LucyGroup-ARA2024_spreads web ready_FINAL

BUSINESS REVIEW – LUCY CONTROLS

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Sustainability Our products are designed to help our customers achieve a more sustainable future by saving energy and, thereby, reducing carbon emissions. Our focus continues to be on the skills and the organisation needed to develop technology to support the key global trends of electrification and energy efficiency. In our own operations, Lucy Controls made further strides in reducing our carbon intensity, including the expansion of solar panels at our Sowerby Bridge site and a new solar power installation at our Ponteland site. Such operational improvements have resulted in a 64% decrease in emissions intensity from 95 tCO 2 e/£m in the base year of 2021 to 34 tCO 2 e/£m in 2024. We also achieved a notable reduction in energy intensity, with kWh consumed per million pounds of turnover decreasing by 19% since 2023. Operational activities At Flashnet, we expanded manufacturing facilities and the warehouse, investing in automation across each product category to more than double production capacity. We have begun the rollout of Microsoft D365 in Flashnet; scheduled to go live this year, all three Lucy Controls businesses will then be on the same software platform, bringing benefits for the individual businesses as much as for Lucy Controls’ management. At Lucy Zodion, we are completing the £2.2m factory expansion at Sowerby Bridge which, from Q2 2025, will add 11,000 sq ft of extra manufacturing capacity to support the growing UK EV market. At Lawson Fuses, further improvements were made in our manufacturing plants, both in the UK and in India. As well as investing in automation, we have an unrelenting focus on quality control, as most of our OEM customers rely on certified components to build products that meet stringent regulatory requirements.

Our people With my new appointment as CEO of Lucy Controls, plans are being put in place to upscale all three businesses. For this to be successful, we must continue to attract, retain and build the right talent, particularly across electrical engineering and sales disciplines. We are therefore conducting extensive workforce planning exercises to help deliver strategic growth plans, including organisational structures, career pathways, training, upskilling and In Flashnet, our geographic spread and footprint is growing and will continue to expand in 2025 as we target high demand markets, although expected tariff increases on imports may impact sales into the USA. The focus will be on innovation that integrates the latest IoT communications and energy technologies into reliable and cost-effective hardware and software solutions. At Lucy Zodion – despite difficult UK market conditions – we continue to consolidate the strength of our core street lighting business, working alongside Flashnet to access the UK smart lighting market. recruitment. Outlook

In the EV charging infrastructure market, we have a strong capability for supply in the UK and new hirings for an EV-focused sales force. Although the market for rapid and super charging did make further progress in 2024, 2025 is expected to be stronger. With the new factory extension in place, we will pursue long-term growth, working closely with Lucy Electric. For Lawson Fuses, we will continue to develop the business model, prioritising new product development, operational efficiency and value engineering. Each business within Lucy Controls addresses both mature markets and markets with strong growth potential. With further product development, we believe that we can build on this year’s progress, while being mindful of fierce competition and a challenging trading environment.

reinforced by being recognised as the world’s third largest player in the smart street lighting market, with our 2023 deployments representing 6% of the global market, according to analysis from market intelligence firm Northeast Group. Lucy Zodion Despite the limitations of local government budgets in the UK, performance in the UK street lighting market was above last year, with solid hardware sales. To support this, we have been investing in photocell technology and, in early 2025, we will be launching an important new product that offers improved energy efficiency with an extended lifespan. On the electric vehicle (EV) charging side of the business, we launched a new fully certified low-voltage EV feeder pillar for higher-power-rated charging. This will help us cement our solid presence and put us in a strong position to serve the growing UK market, which continues on an upwards curve. We have expanded the sales support team and operational capacity to increase market penetration and have attended several trade shows, including the London EV show, the UK’s largest electric vehicle exhibition. Lawson Fuses Financial performance significantly improved compared with 2023. We had a strong performance in the domestic market, whereas international sales were behind target. Additional sales resources in key international regions are already helping us understand market and customer requirements and are expected to bring growth in 2025. 2024 saw increased focus on the product development pipeline. We introduced additional products in 2024 and further product introductions are planned for 2025.

Steve Currie CEO Lucy Controls

“ Lucy Controls had an encouraging year and we remain optimistic about our markets’ future growth prospects. ”

Steve Currie CEO, Lucy Controls

In 2024, Lucy Controls grew revenue by 25%, with a particularly strong performance from Flashnet. The three businesses serve growth markets for electrification and energy efficiency, as well as the mature street lighting and the broader electrical markets.

20 March 2025

commendable performance in operations ensuring a record volume of high-quality product shipped to customers across the globe. Building on our strong footprint in Europe, for example, Flashnet is a key supplier on the contract to modernise 400,000 streetlights across Belgium’s highways. After penetrating the US market with an initial contract in Washington DC, Flashnet has secured major new project wins and gained real traction in the US market. Flashnet’s interoperable infrastructure has garnered interest from hundreds of cities looking to build smarter, more connected urban environments. This year, our market standing was

Flashnet 2024 saw very strong growth in Flashnet’s smart lighting offering, with successful international expansion. The year was notable for a substantial increase in product sales, with a

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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