NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
11. Business combinations continued
11. Business combinations continued Transaction costs of £0.7m 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. Included in cash flow from investing activities is the cash consideration of £25.5m, offset by the net cash acquired of £1.3m. From the date of acquisition to 31 March 2025, Burster contributed £4.8m to revenue and a loss of £0.9m 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 £435.4m and the consolidated profit after tax for the Group would have been £24.5m. The goodwill was attributable to the workforce and the high profitability of the acquired business. It will be deductible for tax purposes. Included in the £13.4m of goodwill recognised above were 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. 12. Dividends
Included in cash flow from investing activities is the cash consideration of £8.5m, offset by the net cash acquired of £5.0m. From the date of acquisition to 31 March 2025, Hivolt contributed £2.0m to revenue and a profit of £0.3m 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 £423.9m and the consolidated profit after tax for the Group would have been £24.7m. The goodwill was attributable to the workforce and the high profitability of the acquired business. It will not be deductible for tax purposes. Included in the £2.1m of goodwill recognised above were 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. Acquisition of Burster On 15 January 2025, the Group completed the acquisition of the Burster Group ("Burster"), by acquiring the limited partnership interest in burster präzisionsmesstechnik GmbH & Co. KG. Burster is a German-based designer and manufacturer of specialist sensors. Burster was acquired for an initial consideration of £25.6m on a cash-free, debt-free basis, before expenses, funded from the Group's existing debt facilities. The cash consideration paid of £25.5m includes cash acquired of £1.3m net of deductions for accrued tax and other liabilities and adjustments of £1.4m. The contingent consideration of £5.8m recognised on acquisition has been subsequently measured and released based on the performance of the business for its year ended 31 December 2025. The fair values of the identifiable assets and liabilities of Burster at the date of acquisition were:
2026 £m
2025 £m
Dividends recognised in equity as distributions to equity holders in the year:
Equity dividends on ordinary shares: Final dividend for the year ended 31 March 2025 of 8.60p (2024: 8.25p) Interim dividend for the year ended 31 March 2026 of 4.05p (2025: 3.90p) Total amounts recognised as equity distributions during the year
8.3 3.9
7.9 3.8 11.7
12.2
Fair value recognised at acquisition £m
2026 £m
2025 £m
Proposed for approval at AGM:
Equity dividends on ordinary shares: Final dividend for the year ended 31 March 2026 of 8.95p (2025: 8.60p)
8.6
8.3
Intangible assets – other (incl. customer relationships)
9.1 1.5
Summary Dividends per share declared in respect of the year
Property, plant and equipment
13.0p
12.50p 12.15p £11.7m
Right-of-use assets
2.8 6.8 0.9
12.65p £12.2m
Dividends per share paid in the year
Inventories
Dividends paid in the year
Trade and other receivables
Cash acquired
1.3
13. Earnings per share Basic earnings per share is calculated by dividing the net profit for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is the basic earnings per share after allowing for the dilutive effect of the conversion into ordinary shares of the weighted average number of options outstanding during the year. The following reflects the income and share data used in the basic and diluted earnings per share calculations.
Trade and other payables
(1.3)
Current tax liabilities
(0.4) (2.8)
Lease liabilities
Total identifiable net assets Goodwill arising on acquisition
17.9 13.4 31.3
Total investment
2026 £m
2025 £m
Discharged by Initial cash consideration Contingent consideration
25.5 5.8 31.3
Profit after tax for the year
29.0
24.6
2026 Number 96,108,648 2,405,124 98,513,772
2025 Number 96,028,934 2,398,601 98,427,535
Net cash outflows in respect of the acquisition comprise:
Weighted average number of shares for basic earnings per share
Total £m
Effect of dilution – share options
Weighted average number of shares for diluted earnings per share
Cash consideration Transaction costs Net cash acquired
25.5
30.2p 29.4p
Basic earnings per share Diluted earnings per share
25.6p 25.0p
0.7
(1.3)
At the year-end, there were 2,622,432 ordinary share options in issue that could potentially dilute earnings per share in the future, of which 2,405,124 are currently dilutive (2025: 2,648,415 in issue and 2,398,601 dilutive).
24.9
178
179
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Annual Report and Accounts for the year ended 31 March 2026
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