Dstl Annual Report and Accounts 2024/25

Defence Science and Technology Laboratory

Annual Report and Accounts 2024 to 2025

On 1 July 2001, in accordance with the Statutory Instrument 2001 No. 1246, the Defence Science and Technology Laboratory (Dstl) was created on account of the separation of the Defence Evaluation and Research Agency (DERA); Dstl persevering with because the Trading Fund.

On 1 April 2017, in accordance with the Statutory Instrument 2017 No. 148, the Defence Science and Technology Laboratory Trading Fund Order 2011(S.I. 2011/1330) was revoked; Dstl persevering with as an Executive Agency throughout the ambit of the Defence vote however not working as a Trading Fund.

Performance

Our Performance Report particulars Dstl as an organisation, highlighting our technique, the principal dangers we face in our supply and the evaluation of our efficiency.

It is cut up into 2 sections: Overview and Performance Analysis.

These pages complement the element in our financial statements.

Chief Executive’s assertion

I’m happy to current this 12 months’s Annual Report and Accounts, reflecting on a 12 months of appreciable achievement, problem and transformation for Dstl.

We proceed to function in a risky and unpredictable world, the place the character of threats is evolving quickly. In this atmosphere, our potential to adapt, innovate and ship at tempo is crucial to making sure the UK maintains its strategic benefit. The contribution of Dstl’s Science and Technology (S&T) to nationwide defence and safety has by no means been extra very important – and I’m pleased with the position we now have performed making certain mission success now, and sooner or later.

2024 to 2025 has seen one other 12 months of great supply from Dstl inside tight monetary parameters.

I’m significantly pleased with the depth and breadth of Dstl’s enter into the Strategic Defence Review – with our experience shaping round 80% of the underpinning papers. This work has ensured that S&T stays central to UK defence posture. We additionally offered main enter to Defence Reform.

As we glance forward, Dstl grew to become a part of the National Armaments Director (NAD) Group in April 2025 – a transfer that additional embeds our experience throughout the coronary heart of the defence enterprise. This alignment will assist the Ministry of Defence (MOD) to acquire the correct and most cost-effective functionality, improve collaboration, drive efficiencies and strengthen our potential to tug by way of innovative S&T options that instantly assist the UK’s defence and safety priorities, at higher tempo.

We are additionally concluding a major organisational design and improvement transformation of our personal to make sure Dstl is finest aligned to the NAD Group. This will assist resolution making and higher acquisition in MOD and supply S&T alternatives that may present new or more economical methods to ship functionality, rising our agility and potential to ship at tempo. Building upon our newly applied technique, and our new working mannequin, our organisational design is concentrated on producing higher influence with our work, effectivity and a relentless concentrate on the supply of S&T. This will allow mission success, delivering in partnership with defence, trade and academia. We have already reshaped our government and senior management crew, and our portfolio supply workplace is enhancing alignment with defence priorities.

This previous 12 months has been a 12 months of great change throughout the Executive. I wish to thank David English and Matt Chinn for his or her service and management, and welcome Tim Sheldon and Simon Donnan to the crew. Their expertise and perception will probably be invaluable as we steer Dstl by way of this subsequent part of its improvement and search to make sure robust UK defence and safety by way of the S&T benefit we generate inside Dstl and with our companions in trade and academia worldwide.

Throughout this era, our folks have continued to ship with professionalism, dedication and outstanding resilience. I’m grateful to colleagues – and to our companions throughout defence, academia and trade – for his or her continued assist to our mission. Together, we stay targeted on delivering world-class science and know-how to guard the nation and safe our future.

Dr Paul Hollinshead

Chief Executive

14 July 2025

Directors’ report

In final 12 months’s report I recommended the magnificent achievement of Dstl delivering, for the primary time, over £1 billion of S&T. 2024 to 2025 has as soon as once more seen one other large contribution from Dstl, however within the context of a unbroken excessive degree of assist to operations.

The Board has targeted on making certain that crucial S&T capabilities have been protected, in addition to being assured that progress continues to be made in tightening up the general management atmosphere, with specific consideration on Health and Safety. The Board was additionally happy to notice the rising success of the ‘single front door’ by way of which demand for S&T is channelled. As a results of the one entrance door, Dstl has been in a position to avert expenditure by figuring out the place options can meet a number of calls for, or the place requests aren’t wholly in keeping with Defence priorities.

It has additionally been pleasing to notice the contribution Dstl has made to Defence Reform. Looking forward, from April 2025 Dstl has fashioned a part of the brand new NAD Group and thus will probably be effectively positioned to make sure that S&T performs an much more pivotal position within the nation’s defence and safety, in addition to being higher positioned to contribute to the anticipated future development within the defence trade.

None of this may have been potential with out the extraordinary work of greater than 5,000 individuals who work at Dstl, colleagues in MOD and its many companions and suppliers, who collectively be certain that S&T performs such an important position protecting our armed forces geared up with the very best options each now and for the long run. Particular thanks are as a result of Dstl Executive led by Paul Hollinshead, who’ve labored tirelessly to realize supply.

During 2024 to 2025 we stated farewell to one in all our long-standing Non-Executive Board members, Jeremy Monroe, to whom we prolong our thanks. In his place, we welcome Mark Barclay who joins us with a formidable array of defence trade expertise.

Adrian Belton

Chair of the Dstl Board

Who we’re and what we do

Dstl – delivering mission success by way of science and know-how benefit

Dstl is an integral a part of the MOD, specializing in delivering impactful S&T at tempo, serving to to resolve a very powerful challenges for UK defence and safety.

We moved into the NAD Group from April 2025, to be aligned with Defence Equipment and Support, the Defence Infrastructure Organisation and Defence Digital.

Our position is to produce specialist companies to MOD, the Home Office and throughout authorities utilizing proof and insights to form strategic choices, guiding our stakeholders to make knowledgeable decisions from the outset.

We use our networks and mix our understanding of UK defence issues, UK’s adversaries and S&T alternatives to seek out, develop and combine applied sciences to offer operational benefit for the entrance line – whether or not that be within the Armed Forces or for our safety and emergency companies, at residence and overseas. Our embedded Military Advisors present a vital conduit into acceptable navy areas to make sure that our work stays related, each to operational wants and the necessities of our prospects.

We work with colleagues throughout authorities to grasp the wants of defence and safety, with our important buyer being MOD. We collaborate to combine one of the best options, wherever they might be discovered, with academia, small companies and defence primes, serving to to generate financial development and prosperity by way of funding in abilities, innovation and infrastructure throughout the UK. Through focused worldwide analysis collaboration, we collaborate with our allies, leverage their work and burden-share challenges to succeed in joint and interoperable outcomes.

Some work should stay in authorities, equivalent to that of a delicate nature, or the place we have to guarantee collaboration with worldwide companions – and it’s for that objective that we should put money into our personal folks, who can present that experience and know-how, whereas working collaboratively throughout the S&T ecosystem.

As effectively as delivering scientific and technological benefit, Dstl additionally acts as an engine for financial development. Our work helps jobs throughout the innovation ecosystem with our distinctive companions in trade and academia. Through Ploughshare, Dstl-developed mental property is commercialised creating jobs by way of spinouts and licensees, contributing exports and gross worth to the UK financial system.

During 2024 to 2025 we continued to host DASA, the Defence and Security Accelerator, which finds and funds exploitable innovation to assist UK defence and safety rapidly and successfully, and assist UK prosperity. DASA seeks concepts from innovators small and massive and supplies assist to those that haven’t beforehand labored with Government.

Our potential to speed up know-how improvement to ship direct assist to operations is thru sustained long-term funding within the core S&T base, by way of our folks, capabilities and services. Our work on generation-after-next applied sciences will permit us to proceed to avoid wasting lives and defeat our adversaries for a few years to return.

Our plans for the long run – our technique

The Secretary of State for Defence has made it clear: as a nation we want to have the ability to deter, combat and win on this risky world. The Strategic Defence Review (SDR) has set the path to make sure defence is match for the long run, with Defence Reform offering the muse of how we are going to ship in opposition to that new path.

Dstl launched its 5-year technique in May 2023, primarily based on an appraisal of defence and safety’s challenges and the always evolving working atmosphere. Our technique units out the important thing areas or ‘strategic themes’ for Dstl to deal with defence and safety’s most necessary challenges and reply to the threats introduced by a know-how pushed future. Achievement of the 4 strategic themes will probably be underpinned by enhancements to Dstl’s organisation, by way of funding in its folks, property and IT, while persevering with to function safely and securely; enabling Dstl to place itself for the long run whereas delivering extra successfully in opposition to the necessities of the current.

Our said intent to ship mission success by way of S&T benefit and to concentrate on our stakeholders’ most necessary challenges is solely in keeping with the brand new path for defence. It is vitally necessary we proceed to ship and champion the influence of our nice S&T while these strategic conversations play out. Dstl will proceed to collaborate with colleagues throughout defence to make sure S&T is appropriately positioned within the new defence working mannequin. Our strategic themes and underpinning exercise will proceed to align with the priorities of the SDR as they emerge.

To ship its S&T and to realize its strategic themes, Dstl should proceed to evolve and work to take action is already underway:

Transformation programmes

Safety Reset is main enhancements to make sure everybody at Dstl operates safely always.
Supply Chain transformation to make sure we have interaction and collaborate extra successfully with trade and academia to develop the UK’s S&T functionality, resilience and financial system.
Operating Model/Organisational Design is altering how Dstl operates and change into higher structured to assist our Strategy. This will allow us to ship higher influence at elevated tempo, specializing in our stakeholders’ most necessary challenges.

S&T supply

Bolstering Support to Operations to ship high-impact and well timed assist to defence and safety’s high priorities.
Working to higher prioritise work and enhance exterior collaboration, to ship improved outcomes for defence.
An S&T Capability Strategy to construct a extra resilient S&T base, effectively balancing present operational necessities with future calls for.
Rebalancing our portfolio of labor to make sure we’re concentrating our useful resource in opposition to defence and safety’s high priorities.

People and infrastructure

The People Plan is specializing in supporting our workers to assist ship Dstl’s strategic goals.
Our native workforce planning exercise is ensuring we prioritise the correct folks, with the correct information and abilities to satisfy our S&T priorities.
A ten-year infrastructure plan to assist us prioritise our funding in crucial areas and collaborate with cross-government companions to seek out options.
A change to our organisational tradition drives us in direction of our imaginative and prescient of a ‘One Dstl’, serving to us collaborate and ship on our stakeholders’ most necessary challenges.

Dstl’s Strategy 2023 to 2028

Preparing for the long run

To preserve an operational benefit sooner or later, UK defence and safety will want new capabilities. This theme focuses on:

Dstl working on the coronary heart of delivering new capabilities and de-risking the long run built-in power with our industrial and tutorial colleagues, to ensure we now have obtained applied sciences that may matter – to make sure defence has the know-how it wants and has battle successful options for the long run.
Dstl’s information of S&T alternatives informing future power capabilities which can be genuinely new, exploiting novel know-how and innovation somewhat than merely upgrading legacy programs.
Providing accessible, various networks targeted on delivering modern, cost-effective and reasonably priced options to defence and safety challenges.
Enabling cost-effective entry to area of interest and crucial S&T capabilities, together with expert and succesful folks.

Enabling operational benefit at tempo

It’s crucial that UK defence and safety has the S&T it wants. This theme is about Dstl:

Providing S&T assist to operations at residence and overseas.
Integrating throughout the innovation ecosystem – helping customers to collaborate, discover and fund reasonably priced know-how options within the close to and medium time period.
Accelerating exploitation of S&T by way of higher experimentation, know-how demonstration, prototyping and assist for take a look at and analysis working throughout the defence Value Chain.
Having a higher concentrate on S&T assist to key capabilities and initiatives, together with Directed Energy Weapons (DEW) and the Global Combat Air Programme.

Leveraging and influencing internationally

To finest assist the UK’s defence and safety, Dstl must make finest use of its specialist information, abilities and networks. This theme focusses Dstl’s experience in leveraging peer to see technical exchanges to deliver collectively one of the best teams of individuals to resolve functionality issues and have a higher influence.

To do that Dstl must concentrate on:

Strategic affect constructed by way of focused worldwide analysis collaboration.
Securing entry to, and work-sharing in, allied programmes.
Burden sharing and mutual reliance to drive worth for cash and functionality profit.
Shared options to allow trusted, built-in allied partnerships.
Playing our position in making the UK a scientific chief and contributing to development.

Shaping the defence and safety panorama

To maximise the influence of S&T Dstl is actively supporting defence, safety and their companions to grasp present and rising threats and priorities and the optimum technique of answering them. It additionally means advising when Dstl and S&T aren’t getting used to finest impact in extant practices.

To do that Dstl will:

Work with our key stakeholders to make sure that defence and safety ask the correct questions and make cost-effective, proof primarily based choices on the proper time.
Work with our key stakeholders to make sure that Dstl is appropriately configured to offer defence and safety one of the best scientific abilities and experience and can present glorious scientific recommendation.

With targeted Dstl assist, defence and safety will:

Achieve worth for cash – by way of understanding of technical feasibility and deliverability.
Be agile, technologically-advanced departments harnessing S&T intelligence, impartial recommendation and constructive problem.
Have sooner modernisation by way of understanding, growing and exploiting new concepts.
Have extra innovation and cost-effective end-to-end supply by way of stronger collaborative partnerships.

Ensuring profitable supply

Risk is each inherent in our S&T actions and embarked upon to additional the science that helps UK defence and safety. Effective administration of those dangers helps to make sure the profitable supply of our aims. As an MOD organisation, we proceed to use MOD’s threat administration framework to our threat administration strategy. We have embedded threat administration practices into our planning and forecasts, minimising disruption that might be brought on by threats, in addition to maximising the exploitation of alternatives.

By proactively figuring out, assessing, and managing the dangers to the organisation, we enhance the boldness of our stakeholders, and permit Dstl to enhance its decision-making and take probably the most acceptable plan of action in pursuit of its aims.

Our Corporate Risks

Our Corporate Risks are these threats and alternatives that might influence the achievement of Dstl’s strategic aims. Management of Corporate Risks is delegated to the Executive Management Committee (EMC) with oversight by the Board. Through a means of threat deep dives, the Board and its Audit and Risk Assurance Committee (ARAC) undertake assurance of those dangers to assessment the effectiveness of present controls and threat response plans and guarantee the extent of threat carried by the organisation is inside each its tolerance and delegation. Further assurance is offered in quarterly reporting to the ARAC and reporting to our MOD sponsors.

A re-baselined Corporate Risk Register (CRR) was launched for the beginning of Financial Year (FY) 2024 to 2025, aligned with Dstl’s Strategy 2023-28, and updates to MOD’s Risk Management Joint Service Publication (JSP) 892. We apply MOD’s Risk Categories to our dangers, and the place relevant, there’s line of sight between our Corporate Risks and MOD’s Principal Risks. Preconditions equivalent to protecting our folks protected and safe, will stay enduring important parts of our CRR. The composition of our CRR was revisited by the Board on the finish of the FY, to make sure continued alignment with our strategic aims, and inside and exterior context. The impacts of upcoming contextual adjustments on our Corporate Risks will proceed to be monitored by our Executive Risk Owners.

Risk is outlined because the impact of uncertainty on aims. Global uncertainty and instability have solely elevated in 2024 to 2025. We proceed to see excessive ranges of battle; with additional uncertainty linked to geopolitical shifts with the potential of far-reaching penalties. It has change into extra necessary than ever that Dstl has proactive and strong threat administration in place, to mitigate and reply with agility to this risky exterior context.

Our Opportunity threat round strategic engagement ensures that our experience may be put to maximal use to generate influence and worth within the defence and safety ecosystem.

Managing our threat round prioritising our in-house S&T assets has ensured that Dstl continues to reveal our agility in offering specialist assist, in response to the continuing battle in Ukraine and wider geopolitical battle.

Our suite of Security dangers has been represented at Strategic degree, in an overarching Security threat, to make sure that current preparations retain senior oversight.

In spite of difficult circumstances introduced by ongoing MOD recruitment measures, we now have been in a position to make good progress in making certain our workforce form meets present and future necessities, with advantages to be embedded by way of our new Operating Model and Organisational Design.

A brand new Environmental Protection threat completes a set of Health, Safety and Environmental Protection Corporate Risks, and will stay in place while we monitor the implementation of a JSP-aligned Environmental Management System.

Risk	Outline controls and mitigations	Progress and adjustments in 2024/25
CR-CAPABILITY-1 – Loss or degradation of crucial nationwide S&T capabilities	Current controls to make sure the viability of distinctive S&T capabilities which solely Dstl can present, embrace sustaining Strategic Capability Plans, aggregated beneath the Dstl S&T Capability Strategy; and endeavor Capability Health Assessments, assured by way of the External Review Colleges.	Capability Stewardship roles have been embedded within the new Organisational Design. A assessment of the Capability Assurance course of is underway.
CR-ENVIRONMENT-1 – Environmental Protection Failure	Controls embrace layered protections in keeping with rules and laws relevant to the exercise in query; a programme of regulatory inspections; and sustaining onsite and offsite emergency response preparations.	We have performed a spot evaluation in opposition to JSP 816 (Defence Environmental Management System Framework) and launched actions to boost processes. We have recognized coaching and socialisation wants for Environmental Awareness Training.
CR-GOVERNANCE-1 – Ineffective management and governance to impact transformational change	Our Senior Leaders have shared aims linked to Dstl’s Business Plan to assist supply of the Dstl Strategy. Progress is monitored by way of common Executive Management Committee Performance conferences.	Executive roles and duties have been reviewed and up to date beneath our new Organisational Design. Our Leadership Strategy has been permitted and is designed to realize a ‘One Dstl’ strategy to management.
CR-INFO/CYBER-1 – Major data safety breach or loss	In line with MOD data safety protocols, Dstl has strong insurance policies, procedures and practices in place, to make sure that its data stays protected and inside its management. Layered controls are commensurate with the risk and the worth of Dstl’s data.	Cyber and data safety defences are frequently monitored, examined, audited and enhanced, to make sure they continue to be strong and proportionate.
CR-INFO/CYBER-2 – Failure to impact speedy Data transformation and allow underpinning S&T functionality	Digital and knowledge transformation governance buildings are embedded in our Organisational Design, to assist Dstl’s Data Strategy	Ongoing actions align with security and technical requirements, and a ‘secure by design’ strategy.
CR-INFRASTRUCTURE-1 – Key infrastructure part fails	Dstl’s infrastructure property are protected and enhanced through a programme of integrity and upkeep schedules and initiatives. Additionally, key infrastructure parts have related resilience plans and Dstl maintains strong Continuity planning preparations.	This threat is managed by way of life, as a result of different and advanced nature of Dstl’s infrastructure and its evolution. This is approached by way of an ongoing cycle of pursuing funding avenues to improve our infrastructure, and managing and sustaining the infrastructure we now have. During 2024/25, Dstl’s Business Continuity planning preparations had been validated by way of a phased cross-organisational train which occurred over 6 weeks.
CR-PEOPLE-1 – Workforce form not matched to present and future necessities	Dstl recognises its folks as our biggest asset and undertakes strategic workforce planning to make sure workforce capabilities assist enterprise wants. Outputs of Capability Health Assessments inform workforce planning actions.	Dstl has continued to undertake focused recruitment to prioritised roles, in response to Government / MOD recruitment controls. Implementation of the Pan-Defence Skills Framework is underway, as is improvement of enhanced Talent Development schemes. Our Reskilling and Redeployment course of has been reviewed, to align with our new Operating Model and Organisational Design.
CR-PORTFOLIO-1 – Inability to prioritise and focus Dstl’s in-house S&T assets	Dstl has a sequence of measures in place to offer a single, centralised and coordinated strategy (a ‘single front door’) for triaging and assessing the precedence for brand new work. This ensures that assets are appropriately balanced throughout new and current calls for	Dstl’s strengths on this space proceed to be extensively demonstrated by way of our ongoing response to the Ukraine battle and to pressing requests from Partners Across Government. Current developments to additional reinforce controls, relate to gaining enhanced insights from Management Information.
CR-REPUTATIONAL-1 – Poor recommendation and substandard merchandise / companies	Dstl prides itself on the standard of its outputs, ensured by the rigorous Technical Quality Assurance (TQA) of all formal S&T outputs. This is supported by the efficient contract administration and Technical Partnering of Dstl suppliers/sub-contractors. Various suggestions mechanisms, together with Customer Satisfaction Surveys, guarantee our exacting requirements are maintained.	Ongoing continuous enchancment actions embrace a assessment of TQA processes and coaching.
CR-SAFETY-1 – A failure in well being and security administration causes a life-threating harm to a employee	Dstl’s major precedence of making certain that each one work is undertaken safely, is ensured by appropriate and adequate Health & Safety Risk Assessments, and complete work procedures, carried out by competent, skilled personnel. The supply of hurt is designed out within the planning part wherever potential, to stop accidents and accidents. Regular monitoring and auditing processes present assurance that Health & Safety administration preparations are efficient and compliant.	In 2024/25, enhanced coaching has been delivered for these endeavor or authorising H&S Risk Assessments. In-person supply of ‘Safety Baseline Training’ was rolled out and is on monitor for supply to all personnel by early Q2 2025/26. Dstl’s Safety Assurance Plan has been developed
CR-SAFETY-2 – Major Health and Safety Event Harms the Public	Dstl protects the general public through efficient defence-in-depth engineered safeguards. These are assured by way of an inside regime of first and second occasion audits of working effectiveness and Health and Safety compliance. A Safety Argument (by way of a Safety Case or the applying of a Safe System of Work) is used for all high-hazard / advanced actions.	Tranche 2 of Dstl’s Safety Reset is underway and contains actions to embed a ‘learning organisation’ strategy and reinforce our controls to handle hazards.
CR-SECURITY-1 – Degradation of Dstl’s potential to ship crucial outputs	Dstl has strong bodily and personnel protecting safety measures in place to make sure that we function securely, in keeping with relevant coverage necessities.	Dstl’s safety preparations are always monitored, maintained, and strengthened.
CR-STRATEGY-1 – Influencing Dstl’s place within the Defence S&T ecosystem	Our distinctive positioning within the defence and safety enterprise permits Dstl to place the breadth and depth of our experience to maximal impact, to assist the knowledgeable exploitation of S&T. The controls on this Opportunity threat centre on coordinated strategic engagement actions, led by suitably expert personnel, to maximise the influence of our science and know-how.	In 2024/25, we now have additional cohered our strategy, to make sure that that each one stakeholders have a transparent pathway for accessing Dstl’s recommendation, merchandise and companies. As a part of our Organisational Design, we now have made provision for the Strategy and Strategic Engagement Team to work with the brand new Mission Partner Engagement (MPE) and Delivery Partner Engagement (DPE) Functions. It is anticipated that our transfer to NAD Group will present additional alternatives to maximise the influence of our experience.
CR-TECHNOLOGY-1 – Digital – Lack of digital funding (infrastructure, companies and SQEP)	Dstl takes energetic measures to deal with the rising reliance over time, on Digital Service to ship S&T and run the enterprise. These embrace our strategy to managing funding; Business Relationship Management to grasp and reply to the wants of the enterprise; and the alignment of Dstl’s Digital Strategy to the Defence Digital Framework.	Ongoing actions embrace a 6-monthly Digital Health report back to the Executive. Being occasion to the defence-wide upskilling of the workforce in Digital Skills, to align workforce abilities with strategic path.

Our efficiency abstract

Foreword

2024 to 2025 was the ultimate 12 months of the 4 12 months Spending Review settlement. Over the primary 3 years of the settlement Dstl grew to satisfy the elevated S&T demand, each by way of our routes to market and in our output (whole working earnings rising by 48% over the primary 3 12 months interval to a report £1,102 million in 2023 to 2024). Whilst earnings dropped 12% to £971 million, demand for Dstl’s scientific companies stays robust and integral to defence and safety. We have labored with companions in trade and academia to assist mitigate the influence, on long-term functionality within the wider S&T eco-system.

Our capital funding programme was additionally constrained and, in consequence, we targeted on alternative of kit and de-risking the security and safety of our crucial infrastructure.

Operating earnings

Total working earnings for the 12 months fell, from the report excessive set the earlier 12 months, by £131 million to £971 million (2023 to 2024: £1,102 million). The fall in earnings is basically in opposition to the MOD Core (CSA-funded) programme with supply constrained as MOD balanced its monetary place.

Our cost charges elevated by 7.5%, recognising the necessity for vital funding in our bodily and digital infrastructure in addition to continued underlying inflationary pressures. There had been no adjustments to charges and charging insurance policies. An evaluation of our key top-level buyer teams is about out within the desk beneath:

	2024/25	2023/24
	£ million	£ million
MOD:
Core S&T Programme	481	597
Other	422	430
	903	1,027
Non-MOD
Wider Government	56	52
Non-Exchequer	11	13
Total Customer Sales	970	1,092
Other Operating Income	1	10
Total	971	1,102

MOD accounted for 93% of the £970 million buyer contract earnings (2023 to 2024: 94%). Most of the MOD earnings is generated by the Core S&T Programme, which noticed vital development within the first 3 years of the Spending Review interval however was constrained on this ultimate 12 months with a ensuing £116 million discount to £481 million (2023 to 2024: £597 million). This programme now represents 50% of whole buyer contract earnings (2023 to 2024: 55%).

There was additionally a fall in Other MOD earnings, by £8 million all the way down to £422 million (2023 to 2024: £430 million). Demand for Dstl’s skilled S&T companies remaining buoyant throughout different key markets with funding prioritised to the tools programmes and assist to the Front Lines Commands:

Head Office (Non-Core Programme) supply was down £14 million to £126 million (2023 to 2024 £140 million).
Defence Equipment and Support (DE&S) supply elevated by £13 million, to £101 million (2023 to 2024: £88 million).
Business with the remainder of MOD, protecting the Front Line Commands (Air, Army, Navy and Strategic) and the Defence Nuclear Enterprise, fell by £7 million to £195 million (2023 to 2024: £202 million).

Non-MOD supply elevated by £2 million to £67 million (2023 to 2024: £65 million). Dstl continues to ship to a variety of UK Government departments, with the Home Office our largest buyer exterior of MOD. Non-Exchequer earnings relates primarily to collaborative and collectively funded work with our defence allies and alliances.
Other working earnings lowered by £9 million, to £1 million (2023 to 2024: £10 million). The discount is consultant of a change in funding coverage, whereby MOD prospects now switch Parliamentary provide to Dstl for the acquisition of S&T property, the place beforehand they had been procured by way of supply programme earnings. For additional data please see Note 3 of the Financial Statements.

External supply prices

External supply prices comprising subcontracted work and purchases of supplies and companies fell by 26% to £416 million (2023 to 2024: £562 million), representing 43% of all S&T work delivered within the 12 months (2023 to 2024: 52%). This fall in sub-contracted supply is instantly linked to the stress on the MOD Core CSA programme, the place funding was targeted on MOD’s highest priorities. We proceed to work collaboratively with our S&T companions to leverage innovation and align to our technique to boost and harness the S&T eco-system. As we transfer ahead into 2025 tp 2026 our new working mannequin comes into impact with the formulation of our new Mission and Delivery Partner Engagement features (MPE and DPE). The MPE operate will work intently with new MOD interfaces, created beneath Defence Reform, to form strategic path and guarantee we ship to the very best priorities in Defence and Security. The DPE operate will work with our companions in trade and academia to assist construct and preserve crucial capabilities within the S&T eco-system aligned to these priorities.

Operating bills

Operating bills elevated by £33 million to £624million (2023 to 2024: £591 million).

	2024/25	2023/24
	£ million	£ million
Staff Costs	374	365
Non-Staff Costs	178	150
Depreciation, Amortisation and Impairment	72	76
Total	624	591

Staff prices elevated by £9 million to £374 million (2023 to 2024: £365 million). Discounting the one-off Cost of Living Allowance cost in 2023 to 2024 at a value of £8 million the actual enhance is £17 million, which displays annual pay inflation of 4.5%.

Non-staff prices elevated by £28 million to £178 million (2023 to 2024: £150 million). Last 12 months non-staff prices had been lowered by launch of an £8 million accrual following a one-off beneficial evaluation of enterprise charges liabilities. In 2024 to 2025 we additionally made crucial funding in deliberate estates upkeep and new digital service provision. These important will increase and unavoidable inflationary pressures have been offset by financial savings measures throughout defence on discretionary expenditure.

Depreciation, amortisation and impairment prices are down £4 million to £72 million (2023 to 2024: £76 million). At £16 million property impairment price is down £15 million (2023 to 2024: £31 million) offset by different asset impairments of £4 million and elevated depreciation / amortisation expenses on new property. For additional data please see Note 12 of the Financial Statements.

Net working earnings/expenditure

Our earnings arises principally from expenses to prospects. Our MOD prospects are charged at charges representing the restoration of money working prices solely, in accordance with the division’s coverage for inside charging. Charges to Non-MOD prospects proceed to replicate full financial price and embrace a contribution in direction of our capital prices within the type of a price primarily based on a consultant proportion of capital spend. The proportion relies on estimates of projected gross sales to Non-MOD prospects on the time when budgets are finalised.

	2024/25	2023/24
	£ million	£ million
Operating Income	971	1,102
Costs of Sales – Direct Purchases	(416)	(562)
Other Operating Expenditure	(624)	(591)
Net Operating Income / (Expenditure)	(69)	(51)

The internet working expense for FY2024/25 is £69 million (2023 to 2024 £51 million). Excluding depreciation / amortisation expenses of £72 million and customer-funded (donated asset) earnings of £1 million the underlying internet working earnings is £2 million (2024 to 2025 £18 million), which displays the price on earnings from our Non-MOD prospects, offset by pressures created, but effectively managed, by the general retraction in MOD earnings.

Capital funding

Capital funding was £51 million (2023 to 2024: £52 million), which included £1 million of property both funded by MOD prospects or donated by different authorities departments.

Site rationalisation has featured considerably in our capital funding supply lately however since leaving the Fort Halstead website in 2023 to 2024 and finishing registration of the ultimate related new constructing into service at Porton Down in 2024 to 2025 we see a deliberate rebalance to the portfolio, aligning to our technique to put money into our bodily and digital infrastructure.

Key investments had been made to our infrastructure to make sure protected and safe working, and we continued to make acquisitions of latest specialist scientific tools to boost our capabilities. Some deliberate investments had been postponed to future monetary intervals as a part of compromises to assist steadiness the MOD monetary place.

Across the portfolio we invested: £16 million on IT, £16 million on our bodily property and £19 million on Laboratory Equipment.

Funding and treasury administration

We are fairness funded by MOD as defined within the monetary statements and accompanying notes. The funding requirement arises from a mix of money and non-cash transactions. We function throughout the departmental management framework as described within the Parliamentary Accountability and Audit Report. We obtain money instantly from Non-MOD prospects and retain duty for settling exterior liabilities apart from payroll, which is funded instantly by MOD. This offers rise to a internet money outflow that’s funded by MOD Treasury.

Supplier funds

During the 12 months, we paid 98% of invoices inside 5 days of being permitted and cleared for cost (2023 to 2024: 93%), in opposition to the goal set by authorities of 80%.

Distorting elements

There had been no vital distorting elements affecting our major monetary statements. A full clarification of our accounting insurance policies and different explanatory data may be discovered throughout the notes to the financial statements. We proceed to arrange our monetary statements on a going concern foundation primarily based principally on funding projections from our dad or mum division.

Events after the reporting date

There have been no vital occasions for the reason that finish of the monetary 12 months that have an effect on the outcomes for the 12 months or the year-end monetary place, or which can be more likely to have a cloth influence on future efficiency.

Accounting insurance policies

These accounts have been ready beneath International Financial Reporting Standards (IFRS), as tailored for the general public sector within the Government Financial Reporting Manual (FReM), issued by His Majesty’s Treasury. There had been no new accounting or reporting requirements adopted in 12 months.

The possible influence from future adoption of latest accounting and reporting requirements, are outlined in Note 1 to the monetary statements.

Financial outlook

Our core objective and position stay unchanged as a provider of S&T companies to defence and safety prospects, primarily inside Government. We proceed to function principally in specialist areas the place there are sometimes few personal sector suppliers or no efficient industrial market.

Under Defence Reform, Dstl turns into a part of NAD Group with impact FY2025/26, uniting MOD’s supply organisations. Working collectively as one group will make us extra environment friendly and strengthen our programs. It will drive nimble innovation, speedy procurement, sustained development, and make us a greater accomplice to the defence enterprise. Whilst Dstl’s principal operations is not going to change there’s ongoing assessment on how the entities within the group will function and interface sooner or later.

We proceed to work with MOD, as our sponsoring Department, to make sure our future funding necessities are funded as a part of the Spending Review 2025 that may safe funding for the subsequent 4 years.

Measuring how we’re doing

Performance reporting

Dstl’s efficiency is systematically monitored by way of a month-to-month Corporate Performance Report, reviewed by the EMC and evaluated throughout quarterly EMC Performance conferences. The Dstl Board additionally assesses efficiency at each assembly, monitoring progress in opposition to aims, together with KPIs. To strengthen reporting processes, Dstl continues to collaborate with the Board and its MOD Sponsor.

