32816-Lucy-Group-AR-2025 web ready spreads_FINAL

Consolidated Statement of Changes in Equity for the year ended 31 December 2025

Principal Accounting Policies

FINANCIAL STATEMENTS

the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquired is added to the fair value of consideration in calculating goodwill. Assets acquired and liabilities assumed are generally measured at their acquisition date fair values. Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs in connection with a business combination are expensed as incurred. Foreign currency translation The consolidated financial statements are presented in currency UK Pound Sterling, which is also the functional currency of the Parent Company. Foreign currency transactions are translated into the functional currency of the respective Group entity, using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in the income statement. Overseas companies’ profits, losses and cash flows are translated at average exchange rates for the year, and assets and liabilities at rates ruling at the balance sheet date. Exchange differences arising on foreign currency net investments are taken to reserves. Exchange differences arising in the normal course of trading are taken to the income statement. Revenue Group revenue arises from the sale of various goods and services. It is measured at the fair value of consideration received or receivable, excluding sales taxes and net of returns, trade discounts, penalties and volume rebates. Revenue is recognised when control of the products has transferred to the customer, either at a point in time or over time, when or as the Group satisfies the performance obligations in the contract with the customer by transferring the goods or services to customers. Details on the Group’s main revenue streams are described in detail below. Product sales: The Group manufactures and sells a range of electrical products. Revenue is recognised at the point in time control of the goods is passed to the customer, which is usually indicated by one of the following factors: physical possession of the goods is taken by the customer, legal title passing to the customer, and the risks and rewards of ownership being passed to the customer. Revenue is recognised based on the sales price specified in the contract. The sales price is adjusted for any variable consideration, including volume rebates.

Basis of preparation The Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the UK (adopted IFRSs) and comply with IFRSs as issued by the International Accounting Standards Board (IASB). They are prepared on a historical cost basis, except that assets and liabilities of certain financial instruments, defined benefit pension plans, value of assets acquired in business combinations, available-for-sale assets and investment property are valued at fair value. The consolidated financial statements have been prepared using the significant accounting policies and measurement bases summarised below. New and amended standards that became effective during the year None of the amendments to IFRSs that were issued by the International Accounting Standards Board (IASB) effective for accounting periods that begin 1 January 2025 have had an impact on the Group’s reported results. Standards and amendments issued by the International Accounting Standards Board (IASB) not effective for the current year and not early adopted by the Group The Group has not adopted early any of the new, but not yet effective, standards or amendments to existing standards as published by the IASB. Such standards have not been disclosed as they are not expected to have a material impact on the Group’s consolidated financial statements. Basis of consolidation The Group financial statements consolidate those of the Parent Company and all of its subsidiaries as of 31 December 2025. Subsidiaries are entities controlled by the Group. Subsidiary companies that have an accounting reporting date other than 31 December prepare additional financial statements to 31 December for consolidation purposes. Where necessary, adjustments are made to the financial statements of subsidiaries to bring accounting policies used in line with those used in the Group. All transactions and balances between Group companies are eliminated on consolidation. Business combinations are accounted for using the acquisition method, as at the acquisition date, being when control is transferred to the Group. Goodwill is measured at the acquisition date as the fair value of consideration transferred less the net recognised amount of the identifiable assets acquired and liabilities assumed. Where

Attributable to owners of the parent equity £000

Non controlling interests £000

Share capital £000

Capital reserve £000

Currency reserve £000

Retained earnings £000

Total equity £000

At 1 January 2025

492

3 – 3

(786)

393,425

393,134

819

393,953

Opening balance adjustment Adjusted opening balance

–

30

176

206

–

206

492

(756)

393,601

393,340

819

394,159

Profit for the year

–

–

–

45,243

45,243

854

46,097

Other comprehensive income Foreign currency translation Gain on revaluation of available for-sale investments, net of deferred tax Actuarial gain on post employment benefit schemes, net of deferred tax Total comprehensive income

–

–

(7,049)

–

(7,049)

30

(7,019)

–

–

–

290

290

–

290

– –

– –

–

1,578 47,111

1,578

–

1,578

(7,049)

40,062

884

40,946

Dividends

–

–

–

(3,478)

(3,478)

(690)

(4,168)

Change in partial interest in subsidiary

–

–

–

(306)

(306)

306

–

At 31 December 2025

492

3

(7,805) 436,928

429,618

1,319

430,937

At 1 January 2024

492

3 – 3

(1,683)

325,394

324,206

(86)

324,120

Opening balance adjustments Adjusted opening balance

–

(36)

36

–

–

–

492

(1,719)

325,430

324,206

(86)

324,120

Profit for the year

–

–

–

71,342

71,342

570

71,912

Other comprehensive income Foreign currency translation Gain on revaluation of available for-sale investments, net of deferred tax Actuarial gain on post employment benefit schemes, net of deferred tax Total comprehensive income

–

–

933

–

933

(36)

897

–

–

–

266

266

–

266

– –

– –

–

1,146

1,146

–

1,146

933

72,754

73,687

534

74,221

Dividends

–

–

–

(4,388)

(4,388)

–

(4,388)

Change in partial interest in subsidiary

–

–

–

(371)

(371)

371

–

At 31 December 2024

492

3

(786) 393,425

393,134

819

393,953

104

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Lucy Group Ltd Annual Report & Accounts 2025

LUCYGROUP.COM

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