LucyGroup-ARA2024_spreads web ready_FINAL

RELATIONS WITH STAKEHOLDERS

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

The Board sets the Group’s strategic direction and manages its operational performance in the way most likely to promote the Group’s long-term success for the benefit of its members. An important part of this is engagement with key stakeholders and considering their feedback. In this section, we describe how and why Directors have engaged with stakeholders during the year. The Directors have had regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duties.

We define principal decisions as both those that are material to the Group and those that are significant to any of our key stakeholder groups. The Board considers that it has taken actions and decisions that, in good faith, are most likely to promote the success of the Group and are for the benefit of its members. It has considered feedback from its stakeholders as well as the need to maintain a reputation for high standards of business conduct and the need to act fairly between the members of the Company. Details of our engagement with respective stakeholders and the principal decisions made by the Board during the year are disclosed in the Strategic Report, including the sections on ESG and Governance, the Directors’ Report and the Corporate Governance Report.

Regulatory bodies and trade associations We operate in an environment that can be impacted by regulatory changes, so we engage with regulators and trade associations to assist with our compliance framework, training and new product development. This helps with the development of the Group’s strategic direction.

Shareholders We aim to maintain shareholder buy-in to and support for our strategic objectives and how we go about executing them. We create value for our shareholders by generating sustainable results that result in dividends, including, where supported by performance, the payment of special dividends. We want our investors to keep a long-term holding in the Company.

Communities and environment Doing business responsibly brings benefits for wider society and assists our commercial success. Details of our community engagement and what we do to promote sustainability are in the ESG section of the Strategic Report.

Customers In a highly competitive environment, our success depends on meeting customer needs more effectively than our competitors. Regular engagement with our customers, therefore, ensures that both our current products and those in development match what they expect and need.

Pensions The Group has to fund its defined benefit pension scheme and ensure that sufficient contributions are made to meet liabilities as they fall due. We recognise that ongoing engagement with trustees and professional advisers benefits both the Group and members of our pension schemes.

Lenders Access to external funding is important to the long-term success of our business. We therefore keep in regular contact with the Group’s lenders to ensure that there is adequate funding available both for the Group’s continuing operational needs and for our longer-term strategic development.

Suppliers Our suppliers are fundamental to the quality of our products and to ensuring that we meet the high standards of conduct that we set ourselves and comply with regulatory requirements. We rely on them to deliver on time and to the specified quality and standard. We collaborate with our suppliers to mitigate against, and provide solutions for, supply chain interruptions.

Employees The Company’s long-term success depends on the commitment and delivery of our strategy by our workforce and the consistent demonstration, adherence to, and development of our values. To maintain a competitive advantage and meet the ever-changing demands of the environment in which we operate, our workforce needs to be adaptive, flexible and constantly developing its skills to meet market challenges.

78

|

Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

|

79