This framework integrates each present and forward-looking efficiency assessments, permitting well timed interventions to make sure the achievement of KPIs and strategic objectives.

Beyond KPIs, Dstl repeatedly tracks a broader set of Performance Measures (PMs). Collectively, these KPIs and PMs supply a complete view of efficiency, enabling knowledgeable decision-making in any respect organisational ranges. Dstl, in partnership with its MOD Sponsor, Board, and Defence Science and Technology (DST), determines and agrees the KPIs that measure organisational efficiency.

For 2024 to 2025, Dstl established formidable however achievable KPI targets. Achieving the agreed targets introduced challenges all year long, as mirrored within the efficiency outcomes. Of the 6 KPIs:

one (Safety) efficiently met its goal
three (Delivery, People and Enabling Cost) remained throughout the accepted tolerance vary
two (External Delivery and Delivery per Fixed Term Equivalent (FTE)) fell wanting their targets as a result of exterior elements past Dstl’s management

KPIs

	What we measure (KPI)	2024/25 Target	2024/25 Achieved
How effectively are we delivering to our prospects?	Delivered to agreed date of S&T Programme milestones	>85%	82%
Are we protected and safe?	Fewer than 140 RIDDOR accidents, per 100,000 staff		77.4
Do we now have the enablers in place to ship S&T?	Level of Employee Engagement, by way of the completion of the People Survey	60%	58%
Are we changing into extra environment friendly?	Average S&T delivered per Full Time Employee (at Dstl degree)	£200k	£189k
	EMR (Extra Mural Research) spend (sub-contract solely), as a share of the Total Cost of Sales	>37.1%	34.9%
	Enabling Cost, as a share of the Overall Cost		22.6%

Key Performance Messages 2024 to 2025

How effectively are we delivering to our prospects?

Delivery of S&T Programme outcomes benefiting defence and safety from the baseline portfolio plan.

This 12 months, Dstl achieved 82% of its reported S&T programme milestones on time, falling simply wanting the 85% goal.

Are we protected and safe?

Fewer than 140 RIDDOR accidents, per 100k staff.

In 2024 to 2025, there was a complete of 6 RIDDORs (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations). Each incident stemmed from distinct and unrelated occasions.

The total RIDDOR incident charge associated to non-public harm was 77.4 per 100,000 staff, remaining beneath the KPI threshold of 100. The equal frequency charge was 0.04. This marks a optimistic enchancment from the earlier 12 months’s charge of 95.5 per 100,000 staff, indicating a beneficial pattern in security efficiency in opposition to rising engagement.

Do we now have the correct enablers in place to ship S&T

Level of worker engagement

The outcomes from the 2024 to 2025 annual People Survey confirmed Dstl’s engagement index at 58%, barely beneath the KPI goal and representing a modest decline in comparison with each the goal and the earlier 12 months’s rating in what was a 12 months of unprecedented inside and exterior change for Dstl.

Are we changing into extra environment friendly?

Average S&T delivered per Full Time Employee (at Dstl degree).

The saving measures imposed on Dstl throughout 2024 to 2025 introduced vital challenges in assembly effectivity KPIs, a lot of which had been past the organisation’s management.
As a outcome, the S&T supply per FTE dropped to £189,000, reverting to pre-Spending Review ranges (FY2022/23).

Dstl continues to ship a major quantity of its S&T by way of a various exterior provide base in trade, academia and internationally. For 2024 to 2025, a complete of £336 million of analysis was delivered by way of companions giving a complete EMR share spend of 34.9%, which was decrease than focused as a result of exterior spending constraints.

Type	FY2021/22	FY2022/23	FY2023/24	FY2024/25
EMR	354	388	461	336
EMR%¹	42.0%	40.5%	42.4%	34.9%

¹ EMR as a share of whole price of gross sales

Enabling price share of total price

The enabling prices share, as a proportion of Dstl’s total whole prices, ended FY2024/25 at 22.6%. This was barely above the goal by 0.6%. Over the previous 12 months, this metric has steadily elevated, primarily as a result of total price constraints and the restricted potential to position exterior contracts.

Managing the influence of our actions

At Dstl, we’re dedicated to constructing a sustainable future for our surroundings, one another, and our group.

Sustainability Strategic Direction

Dstl moved ahead with its sustainability agenda, inside our enterprise and in assist of the UK authorities and MOD’s sustainability ambitions. Our sustainability objectives continued to assist the UK authorities’s internet zero greenhouse gasoline emissions by 2050 (NZ50) mandate, and greening authorities commitments (GGC).

Dstl has targeted on the United Nations 17 Sustainable Development Goals (SDGs) the place we are able to make an impactful distinction.

SDG 3 Good Health and Well-being	SDG 4 Quality Education	SDG 6 Clean Water and Sanitation
SDG 7 Affordable and Clean Energy	SDG 8 Decent Work and Economic Growth	SDG 9 Industry Innovation and Infrastructure
SDG 11 Sustainable Cities and Communities	SDG 12 Responsible Consumption and Production	SDG 13 Climate Action
SDG 15 Life on Land	SDG 16 Peace, Justice and Strong Institutions	SDG 17 Partnerships for the Goals

Looking ahead to the long run

Our ‘Dstl Sustainability Strategic Direction 2021 to 2026’ units the panorama for sustainability, and our Dstl Sustainability Policy supplies path on how we are going to handle our duties.

Compliance assertion

Dstl’s report on climate-related monetary disclosures is in keeping with His Majesty’s Treasury’s TCFD-aligned disclosure steering.

Dstl types a part of MOD’s Principal Risk ‘Reduction in operational effectiveness or readiness caused by the physical effects of climate change and nature degradation’. The Risk Owner throughout 2024 to 2025 was the Second Permanent Under Secretary of State for Defence. Dstl is a member of MOD’s Climate Change and Sustainability Risk Working Group.

We have complied with the TCFD suggestions and disclosures for Phase 1 and 2, and in keeping with the UK Government’s implementation timetable, plan to reveal Strategy in future reviews.

Disclosures

Governance (a)–Board’s oversight

To date, Dstl’s Board has not had particular oversight of climate-related points. We have mentioned with the Dstl Board and our Audit Risk and Assurance Committee how climate-related points may be included in acceptable governance, in addition to in our methods, polices, threat administration, budgets and plans.

Governance (b)–administration’s position

Our Sustainability Committee supplies senior degree governance, together with on climate-related points, and oversees progress in opposition to GGCs. Where related, points may be escalated to the Executive Management Committee and Dstl Board. Our Chief Operating Officer (COO) is our senior sponsor for sustainability, climate-related points, and environmental safety.

Our Investment Management Committee considers climate-related points beneath sustainability. Climate-related points have been mentioned with our Audit and Risk Assurance Committee, and inclusion inside future actions is to be agreed.

Risk administration (a)–threat identification and evaluation

We used DIO’s Climate Impact Risk Assessment Matrix (CIRAM) to determine and assess climate-related dangers. The potential measurement and scope of climate-related dangers was decided utilizing an evaluation of threat trigger, occasion and consequence, scored for chance and influence with present controls and mitigations taken into consideration. This offered residual threat scores, following which goal threat scores had been agreed.

Risk administration (b)–threat administration

Using the CIRAM, our related material skilled stakeholders made collaborative assessments on a response degree for every recognized climate-related threat, for instance to deal with, tolerate, terminate, take alternative and so forth., together with a response plan of related actions.

Risk administration (c)–total integration

To date, climate-related dangers haven’t been built-in into our total threat administration. We have commenced consideration of how this may be achieved.

Metrics and targets (a)–metrics

We use greenhouse gasoline (GHG) emissions and bodily threat metric classes to evaluate our climate-related dangers.

GHG emissions are gases within the Earth’s environment that act as an insulator trapping the solar’s warmth and, due to this fact, increase temperatures. Human exercise from the burning of fossil fuels causes the discharge of GHG emissions.

Further data is offered in our emissions reporting metrics and targets beneath.

Our bodily threat metrics are cut up into acute and persistent. Examples embrace:

acute dangers–warmth waves, extreme chilly, snow or winds, heavy downpours of rain, wildfires, flooding, drought, and electrical storms
persistent dangers–worsening air high quality, lowered water availability, disrupted vitality provides, and lack of biodiversity

Metrics and targets (b)–emissions reporting

Our reported GHG embrace:

scope 1–burning fuels (equivalent to, mains gasoline, oils, and liquid petroleum gasoline (LPG)), pool vehicles utilization and fugitive gases
scope 2–bought electrical energy
scope 3–National Grid transmission and distribution, enterprise journey, water and wastewater, and waste

Our GHG emissions are calculated in-line with the GHG Protocol methodology, utilizing UK Government GHG conversion elements, or these offered by MOD. We report on the depth metrics of emissions per Net Internal Floor Areas (NIFA) and Full Time Equivalent (FTE) workers numbers to offer an enhanced understanding of our impacts on the atmosphere related to the dimensions of our constructed property and workers inhabitants.

Metrics and targets (c)–targets

Our targets are to realize the GGCs and NZ50.

The GGCs are a set of actions, supported by targets, that UK Government departments and their businesses take to scale back their impacts on the atmosphere. This is the final reporting 12 months on the present April 2021 to March 2025 GGC Framework. Commitments A and F refer on to local weather change for ‘Mitigating climate change: working towards net zero by 2050’ and ‘Adapting to climate change’ respectively, though all commitments influence on the topic space to some extent.

GGC

The report beneath supplies our efficiency up to now in opposition to the GGC 2021 to 2025.

GGC	2021-2025 defence targets	defence scope	Our place at 31 March 2025, in comparison with 2017/18 baseline	Final standing
A: mitigating local weather change: working in direction of internet zero by 2050
Headline targets	Reduce total greenhouse gasoline emissions by 30% from a 2017/18 baseline	UK property emissions from grid electrical energy, mains gasoline, oil, and LPG	30.6% discount	Achieved
	As a part of total goal, scale back direct greenhouse gasoline emissions by 10% from a 2017/18 baseline	UK property emissions from mains gasoline, oil and LPG	1.3% discount	Not achieved
	Reduce home travelling emissions by 30% from a 2017/18 baseline¹	Domestic UK to UK journey emissions from industrial flights, rail, and gray and white fleet	24% discount	Not achieved
Sub-targets	Meet the federal government Fleet Commitment for 25% Ultra-Low Emissions Vehicles² (vehicles) by 31 December 2022, and 100% of automotive and van fleet to be absolutely zero emissions on the tailpipe by 31 December 2027	2022 goal–leased and sixth day plus rent vehicles	7%	Not achieved (2022 goal)
		2027 goal – leased and sixth day plus rent vehicles, and N1 vans weighing beneath 3.5 tonnes	7%	At threat (2027 goal)
	Reduce emissions from home enterprise flights by 30% from a 2017/18 baseline	Domestic enterprise flights between UK airports through industrial airways	8.8% enhance	Not achieved
	Report distance travelled by worldwide enterprise flights, with a view to higher understanding and lowering associated emissions the place potential¹	International enterprise flights through industrial airways	27,995,343 pkm	Achieved
	Departments that have already got insurance policies in place to compensate for emissions are inspired to report on their implementation	MOD doesn’t have a coverage in place to compensate for enterprise journey emissions	Not relevant	Not relevant
	Update organisational journey insurance policies in order that they require rail journey to be thought of first as an alternative choice to every deliberate flight	Dstl Travel Policy	Travel Policy up to date	Achieved
B: Minimising waste and selling useful resource effectivity
Headline goal	Reduce total quantity of (in-scope) waste generated by 15% from a 2017/18 baseline	UK blended municipal waste streams	20% enhance	Not achieved
Sub-targets	Reduce quantity of waste going to landfill to lower than 5% of total (in-scope) waste	UK blended municipal waste streams	0%	Achieved
	Increase the proportion of waste which is recycled, composted or despatched to anaerobic digestion to a minimum of 70% of total (in-scope) waste	Waste assigned for recycling, composting and anaerobic digestion	51%	Not achieved
	Remove Consumer Single Use Plastic (CSUP) from the central authorities workplace property	Dstl out of defence scope	Not relevant	Not relevant
	Measure and report on meals waste by 2022	UK Estate	15 tonnes	Achieved
		Baseline 2021/22 with defence motion plan to observe
	Report on introduction of reuse schemes		Extant reuse scheme	No extra reuse schemes launched as profitable extant system in place
	Reduce authorities’s paper use by a minimum of 50% from a 2017/18 baseline	MOD stationery provide contract	50% discount	Achieved
C: Reducing our water use
Headline goal	Reduce water consumption by 8% from a 2017/18 baseline	Aquatrine contract equipped water consumption, excluding distribution system losses	66% discount	Achieved
Sub-targets	Ensure all water is measured	Aquatrine contract equipped water	Delivered by way of Aquatrine measurement methodology	Achieved (incoming provides)
	Provide a qualitative evaluation to point out what’s being performed to encourage the environment friendly use of water		Qualitative evaluation reported	Achieved
D: Procuring sustainable merchandise and companies
Headline goal	Continue to purchase extra sustainable and environment friendly merchandise and companies with the purpose of reaching one of the best long-term, total worth for cash for society	MOD programs in place and the motion taken to purchase sustainably. DEFRA to situation reporting template on an annual foundation	Aligned to MOD programs	Achieved
E: Nature restoration–making area for thriving crops and wildlife
Headline goal	Develop and ship Nature Recovery Plans for land, estates, improvement and operations	To be confirmed by MOD	Being developed by DIO on behalf of MOD	Not relevant
F: Adapting to local weather change
Headline goal	Develop an organisational Climate Change Adaptation Strategy throughout estates and operations		Climate threat assessments and motion plans accomplished	Achieved
	I. Climate Risk II. Climate Change Adaptation Action Plan Assessments		Draft Climate Strategy produced, meant to be launched in subsequent reporting 12 months	Not achieved by deadline nevertheless, nearing introduction
G: Reducing environmental impacts from ICT and digital
Headline goal	Report on the adoption of the Greening Government ICT and Digital Services Strategy and related targets	Set technique throughout the framework of the overarching GGC Strategy specializing in precedence areas and delivering core knowledge to assist wider sustainability targets	Digital Services Strategy enhanced	Not absolutely achieved by deadline nevertheless, adopted for brand new contracts

Notes:

LPG – liquid petroleum gasoline

N1 – small industrial autos designed for the carriage of products and lower than 3.5 tonnes

pkm – passenger kilometres

DEFRA – Department for Environment, Food and Rural Affairs

ICT – Information Communication and Technology

¹ MOD disaggregated goal for Dstl

² 50 grams carbon dioxide/kilometre emissions at tailpipe

Environmental administration

We have been reviewing our Environmental Management System (EMS), and as soon as built-in, will probably be assured in opposition to the Joint Services Publication (JSP) 816 Defence Environmental Management System Framework.

Energy

We commenced prioritised vitality inspections of our constructed atmosphere to focus interventions on probably the most impactful areas, it will proceed into the subsequent reporting 12 months. Our mission inside our Energy Management and Decarbonisation Strategy is to: ‘Enhance and then maintain our energy resilience and security, minimise our energy consumption, and decarbonise our energy supplies to support achieving net zero greenhouse gas emissions by 2050.’

We commenced preparation of a supply plan to assist the technique. Our consumption and price of vitality is described beneath.

Dstl Gross Finite Resource Consumption: Energy¹			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25
Non-financial indicators (kWh)	Gross Direct Consumption – Scope 1
	Energy consumption	Electricity – renewable	4,275⁷	4,574^3,7	10,198⁷	6,637³	7,152⁷
		Mains gasoline	46,047,589²	51,393,419²	52,660,289⁴	53,326,540⁴	53,371,395⁴
		LPG	432,481²	455,952⁴	282,258⁴	695,752⁴	492,2584⁴
		Oil	12,557,256²	16,989,941²	8,070,636⁴	7,619,215⁸	9,087,174⁴
		Total direct consumption – Scope 1	59,041,601	68,843,886	61,023,381	61,648,144	62,957,979
	Gross Indirect Consumption – Scope 2
	Energy consumption	Electricity – non-renewable	50,210,960²	78,506,540²	51,739,468⁴	45,492,487⁴	47,228,310⁴
	Total Gross Energy Consumption – Scopes 1 and 2
	Total Gross Energy consumption – Scopes 1 and 2		109,252,561	147,350,426	112,762,849	107,140,631	110,186,289
	Normalisation
	Normalisation gross vitality consumption per FTE		29,041	31,338	22,307	20,323	22,607
	Normalisation gross vitality consumption per NIFA		857	1,074	1,058	958	989
Financial indicators (£’000)	Electricity – renewable		0⁷	0⁷	0⁷	0⁷	0⁷
	Mains gasoline		Note⁵	Note⁵	2,605⁴	2,956⁴	3,587⁴
	LPG		Note⁵	Note⁵	17⁴	43⁴	35⁴
	Oil		Note⁵	Note⁵	682⁴	555⁴	634⁴
	Electricity – non-renewable		Note⁵	Note⁵	9,358⁴	10,438⁴	12,351⁴
	Total vitality expenditure⁶		7,778²	10,168^2,4	12,66²	13,992⁴	16,607⁴

Notes:

kWh – Kilowatt hour

FTE – Full time equal workers quantity. 2017/18 = 3,762, 2021/22 = 4,702, 2022/23 = 5,055, 2023/24 = 5,272, 2024/25 = 4,874

NIFA – Net inside ground space, as Valuation Office Agency’s Code of Measuring Practice: Definition for Rating Purposes. 2017/18 = 127,506 m2, 2021/22 = 137,204 m2, 2022/23 = 106,575 m2, 2023/24 = 111,837 m2, 2024/25 = 111,377 m2

¹ Dstl consumption, together with consumption of tenants and lodgers. This allows all consumption attributed to MOD vitality contracts to be included in reporting

² Data supply: MOD/DIO

³ Estimated

⁴ Data supply: utility invoices

⁵ Not accessible

⁶ Dstl doesn’t buy accredited offsets due to this fact, no price included

⁷ Date supply: Facilities Management Partner

⁸ Date supply utility invoices and gasoline bought off-site

Business journey

Our enterprise journey is procured by way of the Crown Commercial Services Framework.

We have enhanced our Travel Policy to incorporate the requirement for rail journey to be thought of first as an alternative choice to every deliberate flight, and we now have applied an inside platform for workers automotive sharing for commuting.

Although electrical automobile charging factors are included as commonplace within the design of our new buildings, we stay unable to assist extra electrical autos in our Car Club fleet as a result of infrastructure and useful resource restrictions.

We had one other profitable 12 months with 45,431 whole passengers utilizing our shuttle bus service, a rise of 6% on the earlier reporting 12 months. In addition, we provide workers a Dstl Cycle Scheme, together with Cycle to Work and Bike Rental, each of that are wage sacrifice schemes.

Dstl Gross Business Travel¹				Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25
Non-financial indicators	Gross Business Travel (pkm)	Domestic enterprise flights		968,469	466,473	995,501	1,032,378	920,089
		International enterprise flights	Short haul worldwide class unknown	0	0	553,203	9,070	24,554
			Short haul worldwide financial system class	2,184,828	542,095	2,473,653	2,517,445	2,388,976
			Short haul worldwide enterprise class	7,200	90,623	298,234	94,677	70,629
			Long haul worldwide class unknown	0	0	0	0	0
			Long haul worldwide financial system class	4,400,903	435,735	2,312,390	3,430,258	2,423,277
			Long haul worldwide premium financial system class	10,350,252	1,372,041	6,797,213	6,930,587	6,726,799
			Long haul worldwide enterprise class	13,162,363	2,954,461	11,644,338	15,140,059	11,630,316
			Long haul worldwide firstclass	15,237	0	57,783	0	0
			International non-UK class unknown	Note²	0	0	0	0
			International non-UK financial system class	Note²	210,499	668,666	886,360	1,012,108
			International non-UK premium financial system class	Note²	9,008	160,085	31,252	98,826
			International non-UK enterprise class	Note²	217,336	3,491,180	5,038,556	3,619,858
			International non-UK firstclass	Note²	4,114	7,364	0	0
			Total International enterprise flights	30,120,783	5,835,912	28,464,109	34,078,264	27,995,343
		National rail		2,427,415	667,733	1,542,631	2,121,008	2,089,920
		Eurostar rail		Note²	19,345	107,382	89,527	80,083
		Car		10,000,033	5,439,073	8,171,066	7,373,135	7,705,441
		Bus		Note²	0	0	0	0
		Taxi		Note²	54,359	207,241	286,427	318,900
		Total enterprise journey		43,516,700	12,482,895	39,487,930	44,980,739	39,109,776
		Normalisation per FTE		11,567	2,654	7,811	8,532	8,024
	Gross Flights (No.)	Domestic enterprise flights		1,070	875	1,912	1,946	1,819
		International enterprise flights		Note²	1,525	7,308	8,076	4,793
		Total quantity enterprise flights		1,070	2,400	9,220	10,022	6,612
Financial indicators (£’000)	Total price enterprise journey			6,964	2,605	10,158	11,682	15,608

Notes:

pkm: passenger kilometres

FTE – Full time equal Civil Service workers quantity. 2017/18 = 3,762, 2021/22 = 4,702, 2022/23 = 5,055, 2023/24 = 5,272, 2024/25 = 4,874

¹ Data offered by Dstl Travel Partner

² Not recorded

Dstl GCC in-scope enterprise journey knowledge¹		Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25
Non-financial indicators (pkm)	In-scope worldwide enterprise flights	30,120,783	5,835,912	28,464,109	34,078,264	27,995,343
Dstl GCC in-scope ULEV and ZEV knowledge¹		Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End Dec 2022 Target	End Dec 2027 Target
Non-financial indicators (%)	In-scope autos as ULEV	Note³	8%⁴	10%⁴	4%⁵	N/A	25%	N/A
	In-scope autos as ZEV	Note³	Note³	Note³	3%⁵	7%⁵	N/A	100%

Notes:

pkm: passenger kilometres

ULEV – Ultra low emissions automobile

ZEV – Zero emissions automobile

¹ Data offered by Dstl Travel Partner

² Not recorded

³ Includes pool vehicles

⁴ Includes pool vehicles, rent vehicles, and Dstl owned autos

GHG emissions

As the GGC targets have particular scope for GHG emissions, we now have included 2 elements to our reporting knowledge beneath: gross GHG knowledge and in-scope GGC GHG knowledge.

Dstl gross GHG emissions			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25
Non-financial indicators (tCO2e)	Gross direct emissions – scope 1
	Energy¹	Mains gasoline	8,778⁴	8,808⁴	9,645¹⁰	9,755¹⁰	9,763¹⁰
		LPG	93⁴	9⁸	61¹⁰	149¹⁰	105¹⁰
		Oil	3,466⁴	4,362⁴	1,942¹⁰	1,911¹⁰	2,304¹⁰
		Fugitive gases	35⁵	1,495^6,7	3,860⁶	1,328^5,6	330⁶
	Business journey	Pool vehicles	207	218	285¹⁰	286	311¹⁰
		Dstl owned fleet autos – gasoline bought off-site	Note³	Note³	Note³	20	1
	Total gross direct emissions – scope 1		12,579	14,981	15,792¹⁰	13,449	12,814
	Gross oblique emissions – scope 2
	Grid electrical energy¹		19,302⁴	18,144⁴	11,948¹⁰	9,420¹⁰	9,780¹⁰
	Gross different oblique emissions – scope 3
	Energy	National grid transmission and distribution⁸	1,650	964	915¹⁰	815¹⁰	864¹⁰
	Business journey	Domestic enterprise flights²	287	73	272⁹	316⁹	282⁹
		International enterprise flights²	10,316	1,200	10,054⁹	16,028⁹	12,823⁹
		National rail²	131	29	69⁹	94⁹	93⁹
		International rail²	Note3	1	1⁹	1⁹	1⁹
		Hire Cars²	1,342	380	509⁹	622⁹	547⁹
		Pool Cars ‘well to tank’	78	59	76⁹	81⁹	82⁹
		Dstl owned fleet autos, gasoline bought off-site ‘well to tank’	Note³	Note³	Note³	5	0
		Bus²	Note³	0	0⁹	0⁹	0⁹
		Taxi²	Note³	11	41⁹	74⁹	83⁹
		Staff owned autos¹²	765	491	789	471	648
	Water and wastewater		474⁴	357⁴	279⁴	57⁴	53⁴
	Waste		19	46	148¹¹	20¹¹	11¹¹
	Total gross different oblique emissions – scope 3		15,062	3,611	13,153	18,584	15,487
	Total gross direct, oblique and different oblique emissions – scopes 1, 2 and 3		46,943	36,736	40,893	41,453	38,081
	Normalisation
	Normalisation gross emissions per FTE		12	8	8	8	8
	Normalisation emissions per NIFA		0.4	0.3	0.4	0.4	0.3

Notes:

FTE – Full time equal workers quantity. 2017/18 = 3,762, 2021/22 = 4,702, 2022/23 = 5,055, 2023/24 = 5,272, 2024/25 = 4,874

¹ Emissions for Dstl consumption, together with consumption of tenants and lodgers. This allows all emissions attributed to MOD vitality contracts to be included in reporting

² Data contains radiative forcing (air journey solely), and ‘well to tank’ emissions

³ Data not accessible

⁴ Data supply MOD/DIO

⁵ Dstl Science and Technology use

⁶ Laboratory containment testing and fugitive emissions from mechanical plant

⁷ Estimated

⁸ Emissions related to vitality loss that happens in getting electrical energy from the ability plant to the organisation that purchases it

⁹ Data supply Dstl’s Travel Partner, MOD and UK Government GHG conversion elements

¹⁰ Data supply utility invoices, UK Government GHG conversion elements

¹¹ Data supply Dstl’s Waste Management Contracts and UK Government GHG conversion elements

¹² Private autos owned by workers, primarily based on enterprise mileage travelled

Dstl GGC in-scope GHG emissions

Dstl GGC in-scope GHG emissions		Baseline 12 months 2017/184	2021/22⁴	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicators (tCO2e)	In-scope total GHG emissions¹	31,640^4,8	31,412⁴	23,577⁹	21,235⁹	21,952⁹	22,148 tCO2e -30%⁶
	In-scope direct GHG emissions²	12,337⁴	13,268⁴	11,629⁹	11,815⁹	12,172⁹	11,103 tCO2e -10%⁶
	In-scope GHG emissions from home journey^5,7	2,032	1,005	1,526	1,467	1,542	1,422 tCO2e -30%⁶
	In-scope GHG emissions from home enterprise flights^3,5	136⁴	64⁴	129	166	148	96 tCO2e -30%⁶

¹ GHG emissions from UK property grid electrical energy, mains gasoline, oil and LPG

² GHG emissions from UK property mains gasoline, oil and LPG

³ GHG emissions from home enterprise flights between UK airports on industrial airways, excluding radiative forcing and ‘well to tank’ emissions

⁴ Data supply MOD (DIO)

⁵ Data supply Dstl’s Travel Partner, MOD and UK Government GHG conversion elements, until in any other case said

⁶ Against baseline 12 months

⁷ Emissions from home journey industrial flights, rail, gray and white fleet, together with workers owned autos, taxi, excluding radiative forcing and ‘well to tank’ emissions

⁸ Dstl beforehand reported knowledge included EDF particular emissions conversion issue, MOD knowledge used Department for Business, Energy and Industrial Strategy (BEIS) normal emissions conversion issue

⁹ Data supply utility invoices, UK authorities GHG conversion elements

Waste administration

We offered bespoke workers waste administration coaching, continued to develop our pool of skilled Waste Supervisors, and triaged all of our waste requests making use of the waste hierarchy. We additionally amalgamated and enhanced our waste processes to enhance buyer expertise.

Although we provide associated schemes, enhancing our recycling stays a problem. This will probably be an space for our persevering with focus, together with the introduction of additional battery segregation. In preparation for Simpler Recycling laws, we now have launched meals waste caddies throughout the organisation.

Our embedded ‘Steptoe’ on-line reuse platform supplies the chance to internally promote gadgets for sharing or alternate that may in any other case be disposed of. Following workers communications, use of the scheme has elevated considerably.

As the GGC scope is restricted to particular non-hazardous municipal and industrial waste streams, we now have included 2 elements to our waste reporting knowledge beneath: gross waste knowledge and in-scope GGC waste knowledge. A breakdown of prices for every waste disposal stream isn’t accessible beneath the MOD’s Hestia Waste Management Contract, as an alternative prices for hazardous and non-hazardous waste disposal have been included.

Dstl gross waste			Baseline 12 months 2017/18³	2021/22³	2022/23³	2023/24⁴	2024/25⁴
Non-financial indicators (tonnes)	Hazardous waste	On-site incineration	232	40	33	Note⁵	Note⁵
		Off-site disposal	163	78	59	Note⁵	Note⁵
		Incinerated (with out vitality restoration)	Note⁵	Note⁵	Note⁵	40	48
		Incinerated (with vitality restoration)	Note⁵	Note⁵	Note⁵	5	0
		Recycled	Note⁵	Note⁵	Note⁵	31	86
		Landfill	Note⁵	Note⁵	Note⁵	34	33
	Total hazardous waste		395	118	92	110	167
	Non-hazardous waste	Incinerated (with out vitality restoration)	Note¹	120	148	118	128
		Incinerated (with vitality restoration)	165	363	368	228	233
		Recycled	265	852	1,354	524	1,014
		Composted	0	0	0	6	0
		Landfill	6	31	0	0	0
		Anaerobic digestion	0	5	5	6	158
		ICT tools	0	3	7	2	1
	Total non-hazardous waste		436	1,374	1,882	884	1,391
	Total waste		831	1,492	1,974	994	1,558
	Normalisation
	Normalisation of waste per FTE		0.2	0.3	0.4	0.2	0.3
	Normalisation of waste per NIFA		0.007	0.01	0.02	0.009	0.014
Financial indicator (£’000)	Hazardous waste – disposal price		129	350	504	379⁶	Note⁷
	Non-hazardous waste – disposal price		64	778	844	1,133⁶	Note⁷
	Total disposal price		193	1,128	1,348	1,512⁶	1,319
Dstl gross paper			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25
Non-financial indicator (tonnes)	Paper		24	132	14	8	12

Notes:

FTE – Full time equal workers quantity. 2017/18 = 3,762, 2021/22 = 4,702, 2022/23 = 5,055, 2023/24 = 5,272, 2024/25 = 4,874

Paper knowledge supply – Crown Commercial Services Framework contract

¹ Included in ‘Incinerated with energy recovery’ figures

² Estimated

³ Source FM Partner Waste Management Contract and Dstl incinerator

⁴ Source Waste Management Services supplier and Dstl incinerator

⁵ Enhanced reporting amended format of information

⁶ Source Dstl Finance, excludes Hestia core contract prices as unknown at time of reporting

⁷ Breakdown not accessible

⁸ Due to Hestia Contract reporting, contains Dstl and ESS catering waste

Dstl GGC In-scope waste knowledge			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicator (tonnes)	In-scope waste¹	Incinerated (with out vitality restoration)	8²	9	20	11	7	N/A
		Incinerated (with vitality restoration)	197²	259	320	220	225	N/A
		Recycled (excluding meals)	188²	153	484	191	226	N/A
		Composted	0²	0	0	6	0	N/A
		Landfill	0²	0	0	0	0
		Anaerobic digestion – meals waste solely	0²	14	44	34	155	Report
		Total In-scope waste	393³	422	828	431	473	334 tonnes -15%
Non-financial indicator (%)		Total in-scope recycled/composted/anaerobic digestion waste	48%²	36%	59%	46%	51%	>70% (in 12 months)
Dstl GGC in-scope paper knowledge			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicator (tonnes)	In-scope paper		24	13²	14	8	12	12 tonnes -50%
Dstl GGC in-scope ICT waste knowledge			Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicators (tonnes)	In-scope ICT waste	Recycled	0	2	7	0	0	N/A
		Incinerated (with out vitality restoration)	0	1	0	2	1	N/A

Notes:

Waste knowledge supply – Dstl’s Facilities Management Partner Waste Management Contract and Dstl incinerator, until in any other case famous

Paper knowledge supply – Crown Commercial Services Framework contract

¹ In-scope waste EWC Codes

Paper and cardboard 15 01 01 and 20 01 01
Plastic 15 01 02 and 20 01 39
Metallic packaging and metals 15 01 04 and 20 01 40
Glass 15 01 07 and 20 01 02
Residual waste 20 03 01
Dry blended recycling 20 03 01
Food (biodegradable kitchen waste) 20 01 08

² Estimated

³ Gross knowledge offered by MOD/DIO. Weights per disposal stream proportioned

⁴ Food waste trial interval

⁵ Due to Hestia Contract reporting, contains Dstl and ESS catering waste

Water

All our incoming water provides and wastewater companies at our core websites are offered and measured by way of MOD’s Aquatrine water contract.

At Porton Down, our long-term water resilience mission was efficiently accomplished, with all of our crucial buildings now related to a totally established potable water provide. This may also allow enhanced sub-meter measurement of water consumption.

To encourage workers within the environment friendly use of water, in collaboration with our Facilities Management Strategic Partner, we commenced a assessment of protected methods to scale back flushing in reference to Legionella prevention; and our water provide contractor makes use of leak detection on our infrastructure.

