LucyGroup-ARA2024_spreads web ready_FINAL

NOTES TO THE ACCOUNTS CONTINUED

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

24. Pensions continued

24. Pensions continued

Period to 31 Dec 2025 £000

Period to 31 Dec 2024 £000

Period to 31 Dec 2023 £000

Projected Profit & Loss account for next period

Change in value of the DB liabilities

Current service cost Administration costs Interest on liabilities Interest on assets

336 501

Defined benefit obligation at start of period

49,295

48,437

379

Current service cost

369

2,402

96

Contributions by Scheme participants

95

(3,384)

143

Past service costs Interest on liabilities

–

Total charge to Profit and Loss

(145)

2,248

2,338

(3,057)

Benefits paid

(2,531)

The above estimate is based on the assumptions adopted at the review date and assumes the following: i. Cash flows to and from the pension scheme are broadly the same as for the current period. ii. There are no events that would give rise to a settlement, curtailment or past service cost.

–

Change due to settlements and curtailments

–

137

Experience loss on liabilities

868

(95)

Changes to demographic assumptions Changes to financial assumptions

(1,766)

(3,209) 45,937

1,485

Defined benefit obligation at end of period

49,295

2024 £000

2023 £000

7,352

End-of-service benefits for non-UK businesses

6,458

Period to 31 Dec 2024 £000

Period to 31 Dec 2023 £000

End-of-service benefits represents a statutory gratuity payable to UAE, Saudi Arabia and India based employees on leaving the Company. In Saudi Arabia and India, actuarial valuations are carried out at the end of each reporting period and the valuations are £1,534k (2023: £1,308k) in Saudi Arabia and £152k (2023: £160k) in India. 25. Borrowings The Group’s committed loan facilities at the year-end were £43.0m, and these were utilised as follows:

Reconciliation of net defined benefit liability/(asset)

Net defined benefit liability/(asset) at start of period

(16,370)

(14,732)

379 143

Current service cost

369

Past service cost & settlement and curtailment cost

–

(768)

Net interest expense (income)

(737) (945)

(1,625)

Remeasurements Administration costs Employer contributions

501

223

(452)

(548)

2024 £000

Net defined benefit liability/(asset) at end of period

(18,192)

(16,370)

Facilities

Repayable

Revolving facilities Secured £23m revolving multi-currency loan at 1.40% above SONIA Secured £20m revolving multi-currency loan at 1.50% above SONIA

Approximate effect on liability £000

11,808

31 March 2027 31 March 2028

–

Other Exchange loss on foreign currency borrowings

Sensitivity of the value placed on the liabilities

221 12,029

Discount rate Discount rate -0.50%

2,594

Inflation Inflation +0.50%

Security The two revolving loan facilities are secured against specific freehold properties valued at £53.5m in 2020.

1,142

Salary increases Salary increases +0.50%

202

2024 £000

Mortality Increase long-term mortality improvement rate to 1.50% p.a. Increase initial addition parameter to 0.25% p.a. Decrease 2022 and 2023 weight parameters to 0%

Revolving facilities drawdown and interest

227 407 505

The amount of loan drawdown at 31 December 2024 was £12.0m, split as follows: US dollar $6.2m loans at variable rates of interest

3,718 4,977

Thai Baht THB 160m loans at variable rates of interest South African rand ZAR 78.7m loans at variable rates of interest

3,334 12,029

2024 £000

2023 £000

Maturity of borrowings

–

In more than one but no more than two years In more than two but no more than five years

–

12,029

13,959

–

More than five years

–

12,029

13,959

112

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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