Defence Science and Technology Laboratory Annual Report and Accounts 2023-2024. HC 143. Presented to the House of Commons pursuant to Section 7(1), (2) and (5) of the Government Resources and Accounts Act 2000. Ordered by the House of Commons to be printed on 24 July 2024. © Crown copyright 2024. ISBN 978-1-5286-4870-7, E03123323 07/24. Contents: Performance: Overview (p. 5), Chief Executive's statement (p. 6), Directors' report (p. 8), Who we are and what we do (p. 10), Our plans for the future – Our strategy (p. 11), Ensuring successful delivery (p. 16), Our performance summary (p. 19), Performance analysis (p. 24), Our performance headlines (p. 25), Measuring how we are doing (p. 26), Managing the impact of our activities (p. 29). Accountability: Corporate Governance (p. 49), Statement of Accounting Officer's responsibilities (p. 57), Governance statement (p. 58), Remuneration and people (p. 70), Senior management remuneration and pension entitlement (p. 71), Our people (p. 75), Parliamentary Accountability and Audit (p. 83), The Certificate and Report of the Comptroller and Auditor General to the House of Commons (p. 86). Financial Statements: Accounting Information (p. 91), Statement of Comprehensive Net Expenditure (p. 92), Statement of Financial Position (p. 93), Statement of Cash Flows (p. 94), Statement of Changes in Taxpayers' Equity (p. 95), Notes to the accounts (p. 96), Glossary (p. 129). Dr Paul Hollinshead, Chief Executive, highlights that Dstl delivered more than £1 billion of S&T for customers across defence and security for the first time (£526 million delivered by Dstl and £562 million through partners in industry and academia). Average S&T delivered per FTE rose to £209,000 (from £196,000 in 2022/23), and year-to-date enabling cost was reduced to 17.2%. The report addresses strategic priorities, operational support (including Ukraine), safety reset initiatives, organisational transformation, and response to limited assurance audit findings. Adrian Belton, Chair of the Dstl Board, pays tribute to over 5,600 colleagues and partners across MOD, government, industry, and academia. The report covers rising demand, support to operations in Ukraine and the Middle East, workforce recruitment, internal control developments including the 'single front door' triage system, health and safety focus, and board renewal. Case Studies & Impact Areas: - Impact #01 Support to Operations: Rapid science and technology support to UK Armed Forces and aid to Ukraine. - Impact #02 Daesh: Expert chemical and biological agent advice and court testimony in the prosecution of a terror drone maker. - Impact #03 DragonFire: Achieving UK first sovereign laser directed energy weapon (LDEW) firing against aerial targets at the Hebrides Range, scheduled for warships by 2027. - Impact #04 AI Research: Landmark agreements with Google Cloud and Microsoft to access over £200 billion in AI research for defence. - Impact #05 Gaming Tech: Commercial wargaming tools developed with Slitherine/Matrix Pro Simulations reducing analysis time and costs by 50%. - Impact #06 Munition: Evidence base and operational analysis underpinning MOD's 10-year munitions replenishment plan, including 155mm artillery ammunition. - Impact #07 AUKUS: Advancing AI and autonomy trials (TORVICE) with Australian and US militaries under AUKUS Pillar 2. - Impact #08 Terrorist Attack: Research on crowd behaviour in emergency scenarios informing operational plans and public safety. Dstl provides operational advantage and S&T capabilities to UK defence and security. Dstl's Strategy 2023-2028 focuses on four themes: Preparing for the future, Enabling operational advantage at pace, Leveraging and influencing internationally, and Shaping the defence and security landscape. Key corporate risks managed include Strategy focus (CR11), Stakeholder decision influence (CR12), Public safety (CR31), Worker health and safety (CR32), Infrastructure failure (CR33), Information security (CR34), Capability demand (CR42), Technical quality (CR43), Talent attraction/retention (CR51), and Pace