Our Helios mission, to maneuver capabilities and workers from Fort Halstead to our different websites, has resulted in a considerable discount in water consumption for the reason that baseline 12 months 2017/18.

Dstl GGC (gross) waste knowledge		Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicator (m3)	Scope 1–abstracted	280,588¹	243,156	153,176¹	140,817	148,340	N/A
	Scope 2–mains water provides	185,851¹	118,994	129,861¹	11,224	12,360	N/A
	Total water consumption	466,439¹	362,150	283,0371	152,041	160,700	429,124¹ -8%
Dstl GGC (gross) waste knowledge		Baseline 12 months 2017/18	2021/22	2022/23	2023/24	2024/25	End 2024/25 goal
Non-financial indicator (m3)	Normalisation of gross water consumption per FTE	124	77	56	29	33	N/A
	Normalisation of gross water consumption per NIFA	4	3	3	1	1	N/A
Financial indicators (£’000)	Water provide prices²	1,356	1,662	1,916	1,074	1,184	N/A

Notes:

FTE – Full time equal workers quantity. 2017/18 = 3,762, 2021/22 = 4,702, 2022/23 = 5,055, 2023/24 = 5,272, 2024/25 = 4,874

Water knowledge supply – Water Supply contract, until in any other case famous

Consumption figures embrace consumption by third occasion tenants and lodgers. This allows all consumption attributed to MOD water contracts to be included in reporting

¹ Updated to incorporate all Dstl websites – knowledge taken from invoices and revised DIO knowledge, earlier reviews utilizing MOD/DIO knowledge solely included Aquatrine Contract websites

² Financial knowledge taken from invoices, together with licence prices

Sustainable building

We purpose to realize MOD coverage of Defence Related Environmental Assessment Methodology (DREAM) scores of ‘Excellent’ for brand new builds and ‘Very Good’ for main refurbishments. The MOD’s Sustainability Environmental Assessment Tool (SEAT) is used for building initiatives as required. Construction initiatives and programmes have gateway critiques to make sure sustainability commitments and necessities are included.

Climate adaptation

Governance for local weather change adaptation is offered by the Sustainability Committee. We adjust to JSP 655 Investment Approvals offering programme and mission gateways, and JSP 850 Infrastructure and Estate Policy.

We have produced a draft Climate Strategy, meant to be launched within the subsequent reporting 12 months.

Conservation and biodiversity

Our Porton Down website of Special Scientific Interest (SSSI) includes 1,519 hectares, constituting one of many largest uninterrupted tracts of semi-natural chalk grassland in Great Britain. The space helps nationally uncommon flora and fauna. We have continued with an intensive programme of scrub administration and conservation to be able to obtain ‘Favourable Condition’ standing.

We produced our Site Ecological Plan for Portsdown West and have already accomplished some necessary actions together with enhancing the situation of the wildlife pond. A planting plan for courtyard areas has commenced to enhance biodiversity and workers well-being.

DIO are growing Nature Recovery Plans and managing a Natural Capital Approach throughout the MOD property, together with our websites.

The survey report back to assess woodlands at Porton Down, to offer knowledge for a Woodland Management Plan and carbon sequestration, was delayed as a result of resourcing challenges.

Conservation dedication		2020/21	2021/22	2022/23	2023/24	2024/25
Scrub clearance from chalk downland	Hectares of latest scrub cleared¹	9.0	5.0	2.2	4.25	2.5
	Hectares of scrub cleared²	Approx. 35 – 40	Approx. 25 – 30	60	50	36
Dstl Stone-curlew Conservation Project	Plots in whole	17	17	17	15	15
	Plots fenced	13	13	16	14	14
	Breeding pairs	9	10	8	11	10
	Fledged younger	8	8	6	12	8
	Productivity	0.89	0.80	0.75	1.09	0.8
	Pair common over 5 years	11	10	9	9	10
	5-year productiveness common	0.64	0.67	0.79	0.94	0.88

Notes:

¹ Scrub not reduce for a minimum of 20 years

² Scrub cleared that had been reduce a minimum of as soon as earlier than

Sustainable Information Communication and Technology (ICT)

Our IT Strategy 2020 to 2025 aligns to the Defence Digital Strategy. Our new ICT suppliers’ contracts have additionally been aligned to MOD’s steering on sustainability, with the suppliers, from 1 March 2025, committing to introducing new know-how into the service to extend effectivity and contribute to realize a ‘greening’ of our property. In addition, they’ll focus exercise on productiveness will increase by way of modernisation and environment friendly provide chain exercise. This will probably be monitored because the contracts progress by way of their lifecycle.

We have launched enhanced video conferencing services, supporting a discount within the want for enterprise journey. As we introduce new collaboration instruments, our customers are in a position to work extra flexibly. Our digital communications help in lowering enterprise journey. However, we encourage nose to nose conferences to assist workers well-being and help in lowering emotions of isolation.

Compared to the earlier reporting 12 months, recycled ICT waste remained at zero tonnes, and ICT waste incinerated with vitality restoration lowered from 2.0 tonnes to 1.0 tonne. No digital waste was despatched to landfill within the reporting 12 months.

Sustainable procurement

Our procurements and contract administration continued to be delivered in keeping with UK Government and MOD insurance policies. We ensured that the MOD Sustainable Procurement Policy, which embeds the Government Buying Standards, has been thought of inside our specs. This, in flip, ensured we adjust to directives such because the Timber Procurement Policy, Energy Efficiency, and Modern Slavery Act.

Our contract for the supply of Hard Facilities Management (FM) companies incorporates a sturdy Sustainability Schedule, which requires the provider to develop and ship a Social Value (SV) Strategy. During the reporting 12 months, our Hard FM provider has:

ensured >90% of their provide chain are classed as small to medium sized enterprises (SMEs), and nearly one third of that group are primarily based inside 50 miles of website
launched a ‘Re-Use Hub’ that permits its colleagues to share surplus consumables throughout the enterprise
offered 2 days to their staff to ship social worth actions

Our catering and Soft FM companies are procured by way of the DIO Hestia contract which permits us to introduce extra sustainability choices throughout the organisation. During the reporting 12 months, we now have labored intently with our strategic companions to introduce extra sustainable cleansing, catering, and waste options. Examples of this embrace offering free used espresso grounds for workers to make use of at residence, lowering waste; washing microfibre cloths at decrease temperatures, lowering vitality consumption; and utilizing non good greens into recipes within the Staff Restaurants, lowering waste. We will proceed to work with our strategic companions to develop additional sustainable choices over the approaching 12 months, together with the Simpler Recycling laws being launched in April 2025.

Our Serapis framework, which allows us, MOD and the frontline instructions to rapidly and effectively place contracts for science and technical analysis and improvement, has efficiently applied a sequence of social worth initiatives. These embrace the Bright Corvus contract which has 2 social worth KPIs. Of specific be aware was the KPI targeted on growing Sustainable Qualified and Experienced Personnel (SQEP) throughout the related functionality space, stipulating {that a} minimal of 1,500 hours per quarter be devoted to supporting academic attainment and addressing abilities gaps. All 3 suppliers concerned efficiently met this KPI.

We continued to satisfy our goal spend with SMEs this reporting 12 months. 29% of our exterior spend was with SMEs, 28.2% of our direct suppliers had been SMEs, with 0.8% of our contract duties positioned not directly with SMEs. The discount in oblique spend displays the closure of a variety of our Strategic Frameworks and the transfer to a extra direct methodology of contracting with SMEs largely through our Research Cloud. The MOD’s SME Action Plan will set up to date, new and extra formidable targets for the subsequent 5 years.

Many of our staff proceed to volunteer throughout the native communities surrounding our websites. We recognise that volunteering is a rewarding manner to make use of our distinctive abilities whereas making an enormous distinction inside our communities. Many of our folks contribute to all kinds of voluntary roles, from supporting sporting occasions, the MOD-sponsored Cadet and scouting and guiding organisations, to extra formal voluntary roles equivalent to volunteering with college governing our bodies, the Red Cross, Royal National Lifeboat Institution (RNLI) and the Samaritans. We additionally assist crew members who’re Armed Forces Reservists.

Volunteering actions additionally embrace work with colleges, faculties and universities to encourage extra younger folks to pursue additional research and careers in STEM. Throughout 2024 to 2025, Dstl staff have booked simply over 3,000 hours to volunteering actions.

Under the Dstl company charity strategy, we be certain that our procedures and employment contracts are in keeping with the Civil Service Management Code, and that they replicate the basic rules of the Human Rights Act 2000. Our annual remembrance service in November ensures contributions to the Royal British Legion may be made by our group. Throughout 2024 to 2025, we now have additionally continued to assist our staff who select to participate in fundraising actions in their very own time.

Dr Paul Hollinshead

Chief Executive

14 July 2025

Accountability Report

Our Accountability Report presents data on Dstl’s key accountability necessities to Parliament as the first consumer of our Annual Report and Accounts.

It accommodates 3 sections: Corporate governance, Remuneration and workers, and Parliamentary accountability and audit.

Corporate governance

Our management

The Dstl Board (for the monetary 12 months 2024 to 2025)

Our Board supplies a discussion board for impartial, non-executive assist and problem to our Chief Executive and our Executive Management Committee members. It supplies assurance to MOD by monitoring Dstl’s efficiency in opposition to its supply aims and making certain that the organisation is compliant with the suitable insurance policies and requirements.

Adrian Belton, Non-executive Chair
Mark Barclay, Non-executive member (began 16 December 2024)
Brian Bowsher, Non-executive member
Robert MacLeod, Non-executive member
Jeremy Monroe, Non-executive member (departed 30 November 2024)
Sarah Spurgeon, Non-executive member
David Tonkin, Non-executive member (departed 29 April 2024)
Tara Usher, Non-executive member (MOD)
Paul Hollinshead, Chief Executive
Andy Bell, Chief Science and Technology Officer
Rob Cocks, Interim Chief Finance Officer (began 6 January 2025)
David English, Chief Finance Officer and interim Chief Operating Officer (departed 31 December 2024)

The Dstl EMC (for the monetary 12 months 2024 to 2025)

Our EMC ensures the efficient and environment friendly strategic management and operational supply of Dstl. It screens enterprise supply and monetary efficiency to make sure our strategic path stays acceptable to our prospects’ wants. It additionally ensures that we function safely and securely by reviewing efficiency and managing dangers.

Members of the Dstl EMC as at 31 March 2025:

Paul Hollinshead, Chief Executive Officer (CEO)
Andy Bell, Chief Science and Technology Officer (CSTO)
Rob Cocks¹ , Interim Chief Finance Officer (CFO) (began 6 January 2025)
Simon Donnan, Interim Chief Operating Office (COO) (began 25 November 2024)
Tim Sheldon, Chief Delivery Officer (CDO) (began 15 April 2024)
Teresa Stanley, Chief People Officer (CPO)

¹ Rob Cocks attended EMC conferences in his earlier position as Head of Finance when representing CFO.

Non-executive members of the Dstl Board (as at 31 March 2025)

Adrian Belton, Chair (appointed as chair of the Board on 1 August 2019)

Key strengths

Corporate governance, threat administration, monetary administration, strategic management and stakeholder administration on the interfaces of the general public, personal and tutorial sectors.

Experience

Adrian was Chief Executive of the federal government’s Food and Environment Research Agency (FERA) from 2009 to 2014, having established it from a 4 manner merger together with the Central Science Laboratory (CSL) and the UK authorities Decontamination Service. He was Chief Executive of the CSL from 2008 to 2009. From 2014 to 2016, Adrian was Chief Executive of the Construction Industry Training Board (CITB) from the place he stepped down from full-time government work to pursue a non-executive profession. His earlier profession was with Barclays the place he held a variety of senior government roles, adopted by roles in native authorities and in establishing a brand new Non Departmental Public Body in Defra.

Declarations of Interest in 12 months

Non-executive Director of NHS Property Services Limited, Lay Member of the Council of the University of Sheffield (till July 2023), and impartial Lead Reviewer for the Public Body Review of the UK Health Security Agency (November 2023 to May 2024).

Mark Barclay, non-executive member (appointed to the Board on 16 December)

Key strengths

Major know-how programmes, threat identification and administration, enterprise efficiency enchancment, organisational transformation and growing efficient strategic partnerships (nationally and internationally).

Experience

Mark has held a variety of senior government positions, each within the UK and overseas, inside international aerospace and defence organisations, particularly, Thales, Airbus and Cobham. Prior to stepping down from fulltime employment in the summertime of 2021, he was Chief Executive Officer of the UK Defence Solutions Centre, that noticed him work throughout MOD, Industry and Academia in growing collaborative Team UK export alternatives. He is a Fellow of the IET, Association of Programme Management and the Royal Aeronautical Society.

Declarations of Interest in 12 months

Non-executive director at Defence Business Services (DBS); offering teaching or mentoring assist to a senior government of an MOD enabling organisation.

Brian Bowsher, non-executive member (appointed to the Board on 1 September 2018)

Key strengths

Strategic and change management, operational or assurance excellence, analysis and innovation (nationwide and worldwide), stakeholder engagement.

Experience

In 2018, Brian retired because the Chief Executive of the Science and Technology Facilities Council (STFC). He has additionally been a member of the governing our bodies of CERN (the European Council for Nuclear Research), the Square Kilometre Array, and the Diamond Light Source. From 2009 to 2015, Brian was the managing director of the National Physical Laboratory (NPL) and earlier than becoming a member of NPL, he was on the chief board of AWE initially as Director of Research and Applied Science and then as Director Systems Engineering. He is a Fellow of the Royal Society of Chemistry and the Institute of Physics, an Honorary Fellow of the Institute of Measurement and Control, and holds an Honorary Doctorate of Science from the University of Southampton.

Declarations of Interest in 12 months

Member of Southampton University School of Chemistry Advisory Board, former Chief Executive of the Science and Technology Facilities Council (2016 to 2018) and National Physical Laboratory (2009 to 2015).

Robert MacLeod, non-executive member (appointed to the Board and ARAC Chair on 19 February 2024)

Key strengths

Accounting, finance, mergers and acquisitions, technique, threat and governance necessities for big corporations, strategic and company change, driving enhancements within the administration of well being and security.

Experience

Robert is an skilled enterprise chief with greater than 20 years’ expertise at Board degree, as Chief Financial Officer and additionally as Chief Executive Officer. Robert has held senior normal administration and monetary management roles in massive, advanced multi-site worldwide industrial companies. His final full-time position was as CEO of Johnson Matthey Plc, a worldwide chief in sustainable applied sciences. Having stepped down from Johnson Matthey in March 2022, he now has a sequence of non-executive positions.

Declarations of Interest in 12 months

Non-Executive Director of RELX Plc, Vesuvius Plc, Balfour Beatty Plc and The British Standards Institution.

Jeremy Monroe, non-executive member, chair of the Remuneration Committee (appointed to the Board on 1 February 2017, departed the Board on 30 November 2024)

Key strengths

Transformation and administration of change, IT technique, programme design, industrial expertise, buyer relationships.

Experience

Jeremy began in manufacturing with a physics diploma and modified to administration consultancy, in time changing into a accomplice in PricewaterhouseCoopers (PwC) and a member of its Supervisory Board. On the sale of PwC’s consulting enterprise, Jeremy grew to become vice-president in IBM’s public sector consulting and programs integration enterprise. Latterly he designed, bought and led massive public sector IT enabled transformational initiatives, significantly for the MOD and the Home Office, constructing organisational relationships that lasted a few years. His ultimate position at IBM was as Global Leader Defence and Intelligence, bringing folks collectively throughout the globe.

Declarations of Interest in 12 months

Chair of VSPM Ltd, shareholder of Melrose Industries, and relation of Sarah Munby, Permanent Secretary of the Department for Science, Innovation and Technology (DSIT).

Sarah Spurgeon, non-executive member (appointed to the Board on 1 July 2018)

Key strengths

Engineer, analysis and innovation administration, training and abilities improvement, science and know-how analysis.

Experience

Sarah is Professor of Control Engineering, and Head of the Robotics Institute at University College London. She is at the moment a Vice President of the International Federation of Automatic Control and was a previous President of the Engineering Professors’ Council and a previous President of the Institute of Measurement and Control. In 2000, she was awarded the Institute of Electrical and Electronics Engineers millennium medal, and in 2010 she obtained the Honeywell worldwide medal for distinguished contribution as a management and measurement technologist to growing the idea of management. Sarah is at the moment a member of the Police Science Council.

Declarations of Interest in 12 months

Professor and Director of UCL Robotics Institute, University College London, Vice President of the International Federation of Automatic Control, and Board member of the IEEE Foundation.

David Tonkin, non-executive member, chair of the Audit and Risk Assurance Committee (appointed to the Board on 1 September 2017, departed the Board on 29 April 2024)

Key strengths

Improving enterprise efficiency; implementing and managing monetary and organisational threat administration frameworks, main organisational change, course of enchancment, well being and security administration.

Experience

David is a commercially targeted enterprise chief with greater than 20 years’ expertise in strategic and operational management. He has held each senior normal administration and monetary management roles in advanced multi-site operations, internationally and throughout varied trade sectors. His final full-time position was with Atkins Plc as UK and Europe Chief Executive, the UK’s largest engineering consultancy. He now fulfils a sequence of non-executive positions and teaching roles.

Declarations of Interest in 12 months

Chair and Director of the Railway Industry Association.

Tara Usher, Non-executive member (MOD) (appointed to the Board on 1 October 2019)

Key strengths

MOD civil servant and former City solicitor, banker and firm secretary, governance, assurance and portfolio administration. Conduit with MOD Head Office.

Experience

Tara leads the MOD Public Bodies and Appointments Team. Tara joined MOD in 2018 after working for the Department for Transport, first as a authorized adviser (maritime and aviation) and subsequently in coverage and governance roles. Her work included creating a brand new governance and portfolio administration framework for Department for Transport’s large-scale capital investments and later main the sponsorship crew for the newly created National Highways GovCo. Prior to becoming a member of the Civil Service Tara labored within the City, initially on the regulation agency, Freshfields, and latterly in funding banking. Tara can also be the MOD Board consultant for the UK Hydrographic Office, the Oil and Pipelines Agency and the Single Source Regulations Office (observer).

Declarations of Interest in 12 months

Head of Public Bodies and Appointments at MOD, and Co-opted impartial Member of the Audit and Transparency Committee of Kensington and Chelsea Council.

Executive Management Committee members on the Dstl Board (as at 31 March 2025)

Paul Hollinshead, Chief Executive (appointed to the Board on 14 February 2022)

Key strengths

Management of huge advanced initiatives and organisations; main multi-disciplinary groups; and setting technique and path.

Experience

Paul joined Dstl as Chief Executive in February 2022, having led advanced, massive science and know-how programmes within the defence and civil sector for greater than 20 years. His different profession has included coverage and technique work together with involvement in a number of strategic defence critiques and nationwide technique improvement within the Prime Minister’s Strategy Unit. He was Head of Wealth Creation at DERA, Science and Innovation Director within the Department of Energy and Climate Change, and led nuclear analysis collaboration with the USA. Paul was most lately Operations Director for Defence Test and Evaluation and a Director within the Defence Nuclear Organisation. He was the Procurement Director and Senior Responsible Owner for a big portfolio of advanced defence and vitality programmes together with submarines, strategic programs, nuclear infrastructure and inexperienced vitality.

Declarations of Interest in 12 months

Nothing vital to report.

Andy Bell, Chief Science and Technology Officer (appointed to the Board on 22 October 2018)

Key strengths

Strategic outlook; broad science and know-how information; management; cross-government expertise; change programmes.

Experience

Following a level (University of Oxford) and PhD in Chemistry, and 3 post-doctoral analysis posts (in Japan, France and the UK) Andy joined MOD in 1994 as a scientist researching chemical weapon detection applied sciences. He was seconded to the Home Office in 2005 as Chief Scientist for CBRN, returning to Dstl in 2007. Andy was the Dstl Chief Technical Officer from 2012 to 2015, when he left to move up the Centre for Applied Science and Technology (CAST) on the Home Office. Andy led the CAST integration to Dstl, returning to Dstl with CAST in 2018 and is now the Chief S&T Officer. Andy is a Non-Executive Member of the Ploughshare Innovation Ltd Board, Chair of the National Authority for Counter-Eavesdropping S&T Advisory Board and a Member of a Charitable Trust enhancing youth accessibility to music making.

Declarations of Interest in 12 months

Non-executive director (NED) of Ploughshare Innovations Ltd; and Visiting Chair and Honorary Fellow on the University of Southampton.

Rob Cocks, Interim Chief Finance Officer (appointed to the Board on 06 January 2025)

Key strengths

Finance, Audit

Experience

Prior to becoming a member of Dstl in 2007, Rob began his profession at HMRC, earlier than happening to coach as a Chartered Accountant in Public Practice. Upon becoming a member of the Dstl finance crew in 2007, Rob initially supported Dstl’s Physical Sciences Department, earlier than happening to assist the next different areas: Information Management, Biomedical Sciences and Sensors & Countermeasures Departments. In 2012 he moved into Dstl’s Senior Finance Leadership Team, taking part in a major position in each Dstl’s standing transition in 2017 and merger with the Centre of Applied Science and Technology in 2018. In 2020 he was appointed Dstl’s Head of Finance, overseeing the implementation of the Finance module as a part of Dstl’s journey to the Cloud. He is a Fellow of the Institute of Chartered Accountants in England and Wales and has a BSc in Mathematics from the University of Exeter.

Declarations of Interest in 12 months

Nothing vital to report.

David English, Chief Finance Officer and interim Chief Operating Officer from 7 November 2022

(Appointed Finance Director on 1 January 2016. He joined the Board on 30 May 2015 because the MOD non-executive director. Departed the Board on 31 December 2024.)

Key strengths

Finance; authorities relations; governance.

Experience

Before becoming a member of Dstl, David was the Head of Business Strategy and Governance in MOD. He joined MOD in 1996 having achieved a firstclass honours diploma in Avionic Systems Engineering at Bristol University and some hands-on engineering in trade. During his MOD profession, David has labored within the Defence Evaluation and Research Agency, central MOD finance, Defence Equipment & Support, and has been a Private Secretary to the Defence Secretary. He has additionally accomplished an MBA with distinction at Imperial College and is a graduate of the Higher Command and Staff Course.

Declarations of Interest in 12 months

NED of Ploughshare Innovations Ltd.

Total size of service by the Board’s Non-executive members at 31 March 2025

Non-executive member	Total size of service	Date of most up-to-date appointment	Date of expiry
Adrian Belton	5 years, 7 months	20 June 2025	30 April 2026
Mark Barclay	0 years, 3 months	16 December 2024	15 December 2027
Brian Bowsher	6 years, 6 months	1 September 2021	31 August 2025
Robert MacLeod	1 12 months, 1 month	19 February 2024	18 February 2027
Jeremy Monroe¹	7 years, 10 months	1 February 2023	30 November 2024
Sarah Spurgeon	6 years, 8 months	4 June 2025	31 December 2026
David Tonkin²	6 years, 7 months	1 September 2023	29 April 2024
Tara Usher	5 years, 5 months	1 October 2022	No mounted time period

¹ Jeremy Monroe’s appointment was prolonged till 30 November 2024 to cowl the recruitment interval for Mark Barclay.

² David Tonkin departed the Board on 29 April 2024. His appointment extension was as much as 30 August 2024 to make sure the brand new ARAC Chair was in place.

Statement of the Accounting Officer’s duties

Under Sections 7(1), (2) and (5) of the Government Resources and Accounts Act 2000, His Majesty’s (HM) Treasury has directed Dstl to arrange for every monetary 12 months a press release of accounts within the kind and on the idea set out within the Accounts Direction. The accounts are ready on an accruals foundation and should give a real and truthful view of the state of affairs of Dstl and of its earnings and expenditure, Statement of Financial Position and money flows for the monetary 12 months.

In getting ready the accounts, the Accounting Officer is required to adjust to the necessities of the Government Financial Reporting Manual and specifically to:

observe the Accounts Direction issued by HM Treasury together with the related accounting and disclosure necessities, and apply appropriate accounting insurance policies on a constant foundation
make judgements and estimates on an affordable foundation
state whether or not relevant accounting requirements as set out within the Government Financial Reporting Manual have been adopted, and disclose and clarify any materials departures within the monetary statements
put together the monetary statements on a going concern foundation
verify that the Annual Report and Accounts as a complete is truthful, balanced and comprehensible and take private duty for the Annual Report and Accounts and the judgements required for figuring out that it’s truthful, balanced and comprehensible

The Accounting Officer of the Ministry of Defence, the MOD Permanent Secretary, has appointed the Chief Executive as Accounting Officer of Dstl. The duties of an Accounting Officer, together with duty for the propriety and regularity of the general public funds for which the Accounting Officer is answerable, for protecting correct information and for safeguarding Dstl’s property, are set out in Managing Public Money revealed by the HM Treasury, and in Dstl’s Framework Document.

As the Accounting Officer, I’ve taken all of the steps that I should have taken to make myself conscious of any related audit data and to determine that Dstl’s auditors are conscious of that data. So far as I’m conscious, there is no such thing as a related audit data of which the auditors are unaware.

Governance assertion

Scope of duty

As Accounting Officer for Dstl, it’s my duty to make sure that there’s a sound system of governance, threat administration and inside management in place. In addition, I be certain that Dstl enterprise is performed in accordance with Managing Public Money in order that public cash is safeguarded, correctly accounted for and used economically, effectively and successfully. To reveal this, our governance assertion covers:

our company governance
our threat administration
our management atmosphere
our management actions
our efficiency reporting.

Our company governance

We adjust to HM Treasury’s Code of Good Practice on Corporate Governance in Central Government Departments (2017). As at 31 March 2025, our company governance framework is outlined by the Dstl Framework document and summarised within the diagram beneath:

The Dstl Board

The Dstl Board held 4 common conferences together with a technique session throughout the 12 months.

Membership

Non-Executive Member (NEM) Sarah Spurgeon had her time period prolonged for an additional 12 months from 1 July 2024. NEM Brian Bowsher had his time period prolonged for an additional 12 months from 1 September 2024. NEM Jeremy Monroe had his time period prolonged for an additional 4 months from 31 July 2024, to offer resilience and continuity for the ARAC throughout the recruitment for his alternative. NEM Mark Barclay was appointed to the Board (and member of the ARAC) on 16 December 2024 for a 3 12 months time period. Our NEMs are sometimes deployed throughout the organisation in supportive ways in which play to their expertise.

Paul Hollinshead as Chief Executive, and Andy Bell as Chief Science and Technology Officer, are each members of the Board. David English was a member of the Board as Chief Finance Officer till his departure on 31 December 2025. Rob Cocks was appointed as interim Chief Finance Officer and member of the Board on 6 January 2025.

The Chief People Officer, Chief Operating Officer, and Chief Delivery Officer attend by invitation.

Attendance of Board conferences in 2024 to 2025

Board member	Date began	Date ended	Number of conferences attended	Number of conferences that might have been attended
Adrian Belton (Chair)	–	–	4	4
Jeremy Monroe	–	30 November 2024	3	3
David Tonkin	–	29 April 2024	0	0
Sarah Spurgeon	–	–	3	4
Brian Bowsher	–	–	4	4
Tara Usher	–	–	4	4
Robert MacLeod	–	–	4	4
Mark Barclay	16 December 2024	–	1	1
Paul Hollinshead	–	–	4	4
Andy Bell	–	–	4	4
David English	–	31 December 2024	3	3
Rob Cocks	6 January 2025	–	1	1

Business 2024 to 2025

The enterprise taken at Board conferences displays the duties of the Dstl Board, in its advisory capability to train strategic oversight of Dstl within the supply of its aims.

An overriding theme for Board discussions was the altering panorama of defence and the continuing tight monetary parameters. The Board famous within the ultimate assembly of the 12 months the influence of those parameters on Dstl’s efficiency and the flexibility to satisfy key efficiency indicators.

Along with monitoring efficiency of Dstl’s supply, the Board continued its concentrate on threat, finalising the assessment of Dstl’s company threat register and conducting common deep dives and well being checks of the company dangers. The Board additionally continued to concentrate on the well being of Dstl’s crucial S&T capabilities, by way of the External Review Colleges and Follow Up Reviews.

Standing gadgets included an replace from the Chief Executive, MOD NEM and from the Chair of the Audit and Risk Assurance Committee (ARAC) following the quarterly ARAC conferences.

Annual assessment of effectiveness

In line with good apply the Dstl Board undertook an annual analysis through a questionnaire in September 2024, with the Board contemplating the findings at their assembly in November 2024. All members offered a response to the analysis. There had been no areas that obtained a considerably low rating nevertheless the analysis did spotlight the necessity to assessment and agree the place the Board can have the best influence. The Board agreed that additional dialogue was wanted to work by way of the findings of the self-assessment and that is ongoing.

Audit and Risk Assurance Committee

The ARAC met 4 instances throughout 2024 to 2025.

Membership

There are 4 NEMs who sit on this committee–Robert MacLeod (Chair), Mark Barclay, Brian Bowsher, and MOD NEM Tara Usher. I attend by invitation, as do my Chief Operating Officer, Chief Finance Officer, Head of Risk, Assurance and Governance, Senior Principal Assurance Adviser, and Head of Finance. Representatives from the National Audit Office and the Government Internal Audit Agency additionally attend by invitation.

Attendance at Dstl Audit and Risk Assurance Committee for 2024 to 2025

Board member	Role	Number of conferences attended	Number of conferences that might have been attended
Robert MacLeod	NEM (Chair)	4	4
Mark Barclay	NEM	1	1
Brian Bowsher	NEM	4	4
Jeremy Monroe	NEM	3	3
Tara Usher	MOD NEM	4	4

Business 2024 to 2025

The ARAC performed its common assessment of Dstl’s monetary efficiency, the outcomes of inside and exterior audits, counter-fraud actions, and data threat and assurance. The ARAC performed deep dives and well being checks of the company dangers, and additionally continued its concentrate on the reassurance of security preparations at every assembly.

Dstl’s return to reasonable assurance was a key focus for the ARAC over the 12 months. The Committee recognised the nice progress made to enhance the general assurance framework however famous that this wants to completely embed. Good progress was additionally recognised with the enhancements to security, delivered by way of the Safety Reset Programme.

However, the continuing influence of monetary constraints on Dstl’s potential to put money into mandatory enhancements to the inner management framework, significantly in response to more and more stringent authorized and regulatory obligations, was a unbroken problem.

Commenting on the work of the committee over the previous 12 months, the Chair of the ARAC Robert MacLeod stated:

“After my first 12 months as ARAC Chair, I have to firstly thank my predecessor, David Tonkin, for serving to me with my introduction to the organisation. In addition, I want to thank my fellow non-executive members and the broader Dstl management for his or her engagement and assist.

“During the 12 months, I’ve discovered quite a bit in regards to the enterprise and met many members of the Dstl crew. I’ve been impressed with everybody that I’ve met and their dedication to the profitable working and management of operations of Dstl.

“During the final 12 months, the organisation has been working beneath tight monetary parameters which has impacted our potential to deal with among the recognized dangers within the enterprise. This is the third 12 months that we now have reported a Limited Assurance standing. While we’re dissatisfied to not have achieved our deliberate Moderate Assurance within the 12 months, some good progress has been made in a variety of areas, together with most significantly Health and Safety.

“At the identical time, there have been rising dangers to Dstl as a result of more and more risky international atmosphere. That stated, we now have a transparent plan to enhance our management atmosphere and whereas there’s a lot that we are able to do ourselves, getting again to the place that all of us aspire to would require funding in assets and infrastructure.

“My focus in the last year, has been ensuring that there is a clear set of processes and controls to manage the key risks in the business and then that management has an assurance plan to ensure that these controls are being effectively managed. This is still a work in progress but once we have this in place and are satisfied that it is being well managed, we will be able to report Moderate Assurance status. I am confident that we will make further strong progress in the year ahead.”

Annual assessment effectiveness

A self-assessment of the effectiveness of the ARAC was performed utilizing the NAO effectiveness device and reported in July 2024. Overall, the evaluation concluded that the ARAC is working successfully and assembly required requirements. The assessment recognized the necessity to make sure that the ARAC has adequate abilities when reviewing some specialist matters. This was not mandatory throughout the 12 months, and succession plans for present non-executive members has allowed us to make sure the continued steadiness of abilities and expertise throughout the committee. An ARAC self-assessment for 2025 to 2026 has been initiated and will report in 2025 to 2026.

EMC

The EMC has continued to be the important thing assembly for the Executive Team to make sure the efficient and environment friendly strategic management and operational supply of Dstl. The EMC met twice per thirty days, with 1 assembly per quarter targeted on efficiency.

Membership

The EMC is chaired by the Chief Executive, and includes the Chief Operating Officer, Chief Delivery Officer, Chief Finance Officer, Chief Science and Technology Officer, and Chief People Officer. The Chief Safety Officer; Head of Risk, Assurance and Governance; and the Chief Executive’s Chief of Staff every have a standing invitation to all conferences.

