discoverIE Annual Report 2026

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

21. Cash and cash equivalents

22. Other financial liabilities continued

The carrying amount of the Group’s financial liabilities excluding lease liabilities is denominated in the following currencies:

2026 £m 125.3

2025 £m

2026 £m

2025 £m 98.7 116.8 65.6 29.4 310.5

Cash at bank and in hand

139.3

96.4 97.7 57.0 35.2

Sterling

The cash balances are separately presented gross in the consolidated Statement of Financial Position, rather than netted off against overdrafts held either by the same entity, or other Group entities, with the same bank. The net cash position as at 31 March 2026 after netting off against overdrafts is £29.0m (2025: £43.7m). Refer to note 23 for analysis of movements. Cash at bank earns interest at floating rates, based on daily bank deposit rates. The Group only deposits cash surpluses with major banks of high credit standing (£110.6m with financial institutions with credit rating of AA- (2025: £118.8m), £6.1m with financial institutions with credit rating of A+ (2025: £13.0m), and the remaining balance of £8.6m with various financial institutions with credit rating of A- or higher (2025: £7.5m)) in line with its treasury policy. The fair value of cash and cash

Euro

US Dollar

Other currencies

286.3

23. Movements in cash and net debt

equivalents is £125.3m (2025: £139.3m). 22. Other financial liabilities

1 April 2025 £m

Non-cash changes £m

31 March 2026 £m

Cash flow £m

Year to 31 March 2026 Bank loans over one year Capitalised debt costs

Current

Non-current

(112.0)

(139.4)

28.8

(1.4) (0.4) (14.5) (16.3)

2.5

1.4

1.5

Effective interest

2026 £m

2025 £m

2026 £m

2025 £m

(34.0) (143.5) 125.3 (96.3)

Lease liability

(27.4) (165.4) 139.3 (95.6)

7.9

rate % Maturity Variable On demand

Liabilities arising from financing activities

38.2

96.3

Bank overdrafts

95.6

Cash and cash equivalents

(16.0)

2.0

– –

0.1

Unsecured bank loans

Variable Variable

– –

0.1

Bank overdrafts

0.9

(1.6)

111.9

Revolving Credit Facility (“RCF”)

139.3

Net cash

29.0

43.7

(15.1)

0.4

(0.7)

(1.8)

Capitalised debt costs Loans and borrowings

(0.6)

(0.8)

Net debt (incl. lease liability)

(114.5)

(121.7)

23.1

(15.9)

95.6

110.2 27.5

95.0

138.6

34.0

Remove: lease liability

27.4

(7.9)

14.5

6.5

Lease liabilities

6.2

21.2

(80.5)

Net debt 1

(94.3)

15.2

(1.4)

80.0 182.1

0.5

Trade and other payables (note 28) Total other financial liabilities

70.7 171.9

6.2

1 Net debt is an alternative performance measure as it is not defined in IFRS. The most directly comparable IFRS measure is the aggregate of loans and borrowings (current and non-current) and cash and cash equivalents. Bank loans over one year above include £111.9m (2025: £139.3m) drawn down against the Group’s revolving credit facility. Bank overdrafts reflect the aggregated gross overdrawn balances of Group companies (even if those companies have other positive cash balances). The overdrafts and cash and cash equivalents are held with the Group’s relationship banks.

138.2

166.0

Interest on overdrafts is based on floating rates linked to SONIA, SOFR and EURIBOR. Included in unsecured bank loans is a Euro-denominated loan of £0.1m (2025: £0.1m). At 31 March 2026, the RCF drawdowns of £111.9m (2025: £139.3m) were denominated in Sterling, US Dollar and Euro which

bear interest based on SONIA, SOFR and EURIBOR, plus a facility margin. Trade and other payables above include only contractual obligations. The maturity of the gross contractual financial liabilities is as follows:

1 April 2024 £m

Non-cash changes £m

31 March 2025 £m

Cash flow £m

Year to 31 March 2025 Bank loans over one year Capitalised debt costs

(137.5)

(4.3)

2.4

(139.4)

2.0

(0.6)

1.4

Within 1 year £m

2–5 years £m

>5 years £m

Lease liability

(20.1)

7.5 3.2

(14.8) (13.0)

(27.4) (165.4) 139.3 (95.6)

Total £m 205.8

At 31 March 2026

Liabilities arising from financing activities

(155.6) 110.8 (79.3)

Cash and cash equivalents

29.6

(1.1)

95.6

110.2 25.5

Floating rate Lease liabilities

Bank overdrafts

(16.4)

0.1

8.0

14.7

48.2 80.5

Net cash

31.5

13.2 16.4

(1.0)

43.7

80.0 183.6

0.5

Trade and other payables

Net debt (incl. lease liability)

(124.1)

(14.0)

(121.7)

136.2

14.7

334.5

Remove: lease liability

20.1

(7.5)

14.8

27.4

Net debt

(104.0)

8.9

0.8

(94.3)

Within 1 year £m

2–5 years £m

>5 years £m

Total £m

At 31 March 2025

Floating rate Lease liabilities

95.0

138.6

233.6

7.2

16.1 6.2

8.5

31.8 76.9

Trade and other payables

70.7 172.9

160.9

8.5

342.3

186

187

discoverIE Group plc Innovative Electronics

Annual Report and Accounts for the year ended 31 March 2026

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