LucyGroup-ARA2024_spreads web ready_FINAL

CHAIRMAN’S STATEMENT

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

showed an improvement over last year’s results, while strengthening the sales organisation and supply chain. In Real Estate, Lucy Properties enjoyed another excellent year, with healthy rental income and occupancy levels in a market with strong demand. In contrast, Lucy Developments had a difficult year in a weak market for house sales. With development land in short supply, the business is looking to take on larger sites to provide economies of scale. Dividend The Board recommends a final dividend of 179p to be paid on 1st May 2025 which, including the interim dividend of 122p per share, represents a full-year core dividend of 301p (2023: 286p). In addition, a special dividend of 600p per share (2023: 300p per share) was paid in December 2024. Strategic developments This year we have made major investments in manufacturing capacity, as well as in plant, equipment, and data collection. Building on the implementation of Microsoft D365 in previous years, we are deriving benefit from its rich functionality as we broaden and deepen its use across the Group. Lucy Electric relocated and significantly enhanced its production facilities in Saudi Arabia, with a major capital investment in support of the government’s drive for increased manufacturing within the country. Officially opened in September, the new site will enhance Lucy Electric’s manufacturing capacity and create job opportunities for Saudi nationals, supporting the country’s Saudization goals. Meanwhile, the extension to our factory in Vadodara, India, will ensure we can meet an increasing demand for product components. We also commenced a large expansion at our Sowerby Bridge site, which from Q2 2025 will add manufacturing capacity as we continue to grow our presence in the EV infrastructure market.

I believe very strongly in supporting and encouraging our many charitable initiatives, which are very much inherent in our business ethos. Across the Group, we undertook 200 such projects this year, with every business location involved in community investment and volunteering. I am particularly pleased that Lucy Electric won the Social Value category award at the inaugural Scottish and Southern Electricity Networks (SSEN) Supplier Sustainability Awards. We are committed to ensuring a robust framework for good governance across all areas of the Group’s activities. We continued the roll-out of the Leading Responsibly framework we adopted last year, a set of clear policies and processes that enable our businesses to operate more independently, yet within a broader Group governance framework. Outlook Lucy Group is well positioned to weather economic uncertainty and take advantage of growth markets. However, competition is increasing in several of our key markets, putting pressure on margins, which is likely to impact future performance. Additionally, it is yet to be seen what further uncertainties may emerge from ongoing international political situations and policies. With a healthy financial position, we can continue to evaluate the potential of additional strategic acquisitions to support growth. 2024 has been an exceptional year and, for this, I would like to extend my thanks to our hard-working employees, on whose talents we rely. As long as we remain agile in response to changing market requirements and able to exploit our key strengths, the future for Lucy Group remains very positive.

Richard Dick Executive Chairman

Thames Valley 250 award winner Richard Dick won the ‘CEO of the Year (over £50m)’ award at the 14th annual Thames Valley 250 Awards event, which was held at Easthampstead Park, Wokingham on the evening of 8 October 2024. The judges said: “It is the ability to continually innovate and evolve the business over such a long period, led by Richard, that makes Lucy Group stand out.”

This year, we have strengthened the senior management in both Lucy Real Estate and Lucy Controls, and appointed Michael Dick as an additional Non-Executive Director for the Lucy Group Board. Employing and developing talented people is the key to success, and we aim to be an outstanding career choice for the best in our industry. Therefore, we continued to invest in training programmes across the Group, to set individual objectives and to measure performance. We piloted a Future Leaders programme in Lucy Electric, which we intend to extend to all businesses. As a measure, our Group wide engagement survey score stands at 78%, with our goal being to score above 80% and remain within the top 10% of our peer group. ESG Sustainability is integral to our purpose. I am pleased that so many people across the Group are engaged with environmental initiatives, whether increasing solar power and LED lighting or decreasing non-recyclable waste. Our carbon intensity levels are decreasing, but our absolute emissions have in some cases risen due to the expansion of the business. Nevertheless, our aim remains to continually reduce absolute emissions as rapidly as possible.

In product development, Lucy Electric launched its new generation of Ecotec environmentally friendly (synthetic air) ring main units at a very successful open day for customers at Silverstone - first orders are now being received. Last year, we acquired the assets and IP of Fundamentals’ AI and machine-learning business, which is now helping to establish digital solutions as a key competency. Lucy Zodion expanded their EV feeder pillar range to address the higher energy applications required by super rapid charging hubs. Lawson Fuses continued to develop its product pipeline and launched a time-delay fuse, a very specialist protection device used mainly in ring main units. It was also very rewarding this year for Lucy Real Estate to be presented with the Oxford Preservation Trust’s New Buildings Plaque for the redevelopment of the former Jericho Health Centre. People We have developed a strong culture across the Group, which is a challenge for a multinational business based in Oxford and employing people across several continents in widely differing environments. To enable this, our management and communication teams have worked hard to ensure a sense of cohesion and common purpose. To help our understanding as a Board, the Directors continue to make UK and overseas visits to talk to people first-hand about their own businesses and the Group.

“ It has been a strong year in which we have delivered a robust performance in competitive markets. ”

Welcome to Lucy Group’s Annual Report and Accounts for the year ending December 2024. During the year, we achieved our highest yet turnover of £409m (2023: £359m) and profit before tax of £85m (2023: £59m). On the back of robust performances in the preceding four years, we have made substantial investments in new facilities and manufacturing capabilities, while continuing to generate a very positive cash flow.

enabled our key plants to operate very efficiently. Our customer focus continues to be a key contributor to success, as exemplified by the ‘Utilities Partner of the Year’ accolade awarded to Lucy Electric this year by Utility Week. Lucy Controls grew its revenue by over 25%, principally because Flashnet again more than doubled sales, cementing its position as a leading player in the global smart street lighting market. Despite low council spending, Lucy Zodion managed to increase sales in the UK street lighting market, as well as making modest progress in the UK EV charging infrastructure space. Lawson Fuses

Performance The Group is therefore in a strong financial position, with net assets of £394m, which provides a foundation for strategic investment decisions in pursuit of continued growth. We take a long-term approach designed to care for our customers, reward our employees and deliver returns for our shareholders. With the global trend to electrification and increased demand for digital solutions, Lucy Electric achieved excellent results overall, despite weak demand in some regions. We benefitted from relatively benign raw material costs and high volumes

Richard Dick Executive Chairman

20 March 2025

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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