The EMC membership as of March 2025

Business 2024 to 2025

The EMC operates with a transparent forecast of enterprise primarily based on the Dstl Strategy and the deliverables within the Dstl Business Plan and devotes a quarterly session to scrutinising efficiency in depth. The EMC has continued to prioritise enhancements in security and safety with a standing replace firstly of every assembly. The EMC reviewed and re-committed to its Safety Charter.

Dstl has undertaken a major programme by way of 2024 to 2025 to reshape its Operating Model and Organisational Design. Implementation of this has begun early into the Financial Year 2025 to 2026. The EMC has taken a lead position on this programme, endorsing key Programme Board choices and driving ahead the meant advantages.

The EMC additionally targeted its enterprise in keeping with the persevering with adjustments to the broader Defence construction, with frequent discussions and critiques to make sure Dstl and its experience was used to finest impact throughout the Strategic Defence Review and Defence Reform.

Throughout the 12 months, the EMC has positioned a excessive degree of consideration on returning Dstl to a minimum of a reasonable degree of assurance. For a lot of the 12 months this has included a month-to-month report monitoring detailed actions. This has proven good progress.

Dstl follows the rules specified by Section 172 of the Companies Act 2006, and has met the necessities with particular gadgets of enterprise and by managing Corporate Risks as follows:

Section 172 requirement	EMC response	Corporate dangers
The possible penalties of any resolution in the long run	EMC has developed a 3-year Corporate Plan as a part of the 2023-28 Strategic Direction.	CR-GOVERNANCE-1, CR-INFRASTRUCTURE-1
	EMC has developed a 10-year infrastructure plan aligned with departmental priorities and the Dstl technique.
	Each quarter EMC discharges its position because the sponsoring physique for the Dstl Transformation Portfolio, and has performed a major position in main the adjustments to Dstl’s Organisational Design for implementation in 2025-26
The pursuits of the corporate’s staff	Every EMC assembly begins with a dialogue of Safety and Security issues. There is a quarterly EMC agenda merchandise dedicated to contemplating Dstl’s People points, together with pay, recruitment, retention and truthful remedy.	CR-SAFETY-1, CR-SECURITY-1, CR-PEOPLE-1
	The EMC has reviewed the outcomes of the annual People Survey.
	EMC has heard, mentioned and taken motion on reviews referring to the remedy of ladies in defence.
Fostering enterprise relationships with suppliers, prospects and others	A quarterly EMC Performance assembly, which included attendance from all of the S&T Delivery Heads and Head of Commercial.	CR-STRATEGY-1, CR-PORTFOLIO-1, CR-REPUTATIONAL-1
Impact of operations on the group and the atmosphere	This 12 months the EMC has refreshed and agreed new Terms of Reference for its Health, Safety and Environmental Protection sub-committee.	CR-SAFETY-2, CR-ENVIRONMENTAL-1
Maintaining a status for prime requirements of enterprise conduct	The EMC declares any potential conflicts of curiosity yearly and firstly of every assembly.	CR-REPUTATIONAL-1
	Investigations, audits and fraud dangers are reported within the quarterly Assurance Report.
Acting pretty between members	EMC has maintained a duty matrix which makes clear the respective duties of its members and their interdependencies. Significant work has been undertaken to enhance Dstl’s Organisational Design and Operating Model.	CR-GOVERNANCE-1

EMC sub-committees

The effectivity of the EMC has been improved by means of its formal sub-committees throughout the 12 months, the needs of that are outlined beneath.

Investment Management Committee (IMC)

Purpose: to help the Chief Executive within the execution of his monetary delegations. The IMC ensures that expenditure proposals are topic to requirement and monetary scrutiny. The IMC is accountable for contemplating all funding proposals (capital and vital income) above an outlined threshold

The IMC is chaired by the Chief Finance Officer and is held month-to-month.

Dstl Executive Health, Safety and Environmental Protection Committee (DEHSEC)

Purpose: to assessment the measures taken to make sure the well being and security at work of Dstl workers and others affected by Dstl actions, and well being, security, welfare and the atmosphere is managed as a key enabler to world-leading science and know-how (S&T).

The DEHSEC is chaired by the Chief Executive and is held quarterly.

Our threat administration

Dstl’s threat administration framework is designed to make sure we counter or exploit the uncertainties confronted by each Dstl and our supply companions. We have embedded our threat administration practices throughout the organisation, permitting us to think about tactical and operational dangers in addition to long-term strategic dangers to the profitable supply of our aims.

Dstl’s central threat administration operate defines, maintains and helps the proper software of our threat administration strategy. The operate promotes a constant strategy and continuous enchancment, alongside their assist to the Executive and Board to make sure threat administration preparations are proportionate and efficient. This is achieved by Business Risk Partnering of Risk Managers and Business Managers. The Board and the ARAC repeatedly assessment our Corporate Risks.

In addition, the Board and its ARAC undertake assurance of those dangers to assessment the effectiveness of controls and mitigations and the progress of deliberate threat response actions, to make sure the extent of threat carried by the organisation is inside each its tolerance and delegation.

A re-baselined Corporate Risk Register was stood up for the beginning of this Financial Year, aligned with the Dstl Strategy 2023-28. In this 12 months, Dstl has up to date its threat administration framework, which helps an Enterprise Risk Management strategy.

Dstl’s strategy seeks to foster a risk-aware tradition, by which resolution making is knowledgeable by a shared understanding of threat, to boost the operation of organisational actions, in the end defending and enhancing worth.

Managing threat

Dstl’s threat administration strategy complies with the directives and steering of the MOD’s Joint Service Publication 892–Risk Management, which in flip aligns with the rules of HM Treasury’s Orange Book (Management of Risk–Principles and Concepts), deciphering them for MOD Organisations. In our evaluation of compliance with the 5 rules of the Orange Book, we now have recognized additional alternatives for compliance with Principle A (Governance and Leadership).

Improvements to our Operating Model and Organisational Design will embed the roles and duties detailed in our up to date Enterprise Risk Management framework. During Q3 of this Financial Year, our Executive Risk Owners attended an SCS Risk Culture Workshop, delivered by the Institute of Risk Management.

Dstl’s core course of for threat administration displays the MOD’s 4-step means of Risk Identification; Risk Assessment; Risk Response; and Risk Monitoring and Reporting.

The course of is iterative and supported by additional actions equivalent to assurance and escalation. The course of depends on these in designated roles (together with Risk Owners, Risk Managers, Control Owners and Action Owners) appropriately and proactively finishing up their duties. The identification course of takes account of Dstl’s working context.

Following the suitable articulation of a threat, it’s assessed, considering current controls and mitigations, to provide a sign of present chance and influence. Assessed dangers are assigned an acceptable response. The progress of implementing any additional deliberate controls and mitigations is monitored, together with the continuing effectiveness of current controls, and different adjustments to the chance profile. Emerging or rising dangers are dropped at the eye of areas of the enterprise best-placed to handle them.

Compliance with the rules of the Orange Book

As talked about beforehand, the UK authorities Orange Book outlines 5 rules for threat administration, relevant to Public Sector organisations.

Each authorities organisation is required to undertake a self-assessment for compliance with the rules and make a press release of compliance inside their Annual Report and Accounts, explaining any areas of non-compliance.

We assessed our compliance with the Orange Book Principles utilizing the HMT Risk Control Framework Bank of Questions.

Comply or clarify assertion

With the exception of Principle A (Governance and Leadership) our practices adjust to the Orange Book rules (see beneath for additional particulars).

Our self-assessment signifies that threat administration is an integral a part of all organisational actions to assist resolution making in reaching aims (Principle B), with dangers linked to aims, and threat particularly thought of inside decision-making fora.

Our strategy to threat administration is collaborative and knowledgeable by one of the best accessible data and experience (Principle C)–we search to embed threat administration functionality all through the organisation, collaborate with SMEs within the articulation and administration of threat, and present threat partnering by threat professionals whose abilities are aligned with the Orange Book Skills and Capabilities Framework.

Our threat administration processes are structured to incorporate threat identification and evaluation to permit prioritisation of how dangers needs to be managed; the choice, design and implementation of threat remedy choices that assist the achievement of meant outcomes and the administration of dangers to acceptable ranges; and threat reporting to assist resolution making and managing organisational efficiency (Principle D).

These preparations have been strengthened by a major revision of our Enterprise Risk Management Framework and supporting course of in 2024 to 2025. We search to repeatedly enhance our Risk Management strategy (Principle E), studying from assurance actions and main apply. Our annual self-assessment in opposition to the Principles of the Orange Book, identifies additional alternatives for enchancment.

We don’t absolutely adjust to Principle A (Leadership and Governance), albeit that we partially meet a number of necessities of this precept. We have made vital progress in 2024 to 2025, with the publication of an up to date Enterprise Risk Management framework, which incorporates clear roles, duties and accountabilities. We anticipate that our drive to advertise ‘a risk aware culture’ will probably be embedded by way of our new Operating Model and Organisational Design.

In Q3 2024 to 2025, our Executive Risk Owners attended a Senior Civil Service (SCS) Risk Culture workshop delivered in-house by the Institute of Risk Management, to assist them of their position to advertise optimum threat administration behaviours.

Our management atmosphere

Our management atmosphere units the tone for the way our folks have interaction of their day-to-day actions in keeping with behavioural and moral requirements. In addition, we additionally clearly make clear our folks’s duties and the bounds to their authority.

Our written insurance policies and processes, along with folks’s duties, are at the moment present process assessment and replace to assist Dstl’s Organisational Design Transformation and, along with requirements of conduct and codes of ethics, can be found on Dstl’s inside Business Management System ‘Themis’.

Dstl processes

We function a course of hierarchy that offers strategic path and intent to our enterprise processes, sub-processes and course of actions. These are aligned with our course of households–the important thing units of actions that Dstl performs to be able to assist handle company dangers whereas reaching our objective of delivering mission success.

In February of this 12 months we initiated a full assessment and re-brigading of all of our processes into fourteen up to date course of households to assist Dstl’s Organisational Design (OD) Transformation, to make sure they proceed to:

meet the wants of our workers, prospects and different stakeholders
proceed to assist supply of our strategic intent
mitigate threat to the operation of Dstl’s enterprise

Process critiques and updates, to make sure that all processes and supporting data are aligned with our revised buildings, roles and duties, is initially targeted on our most important processes. The following is a diagram summarising our processes and the revised course of households.

Our management actions

Our insurance policies and processes kind the idea of our directive management actions, mitigating dangers to the achievement of our aims, making certain the effectiveness and effectivity of our operations, and making certain compliance with relevant legal guidelines and rules. Our threat management framework, which helps the definition of our key controls and ongoing monitoring of the reassurance actions required to measure their effectiveness, is a key part of our total assurance opinion.

This 12 months we now have applied a brand new assurance framework, primarily based on rules aligned with the HM Treasury Orange Book, permitting some flexibility within the supply of assurance however clear on the priorities for assurance. This framework supplies a typical understanding of what’s meant by assurance, its significance to the profitable operation of our organisation, and the strategy to assurance in Dstl, all predicated on The Three Lines of Defence Model.

Line of defence	Description	Dstl
1st line	Managers and staff who’re accountable for figuring out and managing threat as a part of their accountability for reaching aims.	All
2nd line	Functions who present the insurance policies, processes, frameworks, instruments, strategies and assist to allow threat and compliance to be managed within the first line.	Specialist features who set the controls e.g. Finance, Security, Health and Safety
third line	Independent inside audit reporting to the Board/Audit and Risk Assurance Committee	Government Internal Audit Agency MOD regulators

Incident investigations

Learning from incidents, to stop recurrence and enhance our enterprise to the good thing about Dstl and its stakeholders, stays a key dedication.

This 12 months we now have targeted on how we make the reporting of incidents easier and how we enhance our reporting tradition. Improved steering on reporting and the promotion of fine information tales from the reporting of close to misses and incidents, alongside our unrelenting advocacy of a ‘just culture’, has had a optimistic influence.

We proceed to evaluate incidents at our weekly company incident triage assembly, permitting us to make sure a proportionate response together with, when acceptable, investigation of great incidents primarily based on the potential influence the incident may have in steadiness with the precise hurt or injury induced.

In 2024 to 2025, Dstl reported 4 specified harm accidents to the Health and Safety Executive (HSE) beneath RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations). This resulted in an Accident Incident Rate of 77.4 per 100,000 staff.

Whistleblowing

We stay dedicated to reaching the very best potential requirements of service and ethics in public life, as demonstrated by our whistleblowing course of which was re-written this 12 months to include the newest Cabinet Office steering and stays in keeping with the Public Interest Disclosure Act 1998, the Fraud Act 2006 and the Bribery Act 2010. We at all times take any such incidents extraordinarily severely, endeavor an evaluation of any concern adopted by a company investigation if acceptable.

This 12 months 12 considerations had been raised, of which 4 had been absolutely investigated, however none of those had been through our whistleblowing course of.

Identifying and managing conflicts of curiosity

We place excessive worth on exemplifying integrity and impartiality, which we obtain by way of our ‘Standards in Public Life’ course of.

In line with the Civil Service Management Code, this requires all staff to declare any precise or potential battle of curiosity arising between their private and monetary pursuits and their official dealings as a Civil Servant.

All declarations, along with how potential or precise conflicts are being managed, are retained and endure 6-monthly assessment, permitting higher assurance of our compliance and elevated scrutiny over and above that offered by line managers. Failure to declare such pursuits could also be handled as misconduct.

Declarations made by Senior Civil Servants in Dstl are reviewed by Chief People Officer as per Cabinet Office Guidance. We publish pursuits declared by our Board members here.

Protected private knowledge incidents

In 2024 to 2025, there have been no reported breaches of private data by Dstl declared to the Information Commissioners Office. We dealt with 7 Data Subject Access Requests (DSAR) beneath the Data Protection Act (DPA) 2018. There had been additionally 11 enquiries to the Porton Down Former Volunteers Helpline, all of which had been dealt with in accordance with the DPA.

Fraud administration

Effectively managing our threat of fraud stays core to our Counter Fraud Policy and fraud controls. Our highest possible threat of fraud is inside our procurement exercise though we additionally concentrate on potential insider threats together with theft and misuse or misappropriation of public funds by workers.

We adjust to Cabinet Office’s Government Functional Standard (GovS 013: Counter Fraud) and align with the Defence Counter Fraud Strategy. This 12 months, in collaboration with MOD Fraud Defence, we established an preliminary knowledge analytics functionality to assist detection of fraud and error that has already led to some decrease worth recoveries.

During the reporting interval we now have formally investigated 2 allegations of potential fraud, every of which had been satisfactorily resolved with the allegations of fraud being unfounded.

Quality assurance of analytical fashions

A mannequin is a option to appraise, assess, consider, plan or forecast future responses or outcomes by processing a wide range of enter knowledge and assumptions. Our Modelling and Simulation Strategy Group manages the coherence and governance of our modelling.

We declare our enterprise crucial fashions responding to data requests from the MOD Analysis Directorate. We proceed to work with MOD and wider authorities to enhance the standard and operation of analytical modelling by way of the mutual sharing of finest apply.

Group Head of Defence Internal Audit’s abstract

In line with Public Sector Internal Audit Standards, the Defence Group Head of Internal Audit from the Government Internal Audit Agency (GIAA) should present knowledgeable opinion on the adequacy and effectiveness of Dstl’s preparations for threat administration, inside management and governance.

I’ve used the next GIAA audit opinion to assist me within the manufacturing of this 12 months’s Governance Statement; it summarises the outcomes of GIAA’s inside audit work related to our aims from April 2024 to March 2025. Seven Dstl sponsored audits had been delivered by GIAA. The Defence Group Head of Internal Audit from GIAA has stated:

“Overall, and primarily based on the inner audit work delivered all through FY24/25, GIAA present restricted assurance over Dstl’s programs of governance, threat administration and inside management. Whilst our key assessment of Dstl’s new Assurance Framework decided that it was designed adequately, we recognized that additional work was required to embed it throughout the organisation to offer co-ordinated and proportionate protection of key controls that mitigate Corporate Risks. This was discovered to be the case in our assessment of Security Risk and Assurance whereby it was recognized that additional work was wanted to boost the general management framework.

“Further, our critiques of Waste Management and Fire Safety Management System recognized that enhancements had been required in respect of 2nd line assurance, oversight and the maturity of administration data. Notwithstanding, it was recognised that the Safety Reset Programme had adequate programmatic controls in place and that Dstl’s bespoke Facilities Management working mannequin was designed and working successfully.

“Additionally, the New Information Systems Service Solution (NISSS) programme was deemed to have adequate assurance mechanisms across the lines of defence that confirmed it was well managed and had embedded oversight mechanisms.”

As Accounting Officer, I recognise the crucial significance of getting strong programs of governance, threat administration and inside management. We will deal with all of the remedial actions to deal with the restricted assurance findings from 2024 to 2025 and work to completely embed our improved strategy to assurance in 2025 to 2026.

External certification

In July 2024 BSI Assurance UK Ltd audited Dstl, recommending continuation of Dstl’s ISO 9001:2015 (Quality Management Systems) and TickITplus (software program improvement) certifications.

Chief Executive’s abstract

Dstl has undertaken vital work by way of the 12 months to enhance its governance and management and has made optimistic strides in our journey again to ‘moderate’ assurance. This contains a considerable amount of detailed work to redefine Dstl’s Operating Model and Organisation Design. This will probably be applied within the coming 12 months and is the subsequent, main part of making certain that the UK can proceed to learn from a protected, safe, sustainable and high-impact Dstl for a few years to return.

Remuneration coverage

Remuneration and workers

Remuneration coverage

During the monetary 12 months, 5 administrators had been members of the SCS and topic to SCS phrases and situations, together with the remuneration coverage. These administrators had been:

Paul Hollinshead
Andy Bell
David English
Simon Donnan
Teresa Stanley
Tim Sheldon

As SCS, their pay is about by way of suggestions made by the Review Body on Senior Salaries (SSRB). The SSRB supplies impartial recommendation to the Prime Minister and to the Secretary of State for Defence on the remuneration of the SCS. Visit their internet web page for further information about the SSRB’s work.

Their non-consolidated efficiency award preparations fall beneath SCS guidelines somewhat than the Dstl performance-award system.

The non-executive members (NEMs) aren’t Dstl staff and, other than 1 who’s employed by MOD, are paid a price for his or her companies.

Performance situations

Directors who’re topic to SCS phrases and situations are additionally topic to the SCS efficiency situations.

Service contracts

The Constitutional Reform and Governance Act 2010 requires civil service appointments to be made on advantage on the idea of truthful and open competitors. The Recruitment Principles revealed by the Civil Service Commission specifies the circumstances when appointments could also be made in any other case.

Unless in any other case said, the officers lined by this report maintain appointments that are open-ended. Early termination, apart from for circumstances of misconduct, would outcome within the particular person receiving compensation as outlined within the Civil Service Compensation Scheme.

Further details about the work of the Civil Service Commission may be found online.

Fees paid to non-executive members of the Dstl Board for the monetary 12 months 2024 to 2025

This data is topic to audit opinion

	Fee	Fee
	2024/25	2023/24
	£’000	£’000
Adrian Belton	25-30	25-30
Brian Bowsher	15-20	15-20
Jeremy Monroe¹	10-15	15-20
	(15-20)
Sarah Spurgeon	15-20	15-20
Mark Barclay²	5-10	–
	(15-20)
David Tonkin³	0-5	15-20
	(15-20)
Robert MacLeod	15-20	0-5
		15-20
Tara Usher⁴	–	–

Figures in brackets denote full-year equal price

¹ Jeremy Monroe terminated employment in November 2024.

² Mark Barclay joined Dstl in December 2024.

³ David Tonkin terminated employment in April 2024.

⁴ Tara Usher didn’t obtain a price in 2024 to 2025; Tara is employed by MOD and represents MOD as a non-executive member (and receives a normal civil service wage from MOD). This is a associated occasion with which Dstl has materials transactions. Please see Related Party Note at Note 22. Tara started her tenure on 1 October 2019.

Senior administration remuneration and pension entitlement

Remuneration paid to government administrators for the monetary 12 months 2024 to 2025

This data is topic to audit opinion

	Salary band 2024/25	Salary band 2023/24	NCPA 2024/25	NCPA 2023/24	Pension advantages 2024/25	Pension advantages 2023/24	Total 2024/25	Total 2023/24
	£’000	£’000	£’000	£’000	Nearest £’000	Nearest £’000	£’000	£’000
Andy Bell	110-115	105-110	0-5	0-5	86	34	200-205	145-150
Matt Chinn¹	5-10	110-115	0-5	5-10	4	52	10-15	170-175
	(100-105)
Rob Cocks²	20-25	N/A	0-5	N/A	–	N/A	20-25	N/A
	(85-90)
Simon Donnan³	30-35	N/A	0-5	N/A	129	N/A	160-165	N/A
	(95-100)
David English⁴	75-80	105-110	0-5	0-5	18	92	90-95	200-205
	(95-100 )
Paul Hollinshead	165-170	155-160	0-5	0-5	–	–	165-170	155-160
Tim Sheldon⁵	120-125	N/A	0-5	N/A	117	N/A	240-245	N/A
	(135-140 )
Teresa Stanley	80-85	80-85	0-5	0-5	75	92	160-165	175-180
		(85-90 )

Figures in brackets denote full-year equal wage

We haven’t disclosed pension advantages for Rob Cocks and Paul Hollinshead as we raised queries in relation to the accuracy of the knowledge offered by MyCSP. We haven’t been in a position to get a response to our queries on the timetable required for publishing the ARA. We will due to this fact embrace the knowledge in our future ARA as soon as the queries have been resolved.

¹ Matt Chinn acted as interim Chief Delivery Officer (CDO) till April 2024. He departed Dstl in September 2024.

² Rob Cocks has acted as interim Chief Finance Officer since January 2025.

³ Simon Donnan joined Dstl because the interim Chief Operating Officer (COO) in November 2024 on a 1-year mortgage interval.

⁴ David English departed Dstl because the Chief Finance Officer and interim COO in December 2024.

⁵ Tim Sheldon joined Dstl because the CDO in April 2024.

Executive Agency Board members’ emoluments

The particulars of our Board members may be discovered above beneath our leadership. They are summarised as follows:

This data is topic to audit opinion

	2024/25¹	2023/24²	2022/23
Salaries, NCPAs and charges (£’000)	479.5	483.6	536.1

¹ The determine for 2024 to 2025 displays David English’s departure as Chief Finance Officer (CFO) and Rob Cocks appearing as interim CFO.

² The determine for 2023 to 2024 has lowered from 2023 because the COO position was not stuffed. David English continued to behave as interim COO throughout this era.

Pension provision for government administrators for the monetary 12 months 2024 to 2025

This data is topic to audit opinion

	Real enhance in pension [and related lump sum at pension age]	Total accrued pension at pension age at 31/03/25 [and related lump sum]	Cash equal worth at 31/03/25	Cash equal worth at 31/03/24	Real enhance in money equal switch worth as funded by employer
	£’000	£’000	£’000	£’000	£’000
Andy Bell	2.5-5 [5-7.5]	45-50 [120-125]	1,187	1,060	81
Rob Cocks		–	–	–	–
Matt Chinn	0-2.5 [0]	40-45 [110-115]	951	942	2
Simon Donnan	5-7.5 [15-17.5]	35-40 [85-90]	728	594	118
David English	0-2.5	45-50	920	877	8
Paul Hollinshead	–	–	–	–	–
Tim Sheldon	5-7.5 [7.5-10]	50-55 [125-130]	1,114	971	103
Teresa Stanley	2.5-5	45-50	1,012	902	69

We haven’t disclosed pension provision for Rob Cocks, David English and Paul Hollinshead as we raised queries in relation to the accuracy of the knowledge offered by MyCSP. We haven’t been in a position to get a response to our queries on the timetable required for publishing the ARA. We will due to this fact embrace the knowledge in our future ARA as soon as the queries have been resolved.

Pension data is offered by MyCSP, the directors of civil service pensions. Our administrators belong to the basic, basic plus or alpha CSPSs. All schemes are a part of the civil service pension preparations. See pension information.

Fair pay disclosure (relationship between the highest-paid director and the workforce median)

This data is topic to audit opinion

	2024/25	2024/25	2023/24	2023/24
	Total pay	Salary	Total pay	Salary
Band of highest-paid director whole remuneration	£165,000 to £170,000	£165,000 to £170,000	£155,000-£160,000	£155,000-£160,000
Median whole remuneration	£44,565	£43,815	£44,198	£43,348
Median pay ratio	3.76	3.82	3.62	3.69
twenty fifth Percentile pay	£34,058	£33,658	£34,088	£33,663
twenty fifth Percentile pay ratio	4.92	4.98	4.69	4.75
seventy fifth Percentile pay	£54,856	£54,106	£54,083	£53,177
seventy fifth Percentile pay ratio	3.05	3.10	2.96	3.01

Reporting our bodies are required to reveal the connection between the remuneration of the highest-paid director of their organisation and the decrease quartile, median and higher quartile remuneration of the organisation’s workforce.

Total remuneration contains wage, non-consolidated efficiency associated pay, and advantages in variety. It doesn’t embrace severance funds, employer pension contributions and the money equal switch worth of pensions.

The banded remuneration of the highest-paid director in Dstl within the monetary 12 months 2024 to 2025 was £165,000-£170,000 (2023 to 2024: £155,000-£160,000). This was 3.76 instances (2023 to 2024: 3.62) the median remuneration of the workforce, which was £44,565 (2023 to 2024: £44,198).

In 2024 to 2025, remuneration ranged from £18,000 to £165,000-£170,000 (2023 to 2024: £18,000 to £155,000-£160,000). Total remuneration contains wage, non-consolidated performance-related pay, and advantages in variety. It doesn’t embrace severance funds, employer pension contributions and the money equal switch worth of pensions.

Percentage change in whole wage and bonuses for the very best paid director and workers common

This data is topic to audit opinion

	2024/25	2024/25	2023/24	2023/24	2022/23	2022/23
	Total wage and allowances	Bonus funds	Total wage and allowances	Bonus funds	Total wage and allowances	Bonus funds
Staff common	2%	42%	19%	-40%	9%	22%
Highest paid director	4.02%	No change	3%	No change	2.20%	No change

There was no change in highest paid director bonus funds as none had been obtained, the identical because the prior 12 months.

The whole wage and allowances between 2023 to 2024 and 2024 to 2025 have decreased as a result of there being no cost-of-living cost being paid within the 2024 to 2025 monetary 12 months. The cost-of-living cost was taken from the bonus funds. Therefore, bonuses look to have elevated on account of this cost not being offered in 2024 to 2025.

Our folks

Dstl employs among the world’s brightest folks. We recognise {that a} extremely expert, inquisitive and devoted workforce is essential to delivering our high-impact work.

Our folks proceed to make us proud and have obtained prestigious recognition all year long. Within the King’s Birthday Honours we had 2 colleagues appointed Officer of the Order of the British Empire (OBE). These had been in recognition of excellent service to the Defence and Security of the UK, and its allies.

The awards recognised how scientific experience can assist specialist customers to ship a counter Chemical Biological and Radiation functionality and ground-breaking work, main the event of the UK’s engineering and artificial biology analysis. Additionally, a person obtained a prestigious Joint Commander’s Commendation (JCC) recognising distinctive operational influence and strategic experience.

Quite a lot of people had been awarded Vice Chief of Defence Staff (VCDS) Commendations. The VCDS Commendations are awarded twice a 12 months, in tandem with the state honours, to people and groups who’ve carried out exemplary service to MOD.

Three people obtained particular person awards for contributions made to the UK’s defence and safety. There had been additionally awards for assist to operations, recognising quite a few people who’ve labored extraordinarily onerous, usually deploying at brief discover to offer frontline skilled recommendation which has been invaluable in shaping UK operations.

We proceed to develop our Support to Operations pool and pipeline of deployable scientists and engineers, able to deploy on operations at brief discover so we are able to additional improve the breadth and depth of S&T assist to allow UK operational benefit.

The DragonFire crew had been additionally recognised with a VCDS award. The ultimate laser weapon demonstration on the Hebrides was the end result of over 6 years of labor with a really massive variety of vital contributions from a variety of individuals. We are delighted to rejoice the contributions of people who find themselves usually unsung within the supply of technical work together with industrial workers, media specialists, mission managers and security specialists. It was nice to have such devoted folks throughout a crew of assorted talent units who had been pulling in the identical path.

We had been happy to have had 2 members of workers shortlisted for the Women in Defence Awards 2024. The awards recognise the extraordinary contributions that people and groups make to defence and purpose to encourage others to step ahead and problem obstacles. With each workers members, their contribution each inside and exterior of labor has made an enormous distinction to UK defence and their nominations had been effectively deserved.

We are extremely pleased with our folks, and for the popularity of their work. Engagement is measured by way of the People Survey and the general engagement index for Dstl is 58%, which has lowered by 2 share in comparison with final 12 months. A big quantity of labor is ongoing to additional develop our tradition and management aligned to our organisational redesign.

Right measurement, proper form, proper abilities

There has been a concentrate on reorganising Dstl this 12 months while additionally making certain we lowered our measurement to align with the priorities of the Civil Service Reform and change into a extra environment friendly organisation in consequence. As such we now have targeted on the reskilling and retention of our folks all through this 12 months with exterior recruitment targeted on key development areas, roles created by way of organisational redesign and crucial roles.

We welcomed over 130 new starters to Dstl this 12 months. We additionally had 51 inward rotations, seconded from throughout Civil Service and different organisations, into our organisation this monetary 12 months. We proceed to assessment our apprentice and graduate (early careers) consumption and future recruitment pipeline to align with Dstl technique and wider defence workforce planning.

We have lowered our recruitment promoting prices to £250,000. This aligns with wider civil service recruitment targets and the drive to be extra environment friendly. All of Dstl recruitment spend is agreed inside Civil Service Frameworks, with our promoting accomplice, growing promoting supplies and merchandise to make use of throughout all media.

We haven’t any different promoting or advertising and marketing prices at Dstl.

Exciting, modern and supportive office

In 2024, we continued to concentrate on variety and inclusion. Transparency, inclusion and equality are key rules in each deliverable inside our People Plan. Put merely, inclusion is ‘One Dstl’ and it creates a greater place to work. The focus this 12 months has been:

Increasing the range of our workforce together with on the most senior ranges, to extra intently replicate the society we signify and serve.
A measuring what issues marketing campaign. The purpose of the marketing campaign was to extend the completion charges of variety declarations, with an emphasis on the incapacity demographic to assist us higher perceive our workforce and tailor interventions. Declarations elevated throughout all protected traits with incapacity declaration charges rising by over 50%.

A concentrate on ladies’s security which:

subjected our reporting course of to each an inside and exterior assessment
created a Personal Protective Equipment (PPE) Working Group to take a look at how we are able to make the procurement of PPE extra equitable
improved ladies’s altering services
modernised pre-trial briefs
elevated engagement with groups throughout Dstl to debate what steps they’ll take to assist create extra inclusive office environments
applied an anti-bullying and harassment hub, which accommodates helpful data and assets in a single place
enabled engagement with colleagues engaged on Organisational Development to make sure that respect and how that aligns to ladies’s security is embedded in our new tradition and is absolutely thought of in all of our work on tradition

We proceed to try to create a extra inclusive Dstl and to draw the widest vary of candidates in an more and more aggressive pool to enhance illustration throughout Dstl. Our Employee Support Networks (ESNs) proceed to ship assist for our folks and the organisation.

One of the methods our leaders pay attention is thru our many energetic ESNs, that are run by our folks and supported by our senior administration groups and government champions.

These teams assist us get hold of trustworthy suggestions from our folks, affect and facilitate change, assist us develop our insurance policies and tradition, and present assist for people who may have it. Our networks cowl totally different protected traits, together with:

Our individuals are primarily Civil Servants and as such, the Civil Service governs our folks insurance policies. We be certain that our procedures and employment contracts are in keeping with the Civil Service Management Code and that they replicate the basic rules of the Human Rights Act 2000.

We efficiently applied 12 months 3 of our multi-year pay settlement which has run from 2022 to 2025. This has made a major enchancment in our pay providing and has addressed challenges inside our pay construction. It has offered a platform for Dstl to think about pay and reward within the long-term past the expiry of the present deal in 2025.

We will proceed to take a look at how we are able to supply a versatile, truthful and fashionable pay and reward providing for our workers now and sooner or later.

We supply thrilling profession alternatives and a variety of versatile working choices alongside a variety of rewards and advantages, that are frequently reviewed to make sure they’re truthful and engaging.

We have to proceed to be artistic and versatile in our strategy to rewarding our folks for the abilities they supply, to be able to guarantee we are able to entice and retain our workforce and ship Dstl’s technique. Our workers turnover for 2024 to 2025 was 5.4% representing a discount from the earlier 12 months (2023 to 2024: 6.9%).

The well being and wellbeing of our staff is of utmost significance to us, and we work intently with our onsite occupational well being crew and our Employee Assistance Programme supplier to assist our staff’ wellbeing. We noticed 2.52% of hours misplaced as a result of illness absence this 12 months, in comparison with 2.35% in 2023 to 2024.

