NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED FOR THE YEAR ENDED 31 MARCH 2026
1. Basis of preparation The separate Financial Statements of the Company have been prepared for all periods presented, in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”) and in accordance with the Companies Act 2006. These Financial Statements are prepared on the going concern basis and under the historical cost convention modified for fair values, as described in note 2 to the consolidated Financial Statements. 2. Summary of material accounting policies The summary of material accounting policies for the Company is described in note 2 to the consolidated Financial Statements. There are no judgements, assumptions and estimation uncertainties as at 31 March 2026 that could result in a material adjustment to the carrying amount of the Company’s assets and liabilities in the next financial year. 3. Profit of the Company The profit of the Company for the financial year was £10.6m (2025: £15.4m). Dividend income received from subsidiary undertakings amounted to £18.6m (2025: £24.9m). By virtue of section 408(3) of the Companies Act 2006, the Company is exempt from presenting a separate Statement of Profit or Loss. 4. Employees The Directors also provide services to other Group undertakings and received remuneration from a subsidiary Group undertaking, discoverlE Management Services Limited, in respect of services to the Group. Directors’ emoluments are disclosed in note 8 to the consolidated Financial Statements. 5. Investments
6. Debtors continued
At 31 March 2026, the Company has recognised a deferred tax asset of £1.0m (2025: £0.8m) in respect of losses. Deferred tax assets are recognised to the extent that there are sufficient forecast future taxable profits against which the Company’s losses can be offset. At 31 March 2026, the Company had not recognised a deferred tax asset in respect of tax losses of £2.1m (2025: £2.1m). 7. Creditors: amounts falling due within one year
2026 £m
2025 £m
20.6 20.7
Bank loans and overdrafts
6.3
Amounts owed to subsidiary undertakings
40.2
0.7 2.2
Other payables
0.7
Accruals
1.3
44.2
48.5
Amounts owed to subsidiary undertakings bore interest at a nil rate (2025: nil rate) and are repayable on demand. 8. Called-up share capital
2026 Number 97,356,109
2026 £m
2025 Number 96,356,109
2025 £m
Allotted, called-up and fully paid
4.9
Ordinary shares of 5p each
4.8
Subsidiary undertakings £m
During the year to 31 March 2026, 1,000,000 shares were issued to the Group’s Employee Benefit Trust (2025: nil). At 31 March 2026, there were outstanding options for employees of subsidiaries to purchase up to 4,121,484 (2025: 3,863,918) ordinary shares of 5p each between 2022 and 2035 at prices ranging from £nil per share to £9.18 per share. These are subject to certain performance conditions as disclosed in note 30 of the consolidated Financial Statements. During the year to 31 March 2026, employees exercised 69,922 share options under the terms of the various schemes (2025: 115,381). The shares exercised during the year ended 31 March 2026 were settled by the Trust. 9. Related parties The Company is exempt under the terms of FRS 101 from disclosing related-party transactions with wholly owned entities that are part of the Group as these transactions are fully eliminated on consolidation. 10. Financial guarantees The Company has issued corporate guarantees to banks for bank borrowings of its subsidiaries. These guarantees are financial guarantees as they require the Company to reimburse the banks if the subsidiaries fail to make principal or interest payments when due in accordance with the terms of their borrowings. Borrowings by subsidiary undertakings totalling £111.9 (2025: £139.3m) which are included in the Group’s borrowings (note 22) have been guaranteed by the Company. 11. Share-based payments For detailed disclosures of share-based payments granted to the employees of subsidiaries, refer to note 30 of the consolidated Financial Statements. 12. Post balance sheet events There were no matters arising, between the Statement of Financial Position date and the date on which these Financial Statements were approved by the Board of Directors, requiring adjustment in accordance with IAS 10 Events after the Reporting Period. The following important non-adjusting events should be noted: Dividends A final dividend of 8.95p per share (2025: 8.60p), amounting to a dividend of £8.6m (2025: £8.3m) and bringing the total dividend for the year to 13.0p (2025: 12.50p), was declared by the Board on 2 June 2026.
At 1 April 2024
189.3
Share-based payments
2.0
At 31 March 2025
191.3
Share-based payments
1.4
At 31 March 2026
192.7
Details of all direct and indirect holdings in subsidiaries are provided in note 33 of the consolidated Financial Statements. Equity investments in subsidiary undertakings are reviewed annually for indicators of impairment of the carrying value, measured at cost less accumulated impairment losses. Where the net assets of a subsidiary fall below the carrying amount of the investment, an impairment test is performed. The impairment test compares the carrying amount to the estimated recoverable amount, calculated based on value in use of the forecast business cash flows, discounted at the Company’s pre-tax discount rate. 6. Debtors
2026 £m
2025 £m
Amounts falling due within one year: Corporation tax
1.3 1.8 0.1 3.2
2.0 2.0 0.1 4.1
Other debtors Prepayments
Amounts falling due over one year: Other debtors Amounts owed by subsidiary undertakings
1.8
–
88.7 90.5
88.7 88.7
Amounts owed by subsidiary undertakings bore interest at a Sterling base rate plus a margin of 1.75% (2025: 1.75%). All amounts are repayable on demand. There are no material expected credit losses recognised for these receivables.
208
209
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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