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

Notes to the Accounts continued

FINANCIAL STATEMENTS

27. Financial instruments and risk management continued iii) Derivative financial instruments The Group’s policy for derivative financial instruments is disclosed in the principal accounting policies. iv) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand, short-term cash deposits and cash balances held by the Group’s investment managers and solicitors. v) Cash on deposit Cash held on deposit with a maturity date of more than three months. 28. Equity share capital

30. Commitments Capital At 31 December 2025 the Group had authorised the following future capital expenditure:

2025 £000

2024 £000

2,226

Contracted

2,259

63

Not contracted

367

31. Contingent liabilities The Group has given its bankers guarantees amounting to the equivalent of £7.9m (2024: £10.1m) in respect of tender and performance bonds and counter indemnities. 32. Related parties The Group’s related parties include post-employment benefit plans for the Group’s employees and others as described below. Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash. Transactions with key management personnel Key management of the Group are the Executive and Non-Executive members of Lucy Group Limited’s Board of Directors. Key management personnel remuneration includes the following expenses:

2025 £000

2024 £000

Authorised: 495,000 ordinary shares of £1 each Allotted, called up and fully paid: 491,885 ordinary shares of £1 each

495

495

492

492

29. Other reserves The consolidated statement of changes in equity is shown on page 104. Further information on reserves is provided below: Capital reserves The capital reserve arose on redemption of ordinary shares in the Group’s companies. Retained earnings In accordance with IFRS, retained earnings include revaluation reserves which are not distributable under UK law. The balance in the revaluation reserve at 31 December 2025 is £120.7m. Currency translation reserve The foreign currency reserve is used to record exchange differences arising from the translation of the consolidated financial statements of foreign subsidiaries and other foreign currency investments. Cash flow hedge reserve This includes the fair value of the movements on derivative financial instruments qualifying for hedge accounting under IFRS 9.

2025 £000

2024 £000

2,294

Short-term employee benefits Post-employment benefits

1,991

41

33

2,335

Total key management remuneration

2,024

556

Emoluments of highest paid Director

520

–

Pension contribution

–

556

520

The Group does not operate share option or other long-term incentive schemes for the Directors. Two Directors are members of the defined benefit section of the W Lucy Pension Scheme. The Company also operates unfunded, unapproved retirement benefit arrangements for one of these Directors. The Group made contributions of £42k (2024: £33k) to defined contribution schemes in respect of two other Directors and operates unfunded unapproved retirement benefits for one of these. At the year end, the highest paid Director had accrued pension benefits totalling £122k p.a. (2024: £120k p.a.) which are The defined benefit plan is a related party and does not hold shares in Lucy Group Limited. The Group’s transactions with the defined benefit plan include contributions to the plan and trustee, accounting and administrative services. Parent and ultimate controlling party Lucy Group Limited is a subsidiary of WL Shareholding Company Limited, a private limited company incorporated and domiciled in England, which holds 53% of the issued ordinary share capital of the Company. The consolidated accounts of the ultimate controlling party are available from their registered office at 30 St Giles, Oxford, OX1 3LE. currently in payment from the W Lucy Pension Scheme. Transactions with the defined benefit plan

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Lucy Group Ltd Annual Report & Accounts 2025

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