During the 12 months we now have targeted on supporting our folks’s wellbeing by way of a time of change. This has included particular workshops to assist people’ wellbeing with a selected concentrate on navigating change and constructing resilience, particularly:

exploring the impacts change can have on private wellbeing
contemplating methods for constructing resilience
analyzing the significance of cultivating connection for supportive office environments

Moving forwards, we are going to launch a one Dstl strategy to wellbeing, aligned to well being and security, to essentially put the wellbeing of our folks on the coronary heart of Dstl’s agenda. This will probably be underpinned by a phased program of actions.

Our workforce

The common full-time equal variety of folks (together with members of the Board) employed throughout the 12 months was:

This data is topic to audit opinion

	Permanent (UK) employment contract	Permanent (UK) employment contract	Agency and short-term contract workers	Agency and short-term contract workers	Inward secondees	Inward secondees	Total	Total
	2025	2024	2025	2024	2025	2024	2025	2024
Professional and technical workers	3,847	3,880	285	323	66	66	4,198	4,269
Administrative and industrial workers	879	886	46	52	0	0	925	938
Total	4,726	4,766	331	375	66	66	5,123	5,207

Staff prices

Staff prices incurred throughout the 12 months comprise:

This data is topic to audit opinion

	2025	2024
	£m	£m
Wages and salaries	248.3	243.0
Social safety prices (together with apprenticeship levy)	28.7	28.0
Other pension prices	67.3	60.8
Inward secondees	8.8	7.8
Agency and contract workers	23.3	27.7
Less recoveries in respect of outward secondments	(2.3)	(2.1)
Total	374.1	365.2

No workers prices had been capitalised throughout the 12 months (2023 to 2024: £nil).

Our off-payroll engagements

Following the Review of Tax Arrangements of Public Sector Appointees revealed by the Chief Secretary to HM Treasury on 23 May 2012, Dstl should publish data on our extremely paid and/or senior off-payroll engagements. To complement our dedicated employed workforce, and to cowl non permanent capability or to ship specific area of interest scientific experience, we have interaction a variety of Contracted Temporary Workers (CTWs)/Contingent Labour.

Identified within the following tables are the numbers of our non-permanent workers (contractors) at Dstl whom we rent beneath contingent labour route–PSR (Public Sector Resourcing) framework RM3749. CTWs aren’t staff and nor are they off-payroll appointments to public workplace, for which there are none at Dstl.

All off-payroll engagements

Highly paid off-payroll employee engagements as at 31 March 2025, incomes £245 per day or higher	119
of which
Number which have existed for lower than 1 12 months at time of reporting	9
Number which have existed for between 1 and 2 years at time of reporting	34
Number which have existed for between 2 and 3 years at time of reporting	20
Number which have existed for between 3 and 4 years at time of reporting	19
Number which have existed for 4 or extra years at time of reporting	37

All extremely paid off-payroll employees engaged at any level throughout the 12 months ended 31 March 2025, incomes £245 per day or higher	200¹
of which
Not topic to off-payroll laws	0
Subject to off-payroll laws and decided as in-scope of IR35	196
Subject to off-payroll laws and decided as out-of-scope of IR35x	4
No. of engagements reassessed for compliance or assurance functions throughout the 12 months	0²

Notes:

¹ Figure is whole of these engaged at any level throughout the 12 months ended 31 March 2025, and due to this fact contains these whose contracts have ceased.

² Dstl doesn’t undertake a reassessment for consistency/assurance functions as a result of small variety of contracts falling exterior of IR35. Dstl would solely carry out a consistency examine the place the scope and nature of a task modified mid-contract.

Off-payroll and on-payroll engagements of Board members and/or senior officers with vital monetary duty

Number of off-payroll engagements of Board members and/or senior officers with vital monetary duty throughout the monetary 12 months	0
Total variety of people on-payroll and off-payroll which were deemed Board members and/or senior officers with vital monetary duty throughout the monetary 12 months	14

Exit packages

Redundancy and different departure prices had been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme, made beneath the Superannuation Act 1972.

Exit prices are accounted for in-full within the 12 months the departure is agreed. Where the Executive Agency has agreed early departures, the extra prices are met by the Agency, not the Civil Service pension scheme. Ill-health retirement prices are met by the pension scheme and aren’t included within the desk beneath.

This data is topic to audit opinion

Exit bundle price band	Number of obligatory redundancies	Number of obligatory redundancies	Number of different departures agreed	Number of different departures agreed	Total variety of exit packages by price band	Total variety of exit packages by price band
	2025	2024	2025	2024	2025	2024
Less than £10,000	0	0	1	0	1	0
£10,000 – £25,000	0	0	1	0	1	0
£25,001 – £50,000	0	0	1	1	1	1
£50,001 – £100,000	0	0	1	0	1	0
£100,001 – £150,000	0	0	0	0	0	0
£150,001 – £200,000	0	0	0	0	0	0
More than £200,000	0	0	0	0	0	0
Total variety of exit packages	0	0	4	1	4	1
Total price of exit packages (£)	0	0	132,920	44,251	132,920	44,251

There had been no changes for variations between estimates and ultimate settlements referring to earlier years.

Pensions

Pension advantages are offered by way of the Civil Service pension preparations. From 1 April 2015, a brand new pension scheme for civil servants was launched–the Civil Servants and Others Pension Scheme or alpha, which supplies advantages on a career-average foundation with a traditional pension age equal to the member’s state pension age or 65 if greater.

From 1 April 2015, all newly appointed civil servants and nearly all of these already in service joined alpha. Prior to that date, civil servants participated within the Principal Civil Service Pension Scheme (PCSPS). The PCSPS has 4 sections: 3 (basic, premium, basic plus) present advantages on a final-salary foundation with a traditional pension age of 60, and 1 (nuvos) supplies advantages on a whole-career foundation with a traditional pension age of 65.

Existing members of the PCSPS who had been inside ten years of their regular pension age on 1 April 2012 remained within the PCSPS after 1 April 2015. Those who had been between ten years and 13 years and 5 months from their regular pension age on 1 April 2012 switched or swap into alpha someday between 1 June 2015 and 1 February 2022. Because the federal government plans to take away discrimination recognized by the courts in the way in which that the 2015 pension reforms had been launched for some members, it’s anticipated that, in the end, eligible members with related service between 1 April 2015 and 31 March 2022 could also be entitled to totally different pension advantages in relation to that interval (and this may increasingly have an effect on the Cash Equivalent Transfer Values proven on this report.

All members who swap to alpha have their PCSPS advantages ‘banked’, with these with earlier advantages in one of many ultimate wage sections of the PCSPS having these advantages primarily based on their ultimate wage once they depart alpha. As a outcome all members within the older schemes outlined above had been moved into Alpha with impact from the 1 April 2022.

The pension figures quoted for officers present pension earned in PCSPS or alpha–as acceptable. Where the official has advantages in each the PCSPS and alpha the determine quoted is the mixed worth of their advantages within the 2 schemes). Members becoming a member of from October 2002 could go for both the suitable outlined profit association or an outlined contribution (cash buy) pension with an employer contribution (partnership pension account).

These multi-employer outlined profit schemes are unfunded with the price of advantages met by monies voted by Parliament annually. Pensions payable beneath basic, premium, basic plus, nuvos and alpha enhance yearly in keeping with Pensions Increase laws.

The Executive Agency is unable to determine its share of the underlying property and liabilities. The Scheme Actuary critiques employer contributions normally each 4 years following a full scheme valuation. The contribution charges are set to satisfy the price of the advantages accruing throughout 2022 to 2023 to be paid when the member retires and not the advantages paid throughout this era to current pensioners. Details may be discovered within the resource accounts of the Cabinet Office.

Employee contributions are salary-related and vary between 4.6% and 8.05% of pensionable earnings for members of basic, premium, basic plus, nuvos and alpha.

For the 12 months ending 31 March 2025, the Agency’s employer contributions of £67.0 million had been payable to MyCSP (2023 to 2024: £60.5 million) at one charge 28.97% of pensionable earnings (2023 to 2024: 26.6% to 30.3%), primarily based on wage bands. More particulars on the basic, premium, basic plus, nuvos and alpha pension schemes, together with details about advantages and contributions, are available online.

Since October 2002, staff becoming a member of the Agency can go for both the suitable defined-benefit association as above or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account). The Agency makes a primary contribution of between 8.0% and 14.75% (relying on the age of the member) into the stakeholder pension.

The worker doesn’t should contribute, however the place they do make a contribution, the employer will match these as much as a restrict of three% of pensionable wage (along with the employer’s primary contribution).

For the 12 months ending 31 March 2025, worker contributions of £278,046 (2023 to 2024: £318,393) had been paid into partnership pension suppliers. Employers additionally contribute an additional 0.5% of pensionable wage to cowl the price of centrally-provided threat profit cowl (demise in service and ill-health retirement). Contributions as a result of partnership pension suppliers at 31 March 2025 had been £9,413 (2023 to 2024: £11,271). There had been no pay as you go contributions at that date.

This 12 months, there have been 2 people who retired on sick well being grounds; for the primary particular person there have been accrued pension liabilities of £2,988 as a result of an higher tier being utilized. For the second particular person there was no legal responsibility, as enhancement was given as a result of a decrease tier being utilized. Further particulars in regards to the Civil Service pension preparations may be discovered online.

Our workers composition

As of 31 March 2025, the gender numbers for our non-executive members, senior management crew members, SCS and staff had been:

	Male	Female	Total
Non-executive members¹	4	2	6
Senior Leadership Team²	5	1	6
Employees³	3,129	1,922	5,051
Total	3,138	1,925	5,063

Notes:

¹ The MOD non-executive member on the Dstl Board is SCS.

² The Chief Executive, Chief Delivery Officer, Chief Operating Officer (at the moment an inward rotation from an OGD), Chief People Officer, and Chief Science and Technical Officer roles are Senior Civil Servants; the Chief Finance Officer is at the moment stuffed on an interim foundation by non-Senior Civil Servant.

³ All the above figures are headcount. Employee numbers embrace our everlasting workers, our apprentices, and our fixed-term appointments. There is 1 different member of SCS at Dstl who isn’t a member of the Dstl Executive Team (Head of Commercial).

Parliamentary accountability and audit

This part presents details about Dstl that’s helpful to readers for accountability and decision-making functions.

As Accounting Officer, our Chief Executive is personally accountable to the MOD Permanent Secretary (who’s instantly accountable to Parliament) for making certain that public cash is safeguarded, correctly accounted for and used economically, effectively and successfully. Additionally, our Chief Executive is personally accountable to the MOD Chief Operating Officer for the efficiency and administration of Dstl.

Our Chief Executive is designated as Dstl’s Accounting Officer by the MOD Principal Accounting Officer (the MOD Permanent Secretary), and should function in accordance with Managing Public Money. This designation is conveyed through an Accounting Officer letter of delegation from the MOD Permanent Secretary.

As the Dstl Accounting Officer, our Chief Executive could also be known as to account instantly by Parliament. He is personally accountable for: safeguarding the general public funds for which he has cost; for making certain propriety, regularity, worth for cash and feasibility within the dealing with of these public funds; and, for the day-to-day operations and administration of Dstl.

The Dstl Accounting Officer’s particular accountabilities to Parliament embrace:

signing the Dstl Annual Report and Accounts making certain that correct information are saved and that accounts are correctly ready
making certain that efficient procedures for dealing with complaints about Dstl are established and extensively communicated
appearing in accordance with: Managing Public Money; the Dstl Framework doc; and, different directions and coverage as issued by MOD, His Majesty’s Treasury and the Cabinet Office
giving proof, usually with the MOD’s Principal Accounting Officer, when summoned earlier than the Public Accounts Committee

Our annual report and accounts are topic to audit by the Comptroller and Auditor General, who heads the National Audit Office and is accountable for scrutinising public spending and safeguarding the pursuits of taxpayers on behalf of Parliament.

View the Comptroller and Auditor General’s audit certification of this report.

More particulars on our governance, key roles and our accountabilities referring to the MOD possession operate of Dstl’s governance are revealed in our Framework Document .

Our possession construction is designed to steadiness the chance of Dstl’s operations to MOD, and to encourage variety of thought and cheap problem.

Statement of Parliamentary Supply (topic to audit)

As an on-vote Executive Agency, we function inside MOD’s management framework and are topic to delegated management totals for (internet) useful resource and capital funding from inside MOD’s departmental allocation.

We require internet money funding from MOD to cowl the steadiness of expenditure that can not be met from receipts paid on to Dstl. We conduct our transactions inside MOD on a non-cash foundation through intra-departmental accounting and bookkeeping constructs. Our monetary statements signify the results of transactions pertaining to our operations, set within the context of MOD’s total Statement of Outturn in opposition to Parliamentary Supply.

Regularity of expenditure (topic to audit)

Our inside controls recognized no materials breaches of regularity, and all expenditure has been utilized to the needs meant by Parliament.

Remote contingent liabilities (topic to audit)

In addition to any contingent liabilities reported within the Notes to the Accounts, we additionally disclose related materials distant contingent liabilities. The chance of a switch of financial profit arising is simply too distant to satisfy the definition of a contingent legal responsibility in accounting commonplace IAS37 (provisions, contingent liabilities, and contingent property).

Remote contingent liabilities are by nature unsure and not possible, however we recognise that they may result in additional expenditure if sure situations are met. They may materialise as a mix of unlikely and unsure future situations or occasions that aren’t wholly throughout the Agency’s management.

Our analysis actions are clearly associated to the actions, supplies and tools used within the defence and safety context, and by inference we’re due to this fact uncovered to related hazards and dangers throughout the conduct of trials, experimentation and engineering improvement. The nature of the particular and generic dangers and indemnities arising from such actions are self-insured and long-term residual liabilities are underwritten by our dad or mum division. Against these actions the Agency has recognized the next 2 potential distant materials liabilities:

Satellite collision (topic to audit)

The Agency invests in area operation capabilities, which features a satellite tv for pc floor station to job satellites for analysis functions. Mitigations are in place in opposition to accidents however there stays a distant chance of satellite tv for pc collision by way of software program or system failure, or by human error throughout the operation of a satellite tv for pc. HM Treasury approval has been obtained for as much as £500 million to cowl this distant contingent legal responsibility for operations that commenced throughout October 2020. The contingent legal responsibility is at the moment estimated to run out by 31 December 2030.

Decommissioning of Fort Halstead (topic to audit)

Up to the 31 March 2023 Dstl leased a website at Fort Halstead. As a part of the lease exit settlement a decommissioning assessment was efficiently accomplished by an impartial physique which cleared Dstl of instant remediation legal responsibility.

However, there stays a permanent threat of discovery of ordnance or depleted uranium on the website by future customers. An evaluation of the possible price of cleansing up a contamination incident has been made, along with an evaluation of the chance of such an incident occurring, for the aim of implementation of IFRS17 (Insurance Contracts).

The threat of contamination is taken into account very low, and the worst case can be the invention of depleted uranium which might possible price as much as £0.5 million to take away safely. More particulars in Note 1 to the Financial Statements.

Losses and particular funds (topic to audit)

There had been 2 particular person losses of £300k or extra this 12 months, as follows.

Termination of IT System:

During the 12 months Dstl terminated the construct of a bespoke IT system for satellite tv for pc operations. At the ultimate phases of the mission it was discovered that the system couldn’t be put in in Dstl knowledge centres as a result of unexpected technical points. Alternative choices had been thought of however a joint resolution was made with Space Command to terminate the mission. £2.2 million that had been capitalised beneath the mission has been expensed as a constructive loss as a result of there have been no property of future profit to Dstl or MOD.

Termination of a community entry resolution:

The Agency additionally terminated a mission to enhance consumer entry to digital recordsdata throughout its networks. The mission used software program that labored in a pilot for 200 customers however failed when scaled as much as 2,000 customers. Subsequent enhancements in accessibility to Dstl’s cheaper long-term storage resolution successfully negated the necessity for this mission. The whole £1.5 million price of the mission has been expensed as a constructive loss as a result of there have been no property of future profit created.

Other

Dstl recorded fruitless funds this 12 months totalling £430k, referring to duplicate and expiring software program licence purchases. A particular severance cost to a member of workers of £62k was paid in 12 months as an out of court docket tribunal settlement.

Fees and expenses (topic to audit)

We cost for items and companies in accordance with the rules in Managing Public Money. Our core exercise is to offer S&T companies to MOD and wider authorities. Please see our performance summary for particulars of those companies. Operating earnings recognised in return for the supply of those companies is disclosed in note 3 to the monetary statements. The price of offering these companies, buy of direct items and companies, is in note 4. Other working earnings is derived from receipts referring to non-core actions. Further particulars are in accounting coverage note 1 (u) to those monetary statements.

Public spending and administration budgets

Our Chief Executive receives his letter of authority as Accounting Officer instantly from the MOD Permanent Secretary. We get well our useful resource prices as an Executive Agency through expenses to our prospects; we don’t classify these as administrative prices. All our working expenditure is related to supply of our S&T outputs. See our performance summary for additional element.

Our capital prices are topic to a separate funding line inside MOD’s total management framework. All our capital expenditure is related to the supply of kit, services and infrastructure to allow the protected and safe supply of our S&T outputs.

The certificates and report of the Comptroller and Auditor General to the House of Commons

Opinion on monetary statements

I certify that I’ve audited the monetary statements of the Defence Science and Technology Laboratory for the 12 months ended 31 March 2025 beneath the Government Resources and Accounts Act 2000.

The monetary statements comprise the Defence Science and Technology Laboratory’s:

Statement of Financial Position as at 31 March 2025
Statement of Comprehensive Net Expenditure, Statement of Cash Flows and Statement of Changes in Taxpayers’ Equity for the 12 months then ended
the associated notes together with the numerous accounting insurance policies

The monetary reporting framework that has been utilized within the preparation of the monetary statements is relevant regulation and UK adopted worldwide accounting requirements.

In my opinion, the monetary statements:

give a real and truthful view of the state of the Defence Science and Technology Laboratory’s affairs as at 31 March 2025 and its internet expenditure for the 12 months then ended
have been correctly ready in accordance with the Government Resources and Accounts Act 2000 and HM Treasury instructions issued thereunder

Opinion on regularity

In my opinion, in all materials respects, the earnings and expenditure recorded within the monetary statements have been utilized to the needs meant by Parliament and the monetary transactions recorded within the monetary statements conform to the authorities which govern them.

Basis for opinions

I performed my audit in accordance with International Standards on Auditing (UK) (ISAs UK), relevant regulation and Practice note 10 Audit of Financial Statements and Regularity of Public Sector Bodies within the United Kingdom (2022). My duties beneath these requirements are additional described within the Auditor’s duties for the audit of the monetary statements part of my certificates.

Those requirements require me and my workers to adjust to the Financial Reporting Council’s Revised Ethical Standard 2019. I’m impartial of the Defence Science and Technology Laboratory in accordance with the moral necessities which can be related to my audit of the monetary statements within the UK. My workers and I’ve fulfilled our different moral duties in accordance with these necessities.

I consider that the audit proof I’ve obtained is adequate and acceptable to offer a foundation for my opinion.

Conclusions referring to going concern

In auditing the monetary statements, I’ve concluded that the Defence Science and Technology Laboratory’s use of the going concern foundation of accounting within the preparation of the monetary statements is suitable.

Based on the work I’ve carried out, I’ve not recognized any materials uncertainties referring to occasions or situations that, individually or collectively, could forged vital doubt on the Defence Science and Technology Laboratory’s potential to proceed as a going concern for a interval of a minimum of twelve months from when the monetary statements are authorised for situation.

My duties and the duties of the Accounting Officer with respect to going concern are described within the related sections of this certificates.

The going concern foundation of accounting for the Defence Science and Technology Laboratory is adopted in consideration of the necessities set out in HM Treasury’s Government Financial Reporting Manual, which requires entities to undertake the going concern foundation of accounting within the preparation of the monetary statements the place it’s anticipated that the companies which they supply will proceed into the long run.

Other data

The different data includes data included within the Annual Report however doesn’t embrace the monetary statements and my auditor’s certificates and report thereon. The Accounting Officer is accountable for the opposite data.

My opinion on the monetary statements doesn’t cowl the opposite data and, besides to the extent in any other case explicitly said in my certificates, I don’t categorical any type of assurance conclusion thereon.

My duty is to learn the opposite data and, in doing so, take into account whether or not the opposite data is materially inconsistent with the monetary statements or my information obtained within the audit, or in any other case seems to be materially misstated.

If I determine such materials inconsistencies or obvious materials misstatements, I’m required to find out whether or not this provides rise to a cloth misstatement within the monetary statements themselves. If, primarily based on the work I’ve carried out, I conclude that there’s a materials misstatement of this different data, I’m required to report that reality.

I’ve nothing to report on this regard.

Opinion on different issues

In my opinion the a part of the Remuneration and Staff Report to be audited has been correctly ready in accordance with HM Treasury instructions issued beneath the Government Resources and Accounts Act 2000.

In my opinion, primarily based on the work undertaken in the midst of the audit:

the elements of the Accountability Report topic to audit have been correctly ready in accordance with HM Treasury instructions issued beneath the Government Resources and Accounts Act 2000
the knowledge given within the Performance and Accountability Reports for the monetary 12 months for which the monetary statements are ready is in keeping with the monetary statements and is in accordance with the relevant authorized necessities

Matters on which I report by exception

In the sunshine of the information and understanding of the Defence Science and Technology Laboratory and its atmosphere obtained in the midst of the audit, I’ve not recognized materials misstatements within the Performance and Accountability Reports.

I’ve nothing to report in respect of the next issues which I report back to you if, in my view:

satisfactory accounting information haven’t been saved by the Defence Science and Technology Laboratory or returns satisfactory for my audit haven’t been obtained from branches not visited by my workers
I’ve not obtained the entire data and explanations I require for my audit
the monetary statements and the elements of the Accountability Report topic to audit aren’t in settlement with the accounting information and returns
sure disclosures of remuneration specified by HM Treasury’s Government Financial Reporting Manual haven’t been made or elements of the Remuneration and Staff Report to be audited isn’t in settlement with the accounting information and returns
the Governance Statement doesn’t replicate compliance with HM Treasury’s steering

Responsibilities of the Accounting Officer for the monetary statements

As defined extra absolutely within the Statement of Accounting Officer’s Responsibilities, the Chief Executive as Accounting Officer is accountable for:

sustaining correct accounting information
offering the C&AG with entry to all data of which administration is conscious that’s related to the preparation of the monetary statements equivalent to information, documentation and different issues
offering the C&AG with extra data and explanations wanted for his audit
offering the C&AG with unrestricted entry to individuals throughout the Defence Science and Technology Laboratory from whom the auditor determines it mandatory to acquire audit proof
making certain such inside controls are in place as deemed essential to allow the preparation of monetary statements to be free from materials misstatement, whether or not as a result of fraud or error
getting ready monetary statements which give a real and truthful view and are in accordance with HM Treasury instructions issued beneath the Government Resources and Accounts Act 2000
getting ready the annual report, which incorporates the Remuneration and Staff Report, in accordance with HM Treasury instructions issued beneath the Government Resources and Accounts Act 2000
assessing the Defence Science and Technology Laboratory’s potential to proceed as a going concern, disclosing, as relevant, issues associated to going concern and utilizing the going concern foundation of accounting until the Accounting Officer anticipates that the companies offered by the Defence Science and Technology Laboratory is not going to proceed to be offered sooner or later

Auditor’s duties for the audit of the monetary statements

My duty is to audit, certify and report on the monetary statements in accordance with the Government Resources and Accounts Act 2000.

My aims are to acquire cheap assurance about whether or not the monetary statements as a complete are free from materials misstatement, whether or not as a result of fraud or error, and to situation a certificates that features my opinion. Reasonable assurance is a excessive degree of assurance however isn’t a assure that an audit performed in accordance with ISAs (UK) will at all times detect a cloth misstatement when it exists. Misstatements can come up from fraud or error and are thought of materials if, individually or within the mixture, they may fairly be anticipated to affect the financial choices of customers taken on the idea of those monetary statements.

Extent to which the audit was thought of able to detecting non-compliance with legal guidelines and rules, together with fraud

I design procedures in keeping with my duties, outlined above, to detect materials misstatements in respect of non-compliance with legal guidelines and rules, together with fraud. The extent to which my procedures are able to detecting non-compliance with legal guidelines and rules, together with fraud is detailed beneath.

In figuring out and assessing dangers of fabric misstatement in respect of non-compliance with legal guidelines and rules, together with fraud, I:

As a results of these procedures, I thought of the alternatives and incentives that will exist throughout the Defence Science and Technology Laboratory for fraud and recognized the best potential for fraud within the following areas: income recognition, posting of surprising journals, advanced transactions, and bias in administration estimates. In frequent with all audits beneath ISAs (UK), I’m required to carry out particular procedures to reply to the chance of administration override.

I obtained an understanding of the Defence Science and Technology Laboratory’s framework of authority and different authorized and regulatory frameworks by which the Defence Science and Technology Laboratory operates. I targeted on these legal guidelines and rules that had a direct impact on materials quantities and disclosures within the monetary statements or that had a basic impact on the operations of the Defence Science and Technology Laboratory. The key legal guidelines and rules I thought of on this context included Government Resources and Accounts Act 2000, Managing Public Money, employment regulation, tax laws and well being and security laws.

I thought of:

the outcomes of analytical procedures designed to determine any uncommon or surprising relationships that will point out dangers of fabric misstatement as a result of fraud
critiques of inside audit reviews

Audit response to recognized threat

To reply to the recognized dangers ensuing from the above procedures:

I reviewed the monetary assertion disclosures and supporting documentation to evaluate compliance with provisions of related legal guidelines and rules described above as having direct impact on the monetary statements
I enquired of administration, the Audit and Risk Assurance Committee and authorized counsel regarding precise and potential litigation and claims
I reviewed minutes of conferences of these charged with governance and the Board; and inside audit reviews
I addressed the chance of fraud by way of administration override of controls by testing the appropriateness of journal entries and different changes; assessing whether or not the judgements on estimates are indicative of a possible bias; and evaluating the enterprise rationale of any vital transactions which can be uncommon or exterior the conventional course of enterprise
I attended Audit and Risk Assurance Committee conferences and had common communication with administration and inside audit to determine any situations of fraud, non-compliance with legal guidelines and rules, or irregular transactions

I communicated related recognized legal guidelines and rules and potential dangers of fraud to all engagement crew members and remained alert to any indications of fraud or non-compliance with legal guidelines and rules all through the audit.

An additional description of my duties for the audit of the monetary statements is positioned on the Financial Reporting Council’s website. This description types a part of my certificates.

Other auditor’s duties

I’m required to acquire adequate acceptable audit proof to provide cheap assurance that the expenditure and earnings recorded within the monetary statements have been utilized to the needs meant by Parliament and the monetary transactions recorded within the monetary statements conform to the authorities which govern them.

I talk with these charged with governance relating to, amongst different issues, the deliberate scope and timing of the audit and vital audit findings, together with any vital deficiencies in inside management I determine throughout my audit.

Report

I’ve no observations to make on these monetary statements.

Mr Gareth Davies
Comptroller and Auditor General

National Audit Office,
157-197 Buckingham Palace Road
Victoria,
London SW1W 9SP

15 July 2025

Dstl Annual Report and Accounts 2024 to 2025

Our annual report and accounts is ready in keeping with the Government Financial Reporting Manual (FReM), Managing Public Money and any relevant HM Treasury directions. Dstl’s Framework Document requires us to arrange our personal annual report and accounts and current it to Parliament following certification by the Comptroller and Auditor General to the House of Commons.

The Dstl Board endorsed this report out of committee on the ten July 2025, and I, as Accounting Officer, signed the accounts on 14 July 2025.

I can verify that our annual report and accounts offers a good, balanced and comprehensible view of Dstl’s actions for the 12 months ended 31 March 2025 and of our monetary place as at 31 March 2025. I additionally verify that I’m personally accountable for this annual report and accounts and the judgements required for figuring out that it’s truthful, balanced and comprehensible.

As required within the FReM, I’ve signed and dated our Performance Report, in addition to signing the Accountability Report right here, which meets Dstl’s key accountability necessities to Parliament. I’ve additionally signed our Statement of Financial Position, as a part of the absolutely audited Financial Statements that observe in the remainder of this doc.

I hope you discover our annual report and accounts an attention-grabbing learn and useful in furthering your understanding of Dstl’s enterprise and efficiency over the previous monetary 12 months.

Paul Hollinshead
Chief Executive

14 July 2025

Financial statements

Our monetary statements and disclosure notes make up the ultimate report on this 12 months’s annual report and accounts; they’ve been audited by the Comptroller and Auditor General.

They have been ready beneath International Financial Reporting Standards (IFRS), as tailored for the general public sector within the Government Financial Reporting Manual (FReM). New reporting requirements and any adjustments to accounting coverage that have an effect on our monetary statements are outlined in Note 1. Changes are pushed by a need to align, the place acceptable, with the insurance policies of our dad or mum division (MOD), topic to relevance and materiality concerns.

Statement of Comprehensive Net Expenditure (SoCNE)

for the 12 months ended 31 March 2025

	Note	2025	2024
		£million	£million
Operating earnings from contracts with prospects	2	970.0	1,092.4
Other working earnings		1.3	9.6
Total working earnings	3	971.3	1,102.0

Staff prices		(374.1)	(365.2)
Purchase of direct items and companies		(416.2)	(562.4)
Depreciation, amortisation and impairment expenses		(72.1)	(76.3)
Loss on switch of non-current monetary asset		0.0	(1.4)
Provision expense		(0.3)	2.8
Infrastructure working prices		(141.6)	(112.7)
Other working expenditure		(35.6)	(37.8)
Total working expenditure	4,5	(1,039.9)	(1,153.0)

Net working expenditure		(68.6)	(51.0)

Finance earnings	6	0.0	0.0
Finance expense	7	0.0	0.0
Net expenditure for the 12 months		(68.6)	(51.0)

Other complete internet earnings / (expenditure)
Items which is not going to be reclassified to internet working earnings / (expenditure):
Net surplus / (deficit) on revaluation of property, plant and tools	SoCiTE	2.2	0.1
Net surplus / (deficit) on revaluation of intangible property	SoCiTE	0.9	0.3
Total complete expenditure for the 12 months		(65.5)	(50.6)

These notes kind an integral a part of these accounts.

Statement of Financial Position (SoFP)

as at 31 March 2025

	Note	2025	2024
		£million	£million
Assets
Non-current property
Property, plant and tools	8	712.2	733.3
Financial property	9	0.0	0.0
Intangible property	10	33.4	21.6
Leases: Right of use property	11	1.7	0.6
Receivables	14	2.0	3.6
Total non-current property		749.3	759.1

Current property
Work in progress	13	0.0	0.0
Receivables	14	23.0	31.5
Cash and money equivalents	15	19.9	12.6
Total present property		42.9	44.1

Total property		792.2	803.2

Current liabilities
Trade payables and different liabilities	16	151.4	209.3
Short-term lease liabilities	17	0.2	0.2
Short-term provisions	18	2.4	1.0
Total present liabilities		154.0	210.5

Non-current property much less internet present liabilities		638.2	592.7

Non-current liabilities
Trade payables and different liabilities	16	3.7	3.9
Long-term lease liabilities	17	0.4	0.2
Long-term provisions	18	0.1	1.2
Total non-current liabilities		4.2	5.3

Assets much less liabilities		634.0	587.4

Taxpayers’ fairness and different reserves
Revaluation surplus	SoCiTE	237.2	234.1
General fund	SoCiTE	396.8	353.3
Total taxpayers’ fairness		634.0	587.4

The monetary statements had been signed on 14 July 2025. The Accounts had been authorised for situation on the date of certification by the Comptroller and Auditor General.

Paul Hollinshead
Chief Executive

14 July 2025

Statement of Cash Flows (SoCFs)

for the 12 months ended 31 March 2025

	Note	2025	2024
		£million	£million
Cash flows from working actions
Net working expenditure	SoCNE	(68.6)	(51.0)
Adjustments for non-cash transactions:
Depreciation and impairment	4,8	62.0	70.5
Loss on sale of property, plant and tools	4	0.7	0.1
Loss on sale of intangible property	4	0.2	0.0
Loss on switch of non-current monetary asset funding	4,9	0.0	1.4
Amortisation and impairment	4,10	10.1	5.8
Reclassification of earlier 12 months property, plant and tools spend as income	8	1.1	6.1
Reclassification of earlier 12 months intangible asset spend as income	10	0.1	0.1
Notional audit price	4	0.1	0.1
Fair valuation of peppercorn lease	11	0.0	(0.2)
Provisions offered / (decreased) in 12 months	4	0.3	(0.1)
Provisions not required written-back	4	0.0	(2.7)
Net working earnings earlier than adjustments in working capital		6.0	30.1

(Increase) / lower in work in progress		0.0	0.0
(Increase) / lower in commerce receivables and different receivables		10.1	(6.1)
Decrease in commerce payables and different liabilities¹		(54.1)	(47.4)
Capitalisation of a dilapidation provision referring to a lease		(0.1)	0.0
Use of provisions		0.0	(2.7)
Net money outflow from working actions		(38.1)	(26.1)

Cash flows from investing actions
Purchases of property, plant and tools¹	8	(48.5)	(53.4)
Purchases of intangible property¹	10	(6.6)	(6.4)
Finance earnings		0.0	0.0
Net money outflow from investing actions		(55.1)	(59.8)

Cash flows from financing actions
Net funding obtained from MOD in-year²	SoCiTE	100.9	74.0
Repayment of lease legal responsibility principal	17	(0.4)	(0.4)
Right of use asset finance expense	17	0.0	0.0
Interest paid	7	0.0	0.0
Net money influx from financing actions	15.1	100.5	73.6

Net financing
Net enhance / (lower) in money and money equivalents		7.3	(12.3)
Brought ahead money and money equivalents		12.6	24.9
Carried ahead money and money equivalents	15	19.9	12.6

Notes:

¹ Decrease in commerce payables and different liabilities is after taking account of £3.9 million lower of non-cash motion for buy of non-current property (2023 to 2024: £1.8 million lower). Property, plant and tools additions of £44.6 million disclosed in Note 8 features a lower of non-cash commerce payables and different liabilities of £3.9 million.

