Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Encouraged use of video conferencing to reduce printing waste; used recycled products and recycled waste; returned obsolete components to suppliers for recycling; used low CO2 emission vehicles and provided charging points; outsourced US manufacturing to reduce transport needs.

Social Achievements

• Provided equal opportunities to all employees; accommodated flexible working patterns; offered SAYE scheme and LTIP shares; mandatory online health and safety training; offered private medical scheme with counselling.

Governance Achievements

• Adopted the Quoted Companies Alliance 2018 Corporate Governance Code; complied with environmental regulations, labour laws, financial regulations and customer data privacy; detailed anti-bribery and anti-corruption policy; required all senior management and sales executives to certify compliance.

Climate Goals & Targets

Environmental Challenges

• Lack of further significant orders from US Customs and Border Protection (CBP) in 2024 due to US Federal budget stalemate; challenging market conditions in Retail Distribution in 2024 due to macroeconomic headwinds; slow progress in achieving accreditation for passenger checkpoints in the US Aviation market; ineffective indirect sales routes to market; availability of capital and cash flow; supply chain issues; intellectual property protection; competition; manufacturing capacity.

Mitigation Strategies

• Reallocated sales resources away from CBP to accelerate revenue growth elsewhere; maintained sales resources at 2023 levels but redirected towards working with strategic sales partners; worked closely with TSA regarding accreditation; invested in recruitment of sales leadership with experience in building indirect sales strategies; completed a £3.2 million equity fundraise; carefully managed key supplier relationships; retained patent attorneys; maintained a careful watching brief on competitors; outsourced subsystems to third parties and engaged manufacturing partners; relied upon intellectual property protections.

Supply Chain Management

Responsible Procurement

• Optimised supply-chain management to better manage working capital needs; redesigning products for ease of assembly and reduced manufacturing and support costs; carefully manages its key supplier relationships and aims to ensure steady order flow with medium-term order visibility to maximise availability of key parts; All key parts are made in either the UK or US; Where necessary, the Group may elect to use its cash resources to purchase a sufficient volume of specific components in order to maintain forecast production levels.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code