SUSTAINABILITY IN ACTION CONTINUED
Over 80% of employees receive annual performance appraisals, which include identifying their development needs. Recruitment and retention Clear, fair and competitive terms of employment are in place. It is Group policy to communicate with employees on major matters to encourage them to take an interest in the affairs of their employing company and the Group. Each operating business is encouraged to maintain effective employee engagement arrangements, including keeping employees aware of the financial and economic factors affecting their employing company’s performance. Please see pages 38 and 39 for further details of our engagement. We support the employment and advancement of disabled persons. Full consideration is given to applications for employment from disabled persons, where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the Group’s policy to provide continuing employment in the same or an alternative position wherever practicable, and to provide appropriate training and support to achieve this aim. We are committed to retaining our talented and skilled workforce. We achieve this by offering clear and fair terms of employment, competitive remuneration packages and regular communication with our employees on major matters. Consequently, we were pleased to see our voluntary staff turnover rate decrease from 18% in FY 2024/25 to 12% in FY 2025/26. We balance offering employees secure employment with the demands of maintaining a flexible cost base. Whilst 90% of staff are employed by the Group, the remaining 10% are engaged as contractors or through carefully selected third- party agencies. Where employees are engaged through agencies, we ensure that the pay and conditions offered to them are commensurate with that of our own employees. Community engagement We value community engagement and strive to be an active participant in the local communities where we operate. We support local good causes by offering opportunities for employees to volunteer and through charitable donations. Our commitment to community engagement is highlighted by the Group’s support of the Community Foundation for Surrey and other employee volunteering opportunities. As well as supporting the causes themselves, initiatives such as these motivate employees and increase their sense of purpose in working for an organisation that is keen to play a positive role in society. No donations are made to political causes.
CASE STUDY
Noratel put their values into action supporting their local community
Early in the year, the Noratel team put three of their core values of care, teamwork and excellence into action. The team in Sri Lanka supported the development of the local community by completing a targeted infrastructure upgrade project at Sri Sarananda Vidyalaya, a school in the village of Manankattiya with more than 125 years of history, serving generations of students despite limited resources. The project focused on practical improvements with immediate and lasting impact: ■ Installed a 5kW solar hybrid power system providing reliable, renewable energy ■ Installed a purification system providing access to clean drinking water ■ Renovated school facilities and electrical infrastructure ■ Improved sanitation and hygiene conditions During their visit to the Sri Lanka facilities, the Noratel Group Leadership Team also joined the volunteer effort and worked alongside the local team. After the project was completed, the team’s pride and satisfaction were reflected in the pupils’ smiles and excitement.
Our Products Our products are our business, and consequently we place great importance on their stewardship and development. Whilst our broad portfolio of products reduces the risk of a failure of any one product or class of products causing a material adverse impact on the financial performance of the Group, we nevertheless seek to maintain the high quality on which our customers rely. Product responsibility Our products are essential components of electrical systems and electronic devices and play a critical role in the functioning of larger systems, which tend to have long lifespans. Quality and reliability are paramount to our customers. In addition to designing for durability, the high quality and standards of our products are ensured and monitored through rigorous testing (which is often above the requirements of our customers) and the adoption of ISO 9001 Quality Management Systems. As a result, the overall rejection rates for our products due to quality issues are negligible. Product sustainability The sustainability of our products is a priority. We ensure raw materials used are from responsible sources, which are procured in accordance with the principles of our Supplier Code of Conduct, Modern Slavery Statement and Conflict Minerals Policy (all are available at www.discoverIEplc.com). These are verified and monitored through regular local checks and supplier audits. In the event of non-compliance, we would engage with the supplier to seek measures to rectify the non-compliance, or seek alternative suppliers if appropriate. During the year, we completed the fifth phase of our Group-wide supplier audit programme.
Having audited over half of Group Suppliers (measured by spend) over the last four years, this year we refreshed our sampling process to revisit those suppliers with the highest Group spend (>£0.25m p.a.) and those with material risk associated with them (e.g. single-sources of critical components), representing almost £80m annual spend in total. Our magnetic components use raw materials, such as copper and aluminium, which are essential to electrical equipment. Where it is possible, and with customer permission, recycled raw materials are used in production processes. We also proactively reduce and recycle packaging and replace plastics with recyclable materials such as paper and cardboard. Our products are components that are often embedded in larger systems, which means that the likelihood of replacements being required must be minimised. As such, our products are designed for long lifespans and are intended to be energy efficient in order to reduce downtime. Our targets ■ 80% of Group products manufactured under ISO 9001 Our progress ■ 96% of the Group’s products, measured by revenue, were manufactured under ISO 9001 Quality Management Systems (FY 2024/25: 94%)
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discoverIE Group plc Innovative Electronics
Annual Report and Accounts for the year ended 31 March 2026
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