²	Note	2025	2024
		£million	£million
Cash obtained from MOD		702.5	827.7
Bookkeeping changes for transactions with MOD		(601.6)	(753.7)
Net funding obtained from MOD in-year	SoCiTE	100.9	74.0

Statement of Changes in Taxpayers’ Equity (SoCiTE)

for the 12 months ended 31 March 2025

	Note	General fund	Revaluation surplus	Total taxpayers’ fairness	Total complete internet expenditure
		£million	£million	£million	£million
Balance at 1 April 2023		320.1	233.7	553.8

Surplus on revaluation of property, plant and tools	8		9.7	9.7	9.7
Surplus on revaluation of intangible property	10		0.8	0.8	0.8
Transfer to normal fund realised depreciation			(9.6)	(9.6)	(9.6)
Transfer to normal fund realised amortisation			(0.5)	(0.5)	(0.5)
Net positive factors and losses recognised within the Statement of Comprehensive Net Expenditure		0.0	0.4	0.4	0.4

Auditor’s remuneration (notional)	4	0.1		0.1
Net working expenditure	SoCNE	(51.0)		(51.0)	(51.0)
Net finance earnings / (expense)	6,7	0.0		0.0	0.0
Transfer from revaluation surplus realised depreciation and amortisation		10.1		10.1
Net fairness funding obtained from MOD throughout the 12 months		74.0		74.0
Balance as at 31 March 2024		353.3	234.1	587.4	(50.6)

Surplus on revaluation of property, plant, and tools	8		12.8	12.8	12.8
Surplus on revaluation of intangible property	10		1.4	1.4	1.4
Transfer to normal fund realised depreciation			(10.6)	(10.6)	(10.6)
Transfer to normal fund realised amortisation			(0.5)	(0.5)	(0.5)
Net positive factors and losses recognised within the Statement of Comprehensive Net Expenditure		0.0	3.1	3.1	3.1

Auditor’s remuneration (notional)	4	0.1		0.1
Net working expenditure	SoCNE	(68.6)		(68.6)	(68.6)
Net finance earnings / (expense)	6,7			0.0	0.0
Transfer from revaluation surplus realised depreciation and amortisation		11.1		11.1
Net fairness funding obtained from MOD throughout the 12 months¹	15.1	100.9		100.9
Balance at 31 March 2025		396.8	237.2	634.0	(65.5)

Notes:

¹ Net fairness funding obtained from MOD:

	Note	General fund
		£million
Balance at 31 March 2024		266.5
Net fairness funding obtained throughout the 12 months	15.1	100.9
Balance at 31 March 2025		367.4

Notes to the accounts

1. Accounting insurance policies

a) Statement of accounting polices

The monetary statements have been ready in accordance with the 2024 to 2025 Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting insurance policies contained within the FReM apply International Financial Reporting Standards (IFRS) as tailored or interpreted for the general public sector context. The specific insurance policies adopted by the Executive Agency are described beneath. They have been utilized persistently in coping with gadgets which can be thought of materials to the accounts.

b) i) Accounting conference

These accounts have been ready beneath the historic price conference, modified for the applying of truthful worth the place acceptable. The balances affected are property, plant and tools (see Note 1(f) beneath), intangible property (see Note 1(j) beneath), and non-current monetary property (see Note 1(d)(ii) beneath).

(ii) Going concern

The Executive Agency relies principally on its proudly owning division, MOD, as its important income. Demand for the Agency’s companies is enduring and there is no such thing as a deliberate change to MOD’s necessities for these companies.

c) Consolidation with MOD

The Executive Agency is throughout the Accounting Boundary of MOD and its monetary statements are consolidated inside these of the division.

d) Critical accounting judgements and key sources of estimation uncertainty

In the applying of the Executive Agency’s accounting insurance policies, there are mandatory judgements, estimates and assumptions made that have an effect on the carrying quantities of sure property and liabilities. Where data isn’t available, estimates and assumptions are made on the subject of recommendation from administration, technical specialists, skilled third events, and from historic expertise. The estimates and underlying assumptions are reviewed on an ongoing foundation.

There have been no revisions of accounting judgement, or revisions to the applying of estimation approach throughout the 12 months. Revisions to accounting estimates are recognised throughout the interval of revision, and future intervals if the revision impacts each present and future intervals.

(i) Critical judgements in making use of accounting insurance policies

The following are the crucial judgements, other than these involving estimates (see (ii) beneath), that the Executive Agency has made within the means of making use of its accounting insurance policies. These have had vital results on the monetary statements.

Valuation of property

The accounting coverage for the valuation of freehold land and buildings is disclosed in Note 1(f), and the valuations are disclosed in Note 8. The Executive Agency has concluded that probably the most acceptable methodology of valuation offered by the Royal Institute of Chartered Surveyors (RICS) is Depreciated Replacement Cost (DRC). The marketplace for the Agency’s specialised laboratories and safe lodging is extraordinarily restricted. The massive measurement of the two important websites (Porton Down and Portsdown West) and their distant places has a limiting impact on the variety of various customers.

The DRC estimation approach for the valuation of freehold land employs the Alternative Site Approach. This represents the bottom value the Agency would pay for an alternate plot of land that’s in an acceptable location, and is suitable for the Agency’s operations.

Consolidation of subsidiary endeavor

Ploughshare Innovations Ltd (Ploughshare) was an entirely owned subsidiary that the Executive Agency had the ability to regulate. The Agency didn’t take into account Ploughshare to be materials and had determined to not produce group accounts. Consolidation would have required vital extra disclosure for minor changes and wouldn’t have improved readers’ understanding of the Agency’s monetary efficiency. Ploughshare was transferred to MOD Defence Science and Technology (DST) throughout 2023 and 2024. See Note 9.

Biological excessive containment facility

This facility allows the Executive Agency to keep up the UK strategic sovereign functionality for assessing hazards from present and rising chemical and organic threats. It consists of a number of property, together with a constructing, operated collectively as a definite facility. As an Agency contained in the division boundary, there’s a extra built-in strategy to strategic functionality planning that features the ability, significantly as it’s used principally for MOD mission work. MOD revalues the ability constructing asset on a DRC foundation offering the Agency with additional assurance that the division intends to maintain this functionality and strategic asset for the foreseeable future.

For these causes, the Agency has concluded that going ahead, probably the most acceptable valuation methodology is DRC for the constructing, with the applying of indices offered by Defence Statistics between impartial skilled quinquennial valuations. For plant and tools property, acceptable indices offered by Defence Statistics are utilized. This additionally aligns with MOD’s valuation methodology. See Note 8.

Leases

The Agency has a number of lease contracts the place it’s the lessee. The important space of judgement is in figuring out whether or not the Agency is ‘reasonably certain’ to train an choice to increase or terminate a contract. There are at the moment 2 property leases which have remaining future choices that allow the Agency to terminate the lease with out vital penalty. One of those choices falls inside monetary 12 months 2026 to 2027 and the opposite choice falls inside monetary 12 months 2027 to 2028. The present judgement is that it’s not fairly sure that the Agency will train both of those choices. The Blackbarn Road management level modular constructing property lease was terminated throughout 2023 to 2024 (leading to an modification to the anticipated time period that introduced ahead the lease expiry accounting into that 12 months).

If all choices:

i. to increase lease phrases are exercised; and

ii. choices to terminate aren’t exercised;

Two property lease contracts would have a minimal of 5 years period remaining from the opening Statement of Financial Position date. This is for the lease of an workplace in Newcastle which expires on 21 October 2029 (if the break clause isn’t exercised 2027 to 2028), and the lease of property on a science park at Porton Down which expires 14 May 2029 (if the break clause isn’t exercised 2027 to 2028). The Newcastle lease has a proper of use asset carrying worth on 31 March 2025 of £0.1 million (primarily based on working for the total time period to October 2029), and the lease for property on the science park has a proper of use carrying worth on 31 March 2025 of £1.3 million (primarily based on working for the total time period to May 2029). The lease for the property on the science park is by far the Agency’s most vital lease, the subsequent most vital of which is the Newcastle property lease.

Considerations when figuring out whether or not the Agency in all fairness sure to train an extension choice, or an choice to terminate, embrace operational want, and the place alternate options exist, worth for cash.

The price mannequin has been used as a proxy for present worth in current use, or truthful worth, to find out subsequent remeasurement of the Agency’s proper of use property. The price mannequin is an acceptable proxy as a result of the Agency has solely 5 IFRS16 lease contracts on the SoFP date, their proper of use values aren’t materials, and their phrases are comparatively brief.

The science park lease started throughout the 12 months. It had an preliminary proper of use asset worth of £1.5 million of which £0.3 million was lease legal responsibility, £1.1 million was the preliminary direct prices of constructing property alterations, and £0.1 million was a dilapidation provision (see Note 18). This lease expires on 31 March 2029, and there’s a break clause that may be exercised for May 2027. The Agency’s different lease contracts have a lot decrease remaining lease liabilities. The subsequent most vital lease had a complete remaining lease legal responsibility of £0.2 million firstly of the 12 months. It was a lease for property that expired 31 March 2025.

(ii) Key sources of estimation uncertainty

The following are the important thing assumptions regarding the future, and different key sources of estimation uncertainty which have a major threat of inflicting a cloth adjustment to the carrying quantities of property and liabilities throughout the subsequent 12 months.

Accruals

Accruals are estimated on the subject of accessible documentation, recommendation from the related mission supervisor, data offered by third events, and from expertise gained from earlier years. Third-party verification is sought from suppliers of all sub-contracted analysis the place the worth of uninvoiced work is predicted to be £100,000 or above. The whole accrual on the SoFP date referring to buy of direct items and companies is £72.5 million (2023 to 2024: £115.6 million).

Reporting of workers vacation from the central administration system has been developed which has eliminated the uncertainty to inside minor tolerance. The vacation pay accrual has elevated by 5.0% to £10.6 million (2023 to 2024: £10.1 million). This enhance displays annual pay inflation.

Fair worth of non-current monetary property

The truthful worth of the Executive Agency’s funding in Ploughshare was decided by taking the subsidiary’s internet property, and adjusting for gadgets already recognised within the Agency’s Statement of Financial Position. An additional adjustment had been made for non-current property the place it was thought of tough to grasp any worth. During 2023 to 2024, the Agency’s funding in Ploughshare was transferred to MOD Defence Science and Technology (DST). Further data is offered in Note 9.

Modified Historic Cost Accounting (MHCA)

Non-current plant and tools and non-current intangible property are reported at truthful worth by making use of varied indices offered by Defence Statistics. Freehold land and buildings are topic to a rolling programme of quinquennial revaluation by an impartial skilled valuer. Indices offered by Defence Statistics are utilized to land and constructing valuations within the years between impartial skilled valuations.

There are inherent valuation uncertainties. An expert’s valuation will rely on the strategy utilized (DRC) and judgement on elements equivalent to purposeful obsolescence, age obsolescence, and the standard of surrounding infrastructure. Where indices are utilized, the values are depending on the actual index adopted. For consistency and comparability, the index used for every class of asset will probably be utilized yearly. Further data is offered in Note 1(f) and 1(j).

Depreciation and amortisation

Depreciation of property, plant and tools, and amortisation of intangible property, relies on the helpful financial lifetime of the asset. It is uncommon for any of the Executive Agency’s property to have a residual worth. They are sometimes very specialised property which can be used till out of date. Remaining helpful financial lives are reviewed a minimum of yearly. The foundation for estimating a remaining helpful financial life contains expertise of comparable property, the situation and efficiency of the asset, and information of technological advances and obsolescence. Remaining helpful financial lives are revised, the place acceptable, to replicate any change in these circumstances. The internet e-book worth of the asset on the time of the revision, will probably be depreciated on a straight-line foundation over the revised remaining helpful financial life.

With respect to the depreciation of buildings, an impartial skilled analysis of their remaining helpful financial lives is carried out throughout the quinquennial rolling revaluation programme. Further data is offered in Note 1(f) and 1(j).

Leases

With respect to lease liabilities, and proper of use property, the primary space of estimation uncertainty is the speed used because the Agency’s incremental price of borrowing for discounting lease cost money flows. The implicit rates of interest utilized in lease contracts aren’t readily decided. HM Treasury charges, revealed to be used as a proxy for presidency incremental price of borrowing are used.

For unexpired lease contracts at 31 March 2025, the next is a comparability of the lease legal responsibility measurements on the related HM Treasury charge in contrast with what the measurement would have been if a value of borrowing charge of seven.5% had been utilized:

Unexpired lease contracts at 31 March 2025	HM Treasury charge	Lease legal responsibility at 31 March 2025	Cost of borrowing charge	Lease legal responsibility at 31 March 2025
	%	£’000	%	£’000
Accommodation at Wiltshire County Council Science Park	4.72	245.6	7.50	233.1
University of Newcastle workplace hub	4.72	124.7	7.50	118.3
Boscombe Down storage facility	3.51	62.8	7.50	58.8
Farnborough storage facility	4.72	116.2	7.50	113.8
Leonardo laser (peppercorn)	N/A	0.0	N/A	0.0
Total		549.3		524.0

The Agency’s lease contracts aren’t materials, and due to this fact the lease legal responsibility isn’t delicate to the low cost charge used because the incremental price of borrowing.

Provisions

The measurement of early departure provisions is derived from data offered by the Cabinet Office (My Civil Service Pension). Variations between estimated values and the ultimate price on crystallisation of the liabilities aren’t thought of materials. The measurement of the dilapidation provision relies on a third-party estimate offered throughout 2021.

Provisions referring to disputes with suppliers are measured following evaluation of a variety of settlement values attributed to possible outcomes that mature as negotiations progress. For additional particulars, see Note 18. Any change in expectations, or distinction between expectation and the precise legal responsibility on crystallisation, is accounted within the interval of willpower.

Contingent liabilities

The company measures contingent liabilities on a most definitely end result foundation, for particulars of the contingent liabilities disclosed by the Agency, see Note 23.

Remote contingent liabilities

The measurement of the satellite tv for pc collision distant contingent legal responsibility has been derived on a worst case state of affairs by assessing the standard insurance coverage cowl held by industrial area corporations for satellite tv for pc loss and service disruption. For decommissioning of the Fort Halstead website, an evaluation of the possible price of cleansing up a contamination incident has been made, along with an evaluation of the chance of such an incident occurring. For additional particulars see here.

e) Basis of consolidation

The Executive Agency didn’t consolidate its wholly owned subsidiary, Ploughshare, on grounds of materiality. Ploughshare was transferred to MOD Defence Science and Technology (DST) throughout 2023 to 2024. See Note 1(d)(i).

f) Property, plant and tools

The majority of the Executive Agency’s property, plant and tools is held on MOD’s non-current asset register. The Agency classifies and measures its property, plant and tools in accordance with IAS 16: Property, Plant and Equipment as tailored by the FReM.

Property, plant, equipment, transport, IT and communication tools are capitalised the place the price of acquisition is £25,000 or higher.

All property are independently inspected on a 5-year rolling programme. Assets are carried at present worth in current use or truthful worth. The valuation strategies for various lessons of asset are as follows:

For land and buildings, the place impartial skilled valuations are carried out, they’re carried out utilizing RICS Red Book strategies.

Land	DRC
Buildings	DRC
For land and buildings which were declared surplus	Market Value
Plant, equipment, transport, and IT and communication tools	MHCA

For land, the DRC is derived on the subject of the bottom quantity {that a} purchaser would pay to accumulate an alternate website acceptable for its operations in a related location on the valuation date. This wouldn’t essentially be the worth that the Agency’s land might be bought for.

Property is revalued within the years between skilled impartial valuations utilizing indices offered by Defence Statistics. Plant, equipment, transport, IT and communication tools property are revalued utilizing indices offered by Defence Statistics.

For consistency, the Agency applies the identical Defence Statistics indices to the steadiness of property, plant and tools property held by itself non-current asset register.

Depreciation is offered on a straight-line foundation over the helpful financial lives of the property, that are as follows:

Buildings	5-50 years
Plant and equipment	5-30 years
Transport	3-20 years
IT and communication tools	3-20 years

Land that has a helpful financial lifetime of greater than 1 12 months isn’t depreciated.

Assets beneath building are capitalised throughout the interval of building. On completion of the mission, or on building of an asset with phased deliveries, the prices are transferred to the asset register.

Details of property, plant and tools values included inside these monetary statements are disclosed in Note 8.

g) Grant-funded property

Grants obtained or receivable for the acquisition or building of property, plant or tools are recognised as different working earnings after the exercise that creates the entitlement has been carried out. They aren’t materials and are due to this fact solely individually disclosed throughout the property, plant and tools be aware within the 12 months of their acquisition.

h) Donated property

Property, plant and tools and intangible property donated to the Executive Agency for which no consideration is given or situations are connected, are introduced onto the Statement of Financial Position at their truthful worth and are revalued, and depreciated or amortised on the identical foundation as bought property. The truthful worth at preliminary recognition is credited to the Statement of Comprehensive Net Expenditure as different working earnings. The property are revalued, and depreciated or amortised on the identical foundation as different non-current property of the identical class. The association with MOD for the acquisition of property the place the Agency retains management of the asset has modified. See Note 3.

i) Customer-funded property

Where a buyer has funded partly or in complete, the acquisition or building of an asset that meets the definition of a non-current asset, and the client retains an curiosity in that asset, the asset is initially introduced onto the Statement of Financial Position at price. The asset is depreciated or amortised and revalued on the identical foundation as different non-current property of the identical class. The buyer funding is launched to different working earnings throughout the interval that the client has an curiosity within the asset.

j) Intangible property

Intangible property are capitalised in accordance with IAS 38: Intangible Assets as tailored by the FReM. Intangible property comprise bought software program licences and the price of software program developed in-house the place there’s dependable price data and the asset will give rise to future financial profit. The minimal degree for capitalisation of intangible property is £25,000.

Amortisation is on a straight-line foundation over the shorter of the licence time period, or the software program’s helpful financial life. Intangible property are revalued yearly by making use of indices offered by Defence Statistics. The majority of the Agency’s intangible property are held on MOD’s non-current asset register the place Defence Statistics indices are utilized. For consistency, the Agency applies the identical Defence Statistics indices to the steadiness of intangible property held by itself non-current asset register.

The helpful financial lives of intangible property are thought of to fall inside 1 to 10 years.

ok) Right of use property

The Agency applies the short-term lease recognition exemption to all contracts that comprise a lease. The definition of a short-term lease is:

i. a contract for twelve months or much less; or

ii. any choice to increase past a time period of twelve months isn’t fairly sure to be exercised; or

iii. any lease contract for a time period of greater than twelve months the place the Agency has an choice to terminate the lease contract in twelve months or much less, and in all fairness sure to train the choice; or

iv. any lease the place each the Agency and the lessor has the correct to terminate the lease contract in twelve months or much less.

Any lease contract that has an choice to buy the underlying asset on the finish of the lease time period can’t be a short-term lease no matter whether or not or not the choice is more likely to be exercised. The election is throughout all underlying asset lessons. Short-term lease rental funds are expensed on an accruals foundation.

The Agency applies the popularity exemption to all contracts containing a lease whose underlying asset values, when new, are low. The Agency has lease contracts whose underlying asset values don’t qualify as low-value, as outlined by the usual, however the values aren’t materials. The Agency applies the identical materiality threshold, of £25,000 or extra, to proper of use property that’s utilized to different classes of non-current property. This is in keeping with the materiality aims of IAS1: Presentation of monetary statements. The election is throughout all lease contracts. Lease contracts whose underlying asset is low-value (or not materials), are expensed on an accruals foundation.

Irrecoverable VAT isn’t included throughout the IFRS16 definition of ‘lease payment’ and isn’t capitalised.

The price mannequin has been used as a proxy for present worth in current use or truthful worth to find out subsequent remeasurement of the Agency’s proper of use property. The price mannequin has been utilized to all underlying asset lessons. See Note 1(d)(i) above for additional data.

Right of use property are depreciated on a straight-line foundation over the decrease of anticipated lease time period, and the helpful financial lifetime of the underlying asset. The anticipated lease time period contains any choices to increase the time period that’s fairly sure to be exercised. Where the Agency has an choice to terminate the lease contract, the anticipated time period is not going to exceed the date of this termination choice the place it’s fairly sure that the choice will probably be exercised.

l) Impairment

The carrying worth of the Executive Agency’s non-current property is reviewed throughout the 12 months to find out whether or not there’s any indication of impairment. An impairment might also come up following software of indices. See Note 12. An impairment loss is recognised every time the carrying quantity of an asset exceeds its recoverable quantity. Impairments are first offset by way of different complete internet expenditure the place adequate revaluation surplus exists. If impairment is because of consumption of financial profit, or there’s inadequate revaluation surplus, it’s expensed by way of revenue or loss. Impairment losses will probably be reversed if there is a rise within the truthful worth or service potential of a beforehand impaired asset. The elevated carrying quantity attributable to a reversal of an impairment is first credited to revenue or loss to the extent of any authentic impairment expense to revenue or loss. Any remaining steadiness, or the entire reversal (if impairment was absolutely offset by way of different complete internet expenditure), will probably be credited by way of different complete internet expenditure.

m) Research and improvement

Research and improvement expenditure incurred throughout work on a contract for a buyer is chargeable to the client. Internally, funded analysis expenditure is charged to the Statement of Comprehensive Net Expenditure as incurred.

n) Grant funding agreements

The phrases and situations of a grant settlement observe steering offered by the Cabinet Office. Grant funds offered to academia our bodies for eligible science and know-how analysis are to cowl expenditure incurred by the recipient for specified funded actions. The Agency is not going to pay the grant till it’s happy that the grant recipient has paid for the funded actions in full and the funded actions have been delivered throughout the funding interval.

Eligible science and know-how analysis could also be funded by a single cost for specified efficiency standards, or by a sequence of funds linked to a number of efficiency milestones. Where funding is offered to the Agency to design, put in place and mission handle a grant settlement, the Agency is appearing as a principal, and income and price of gross sales are recognised because the efficiency standards and deliverables specified within the settlement are met.

o) Work in progress

Work in progress represents the worth of partially accomplished milestones on firm-price contracts, and is said on the decrease of price and internet realisable worth.

p) Contract property

Contract property signify working earnings recognised in extra of the values invoiced (internet of VAT) on cost-plus contracts and embrace an acceptable quantity of revenue attributed to the contract. For firm-price contracts, contract property are recognised the place there’s a timing distinction between earnings recognition (equivalent to on supply of a milestone) and issuing an bill to the client.

q) Financial devices

Financial property and liabilities are recognised within the Executive Agency’s Statement of Financial Position the place the Agency has change into a celebration to contractual phrases of an instrument. With respect to the Agency’s funding in Ploughshare, the strategy of accounting that had been adopted is truthful worth by way of revenue or loss. Ploughshare transferred to MOD Defence Science and Technology (DST) throughout 2023 and 2024. See Note 9.

For data on the Agency’s publicity to threat and classes of monetary devices, see Note 21.

r) Provisions

Provisions are made the place the Executive Agency has a gift authorized or constructive obligation on account of a previous occasion, and the place it’s possible {that a} reliably measured financial outflow will outcome. Provisions are measured considering the dangers and uncertainties surrounding the duty. Where potential, data from third events is used as a foundation for deriving the estimated legal responsibility.

s) Pensions

Past and current staff are lined by pension advantages offered by way of Civil Service pension preparations which can be unfunded multi-employer schemes offering advantages primarily based on both ultimate wage, listed common lifetime wage, or a mix of each. The Agency is unable to determine its share of the underlying property and liabilities and due to this fact it accounts for the schemes as in the event that they had been outlined contribution schemes. As a outcome, the quantity charged to the Statement of Comprehensive Net Expenditure represents the contributions paid and payable to the schemes in respect of the accounting interval. Details of charges and quantities of contributions throughout the 12 months are disclosed in our people.

t) Foreign currencies

Transactions denominated in foreign exchange are translated into sterling on the charges of alternate ruling on the date of the transaction. Monetary property and liabilities which can be denominated in overseas forex are retranslated on the charges of alternate ruling on the Statement of Financial Position date. Gains and losses arising on retranslation are included within the Statement of Comprehensive Net Expenditure.

u) Operating earnings

The quantity of working earnings recognised by the Executive Agency displays the consideration due from the switch of management for promised items and companies to prospects. Control is when the client has the flexibility to direct using, and get hold of considerably the entire advantages of the products or companies.

For cost-plus contracts, the switch of management passes to the client over time. The buyer concurrently receives and consumes the good thing about the companies. The companies are specialised, haven’t any various use, and the Agency has an enforceable proper to cost for the finished efficiency up to now. The recognition of working earnings displays the sample of consumption of advantages by the client, and contains the attributable contract revenue charge. The whole quantity of working earnings recognised is capped on the contract value restrict.

For firm-price contracts, the switch of management passes to the client at a time limit. Each time limit displays the switch of a efficiency obligation to the client (a contract milestone), and every efficiency obligation has an attributed contract value. The recognition of working earnings displays the worth of an achieved efficiency obligation that’s accepted by the client. Some firm-price contracts have a single efficiency obligation the place there are not any specified interim milestones.

Operating earnings is accrued as contract property the place there’s a timing distinction between earnings recognition and invoicing.

Operating earnings is deferred as a contract legal responsibility the place a contract permits quantities to be invoiced forward of the set off level for earnings recognition (equivalent to earlier than the completion of efficiency obligations). Losses are recognised as quickly as they’re foreseen.

Pre-contract prices, which aren’t materials, are expensed inside different working expenditure. 93% of the Agency’s working earnings from contracts with prospects is from MOD. All contracts with MOD are charged at price, with no revenue. Under this association, no formal invoicing takes place and due to this fact no commerce receivable is recognised. The Agency recognises earnings over time, which is concurrently expensed by MOD utilizing intra-department bookkeeping.

Other working earnings is recognised for receipts referring to non-core actions that aren’t the provision of scientific and technical companies. See Note 3 for additional data.

The Agency doesn’t have any contracts the place the interval between the switch of the promised items and companies to the client and cost from the client exceeds a 12 months. Consequently, the Agency doesn’t modify the contract costs for the time worth of cash.

v) Value Added Tax (VAT)

The Executive Agency’s VAT falls inside MOD’s VAT registration. The Agency accounts for VAT and transfers the online worth to MOD on a quarterly foundation for inclusion inside MOD’s VAT return. Where the VAT is irrecoverable, it’s charged to the related expense class, or if capital, to the related non-current asset class.

w) Segmental reporting

The principal enterprise actions of the Executive Agency are managed by way of Divisions, and the segmental evaluation in Note 2 is introduced in line with the Agency’s inside administration reporting construction. The accounting insurance policies of the working segments are the identical as these of the Agency. Corporate overheads are allotted to working segments on the idea of headcount apart from estates administration expenses, that are allotted on space of occupancy. Inter-segment buying and selling is at price.

x) Reserves inside taxpayers’ fairness

The revaluation surplus represents taxpayers’ fairness arising from will increase within the worth of the Executive Agency’s non-current property.

y) General fund

Net funding obtained from the proudly owning Department, MOD, is recorded as fairness throughout the normal fund. The Statement of Changes in Taxpayers’ Equity discloses the motion in internet funding obtained from MOD throughout the 12 months.

The Statement of Cash Flows discloses the money funding obtained from MOD inside money flows from financing actions, and the related footnote 2.

z) IFRS, amendments and interpretations in situation however not but efficient or adopted

IAS8: Accounting Policies, Changes in Accounting Estimates and Errors requires disclosures in respect of latest IFRS, amendments and interpretations which can be or will probably be relevant after the reporting interval.

The following new commonplace will probably be adopted by the Executive Agency as directed, interpreted or tailored by the FReM:

IFRS17: Insurance contracts

The commonplace was issued throughout May 2017 and will change the earlier commonplace for insurance coverage contracts, IFRS4. The UK Endorsement Board has permitted the adoption of the usual, efficient from 1 January 2023. HM Treasury have interpreted and tailored the usual for the general public sector context, with an adoption date for the reporting interval starting on 1 April 2025.

The goal of the usual is to make sure insurance coverage contracts are accounted for on a constant foundation, measuring the legal responsibility at present worth of anticipated future money flows, plus an adjustment for non-financial threat. It units out clearer necessities with respect to recognition, classification, and measurement of property and liabilities arising from insurance coverage contracts.

The commonplace, along with HM Treasury’s adaptions have been reviewed. Adoption isn’t anticipated to have a cloth influence on the monetary statements. The contracts that may fall throughout the scope of IFRS17 are the place non-financial threat is transferred to the Agency by way of indemnities offered to 3rd events. Indemnities aren’t routinely included throughout the Agency’s contracts. Where they’re, they’d at the moment be reported as both a contingent legal responsibility or a distant contingent legal responsibility.

A assessment of current contingent liabilities has been carried out and 1 of them falls throughout the scope of the brand new commonplace. The influence on the monetary statements is not going to be materials. The contractual obligation (insurance coverage contract) is for the potential remediation of land. Following a radical screening of the land and assessments carried out by environmental specialists, the chance of contamination is taken into account very low. The worst case can be the invention of depleted uranium that may possible price as much as £0.5 million to take away safely. The commonplace will probably be applied with full retrospective restatement starting from 1 April 2023, the preliminary date of the legal responsibility. This contract is onerous and the legal responsibility at preliminary recognition will probably be charged in full to the final fund.
The following FReM modification will probably be adopted by the Agency:

FReM modification

In December 2023, HM Treasury launched an publicity draft on potential adjustments to valuing and accounting for non-investment non-current property. This applies to the Agency’s property, plant and tools, and intangible property.

Non-investment property will probably be described as held for ‘operational capacity’. This may have no influence on the valuation foundation which is able to stay as Existing Use Valuation. An adaption to IAS16: Property, Plant and Equipment will probably be launched to withdraw the requirement to revalue an asset the place its truthful worth materially differs from its carrying worth. Assets will probably be valued utilizing 1 of the next processes:

for property property, a quinquennial revaluation, supplemented by annual indexation, or a rolling programme of valuations over a 5-year cycle, with annual indexation utilized to property throughout the 4 intervening years
for non-property property, software of acceptable indices – the place an index isn’t accessible, a quinquennial revaluation supplemented by a desktop valuation within the third 12 months

For intangible property, the choice to make use of the revaluation mannequin will probably be withdrawn. Carrying values of intangible property at 31 March 2025 will probably be thought of to be the historic price at 1 April 2025.

The Agency doesn’t take into account that these amendments may have a cloth influence on its monetary statements.

With respect to property, the rolling programme of valuations over a 5-year cycle with annual indexation utilized to property throughout intervening years will proceed. There isn’t any change for plant and tools. For intangible property, the next are the valuation actions for the final 4 years:

	2025	2024	2023	2022
	£million	£million	£million	£million
Cost	2.4	1.1	0.8	0.1
Amortisation	(1.0)	(0.3)	(0.4)	0.0
Revaluation reserve	(1.4)	(0.8)	(0.4)	(0.1)

Withdrawal of the revaluation mannequin for intangible property is not going to have a cloth influence to the monetary statements.

2. Statement of internet expenditure by working section

All of the Executive Agency’s enterprise reporting segments are disclosed to allow customers of those monetary statements to judge the character and monetary results of the Agency’s enterprise actions. The Agency’s company assist features have been aggregated. All Divisions derive their revenues from the supply of specialist scientific and technical companies. The Agency derives 93% of its working revenues from MOD, and 99% of its revenues from wider authorities (which incorporates MOD). More detailed disclosures may be present in Note 22, related-party transactions.

More than 99% of income is derived from UK sources. The chief decision-maker doesn’t assessment the enterprise on a geographical foundation. A geographical evaluation wouldn’t be mandatory to assist customers’ understanding of those monetary statements.

