LucyGroup-ARA2024_spreads web ready_FINAL

REPORT OF THE DIRECTORS

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Investment property The Group’s investment property is included in the Statement of Financial Position at fair value, after taking independent professional advice. Changes in fair value during the year are included in the Income Statement. Property occupied by the Group Properties that are occupied by the Group are included in the Statement of Financial Position at book value and, in the Directors’ opinion, the fair value of these properties is similar to their book value. Events since the balance sheet date No significant events have occurred since the year end. Business reviews and future developments Business reviews and future developments impacting the Group are disclosed in the Strategic Reports. Employees, policies and engagement Details of the average number of employees are set out in the financial statements. We promote an inclusive workplace and, as such, our employment policies are designed to respect employees’ human rights, ensure equal opportunity, and promote diversity, including for disabled persons. Details of the Group’s goal and performance on employee engagement are set out in the Key Performance Indicators section of this report. We value the commitment of our employees and continue to communicate with them about Details of how the Directors continue to build business relationships with suppliers, customers and others are in the section on Relations with Stakeholders. Health and safety We are committed to health and safety best practice as an integral part of our business activities. Good health and safety management safeguards our employees and those who may be affected by our activities. It also supports the Group in achieving its business objectives. Corporate governance The Corporate Governance Report is on pages 70 to 75 and is incorporated by reference into this Directors’ Report. The Board sets the tone for the way in which the Group operates and is committed to running the business responsibly. the development of the business. Business relationships

Close Company provisions The Company is a close company within the meaning of the

The Board considers current performance, strategy and acquisitions, risk management and internal controls continually. Executive management disseminates the values and standards of the Board throughout the Group. Research and development The Group’s policy is to invest in innovation and development at a level that ensures it retains and enhances its market position. Slavery and human trafficking statement The Group has published an updated slavery and human trafficking statement for the year ended 31 March 2024 pursuant to section 54 of the Modern Slavery Act 2015. The statement sets out the steps that the Group has taken to address the risk of slavery and human trafficking occurring within its own operations and supply chains. This statement can be found on the corporate website at www.lucygroup.com GHG emissions and energy consumption Information on GHG emissions and energy consumption is set out in the Key Performance Indicators on pages 30 to 31. For compliance purposes, we are required to disclose the GHG emissions of Lucy Electric UK Ltd (LEUK), a UK subsidiary which is a large company. The emissions were 2,498 tCO 2 e in 2024 and include Scope 1 (direct), Scope 2 (energy indirect) and Scope 3 (other indirect) figures and those associated with Lucy Electric EMS employees based at the LEUK Thame facility. Gas usage equated to 221,250 kWh and Transport Fuels to 11,632.97 kWh. Electricity usage was down by 10.7% to 624,500 kWh, equating to 6.26 kWh/£k sales, a 21.1% decrease in 2024 against 2023 data, with a 6.8% increase on tCO 2 e/£m turnover. Financial instruments Information on the Group’s use of financial instruments, including financial risk management, the objectives and policies of the Group, and the exposure of the Group to certain financial risks, is in the Group Accounting policies on pages 91 to 98 and Note 26 on pages 114 to 117. Donations Total charitable donations during the year were £111.2k (2023: £86.4k). These comprised £75.8k for community projects (2023: £36.8k), £2.0k for educational projects (2023: £7.5k) and £33.4k for other projects (2023: £42.1k). No political contributions were made (2023: £nil).

The Directors present their report on the affairs of the Group, together with the audited accounts for the year ended 31 December 2024. Directors Membership of the Board is set out on pages 68 to 69. The current Directors served throughout the year, with the exception of Michael Dick, who was appointed to the Board in May 2024. Financial results The financial results can be found in the Financial Statements section of this report on pages 84 to 129. Dividends The Board recommended a final dividend of 179p per share which, taken together with an interim dividend of 122p per share, gives a core dividend payment of 301p per share for 2024. This dividend will be payable on 1 May 2025, subject to shareholder approval at the Annual General Meeting on 24 April 2025. There was a special dividend of 600p per share paid on 5th December 2023, reflecting the Group’s strong performance. The following charts show dividend payments paid and proposed over the last ten years. The 2019, 2020 and 2021 numbers have been normalised to remove the impact caused by the Covid-19 pandemic on the timing of dividend payments. Dividends paid and proposed

Income and Corporation Taxes Act 1988. Directors’ liability insurance

As permitted by the Company’s Articles of Association, Directors’ and officers’ liability insurance was maintained throughout the financial period. Disclosure of information to Auditors Insofar as the Directors are aware: • there is no relevant audit information (information needed by the Company’s Auditors in connection with preparing their report) of which the Company’s Auditors are unaware, and; • the Directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Company’s Auditors are aware of that information. External Auditors Wenn Townsend have expressed their willingness to continue in office as Auditors of the Company and, in accordance with section 485 of the Companies Act 2006, a resolution proposing their reappointment will be put to the members at the 2025 Annual General Meeting. By order of the Board.

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Madeline Laxton Company Secretary

20 March 2025

Pence per share (p)

2016 2017

2015

2018 2019 2020 2021 2022

2023

2024

Special dividend

Dividend

RPI vs year-on-year core dividend growth

70

60

50

40

30

20

10

0

2015

RPI % increase 2016 2017

2018 2019 2020 2021 2022

2022

2024

Dividend % Increase (excluding special dividends)

76

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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