STRATEGIC AND OPERATIONAL REVIEW CONTINUED
■ Health & Safety: 72% of the Group’s workforce is covered by ISO 45001 occupational health & safety standards similar to last year. The number of reported lost time incidents reduced by 35% to 15 (FY 2024/25: 23), with a lower lost time incident frequency rate of 0.16 (FY 2024/25: 0.25). This improvement reflects the impact of the Group’s continuing focus on health & safety. ■ Cyber security and AI governance: The Group has implemented an AI Governance Framework to ensure responsible and secure deployment of generative AI, with a strong emphasis on data privacy, ethical use, and regulatory compliance. Cyber security awareness training has been, and will continue to be, rolled out across the Group to strengthen defences against cyber threats. ■ Diversity & inclusion: In May 2025, the Group hosted its inaugural Women in Engineering & Operations seminar, with over 30 female colleagues attending to share experiences and promote gender diversity. ■ Learning & development: A group-wide Engineering & Technical Sales Forum was held in October 2025, bringing together over 70 engineers for a three-day event that included a visit to certain UK operations. The forum strengthened understanding of the Group’s technologies, products and capabilities, and supported greater collaborations across the business. To support the development of future engineering talent, the Group is participating in the University of Surrey’s iTEK programme, which allows a selected group of third-year and postgraduate students to solve real-world technical challenges presented by the businesses. Engagement with the Group’s online learning & development platform launched in 2024 continued to increase, with participant numbers more than doubling and learning hours increasing by 125% year-on-year.
3G, under its ongoing management, will join our Connectivity operating unit within the S&C division and will work alongside MTC, our existing European shielding business. Other businesses in the Group will also benefit from access to 3G’s extensive customer base and sales channels. 3G will be accretive to both adjusted earnings and adjusted operating margin from completion. Sustainability and social responsibility The Group creates innovative electronics for a variety of applications, with a strategic focus on end markets that are aligned to the UN Sustainable Development Goals (“UN SDGs”). More information on how we work with customers and suppliers to support the UN SDGs is available in the Group’s latest Impact Report and on our website at www.discoverIEplc.com. In May 2025, the Group’s greenhouse gas (“GHG”) emissions reductions targets were validated by the Science Based Targets initiative (“SBTi”). The Group is committed to achieving net-zero GHG emissions across Scope 1 and 2 by 2030, and throughout the value chain by 2040. We have updated our Road to Net-Zero strategy document this year to explain in more detail how we plan to achieve this. During FY 2025/26, the Group disclosed its environmental impact on water through the Carbon Disclosure Project (“CDP”) for the first time, achieving a C score, while retaining its B score for climate disclosure. During the year, the Group also reviewed its ESG strategy to ensure alignment with emerging regulatory requirements and its strategic priorities. Following this review, the Group reaffirmed its focus on Planet, People, and Products. During the year, we made excellent progress in a number of key areas: ■ Scope 1 & 2 emissions: Scope 1 & 2 carbon emissions for CY 2025 reduced by 68% against the externally verified CY 2021 baseline, exceeding its CY 2025 reduction target of 65% and paving the way for our goal of achieving net-zero Scope 1 & 2 emissions by 2030. ■ Environmental targets: 74% of Group revenue is now generated from businesses certified to ISO 14001, and 58% of the Group’s car fleet is now electric or hybrid. During the year, solar panels were installed at the Group’s Hungary facility, further advancing the Group’s self-generation capacity and enhancing energy security. The Group now sources 85% of its electricity from zero- emission sources and remains on track to achieve its 100% target by CY 2030. Natural gas is now the Group’s largest remaining emissions source, representing 35% of CY 2025 emissions. Plans to replace gas heating at the Group’s largest emitting site in Poland have been approved, with completion expected in the second half of the new financial year.
In February 2026, the European Union adopted the ‘Omnibus’ proposal. As a result, the Group and its subsidiaries are now outside the scope of Corporate Sustainability Reporting Directive (“CSRD”) reporting. Preparation for the implementation of the IFRS Sustainability Reporting Standards (“SRS”), which is expected to apply to the Group
The outlook for the year ahead is positive with full year adjusted earnings in line with Board expectations. First quarter trading has started well with strong growth in orders and further good sales growth and orders running well ahead of sales. We remain focused on generating strong compounding growth through the cycle. The combination of organic growth, a strong order book providing good visibility, an accelerating pipeline of design wins converting into revenue, and a clear and consistently executed acquisition strategy gives us confidence in the outlook.
from April 2027, is now underway. Summary and Outlook
The Group has delivered another set of robust results where profits and earnings reached new highs and the business saw a return to strong levels of organic orders and sales growth by the year end, which has continued into the new year. Trading momentum improved through the year with final quarter orders increasing by 14% organically, sales increasing by 5% organically and with orders ahead of sales, giving us confidence as we start the new financial year. To support this strengthening growth outlook, additional investment in operating, sales and engineering capacity has been made to ensure we capitalise on the structural growth opportunities in our target markets. We have announced three acquisitions in the last six months, 3G in North America, Trival in Slovenia and Storm in the UK, for a combined consideration of £95m. Trival and 3G increase our exposure in the defence market, while Storm adds to our Human-Machine Interface cluster. All three businesses have a strong record of growth, with margins well ahead of the Group’s current margin target.
Nick Jefferies Group Chief Executive
Emissions reduction 68% (from CY 2021)
Zero emission energy 85% of Group electricity
Lost time incidents 15 (FY 2024/25: 23)
32
33
discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
Made with FlippingBook - professional solution for displaying marketing and sales documents online