Operating section evaluation for the 12 months ending 31 March 2025		Chemical, Biological and Radiological division	Cyber and Information Systems division	Counter-Terorism and Security division	Exploration division	Platform Systems division	Defence and Security Accelerator	Support to Operations	Corporate	Internal Trading Adjustments	Total as per monetary statements
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
MOD Chief Scientific Adviser		66.4	148.2	50.5	37.1	151.8	0.0	26.3	0.2		480.5
MOD different		25.8	58.3	72.9	16.1	187.8	33.3	24.3	3.6		422.1
Wider authorities		14.8	0.8	36.2	0.2	0.1	4.6	0.0	0.0		56.7
Non-Exchequer earnings		4.9	0.5	1.2	0.0	0.1	0.1	0.0	3.9		10.7
Operating earnings from contracts with prospects	3	111.9	207.8	160.8	53.4	339.8	38.0	50.6	7.7		970.0
Other working earnings	3	0.3	(0.3)	0.5	0.0	(0.3)	0.0	0.0	1.1		1.3
Income from different working segments²		13.8	21.4	21.2	12.1	31.1	0.0	0.3	15.5	(115.4)	0.0
Operating earnings (inside and exterior)		126.0	228.9	182.5	65.5	370.6	38.0	50.9	24.3	(115.4)	971.3
Underlying internet working earnings / (expenditure)		(11.1)	12.5	(9.8)	0.9	14.6	4.2	(0.3)	(50.0)		(39.0)
Significant non-recurring working gadgets	5	0.0	(2.5)	0.0	0.0		0.0	0.0	(27.1)		(29.6)
Net working earnings / (expenditure)³		(11.1)	10.0	(9.8)	0.9	14.6	4.2	(0.3)	(77.1)		(68.6)

Finance earnings	6	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0
Finance expense	7	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0
Net earnings / (expenditure) for the 12 months		(11.1)	10.0	(9.8)	0.9	14.6	4.2	(0.3)	(77.1)		(68.6)

Notes:

¹ Support to Operations was beforehand a part of Chemical, Biological and Radiological division.

² Internal buying and selling the place workers and facility useful resource, owned by an working section, is utilised on an exterior buyer mission that’s owned and managed by one other working section. This represents restoration of the price of offering these companies to the recipient working section. Cost restoration is included in inside monetary efficiency reporting.

³ Within internet working earnings / (expenditure) are depreciation, amortisation, impairments, and loss on disposal expensed as follows within the desk beneath.

		Chemical, Biological and Radiological division	Cyber and Information Systems division	Counter-Terorism and Security division	Exploration division	Platform Systems division	Defence and Security Accelerator	Support to Operations¹	Corporate	Internal Trading Adjustments	Total as per monetary statements
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Depreciation and impairment of property, plant and tools		0.0	1.7	0.0	0.0	0.0	0.0	0.0	59.7		61.4
Depreciation of proper of use property		0.0	0.0	0.0	0.0	0.1	0.0	0.0	0.5		0.6
Amortisation and impairment of intangible property		0.0	0.7	0.0	0.0	0.0	0.0	0.0	9.4		10.1
Loss on disposal of property, plant and tools		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.7		0.7
Loss on disposal of intangible property		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.2		0.2
Loss on switch of non-current monetary asset		0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0
Total depreciation, amortisation, impairment, and loss on disposal	4	0.0	2.4	0.0	0.0	0.1	0.0	0.0	70.5		73.0

The comparatives for the 12 months ending 31 March 2024:		Chemical, Biological and Radiological division	Cyber and Information Systems division	Counter-Terorism and Security division	Exploration division	Platform Systems division	Defence and Security Accelerator	Corporate	Internal Trading Adjustments	Total as per monetary statements
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m
MOD Chief Scientific Adviser		95.0	206.3	61.4	46.2	191.6	0.0	(3.1)		597.4
MOD different		44.1	59.1	77.4	11.9	192.2	45.5	0.2		430.4
Wider authorities		13.1	0.5	36.8	1.0	0.1	0.3	0.0		51.8
Non-Exchequer earnings		5.5	1.4	2.1	0.0	0.6	0.1	3.1		12.8
Operating earnings from contracts with prospects	3	157.7	267.3	177.7	59.1	384.5	45.9	0.2		1,092.4
Other working earnings	3	1.2	3.4	2.7	0.3	0.7	0.0	1.3		9.6
Income from different working segments¹		14.1	21.2	18.3	13.4	28.8	0.2	9.6	(105.6)	0.0
Operating earnings (inside and exterior)		173.0	291.9	198.7	72.8	414.0	46.1	11.1	(105.6)	1,102.0

Underlying internet working earnings / (expenditure)		(7.3)	12.8	(6.3)	0.0	8.1	3.0	(21.7)		(11.4)
Significant non-recurring working gadgets	5	0.0	0.0	0.0	0.0	0.0	0.0	(39.6)		(39.6)
Net working earnings / (expenditure)²		(7.3)	12.8	(6.3)	0.0	8.1	3.0	(61.3)		(51.0)

Finance earnings	6	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0
Finance expense	7	0.0	0.0	0.0	0.0	0.0	0.0	0.0		0.0
Net earnings / (expenditure) for the 12 months		(7.3)	12.8	(6.3)	0.0	8.1	3.0	(61.3)		(51.0)

Notes:

¹ Internal buying and selling the place workers and facility useful resource, owned by an working section, is utilised on an exterior buyer mission that’s owned and managed by one other working section. This represents restoration of the price of offering these companies to the recipient working section. Cost restoration is included in inside monetary efficiency reporting.

² Within internet working earnings / (expenditure) are depreciation, amortisation and impairments expensed as follows:

The comparatives for the 12 months ending 31 March 2024:		Chemical, Biological and Radiological division	Cyber and Information Systems division	Counter-Terorism and Security division	Exploration division	Platform Systems division	Defence and Security Accelerator	Corporate	Internal Trading Adjustments	Total as per monetary statements
	Note	£m	£m	£m	£m	£m	£m	£m	£m	£m
Depreciation and impairment of property, plant and tools		0.0	0.0	0.0	0.0	0.0	0.0	70.0		70.0
Depreciation of proper of use property		0.0	0.0	0.0	0.0	0.0	0.0	0.5		0.5
Amortisation and impairment of intangible property		0.0	0.0	0.0	0.0	0.0	0.0	5.8		5.8
Loss on disposal of property, plant and tools		0.0	0.0	0.0	0.0	0.0	0.0	0.1		0.1
Loss on switch of non-current monetary asset		0.0	0.0	0.0	0.0	0.0	0.0	1.4		1.4
Total depreciation, amortisation, impairment and loss on disposal	4	0.0	0.0	0.0	0.0	0.0	0.0	77.8		77.8

A abstract of the enterprise actions of the working segments:

Chemical, Biological and Radiological (CBR)

The CBR division supplies an built-in chemical, organic, radiological and medical sciences functionality. The division delivers longer-term analysis in addition to short-term recommendation and consultancy, and helps each the Front Line Commands and wider authorities.

Cyber and Information Systems (CIS)

The CIS division maintains and develops a variety of capabilities that obtain the division’s imaginative and prescient of delivering transformational data superiority. Working with companions, the division provides the capabilities that present the abilities, information, experience and services that underpin the outcomes wanted to assist defence in cyber, C4ISR and area associated areas.

Counter-Terrorism and Security (CTS)

The CTS division delivers modern science and know-how and options to assist CTS operations, each for MOD and wider authorities. With in-house laboratories, workshops and different specialised services, the division supplies speedy response to operational calls for. The division maintains the Sovereign UK Energetics functionality and supplies a supply of risk data all through the Executive Agency.

Exploration (EXP)

The EXP division identifies and accelerates the supply of transformative know-how, programs, ideas and technique for defence and safety.

Platform Systems (PLS)

The PLS division supplies a single focus for platform-based functionality protecting all mission and weapons programs, and the associated built-in survivability capabilities. The division is accountable for all recommendation and options to functionality gaps that require platform primarily based options. This division primarily helps the Front Line Commands.

Defence and Security Accelerator (DASA)

DASA consists of personnel from Dstl, MOD together with Defence Equipment and Support, and Home Office. Its remit is to offer funding and different assist to wider authorities, personal sector, and academia to assist remedy the UK’s most urgent defence and safety challenges, and to hyperlink the Executive Agency’s companions collectively.

Support to Operations (S2O)

S2O coheres the supply of assist to operations throughout the Executive Agency by drawing on, and co-ordinating, the Agency’s efforts to satisfy our stakeholder’s most pressing challenges. The division delivers excessive influence and well timed assist to a few of defence and safety’s highest priorities. S2O allows UK operational benefit, enhancing response to crises by maximising S&T influence on present and deliberate operations and campaigns.

Corporate

Main features and actions embrace:

company governance, and centralised features equivalent to finance and treasury administration, human assets, and industrial contracting administration
property and services administration
enterprise data and communication programs
information companies, offering companies to the Executive Agency’s inside information base, MOD-funded reviews and the broader scientific and technical literature, along with a variety of data and evaluation companies
technique portfolio and functionality, the interface between scientific divisions, key prospects, and suppliers, to develop efficient programmes and functionality plans

3. Operating earnings

The Executive Agency derives income from contracts with prospects over time and at a time limit, analysed by main class of buyer as follows:

	Timing of earnings recognition	2025	2024
		£million	£million
MOD		902.6	1,027.8
Chief Scientific Adviser	Over time	480.5	597.4
Other	Over time	422.1	430.4

Non-MOD		67.4	64.6
Wider authorities	Over time	55.8	51.6
Wider authorities	At a time limit	0.9	0.2
Non-Exchequer earnings	Over time	6.2	8.3
Non-Exchequer earnings	At a time limit	4.5	4.5
Total		970.0	1,092.4

Operating earnings from contracts with prospects is categorised in line with the primary contracted buyer. All income is from the sale of products and companies and pertains to the identical class of enterprise, which is the provision of specialist scientific and technical companies. This is performed principally within the UK in sterling. No different geographical market has contributed considerably to working earnings. See Note 2 for working section disclosures.

	2025	2024
	£million	£million
Other working earnings
Transferred from deferred earnings for non-MOD customer-funded non-current property	0.6	0.7
MOD donated non-current property¹	(0.7)	7.1
Other miscellaneous earnings	1.4	1.8
Total	1.3	9.6

Notes:

¹ With impact from 1 April 2024, the Agency agreed a revised course of with MOD for the acquisition of capital property funded by MOD S&T. Previously, the place the Agency retained management of those capital property, they had been accounted for as donated property. From 1 April 2024, the acquisition of such a capital asset is appraised by the Agency, and if permitted, the MOD buyer makes a capital funds switch. The capital asset is then accounted for as an Agency asset.

The important gadgets representing different miscellaneous earnings contains:

£0.1 million from Home Office (2023 to 2024: £0.3 million) for the transitioning of former Centre for Applied Science and Technology workers and services into the Agency; £0.6 million restoration of non-salary prices for outward secondees (2023 to2024: £0.6 million); £0.1 million obtained from Ploughshare for the supply of patent safety companies and reward to inventors (2023 to 2024: £0.1 million); £0.2 million earnings for assist to UK Health Security Agency (2023 to 2024: £0.2 million).

There is a reversal of MOD donated asset earnings of £0.7 million as a result of property beneath building that had been recognised throughout 2023 and 2024, being reclassified as supplies throughout 2024 and 2025. There isn’t any MOD donated asset earnings for 2024 to 2025 as a result of transition to a brand new course of defined in footnote 1 above.

Other working earnings excludes restoration of wage prices for outward secondees which is handled as an offset in opposition to workers prices. See our people.

4. Other expenditure

Material gadgets expensed / (credited) earlier than stating internet working expenditure:

	2025	2024
	£million	£million
Staff prices¹
Wages and salaries	248.3	243.0
Social safety prices (together with apprenticeship levy)	28.7	28.0
Other pension prices	67.3	60.8
Other workers prices	29.8	33.4
	374.1	365.2

Other money gadgets
Purchase of direct items and companies	416.2	562.4
Short-term rental bills²:
Property	0.0	0.0
Plant and tools	0.0	0.1
Travel, subsistence and hospitality	3.0	3.8
Training	2.5	2.3
Professional companies	1.3	1.9
Foreign alternate positive factors and losses	(0.1)	0.0
Purchase of different oblique items and companies	169.4	142.1
Total money prices	966.4	1,077.8

Non-cash gadgets
Depreciation and impairment cost for 12 months:	62.0	70.5
Depreciation of owned property, plant and tools	33.7	25.0
Depreciation of proper of use property	0.6	0.5
Exceptional prices of impairment of property, plant and tools	21.0	32.4
Exceptional prices of reversal of impairment of property, plant and tools	(2.0)	(1.3)
Adjustment valuation of property, plant and tools	8.7	13.9

Amortisation and impairment cost for 12 months:	10.1	5.8
Amortisation of intangible property	9.0	4.5
Exceptional prices of impairment of intangible property	0.7	0.0
Adjustment valuation of intangible property	0.4	1.3

Loss on disposal of owned property, plant and tools	0.7	0.1
Loss on disposal of intangible property	0.2	0.0
Loss on switch of non-current monetary asset³	0.0	1.4
Auditor’s remuneration and bills⁴	0.1	0.1
Doubtful debt provision / (provision reversal)	(0.1)	0.1
Doubtful debt written-off	0.2	0.0
Provisions offered / (decreased) in 12 months	0.3	(0.1)
Provisions not required written-back	0.0	(2.7)
Total non-cash prices	73.5	75.2

Notes:

¹ Staff prices are disclosed in additional element in our people.

² Short-term leases are the place the time period is assessed as ‘reasonably certain’ to be for twelve months or much less.

³ During 2023 and 2024, the Agency transferred possession of Ploughshare to MOD Defence Science and Technology (DST). No proceeds had been obtained.

⁴ The notional audit price is £124,000 (2023 to 2024: £122,000). During the 12 months, the Agency didn’t contract any non-audit companies from its exterior auditor, the National Audit Office (NAO).

5. Significant non-recurring working gadgets

Significant non-recurring working gadgets are outlined as working earnings or working bills that aren’t routine to the core enterprise and as a result of their measurement or incidence are materials. They warrant supplementary disclosure to assist consumer understanding of the Executive Agency’s underlying working efficiency. They could happen as a single in-year merchandise, or they are often a part of a mission that spans a number of years and whose continued disclosure allow customers to evaluate the on-going influence on monetary efficiency.

	2025	2024
	£million	£million
Helios¹	2.7	3.9
NISSS²	3.1	1.9
CHESS³	2.3	1.3
Impairment of property, plant and tools property beneath building⁴	3.4	0.0
Impairment of intangible property beneath building⁵	0.7	0.0
Impairment of property, plant and tools⁶	17.6	32.4
Reversal of Impairment of property, plant and tools⁷	(0.2)	(1.3)
Loss on switch of funding in Ploughshare⁸	0.0	1.4

Notes:

¹ Costs of withdrawal from the Agency’s website at Fort Halstead beneath the Helios Project.

² Costs incurred for the New Information Systems Service Solution (NISSS). The goal of the NISSS programme is the disaggregation of the Agency’s IT companies from the present prime contract into 2 new contracts by 2025 and set up a contemporary, safe and sustainable IT data system service aligned to authorities and trade finest apply.

³ Costs incurred for additional improvement of the Cloud Hosted Enterprise Service Solution (CHESS), which went stay throughout January 2022. This is a authorities cloud hosted resolution that underpins the built-in administration of the Agency’s enterprise processes.

⁴ During the 12 months, a mission to enhance consumer entry to digital recordsdata throughout the Agency’s networks was deserted as a result of its advantages not being realised. This resulted in an impairment of £1.6 million. Another mission whose goal was to implement a extra environment friendly and streamlined system for automating enterprise processes was not delivered leading to an impairment of £0.1 million. The Agency accomplished building of an area groundstation that was introduced into service throughout the 12 months. A portion of the groundstation’s performance was not examined and the client said that they don’t require this performance. An impairment evaluation resulted in roughly 10% write-down earlier than the asset was added to the non-current asset register (£0.2 million).

A bespoke IT Payload Data Ground Segment (PDGS) system was accomplished by Airbus, nevertheless it can’t be delivered and put in on an Agency website as a result of unexpected technical points. Other choices had been thought of, however the buyer determined that the system was not reasonably priced or possible. This has resulted in a full write-down of £1.5 million, and an additional write-down of related software program of £0.7 million disclosed as an intangible asset beneath building impairment (footnote 5).

⁵ A full write-down of software program associated to the bespoke IT PDGS system impairment (see footnote 4).

⁶ The 2024 to 2025 impairment pertains to the skilled valuation of constructing property at Portsdown West, and the ultimate 2 lately commissioned Helios associated buildings at Porton Down. This resulted in an impairment by way of revenue and lack of £17.6 million, and an impairment by way of different complete earnings of £0.2 million.
The 2023 to 2024 impairment relates primarily to the skilled valuation of 8 current buildings or constructing refurbishments at Porton Down (£31.8 million). Of these impairments:

a) one of many new Helios associated buildings was valued for the primary time which resulted in a £16.5 million impairment

b) there was a first-time valuation of two newly refurbished buildings to accommodate the previous Centre for Applied Science and Technology workers and their services which resulted in a £9.2 million impairment

The steadiness pertains to the applying of indices throughout the 12 months.

⁷ Both the present 12 months and earlier 12 months impairment reversal pertains to the applying of indices throughout the 12 months (nearly solely to constructing property).

⁸ During 2023 and 2024, the Agency transferred its funding to MOD Defence Science and Technology (DST). No proceeds had been obtained. See Note 9.

6. Finance earnings

	2025	2024
	£million	£million
Interest obtained and receivable from financial institution accounts	0.0	0.0
Total	0.0	0.0

7. Finance expense

	2025	2024
	£million	£million
Interest expense on proper of use property	0.0	0.0
Unwinding of provision discounting	0.0	0.0
Total	0.0	0.0

No funds had been made beneath the Late Payments of Commercial Debts (Interest) Act 1998 (2023 to 2024: £nil).

8. Property, plant and tools

Property, plant and tools actions throughout the 12 months had been:		Land	Buildings	Plant and Machinery	Transport	IT and Communication Equipment	Assets Under Construction	Total
	Note	£m	£m	£m	£m	£m	£m	£m
Valuations and gross modified historic price
Balance at 1 April 2023		99.0	422.5	101.2	2.8	50.7	221.5	897.7
Additions		0.0	0.0	15.8	1.9	4.0	29.8	51.5
Transfers		0.0	55.0	5.8	0.0	8.0	(68.8)	0.0
Transfers to intangible property beneath building		0.0	0.0	0.0	0.0	0.0	(5.7)	(5.7)
Reclassified as non-capital spend¹		0.0	0.0	0.0	0.0	0.0	(6.1)	(6.1)
Disposals		0.0	(0.1)	(4.8)	0.0	(1.9)	0.0	(6.8)
Revaluations		(2.5)	9.1	5.9	0.0	1.5	0.0	14.0
Impairment		0.0	(32.1)	(0.8)	0.0	0.0	0.0	(32.9)
Impairment reversal		0.0	1.5	0.0	0.0	0.0	0.0	1.5
Balance at 31 March 2024		96.5	455.9	123.1	4.7	62.3	170.7	913.2

Additions		0.0	0.0	14.1	0.6	3.6	26.3	44.6
Transfers		0.0	62.0	14.3	0.0	8.8	(85.1)	0.0
Transfers to proper of use asset	11	0.0	0.0	0.0	0.0	0.0	(1.1)	(1.1)
Transfers to intangible property beneath building		0.0	0.0	0.0	0.0	0.0	(14.2)	(14.2)
Reclassified as non-capital spend1		0.0	0.0	0.0	0.0	0.0	(1.1)	(1.1)
Disposals		0.0	0.0	(8.6)	(2.2)	(4.8)	0.0	(15.6)
Revaluations		1.8	11.2	2.1	0.0	3.4	0.0	18.5
Impairment		0.0	(17.7)	0.0	0.0	0.0	(3.4)	(21.1)
Impairment reversal		0.0	2.3	0.0	0.0	0.0	0.0	2.3
Balance at 31 March 2025		98.3	513.7	145.0	3.1	73.3	92.1	925.5

Depreciation
Balance at 1 April 2023		0.0	(72.3)	(41.9)	(1.7)	(27.8)	0.0	(143.7)
Charge for 12 months:
Historical		0.0	(8.8)	(7.4)	(0.8)	(8.0)	0.0	(25.0)
Supplementary		0.0	(4.9)	(6.3)	(0.1)	(2.6)	0.0	(13.9)
Impairment		0.0	0.3	0.2	0.0	0.0	0.0	0.5
Impairment reversal		0.0	(0.2)	0.0	0.0	0.0	0.0	(0.2)
Disposals		0.0	0.1	4.8	0.0	1.8	0.0	6.7
Revaluations		0.0	(1.7)	(1.9)	0.0	(0.7)	0.0	(4.3)
Balance at 31 March 2024		0.0	(87.5)	(52.5)	(2.6)	(37.3)	0.0	(179.9)

Charge for 12 months:
Historical		0.0	(9.3)	(13.2)	(0.3)	(10.9)	0.0	(33.7)
Supplementary		0.0	(6.0)	(1.6)	0.0	(1.1)	0.0	(8.7)
Impairment		0.0	0.1	0.0	0.0	0.0	0.0	0.1
Impairment reversal		0.0	(0.3)	0.0	0.0	0.0	0.0	(0.3)
Disposals		0.0	0.0	7.9	2.2	4.8	0.0	14.9
Revaluations		0.0	(3.0)	(0.6)	0.0	(2.1)	0.0	(5.7)
Balance at 31 March 2025		0.0	(106.0)	(60.0)	(0.7)	(46.6)	0.0	(213.3)

Net modified historic price:
Balance at 31 March 2025		98.3	407.7	85.0	2.4	26.7	92.1	712.2
Balance at 1 April 2024		96.5	368.4	70.6	2.1	25.0	170.7	733.3

Notes:

¹ Within this steadiness are purchases of bulk gadgets that individually don’t meet the capitalisation standards and consumables that had been erroneously included in property beneath building.

Land and buildings are topic to a quinquennial revaluation by an impartial, skilled valuer in accordance with IAS16: Property, Plant and Equipment. Accounting Policy Notes 1(d) and 1(f) present the idea of valuation. Professional valuations are managed by MOD Defence Infrastructure Organisation (DIO). The land and constructing property at Portsdown West had been valued by Valuation Office Agency (VOA), an Executive Agency of HM Revenue and Customs, as at 1 November 2024. During the 12 months, skilled valuations had been utilized to 2 lately commissioned buildings at Porton Down. The land and majority of different constructing property at Porton Down had been valued by VOA as at 1 November 2021.

Included inside land and buildings are properties from which rental earnings is derived. They aren’t materials and aren’t disclosed individually.

During the 12 months there have been acquisitions of plant and tools that had been funded by non-MOD prospects. They aren’t materials and aren’t individually recognized.

Included inside property, plant and tools and property beneath building are property donated by MOD and wider authorities.

With impact from 1 April 2024, the Agency agreed a revised course of with MOD for the acquisition of capital property funded by MOD S&T. Previously, the place the Agency retained management of those capital property, they had been accounted for as donated property. From 1 April 2024, the acquisition of such a capital asset is appraised by the Agency, and if permitted, the MOD buyer makes a capital funds switch. The capital asset is then accounted for as an Agency asset somewhat than a donated asset.

The following is a sub-set of the be aware as at 31 March 2025 for property, plant and tools property that had beforehand been donated by MOD to 31 March 2024:

Valuations and gross modified historic price	Buildings	Plant and equipment	Transport	IT and Communication Equipment	Assets Under Construction	Total
	£m	£m	£m	£m	£m	£m
Balance at 31 March 2024	0.0	51.6	2.7	7.9	18.7	80.9
Additions	0.0	0.0	0.0	0.0	0.0	0.0
Transfers	0.0	7.3	0.1	0.6	(8.0)	0.0
Reclassified as non-capital spend¹	0.0	0.0	0.0	0.0	(0.6)	(0.6)
Disposals	0.0	(4.1)	(2.1)	(0.7)	0.0	(6.9)
Revaluations	0.0	0.9	0.0	0.4	0.0	1.3
Impairment	0.0	0.0	0.0	0.0	(0.3)	(0.3)
Balance at 31 March 2025	0.0	55.7	0.7	8.2	9.8	74.4

Depreciation
Balance at 31 March 2024	0.0	(19.0)	(2.2)	(3.2)	0.0	(24.4)
Charge for 12 months:
Historical	0.0	(7.1)	(0.1)	(1.2)	0.0	(8.4)
Supplementary	0.0	(0.9)	0.0	(0.1)	0.0	(1.0)
Disposals	0.0	3.7	2.1	0.7	0.0	6.5
Revaluations	0.0	(0.2)	0.0	(0.1)	0.0	(0.3)
Balance at 31 March 2025	0.0	(23.5)	(0.2)	(3.9)	0.0	(27.6)

Net modified historic price:
Balance at 31 March 2025	0.0	32.2	0.5	4.3	9.8	46.8
Balance at 1 April 2024	0.0	32.6	0.5	4.7	18.7	56.5

Notes:

¹ Within this steadiness are purchases of bulk gadgets that individually don’t meet the capitalisation standards and consumables that had been erroneously included in property beneath building.

9. Non-current monetary property

	Note	Subsidiary endeavor
		£million
Valuation
Balance at 1 April 2023		1.4
Disposals		(1.4)
Balance at 31 March 2024		0.0

Additions		0.0
Disposals		0.0
Impairment	11	0.0
Balance at 31 March 2025		0.0

During 2023 and 2024, the Executive Agency transferred possession of its wholly owned subsidiary, Ploughshare, to MOD Defence Science and Technology (DST). No proceeds had been obtained, and a loss on switch is recognised within the Statement of Comprehensive Net Expenditure.

The Agency had not consolidated Ploughshare on grounds of materiality. See Note 1(d)(i).

10. Intangible property

Intangible asset actions throughout the 12 months had been:

	Purchased intangible property	Intangible property beneath building	Total
	£million		£million
Gross modified historic price
Balance at 1 April 2023	18.5	5.3	23.8
Additions	1.2	5.3	6.5
Transfers	9.7	(9.7)	0.0
Transfers from property, plant and tools property beneath building	0.0	5.7	5.7
Reclassified as non-capital spend	0.0	(0.1)	(0.1)
Disposals	(1.0)	0.0	(1.0)
Revaluations	1.1	0.0	1.1
Balance at 31 March 2024	29.5	6.5	36.0

Additions	5.5	1.1	6.6
Transfers	15.5	(15.5)	0.0
Transfers from property, plant and tools property beneath building	0.0	14.2	14.2
Reclassified as non-capital spend	0.0	(0.1)	(0.1)
Disposals	(2.4)	0.0	(2.4)
Revaluations	2.4	0.0	2.4
Impairment	0.0	(0.7)	(0.7)
Balance at 31 March 2025	50.5	5.5	56.0

Amortisation
Balance at 1 April 2023	(9.3)	0.0	(9.3)
Charge for 12 months:
Historical	(4.5)	0.0	(4.5)
Supplementary	(1.3)	0.0	(1.3)
Disposals	1.0	0.0	1.0
Revaluations	(0.3)	0.0	(0.3)
Balance at 31 March 2024	(14.4)	0.0	(14.4)

Charge for 12 months:
Historical	(9.0)	0.0	(9.0)
Supplementary	(0.4)	0.0	(0.4)
Disposals	2.2	0.0	2.2
Revaluations	(1.0)	0.0	(1.0)
Balance at 31 March 2025	(22.6)	0.0	(22.6)

Net modified historic price:
Balance at 31 March 2025	27.9	5.5	33.4
Balance at 1 April 2024	15.1	6.5	21.6

The following is a sub-set of the be aware as at 31 March 2025 for intangible property that had beforehand been donated by MOD to 31 March 2024:

	Purchased intangible property	Intangible property beneath building	Total
	£million	£million	£million
Gross modified historic price
Balance at 1 April 2024	3.1	0.1	3.2
Additions	0.0	0.0	0.0
Reclassified as non-capital spend¹	0.0	(0.1)	(0.1)
Disposals	(0.6)	0.0	(0.6)
Revaluations	0.1	0.0	0.1
Balance at 31 March 2025	2.6	0.0	2.6

Amortisation
Balance at 1 April 2024	(1.5)	0.0	(1.5)
Charge for 12 months:
Historical	(0.6)	0.0	(0.6)
Disposals	0.6	0.0	0.6
Revaluations	(0.1)	0.0	(0.1)
Balance at 31 March 2025	(1.6)	0.0	(1.6)

Net modified historic price:
Balance at 31 March 2025	1.0	0.0	1.0
Balance at 1 April 2024	1.6	0.1	1.7

11. Leases: proper of use property

Right of use asset actions throughout the 12 months had been:

	Note	Property	Plant and tools	Total
		£million	£million	£million
Cost valuation¹
Balance at 31 March 2023		0.9	0.3	1.2
Additions		0.1	0.2	0.3
Variable lease cost adjustment²		0.1	0.0	0.1
Lease time period modification adjustment³		(0.1)	0.0	(0.1)
Derecognition		(0.2)	(0.1)	(0.3)
Balance at 31 March 2024		0.8	0.4	1.2

Additions		0.6	0.0	0.6
Transfers from property beneath building	8	1.1	0.0	1.1
Lease time period modification adjustment³		0.1	(0.1)	0.0
Derecognition		(0.7)	(0.1)	(0.8)
Balance at 31 March 2025		1.9	0.2	2.1
Depreciation
Balance at 31 March 2023		(0.3)	(0.1)	(0.4)
Charge for 12 months		(0.4)	(0.1)	(0.5)
Derecognition		0.2	0.1	0.3
Balance at 31 March 2024		(0.5)	(0.1)	(0.6)

Charge for 12 months		(0.6)	0.0	(0.6)
Derecognition		0.7	0.1	0.8
Balance at 31 March 2025		(0.4)	0.0	(0.4)

Net e-book worth:
Balance at 31 March 2025		1.5	0.2	1.7
Balance at 1 April 2024		0.3	0.3	0.6

Notes:

¹ The price mannequin has been used as a proxy for present worth in current use, or truthful worth, to find out subsequent remeasurement of the Agency’s proper of use property. See Note 1(d)(i).

² Lease funds are revised yearly primarily based on an inflation index for 1 of the Agency’s property lease contracts (3 of the Agency’s property lease contracts throughout 2023 and 2024). The lease liabilities had been remeasured and the correct of use property had been adjusted by equal values. This lease settlement expired on 31 March 2025.

³ A plant and equipment lease contract time period was lowered in order that it expired throughout the 12 months. The lease legal responsibility was remeasured and lowered, and the correct of use asset carrying worth was lowered by an equal quantity. The proper of use asset was subsequently derecognised when the revised lease time period expired. During the earlier 12 months, a property lease contract time period was lowered and the lease legal responsibility was remeasured. The proper of use carrying worth was lowered by an equal quantity. The proper of use asset was subsequently derecognised throughout 2023 and 2024 when the revised lease time period expired.

The Agency’s proper of use property are:

	Nature of the lease	Rent (£)/ frequency excluding VAT	Payment phrases	Remaining anticipated time period from 1 April 2024 or from begin if later	Remaining choices
				Months
Accommodation at Wiltshire County Council Science Park	Part constructing	£17,422 per quarter¹	In-advance	60⁵	Break clause May 2027
Accommodation for the Farnborough analysis facility	Part constructing	£53,720 per quarter²	In-advance	Expired⁶	None
Accommodation for the Tempest facility	Part constructing	£13,750 per quarter¹	In-advance	Expired	None
University of Newcastle workplace hub	Office	£7,630 per quarter¹	In-advance	67⁷	Break clause October 2027
Boscombe Down storage facility	Building	£10,728 6-monthly³	In-arrears	48	None
Farnborough storage facility	Building	£22,608 per quarter¹	In-arrears	28	None
Leonardo laser	Plant and equipment	£nil, peppercorn lease⁴	N/A	51	None
Telehandler	Plant and equipment	£2,773 per thirty days¹	In-arrears	Expired	None

Notes:

¹ Rentals are mounted.

² There is an annual rental RPI indexation uplift from April 2024.

³ There are mounted annual rental uplifts.

⁴ The lease expired 30 June 2023. The Agency has continued proper of use of the asset for the rest of its helpful financial life, with out cost.

⁵ Lease time period started 15 May 2024.

⁶ Contract expired 22 July 2024. The lease continued with out a contract till 31 March 2025 and was terminated at this date. The out of contract interval was not accounted for as an IFRS16 lease.

⁷ New contract to increase the lease by 5 years from 22 October 2024.

The Agency assesses worth for cash concerns equivalent to whether or not the underlying asset is required for its whole helpful financial life, or for a extra restricted interval, when figuring out if a lease contract or a purchase order contract is the most suitable choice. Another consideration is whether or not there’s an energetic marketplace for leasing the actual underlying asset.

The Agency’s most vital lease, that has a proper of use asset carrying worth of £1.3 million, is for property on the Wiltshire County Council Science Park. The lease started throughout the 12 months and expires March 2029 with a break clause after 3 years (May 2027). The contract accommodates a dilapidation clause – see Note 18 for additional data.

The Agency’s subsequent most vital lease, whose proper of use asset carrying worth on 1 April 2024 was £0.2 million, expired on 31 March 2025 and has been derecognised. It was for property at Farnborough to accommodate the Dstl analysis facility. The contract accommodates a dilapidation clause – see Note 18 for additional data.

Some of the opposite smaller lease contracts have related preparations. There are not any restrictions, covenants, or novel preparations that deviate from trade apply.

