LucyGroup-ARA2024_spreads web ready_FINAL

NOTES TO THE ACCOUNTS CONTINUED

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

6. Finance income and costs

7. Tax on profit on ordinary activities continued Factors affecting future tax charges

2024 £000

2023 £000

At the balance sheet date, the Group has unused tax losses of £14.9m (2023: £23.2m) available for offset against future taxable profits. A deferred tax asset has been recognised on £19k (2023: £3.0m) of these losses as it is considered probable that there will be future taxable profits available in the Group. Deferred tax assets have not been recognised on £14.9m (2023: £20.2m) of these losses because it is not probable that future taxable profit will be available against which the Group can use the benefits therefrom. Estimates and assumptions, including uncertainty over income tax treatments The Group is subject to income tax in several jurisdictions and significant judgement is required in determining the provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. As a result, the Group recognises tax liabilities based on estimates of whether additional taxes will be due. These tax liabilities are recognised when, despite the Group’s belief that its tax return positions are supportable, the Group believes it is probable that a taxation authority would not accept its filing position. In these cases, the Group records its tax balances based on either the most likely amount or the expected value, which weights multiple potential scenarios. The Group believes that its accruals for tax liabilities are adequate for all open audit years based on its assessment of many factors, including past experience and interpretations of tax law. Uncertain tax positions of £0.2m exist as at 31 December 2024 (2023: £0.2m). This assessment relies on estimates and assumptions and may involve a series of complex judgements about future events. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact income tax expense in the period in which such determination is made. 8. Earnings per share The earnings per share have been calculated using the profit attributable to shareholders of Lucy Group Ltd as the numerator. This has been adjusted by a profit of £570k in 2024 (2023: £11k loss) to remove the profit attributable to the non-controlling interest.

Finance income

768

Pension finance income Income from investments

737

42

33

2,945

Interest received Other income

1,460

–

84

3,755

2,314

Finance costs Bank interest Lease interest

1,069

1,040

273 328

313 537

Foreign currency losses

65

Tax penalties Other expense

74

–

712

1,735

2,676

7. Tax on profit on ordinary activities

2024 £000 7,229 6,456

2023 £000 5,046 3,765 8,811

Current tax

Current year UK tax

Current year overseas tax Current year tax charge

13,685 (1,321) 12,364

Adjustments in respect of prior periods

10,762 19,573

Total current tax

Deferred tax Origination and reversal of timing differences Adjustments in respect of prior periods

673 160

1,016

(766)

2024 £000

2023 £000

–

Impact of rate change

(42)

101 934

Derecognition/(recognition) of previously recognised/(unrecognised) deferred tax assets

(816) (608)

Total deferred tax charge/(credit)

71,342

Profit on ordinary activities after taxation attributable to Lucy Group Ltd shareholders

40,534

492

Weighted average number of shares (000s)

492

Total tax on profit on ordinary activities

13,298

18,965

14,504p

Earnings per share

8,241p

9. Dividends

The difference between the total tax shown above and the amount calculated by applying the standard rate of UK Corporation Tax to the profit before tax is as follows:

2024 £000

2023 £000

2024 £000

2023 £000

Amounts recognised as distributions to shareholders in the year: Final dividend for the year to 31 December 2023: 170p (2022: 160p) per share Interim dividend for the year to 31 December 2024: 122p (2023: 116p) per share Special dividend for the year to 31 December 2024: 600p (2023: 300p) per share

836 600

787 571

85,210

Profit on continuing activities before tax

59,488

2,952 4,388

1,475 2,833

21,303 (1,161)

Tax charge at average UK Corporation Tax rate of 25% (2023: 23.5%)

13,980

Adjustments in respect of prior periods

9,995

880

Proposed final dividend for the year to 31 December 2024: 179p (2023: 170p) per share

836

–

Remeasurement of deferred tax due to rate change Different tax rates applied in overseas jurisdictions

(42)

(5,690)

(6,322)

759 101

Expenses not deductible

2,391

Derecognition/(recognition) of previously recognised/(unrecognised) deferred tax assets

(815) (567)

(978) (950)

Income not taxable

Losses not recognised for deferred tax

346

250

Deferred tax not recognised

(429)

(336)

Other

428

13,298

Group current tax charge for the period

18,965

100

|

Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

|

101