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Our Group Strategy

STRATEGIC REPORT

Our five strategic pillars form a clear guiding structure, enabling us to stay focused on delivering our 2025 revenue and profit ambitions while building the foundations for sustainable long-term growth. These high-level priorities are translated into defined objectives for each business unit, which then cascade into individual annual goals for every employee.

High Performing Businesses in diverse industries

Customer at the Centre of everything we do

Engagement and Development of our people

Sustainable solutions and communities

Excellence through Innovation to differentiate and lead

Priorities | Expansion via new and existing products and markets, while managing margins. | Improve productivity and supply chain resilience through cost efficiencies, agility and automation. | Compliance with global policies and local regulation. Performance in 2025 | Achieved a 13%return on net assets. | Established Flashnet LLC in the USA to build on our growing presence in the US market. | Acquired Blakley Electrics in the UK to bring complementary products and widen our infrastructure customer base. | Continued to enhance supply-chain resilience through diversification of suppliers, contingency planning and operational efficiency. | Lucy Properties’ rent roll surpassed £11m during the year, with rental growth in excess of 9% and an occupancy level of 98%. Priorities for 2026 | Productivity powered by intelligence and automation. | Strong cybersecurity to protect stakeholders and ensure business continuity. | Robust, targeted growth that enhances market share and cash flow while preserving margins. | Compliance with global policies and local regulation.

Priorities | Excellent customer service and care to internal and external stakeholders. | Market intelligence and customer data to drive value and competitiveness. | An uncompromising approach to quality and standards. Performance in 2025 | Launched three distinct, customer focused Lucy Electric businesses: Digital Solutions, Energy Services and EV Infrastructure. | Sharpened our focus on addressing the EV market by establishing a dedicated centre of excellence for manufacturing EV products under a single brand. | Expanded Lucy Electric’s range of SF6 free products, adding features in line with customer requirements. | Increased focus on localised customer needs and collaborative development. | Maintained high NPS scores in our customer surveys for both Lucy Properties and Lucy Developments. Priorities for 2026 | Excellent customer service and after care. | An uncompromising approach to quality and standards. | Total solutions that span the product life cycle. | Market intelligence and customer data to drive value and competitiveness.

Priorities | High employee engagement rates at every site and level. | Employee attraction and retention, with workforce planning to enhance skills and employee development. | Diversity & Inclusion to stimulate fresh thinking. Performance in 2025 | A new Group intranet, Connect2, was launched on Microsoft SharePoint, providing a central hub for communication, knowledge sharing and collaboration across all sites. | Our overall employee engagement score rose to 79%, up from 72% in 2022. | 14,600 hours of training were delivered and we broadened our suite of learning resources. | Strengthened our award-winning apprentice programme. | Launched a Group-wide skills mapping initiative to give a clear view of current capabilities and gaps. Priorities for 2026 | High employee engagement rates at every site and level. | Talent attraction and retention. | Employee development to support business and career growth. | Diversity & Inclusion to expand the talent pool and stimulate fresh thinking.

Priorities | The health, safety and wellbeing of all stakeholders. | Reduced environmental impact across operations, supply chains and customers. | Actively supporting and investing in our communities. Performance in 2025 | Our Total Recordable Incident Rate (TRIR) was 3.9 in 2025, a 24.3% decrease on the prior year. | Tangible progress was made in reducing carbon intensity, down 22.3% since 2021. | A total of 56 Biodiversity Net Gain projects were completed in 2025. | Supported 95 different charities, community projects and environmental organisations and participated in 223 activities. | Oxford headquarters underwent a major renovation, which will further improve energy efficiency. | 80% of employees agreed that wellbeing is a priority at Lucy Group, 3% above the manufacturing benchmark. Priorities for 2026 | The health, safety and wellbeing of all stakeholders. | Reduced environmental impact across operations, supply chains and customers. | Active involvement and investment in communities. | Products that enable the transition to net zero.

Priorities | Bold thinking to meet changing customer needs. | Digitalisation and AI to enhance value across customer offerings and business operations. | Data capture and integrity, countering cyber risk. Performance in 2025 | Microsoft D365 was rolled out across several businesses, unlocking greater integration, visibility and control across finance, planning and shopfloor operations. | Lucy Zodion’s standard-setting Hawk3 streetlighting photocell was awarded a ‘Build Back Better Green Award’. | Continual improvements to cyber security in response to increased threats, including ongoing employee cyber training. | D365 Field Service Management went live at Lucy Electric Energy Services, improving scheduling, visibility and service execution. Priorities for 2026 | Bold thinking to meet changing market needs. | Differentiation to counter increased competition. | Digitalisation and agentic AI to enhance value across products and operations. | Reimagined supply chains – smart, agile and resilient.

KPI Key

1

Sales growth

2

PBT growth

3

Return on net assets

Total Recordable Incident Rate (TRIR) Occupancy rate for rental properties

4

5

6

tCO 2 e

Employee engagement score

7

Link to KPIs 1 2 3

Link to KPIs 1 2

Link to KPIs 7

Link to KPIs 4 6

Link to KPIs 1 2 3

For more information on Key Performance Indicators (KPIs) see pages 26 to 27.

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Lucy Group Ltd Annual Report & Accounts 2025

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