Other smaller property leases, are typically for workplaces which can be used as hubs at strategic S&T places. This is to assist unfold the Agency’s geographical attain, harness expertise from across the nation, and allow the Agency to entry new suppliers in a value efficient manner.

Peppercorn Lease

Within plant and equipment is a peppercorn lease. A 2-year lease of a laser got here to an finish on 30 June 2023 and the provider has agreed that the Agency can proceed the lease indefinitely with no rental funds. The preliminary truthful worth of the correct of use asset is £200,000 primarily based on the price of constructing the asset, adjusted for the financial profit consumed. The anticipated remaining helpful financial life from 1 July 2023 is estimated to be 5 years.

The carrying worth of the peppercorn lease at 31 March 2025 is £0.1 million (2023 to 2024: £0.2 million).

12. Impairments

Impairments occurring throughout the 12 months had been expensed both to revenue or loss, or different complete internet expenditure as follows:

	2025	2024	2025	2024
	Profit or loss	Profit or loss	Other complete internet expenditure	Other complete internet expenditure
	£million	£million	£million	£million
Property, plant and tools property beneath building¹	3.4	0.0	0.0	0.0
Property, plant and tools valuation²	17.6	32.4	0.2	3.5
Property, plant and tools valuation impairment reversal³	(2.0)	(1.3)	0.0	0.0
Intangible property beneath building⁴	0.7	0.0	0.0	0.0
Total	19.7	31.1	0.2	3.5

Notes:

¹ During the 12 months, a mission to enhance consumer entry to digital recordsdata throughout the Agency’s networks was deserted as a result of its advantages not being realised. This resulted in an impairment of £1.6 million. Another mission whose goal was to implement a extra environment friendly and streamlined system for automating enterprise processes was not delivered leading to an impairment of £0.1 million.

The Agency accomplished building of an area groundstation that was introduced into service throughout the 12 months. A portion of the groundstation’s performance was not examined and the client said that they don’t require this performance. An impairment evaluation resulted in roughly 10% write-down earlier than the asset was added to the non-current asset register representing £0.2 million.

² The 2024 to 2025 impairment pertains to the skilled valuation of constructing property at Portsdown West, and 2 lately commissioned constructing property at Porton Down. This resulted in an impairment by way of revenue and lack of £17.6 million, and an impairment by way of different complete earnings of £0.2 million.
The 2023 to 2024 impairment pertains to:

a) the skilled valuation of 8 current new buildings or constructing refurbishments at Porton Down resulted in an impairment by way of revenue and loss (£31.8 million), and an impairment although different complete earnings (£0.8 million)

b) the applying of indices resulted in an impairment by way of revenue and loss (£0.6 million), and an impairment by way of different complete earnings (£2.7 million)

³ The present 12 months impairment reversal pertains to the skilled valuation of constructing property at Portsdown West (£1.0 million), and to the applying of indices throughout the 12 months (£1.0 million) (nearly solely to constructing property). The earlier 12 months impairment reversal pertains to the applying of indices throughout the 12 months (nearly solely to constructing property).

⁴ A full write-down of software program referring to the bespoke IT PDGS system impairment (see footnote 1).

13. Work in progress

	2025	2024
	£million	£million
Total work in progress	0.0	0.0

14. Trade receivables and different property

Amounts falling due inside 1 12 months:

	2025	2024
	£million	£million
Trade receivables	3.1	6.7
Central authorities our bodies	1.8	5.4
Non-public sector organisations	1.3	1.3

Contract property	6.9	9.3
Central authorities our bodies	6.2	8.6
Non-public sector organisations	0.7	0.7

Deposits and advances–workers receivables	0.1	0.1

Other receivables	0.2	0.1
Central authorities our bodies	0.1	0.1
Non-public sector organisations	0.1	0.0

Prepayments and accrued earnings	12.7	15.3
Central authorities our bodies	2.0	1.5
Local authorities	0.0	0.8
Non-public sector organisations	10.7	13.0

Total	23.0	31.5

Amounts falling due after greater than 1 12 months:

	2025	2024
	£million	£million
Deposits and advances–workers receivables	0.1	0.1

Prepayments and accrued earnings	1.9	3.5
Central authorities our bodies	0.1	1.8
Non-public sector organisations	1.8	1.7

Total	2.0	3.6

Prepayments embrace software program licence agreements and software program upkeep agreements managed by the Agency’s Digital Services at £6.6 million (2023 to 2024: £11.7 million) of which £0.4 million (2023 to 2024: £1.6 million) pertains to intervals past a 12 months. There are 2 Memorandum of Understanding (MOU) agreements with US Department of Defense for the supply of science and know-how analysis that totals £3.1 million (2023 to 2024: £2.4 million) of which £1.4 million pertains to intervals past a 12 months (2023 to 2024: £2.4 million). Prepayments for journey and lodging preparations are £0.6 million (2023 to 2024: £0.3 million) sourced by the Agency’s journey administration service supplier. Other gadgets embrace memberships and subscriptions to skilled our bodies, and service and upkeep agreements.

15. Cash and money equivalents

	2025	2024
	£million	£million
Balance introduced ahead	12.6	24.9
Net change in money and money equal balances	7.3	(12.3)
Balance carried ahead	19.9	12.6

The following balances had been held at:
Government banking service	14.9	10.9
Commercial banks	5.0	1.7
Balance carried ahead	19.9	12.6

15.1 Reconciliation of money flows arising from financing actions to Net Equity Investment

	Cash flows	Non-cash movement bookkeeping for transactions with MOD	Non-cash movement bookkeeping for transactions with MOD	Non-cash movement bookkeeping for transactions with MOD	Non-cash movement bookkeeping for transactions with MOD	Non-cash movement bookkeeping for transactions with MOD	Total internet money influx from MOD financing actions
	Cash obtained from MOD	VAT recoverable transferred to MOD	Goods and companies offered to MOD	Goods and companies offered by MOD	Payroll financed by MOD	Infrastructure services administration comfortable companies offered by MOD
	£million	£million	£million	£million	£million	£million	£million
Balance at 31 March 2024	3,899.2	(364.5)	(5,167.8)	181.2	1,711.9	6.5	266.5
Net change in financing actions for the 12 months	702.5	(77.6)	(904.4)	30.1	344.8	5.5	100.9
Balance at 31 March 2025	4,601.7	(442.1)	(6,072.2)	211.3	2,056.7	12.0	367.4

15.2 Reconciliation of money flows arising from financing actions

	Total internet money influx from MOD financing actions (Note 15.1)	Cash flows from lease financing	Cash flows from lease financing	Total internet money influx from MOD financing actions
		Repayment of lease legal responsibility principal	Lease legal responsibility finance expense
	£ million	£ million	£ million	£ million
Balance at 31 March 2024	266.5	(0.7)	0.0	265.8
Net change in financing actions for the 12 months	100.9	(0.4)	0.0	100.5
Balance at 31 March 2025	367.4	(1.1)	0.0	366.3

16. Trade payables and different liabilities

Amounts falling due inside 1 12 months:

	2025	2024
	£million	£million
Other taxation and social safety	2.6	2.5

Contract liabilities	14.8	14.3
Central authorities our bodies	11.0	12.1
Non-public sector organisations	3.8	2.2

Trade payables	28.7	44.1
Central authorities our bodies	0.7	0.7
Local authorities	3.5	3.1
Non-public sector organisations	24.5	40.3

Other payables	5.3	3.0
Central authorities our bodies	2.5	2.3
Non-public sector organisations	2.8	0.7

Pay and bills–workers payables	5.6	5.4

Accruals and deferred earnings	94.4	140.0
Central authorities our bodies	5.0	7.5
Trading funds	0.2	0.0
Local authorities	11.7	13.8
Non-public sector organisations	75.4	116.9
Staff	2.1	1.8

Total	151.4	209.3

Amounts falling due after greater than 1 12 months:

	2025	2024
	£million	£million
Accruals and deferred earnings	3.7	3.9
Central authorities our bodies	3.6	3.8
Local authorities	0.0	0.1
Non-public sector organisations	0.1	0.0

Total	3.7	3.9

Long-term payables are held undiscounted. The impact of discounting isn’t materials.

Other taxation and social safety pertains to the PAYE and nationwide insurance coverage related to the vacation pay accrual.

Contract liabilities represents the steadiness of funds obtained on account from non-MOD prospects.

Trade payables embrace buy of direct items and companies £25.9 million (2023 to 2024: £43.4 million) of which £21.6 million is subcontracted analysis (2023 to 2024: £39.7 million). Trade payables that relate to capital funding totals £1.0 million (2023 to 2024: £0.8 million).

Other payables encompass the pension legal responsibility related to vacation pay accrual £2.5 million (2023 to 2024: £2.3 million), and a capitalised software program license the place the Agency has dedicated to future protection at an extra price of £2.8 million (2023 to 2024: £nil).

Staff payables primarily encompass the online pay aspect of the vacation pay accrual £5.5 million (2023 to 2024: £5.3 million).

Within accruals are purchases of direct items and companies £72.5 million (2023 to 2024: £115.6 million) of which £66.5 million is subcontracted analysis (2023 to 2024: £106.1 million). Capital accruals account for £3.5 million (2023 to 2024: £6.8 million).

Deferred earnings primarily pertains to non-MOD buyer funded property the place the client has retained an curiosity within the asset of £4.3 million (2023 to 2024: £4.8 million) of which £3.6 million falls due after greater than 1 12 months (2023 to 2024: £3.9 million).

17. Lease liabilities

Lease legal responsibility actions throughout the 12 months had been:

	Property	Plant and tools	Total
	£million	£million	£million
Balance at 1 April 2024	0.3	0.1	0.4
Additions	0.5	0.0	0.5
Lease time period modification adjustment¹	0.1	(0.1)	0.0
Lease funds	(0.4)	0.0	(0.4)
Interest expense	0.0	0.0	0.0
Balance at 31 March 2025	0.5	0.0	0.5

Notes:

¹ A plant and equipment lease contract time period was lowered in order that it expired throughout the 12 months. The lease legal responsibility was remeasured and lowered, and the correct of use asset carrying worth was lowered by the identical quantity. The proper of use asset was subsequently derecognised when the revised lease time period expired.

HM Treasury’s incremental price of borrowing was utilized to low cost lease contract legal responsibility funds as follows:

Lease title	HM Treasury charge at IFRS16 adoption date or lease graduation date	IFRS16 adoption date or lease graduation date if later	HM Treasury charge at lease time period modification date	Date of lease time period modification
	%		%
Accommodation at Wiltshire County Council Science Park	4.72	May 2024	N/A	N/A
Accommodation for Farnborough analysis facility (Expired)	0.95	April 2022	N/A	N/A
Accommodation for the Tempest facility (Expired)	0.95	April 2022	N/A	Expired
University of Newcastle workplace hub	0.95	April 2022	4.72	October 2024
Boscombe Down storage facility	3.51	September 2023	N/A	N/A
Farnborough storage facility	4.72	April 2024	N/A	N/A
Telehandler (Expired)	0.95	August 2022	4.72	April 2024

An evaluation of anticipated timing of lease cost money flows is as follows:

	Property	Plant and tools	Total
	£million	£million	£million
Not later than 1 12 months	0.2	0.0	0.2
Later than 1 12 months however not later than 5 years	0.3	0.0	0.3
Later than 5 years	0.0	0.0	0.0
Total undiscounted lease cost money flows	0.5	0.0	0.5
Interest expense	0.0	0.0	0.0
Balance at 31 March 2025	0.5	0.0	0.5

Comparatives for the 12 months ending 31 March 2024:

	Property	Plant and tools	Total
	£million	£million	£million
Balance at 1 April 2023	0.6	0.1	0.7
Additions	0.1	0.0	0.1
Variable lease cost adjustment¹	0.1	0.0	0.1
Lease time period modification adjustment²	(0.1)	0.0	(0.1)
Lease funds	(0.4)	0.0	(0.4)
Interest expense	0.0	0.0	0.0
Balance at 31 March 2024	0.3	0.1	0.4

Notes:

¹ Lease funds are revised yearly primarily based on an inflation index for 3 of the Agency’s property lease contracts. One of those lease contracts was terminated throughout the 12 months with out penalty. Another of those leases expired on 31 March 2024.

² During the 12 months, a property lease contract time period was lowered and the lease legal responsibility was remeasured. The proper of use asset carrying vaue was lowered by the identical worth. The proper of use asset was subsequently derecognised when the revised lease time period expired.

An evaluation of anticipated timing of lease cost money flows is as follows:

	Property	Plant and tools	Total
	£million	£million	£million
Not later than 1 12 months	0.2	0.0	0.2
Later than 1 12 months however not later than 5 years	0.1	0.1	0.2
Later than 5 years	0.0	0.0	0.0
Total undiscounted lease cost money flows	0.3	0.1	0.4
Interest expense	0.0	0.0	0.0
Balance at 31 March 2024	0.3	0.1	0.4

18. Provisions for liabilities and expenses

	Dilapidations and remediation	Supplier claims	Employment tribunals	Early departure prices	Total
	£million	£million	£million	£million	£million
Balance at 1 April 2024	1.2	1.0	0.0	0.0	2.2
Provided within the 12 months	0.2	0.0	0.0	0.1	0.3
Balance at 31 March 2025	1.4	1.0	0.0	0.1	2.5

Analysis of anticipated timing of money flows:

	Dilapidations and remediation	Supplier claims	Employment tribunals	Early departure prices	Total
	£million	£million	£million	£million	£million
Between 1 April 2025 and 31 March 2026	1.3	1.0	0.0	0.1	2.4
Between 1 April 2026 and 31 March 2027	0.0	0.0	0.0	0.0	0.0
Between 1 April 2027 and 31 March 2032	0.1	0.0	0.0	0.0	0.1
Balance at 31 March 2025	1.4	1.0	0.0	0.1	2.5

No quantities are anticipated to be known as after 31 March 2032 and due to this fact no additional evaluation is critical for quantities after this date. The provision that’s anticipated to crystallise after greater than a 12 months has been discounted. The low cost worth isn’t materials.

Dilapidations and remediation

A property lease to accommodate an analysis facility (operated by the Executive Agency) at a website in Farnborough, expired on 31 March 2025. The lease has not been prolonged or renewed. Under the phrases of the lease association, there’s a dilapidation clause that requires the Agency to revive the lodging to its earlier state. This is more likely to full throughout 2025 and 2026.

A property lease for the lodging of one other facility, Tempest, positioned on the identical website because the analysis facility at Farnborough, additionally expired throughout the 12 months. The Agency has not renewed the lease. Under the phrases of the lease, there’s a dilapidation clause that requires the Agency to reverse all alterations made to the lodging. This is more likely to full throughout 2025 and 2026.

The Agency has a lease settlement in place for property on a science park at Porton Down. The settlement has a dilapidation clause. This obligation is not going to crystallise till after the settlement has expired, at the moment estimated to be 2030 to 2031.

As a part of the phrases of the Agency’s exit from the Fort Halstead website on 31 March 2023, and termination of the lease, the Agency had an obligation to make good any dilapidations and remediation of the location. During 2023 and 2024, the Agency launched the £0.1 million provision of which roughly half was unutilised. There is a contingent legal responsibility for any additional potential remediation – see Note 23.

Supplier claims

The Agency has some provider disputes in relation to its contracts for items and companies. These are anticipated to be settled throughout 2025 and 2026.

Employment tribunals

During 2023 to 2024, the result of an Employment Tribunal went in opposition to the Agency. The settlement resulted in a lot of the provision being utilised.

Early departure prices

The Executive Agency meets the extra price of advantages past the conventional Civil Service pension preparations in respect of staff who depart early. The Agency supplies for this in full when the early departure settlement turns into binding. Payment values are established by My Civil Service Pension.

Comparatives for the 12 months ending 31 March 2024:

	Dilapidations and remediation	Supplier claims	Employment tribunals	Early departure prices	Total
	£million	£million	£million	£million	£million
Balance at 1 April 2023	1.3	6.3	0.1	0.0	7.7
Provided within the 12 months	(0.1)	0.0	0.0	0.0	(0.1)
Provisions not required written-back	0.0	(2.7)	0.0	0.0	(2.7)
Provisions utilised within the 12 months	0.0	(2.6)	(0.1)	0.0	(2.7)
Balance at 31 March 2024	1.2	1.0	0.0	0.0	2.2

Analysis of anticipated timing of money flows:

	Dilapidations and remediation	Supplier claims	Employment tribunals	Early departure prices	Total
	£million	£million	£million	£million	£million
Between 1 April 2024 and 31 March 2025	0.0	1.0	0.0	0.0	1.0
Between 1 April 2025 and 31 March 2026	1.2	0.0	0.0	0.0	1.2
Balance at 31 March 2024	1.2	1.0	0.0	0.0	2.2

19. Capital commitments

Capital commitments have been made to:

assist the upkeep, improvement, and enhancement of the Agency’s S&T capabilities
assist the supply of the Agency’s IS Vision–transformation to a contemporary, agile, and safe digital service
make sure the Agency’s property stays a compliant, protected, safe, and environment friendly place to work

	2025	2024
	£million	£million
Property, plant and tools:
Capital expenditure that has been contracted however has not been offered for within the accounts	15.3	8.5
Capital expenditure that has been authorised however has not been offered for within the accounts	30.0	44.8

Intangible property:
Capital expenditure that has been contracted however has not been offered for within the accounts	0.0	0.2
Capital expenditure that has been authorised however has not been offered for within the accounts	1.3	0.0

The important investments that had both been dedicated, or had been authorised for dedication on the year-end embrace:

website incident centre administration system (£0.9 million dedicated)
laboratory tools (£0.7 million dedicated, with an additional £0.3 million authorised however not dedicated)
electrical energy provide upgrades (£1.3 million dedicated)
new chillers (£7.6 million dedicated)
destructor improve (£0.8 million authorised however not dedicated)
test-bed laboratory refresh (£1.1 million authorised however not dedicated)
remediation (£2.2 million authorised however not dedicated)
new autoclaves (£9.0 million authorised however not dedicated)
home windows 11 improve (£1.3 million authorised however not dedicated)

20. Other monetary commitments

The Agency has entered into non-cancellable contracts apart from capital, lease, or service concession preparations, for provides that embrace items or companies which can be both instantly attributable to S&T, or are to assist the Agency’s enabling infrastructure equivalent to lodging and IT companies. The funds to which the Agency is dedicated are as follows:

	2025	2024
	£’000	£’000
Not later than 1 12 months	2.2	3.3
Later than 1 12 months however not later than 5 years	0.6	0.6
Later than 5 years	0.0	0.0
Total	2.8	3.9

21. Financial devices

The Executive Agency critiques its credit score threat by making use of the simplified strategy of the anticipated credit score loss mannequin to commerce receivables and contract property. There is at the moment no expectation of present or future materials loss.

The Agency’s principal monetary devices comprise money, present receivables and present payables.

Cash generated from gross sales, supplemented with funding offered by MOD, are the first sources of finance for the Agency.

Trade receivables and commerce payables come up instantly from the Agency’s operations. As the money requirement of the Agency is met primarily from funding by way of its dad or mum organisation, MOD, monetary devices play a restricted position within the creation and administration of threat compared with a private sector physique. 93% of the Agency’s gross sales are with MOD. Consequently, the general threat referring to monetary devices created by gross sales contracts is minimal. Other monetary devices relate to contracts to accumulate non-financial gadgets in keeping with the Agency’s necessities for provide of exterior useful resource and companies.

The Agency isn’t uncovered to vital credit score, liquidity, overseas forex or market threat. The Chief Financial Officer is accountable for the insurance policies to handle these dangers on behalf of the Board. These insurance policies have remained unchanged all year long. It has been the Agency’s coverage all year long that no buying and selling in monetary devices for speculative functions needs to be undertaken.

The Agency’s buyer profile leaves little publicity to credit score threat. 99% of the Agency’s working earnings is derived from MOD and wider authorities.

Categories of monetary devices

The Agency’s funding in its wholly owned subsidiary, Ploughshare, was labeled as a non-current monetary asset and was accounted for utilizing the truthful worth by way of revenue or loss methodology. See Note 9. The class of monetary instrument that has produced finance earnings obtained and receivable, and the class of monetary instrument that has produced finance expenses paid and payable, are disclosed in Note 6 and 7.

Trade and different receivables, and money and money equivalents, have been labeled as loans and receivables. Trade and different payables have been labeled as different monetary liabilities. The truthful worth of those monetary property and monetary liabilities approximates the carrying worth as a result of short-term nature of those monetary devices.

No capital disclosures are mandatory. A buffer for threat to collectors doesn’t come up as a result of public sector financing is tax primarily based.

22. Related-party transactions

Dstl is an Executive Agency of MOD.

MOD

MOD is a associated occasion and has non-executive illustration on the Board. During the 12 months, the Agency had varied materials transactions with MOD, all of which had been carried out beneath contract phrases and topic to the conventional course of inside and exterior audit:

	2025	2024
	£’000	£’000
Operating earnings	902,593.0	1,034,950.5
Purchases	31,142.4	32,116.2
Receivables	22.4	19.2
Prepayments	918.7	374.2
Trade payables and accruals	1,267.2	2,714.0

Ploughshare Innovations Ltd

Ploughshare was an entirely owned subsidiary endeavor of the Agency and throughout 2023 to 2024, transferred to MOD Defence Science and Technology (DST). During the 12 months, the next buying and selling occurred, carried out beneath commonplace contract phrases:

	2025	2024
	£’000	£’000
Operating earnings	173.4	149.0
Purchases	0.0	6,800.4
Receivables	93.4	42.2
Accruals	10.0	0.0

Other public sector our bodies

Other public sector our bodies are thought to be associated events by advantage of being beneath the identical frequent management. During the 12 months, the Agency had varied materials transactions with sure public sector our bodies. All transactions are carried out on commonplace contract phrases and are topic to the conventional course of inside and exterior audit.

	Operating earnings	Operating earnings	Purchases¹	Purchases¹	Trade receivables¹	Trade receivables¹	Trade payables¹	Trade payables¹
	2025	2024	2025	2024	2025	2024	2025	2024
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Animal and Plant Health Agency²	0.0	0.0	63.2	44.7	0.0	0.0	0.0	0.0
Cabinet Office (excluding My Civil Service Pension)	279.6	39.5	4,718.1	4,151.9	2.6	0.0	123.8	0.0
Centre for Environment, Fisheries and Aquaculture	0.0	0.0	41.0	0.0	0.0	0.0	0.0	0.0
Department for Energy Security and Net Zero	556.3	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Department for Science, Innovation and Technology	1,565.0	258.6	0.0	0.0	0.0	0.0	0.0	0.0
Department for the Environment, Food and Rural Affairs	7,361.4	3,783.6	0.0	3.1	0.0	0.0	0.0	0.0
Department for Transport	9,454.9	7,019.5	0.0	0.0	6.0	199.8	0.0	0.0
Department of Health and Social Care	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Engineering and Physical Sciences Research Council	0.0	0.0	1,593.2	2,135.6	0.0	0.0	17.3	417.3
Foreign and Commonwealth Office	311.5	538.3	7.9	2.6	93.6	310.7	0.0	0.0
Government Office for Science	36.2	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Government Communications Bureau	3,564.0	3,128.0	0.0	0.0	148.5	1,079.2	0.0	0.0
Government Communications Centre	942.9	3,876.0	1,230.7	1,678.7	3.0	1,151.1	1.2	0.0
Government Communications Planning Directorate	1,493.9	1,695.2	1,183.6	1,502.2	220.8	652.7	0.0	0.0
Government Legal Department	0.0	0.0	226.5	185.4	0.0	0.0	0.1	0.0
Health and Safety Executive	0.0	(2.1)	45.6	127.1	0.0	0.0	0.0	0.0
HM Prison Service	285.7	246.0	0.0	0.0	0.0	50.2	0.0	0.0
Home Office	26,299.9	26,324.2	421.2	572.7	335.2	468.5	0.0	0.0
Innovate UK	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Medical Research Council	769.2	774.2	750.0	750.0	60.7	193.1	187.5	0.0
Medicines and Healthcare Products Regulatory Agency	434.5	0.0	0.0	0.0	126.9	0.0	0.0	0.0
Meteorological Office	35.5	27.8	222.4	119.9	0.0	0.0	0.0	0.0
Metropolitan Police	96.5	256.2	0.0	0.0	56.4	0.0	0.0	0.0
Ministry of Justice	20.0	69.8	0.0	0.0	3.8	10.2	0.0	0.0
National Counter Terrorism Security Office	435.2	0.0	0.0	0.0	5.7	0.0	0.0	0.0
National Crime Agency	246.4	222.9	0.0	0.0	0.0	185.0	92.5	0.0
National Physical Laboratory²	0.0	0.0	322.7	321.1	0.0	0.0	0.0	67.8
National Protective Security Authority	1,641.3	2,935.4	0.0	0.0	21.3	477.0	0.0	0.0
Natural Environment Research Council	0.0	0.0	160.2	209.3	0.0	0.0	160.2	0.0
Nuclear Decommissioning Agency	2,511.4	572.9	0.0	0.0	163.7	0.0	0.0	0.0
Porton Biopharma	812.8	652.3	0.0	0.0	231.3	248.5	0.0	0.0
Science and Technology Facilities Council	0.0	0.0	229.8	581.6	0.0	0.0	15.8	0.0
Scottish Government	0.0	0.0	108.7	144.2	0.0	0.0	0.0	11.2
The Mayor’s workplace for Policing & Crime	30.5	95.2	268.6	470.4	12.1	28.9	0.0	21.0
UK Atomic Energy Authority	0.0	0.0	290.2	0.0	0.0	0.0	0.0	0.0
UK Health Security Agency	1,998.2	1,758.5	337.3	798.3	230.5	468.9	11.3	6.0
UK Space Agency	799.5	210.8	0.0	0.0	0.0	9.2	0.0	0.0

Notes:

¹ Purchases are represented by invoices processed by way of the acquisition ledger throughout the 12 months. No account of actions in accruals is taken. Only commerce receivables and commerce payables recorded by way of the gross sales and buy ledgers are disclosed. This extra simplified strategy focuses on invoices processed by way of major ledgers and is taken into account extra significant and comparable with the Agency’s associated events.

² Related-party buy transactions weren’t disclosed in 2023 to 2024 Annual Report and Accounts for these different public sector our bodies.

No Minister, Board member, key supervisor or different associated events has undertaken any materials transactions with the Agency throughout the 12 months. Any compensation paid to senior administration is disclosed within the Remuneration Report.

Tax and pension funds are made by MOD on behalf of the Agency.

23. Contingent liabilities

As at 1 April 2024, there have been 3 excellent employment tribunal circumstances that had been introduced in opposition to the Agency and had been ready for a listening to. Two of those have been heard. One was settled at £62,000. Confirmation of ultimate settlement for the second listening to has not but been obtained and a price primarily based on authorized recommendation has been accrued.

The third employment tribunal case is predicted to be heard throughout 2025 to 2026. Legal evaluation is that the case is more likely to be efficiently defended, but when unsuccessful, compensation is anticipated to be a most of £80,000. There had been no new employment tribunals introduced in opposition to the Agency in 2024 to 2025.

The Agency has different potential liabilities referring to working its property, with a complete worse case settlement end result of lower than £200,000. Final end result and settlements are anticipated throughout 2025 to 2026.

The Agency has funded PhD college students and in consequence, there’s a potential legal responsibility for injury brought on by them to school tools or breach of mental property. The whole worse case can be anticipated to be lower than £50,000 and primarily based on present PhD funded programmes, the legal responsibility will stay till 2027 to 2028.

For distant contingent liabilities, see here.

24. Events after the reporting interval

The accounts had been authorised for situation on the date of certification by the Comptroller and Auditor General.

There have been no vital occasions for the reason that finish of the monetary 12 months that have an effect on the outcomes for the 12 months, or the year-end monetary place.

Glossary

ARAC	Audit and Risk Assurance Committee
CDO	Chief Delivery Officer
CEO	Chief Executive Officer
CFO	Chief Finance Officer
CIRAM	Climate Impact Risk Assessment Matrix
COO	Chief Operating Officer
CPO	Chief People Officer
CRR	Corporate Risk Register
CSA	Chief Scientific Adviser
CSTO	Chief Science and Technology Officer
CSUP	Consumer Single Use Plastic
CTW	Contracted Temporary Worker
DASA	Defence and Security Accelerator
DE&S	Defence Equipment and Support
DEW	Directed Energy Weapons
DEFRA	Defence Related Environmental Assessment Methodology
DIO	Defence Infrastructure Organisation
DPA	Data Protection Act
DPE	Delivery Partner Engagement
DREAM	Defence Related Environmental Assessment Methodology
DSAR	Data Subject Access Request
DST	Defence Science and Technology
EMC	Executive Management Committee
EMR	Extra Mural Research
EMS	Environmental Management System
ESN	Employee Support Networks
FM	Facilities Management
FReM	Financial Reporting Manual
FTE	Full-time Equivalent
FY	Financial Year
GGC	Greening Government Commitment
GHG	Greenhouse Gas
GIAA	Government Internal Audit Agency
HM	His Majesty’s
ICT	Information Communication and Technology
IFRS	International Financial Reporting Standards
ISA	International Standards on Auditing
JCC	Joint Commander’s Commendation
JSP	Joint Services Publication
KPI	Key Performance Indicators
kWh	Kilowatt Hour
LPG	Liquid Petroleum Gas
MHCA	Modified Historic Cost Accounting
MOD	Ministry of Defence
MPE	Mission Partner Engagement
MyCSP	My Civil Service Pension
NAD Group	National Armaments Director Group
NCPA	Non-Consolidated Performance Award
NEM	Non-Executive Member
NIFA	Net Internal Floor Areas
NISSS	New Information Systems Service Solution
NZ50	Net Zero Greenhouse Gas Emissions by 2050
OD	Organisational Design
OBE	Order of the British Empire
PCSPS	Principal Civil Service Pension Scheme
PM	Performance Measure
PPE	Personal Protective Equipment
RIDDOR	Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
RNLI	Royal National Lifeboat Institution
S&T	Science and Technology
SCS	Senior Civil Service
SDG	Sustainable Development Goals
SDR	Strategic Defence Review
SEAT	Sustainability Environmental Assessment Tool
SME	Small and medium-sized enterprise
SoCITE	Statement of Changes in Taxpayers’ Equity
SoCFs	Statement of Cash Flows
SoCNE	Statement of Comprehensive Net Expenditure
SoFP	Statement of Financial Position
SSRB	Review Body on Senior Salaries
SSSI	Site of Special Scientific Interest
SV	Social Value
SQEP	Suitably Qualified and Experienced Personnel
TCFD	Task Force on Climate-related Financial Disclosure
TQA	Technical Quality Assurance
VAT	Value Added Tax
VCDS	Vice Chief of Defence Staff

Sources

Dstl Annual Report and Accounts 2024/25

ByNews Center

Defence Science and Technology Laboratory

Annual Report and Accounts 2024 to 2025

Performance

Chief Executive’s assertion

Directors’ report

Who we’re and what we do

Dstl – delivering mission success by way of science and know-how benefit

Our plans for the long run – our technique

Transformation programmes

S&T supply

People and infrastructure

Dstl’s Strategy 2023 to 2028

Preparing for the long run

Enabling operational benefit at tempo

Leveraging and influencing internationally

Shaping the defence and safety panorama

Ensuring profitable supply

Our Corporate Risks

Our efficiency abstract

Foreword

Operating earnings

External supply prices

Operating bills

Net working earnings/expenditure

Capital funding

Funding and treasury administration

Supplier funds

Distorting elements

Events after the reporting date

Accounting insurance policies

Financial outlook

Measuring how we’re doing

Performance reporting

KPIs

Key Performance Messages 2024 to 2025

How effectively are we delivering to our prospects?

Delivery of S&T Programme outcomes benefiting defence and safety from the baseline portfolio plan.

Are we protected and safe?

Fewer than 140 RIDDOR accidents, per 100k staff.

Do we now have the correct enablers in place to ship S&T

Level of worker engagement

Are we changing into extra environment friendly?

Average S&T delivered per Full Time Employee (at Dstl degree).

Enabling price share of total price

Managing the influence of our actions

Sustainability Strategic Direction

Looking ahead to the long run

Task power on climate-related monetary disclosure (TCFD)

Compliance assertion

Disclosures

Governance (a)–Board’s oversight

Governance (b)–administration’s position

Risk administration (a)–threat identification and evaluation

Risk administration (b)–threat administration

Risk administration (c)–total integration

Metrics and targets (a)–metrics

Metrics and targets (b)–emissions reporting

Metrics and targets (c)–targets

GGC

Environmental administration

Energy

Business journey

GHG emissions

Dstl GGC in-scope GHG emissions

Waste administration

Water

Sustainable building

Climate adaptation

Conservation and biodiversity

Sustainable Information Communication and Technology (ICT)

Sustainable procurement

Dr Paul Hollinshead

Accountability Report

Corporate governance

Our management

The Dstl Board (for the monetary 12 months 2024 to 2025)

The Dstl EMC (for the monetary 12 months 2024 to 2025)

Non-executive members of the Dstl Board (as at 31 March 2025)