receivables
Total identifiable net assets Goodwill arising on acquisition
7.5 2.9
Cash acquired
Trade and other payables
(0.4) (0.8) (0.2)
Total investment
10.4
Current and deferred tax liabilities
Lease liabilities
Discharged by Initial cash consideration Purchase price adjustment Contingent consideration
Total identifiable net assets Goodwill arising on acquisition
7.3 2.1 9.4
7.7 0.5
Total investment
2.2 10.4
Discharged by Initial cash consideration Contingent consideration
8.5 0.9 9.4
Net cash outflows in respect of the acquisition comprise:
Total £m
Net cash outflows in respect of the acquisition comprise:
Cash consideration Transaction costs Net cash acquired
7.7 0.4
Total £m
(3.8) 4.3
Cash consideration Transaction costs Net cash acquired
8.5 0.1
Transaction costs of £0.4m related to acquisition expenses and were expensed as incurred in the period ended 31 March 2026. These were included within operating costs and operating cash flows. Included in cash flow from investing activities is the cash consideration of £7.7m, offset by the net cash acquired of £3.8m. From the date of acquisition to 31 March 2026, Storm contributed £1.9m to revenue and a profit of £0.1m to profit after tax of the Group. If the business combination had taken place at the beginning of the year, the consolidated revenue for the Group would have been £448.2m and the consolidated profit after tax for the Group would have been £29.9m.
(5.0) 3.6
Transaction costs of £0.1m related to acquisition expenses and were expensed as incurred in the period ended 31 March 2025. These were included within operating costs and operating cash flows.
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discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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