and agility to external events (CR62). Total operating income reached a record £1,102 million (2022/23: £984 million), with MOD accounting for 94% (£1,027.8m) and non-MOD/wider government £64.6m. Operating expenses were £591 million, including staff costs of £365 million and direct purchases of £562 million. Capital investment totaled £52 million. Key Performance Indicators (KPIs) include: S&T milestone delivery 80.2% (target >85%), Customer Satisfaction 86.5% (target >90%), RIDDOR injuries 95.5 per 100k employees (target <140), mandatory H&S training completion 86.3%, IP submissions 149 (target >200), Employee Engagement 60% (target 60%), Average S&T per FTE £208.9k (target £205k), Extra Mural Research spend 42.4% (target >44%), and Enabling Cost 17.2% (target <22%). Details progress against Greening Government Commitments (GGC) 2021-2025 across carbon emissions, energy consumption, business travel, waste management, and water usage. Overall GHG emissions were reduced by 33% against the 2017/18 baseline (achieving target). Water consumption fell by 67% and paper use by 67%. Also outlines biodiversity and conservation efforts across the Porton Down SSSI site (1,519 hectares) and the Stone-curlew Conservation Project. Covers Dstl Board membership (Adrian Belton, Chair; Paul Hollinshead, CEO; Andy Bell, CSTO; David English, CFO/interim COO; Non-Executives Brian Bowsher, Jeremy Monroe, Sarah Spurgeon, David Tonkin, Tara Usher, Robert MacLeod) and Executive Management Committee structure. Details the annual review of Board effectiveness, the work of the Audit and Risk Assurance Committee (ARAC), risk management framework, process architecture, whistleblowing, fraud management, and the Government Internal Audit Agency (GIAA) Limited Assurance audit opinion along with remediation actions. Outlines senior civil service remuneration policies, Board members' emoluments, pension benefits, and fair pay ratios (highest paid director banded at £155k-£160k, representing 3.62 times the workforce median remuneration of £44,198). Workforce FTE averaged 5,207 (4,766 permanent, 375 agency/contract, 66 inward secondees) with total staff costs of £365.2 million. Details diversity and inclusion progress, employee support networks, off-payroll engagements, exit packages, and civil service pension schemes. Statement of Accounting Officer's responsibilities, parliamentary supply outturn, regularity of expenditure, remote contingent liabilities (including up to £500m HM Treasury-approved liability for space/satellite operations expiring 31 Dec 2027), Fort Halstead decommissioning status, losses and special payments, and the unqualified audit certificate and report of the Comptroller and Auditor General (NAO). Primary Statements: - Statement of Comprehensive Net Expenditure: Operating income £1,102.0m (2022/23: £983.8m); Operating expenditure £1,153.0m (2022/23: £993.7m); Net operating expenditure £51.0m (2022/23: £9.9m); Total comprehensive net expenditure £50.6m (2022/23: net income £1.5m). - Statement of Financial Position: Non-current assets £759.1m; Current assets £44.1m; Current liabilities £210.5m; Non-current liabilities £5.3m; Net assets/Taxpayers' equity £587.4m (General fund £353.3m, Revaluation surplus £234.1m). - Statement of Cash Flows: Net cash outflow from operating activities £(26.1)m; Net cash outflow from investing activities £(59.8)m; Net cash inflow from financing activities £73.6m; Closing cash and cash equivalents £12.6m. - Accompanying Notes 1 to 24 detail accounting policies (IFRS/FReM), segmental analysis by division, operating income, other expenditure, significant non-recurring items, property plant and equipment, intangible assets, leases (IFRS 16), impairments, receivables, payables, provisions (£2.2m), capital commitments (£53.5m total), financial instruments, related party transactions, and events after the reporting period. Comprehensive list of acronyms and abbreviations used in the report (including AUKUS, ARAC, CSTO, DASA, FReM, GGC, IFRS, LDEW, MOD, SEMS, TORVICE, etc.) and organizational contact information.