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"GroupStatementOfChangesInEquity_Label_00348": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00346": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00351": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00355": { "value": "53000000.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00350": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00338": { "value": "-41000000.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_Label_00342": { "value": "12000000.0", "decimals": -6, "dimensions": { "concept": "sn:IncreaseDecreaseThroughCostOfSharesTransferredToBeneficiaries", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00561": { "value": "175000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:IssuedCapitalMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00542": { "value": "615000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:SharePremiumMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00544": { "value": "20000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:CapitalRedemptionReserveMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00545": { "value": "-515000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:TreasurySharesMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00543": { "value": "-329000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:OtherReservesMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00550": { "value": "5323000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "ifrs-full:ComponentsOfEquityAxis": "ifrs-full:RetainedEarningsMember", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquity_PeriodEndLabel_00551": { "value": "5289000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:Equity", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00361": { "value": "-341000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReserveOfExchangeDifferencesOnTranslation", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00359": { "value": "-520000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReserveOfExchangeDifferencesOnTranslation", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00360": { "value": "-396000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ReserveOfExchangeDifferencesOnTranslation", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2024-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00362": { "value": "2266000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CapitalReserve", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2026-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00363": { "value": "2266000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CapitalReserve", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00", "unit": "iso4217:USD" } }, "GroupStatementOfChangesInEquityParenthetical_Label_00364": { "value": "2266000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:CapitalReserve", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2024-01-01T00:00:00", "unit": "iso4217:USD" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00404": { "value": "1
Basis of preparation
Smith & Nephew plc (the \u201cCompany\u201d) is a public limited company incorporated in England and Wales. In these accounts, the \u2018Group\u2019
means the Company and all its subsidiaries. The principal activities of the Group are to develop, manufacture, market and sell medical
devices and services.
The Group has prepared its accounts in accordance with UK-adopted International Accounting Standards. The Group has also prepared
its accounts in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) e\ufb00ective
as at 31 December 2025. IFRS as adopted in the UK di\ufb00ers in certain respects from IFRS Accounting Standards as issued by the IASB.
However, the di\ufb00erences have no impact for the periods presented.
The preparation of accounts in conformity with IFRS requires management to use estimates and assumptions that a\ufb00ect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the accounts and the reported amounts
of revenues and expenses during the year. Material accounting policies, including those requiring management to use estimates and
assumptions, are disclosed in Notes 1-23 of the Notes to the Group accounts. Although these estimates are based on management\u2019s
best knowledge of current events and actions, actual results ultimately may di\ufb00er from those estimates. Estimates and\u00a0underlying
assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The uncertainties as to the future impact on the \ufb01nancial performance and cash \ufb02ows of the Group as a result of the current economic
environment have been considered as part of the Group\u2019s adoption of the going concern basis in these \ufb01nancial statements, in\u00a0which
context, the Directors reviewed cash \ufb02ow forecasts prepared for a period of at least 12 months from the date of approval of\u00a0these
\ufb01nancial statements. Having carefully reviewed those forecasts, the Directors concluded that it was appropriate to\u00a0adopt the\u00a0going
concern basis of accounting in preparing these \ufb01nancial statements for the reasons set out below.
The Group had access to $553m of cash and cash equivalents (net of bank overdra\ufb05s) at 31 December 2025. The Group\u2019s net debt,
excluding lease liabilities, at 31 December 2025 was $2,543m with access to committed facilities of $4.1bn with an average maturity
of 4.7 years. At the date of\u00a0approving these \ufb01nancial statements the funding position of the Group has remained materially unchanged
following the upfront payment of $225m for the acquisition of Integrity Orthopaedics, the repayment of $75m of maturing private
placement debt, and an increase of the Revolving Credit Facility by $125m to $1.125bn.
$625m of private placement debt is subject to \ufb01nancial covenants. The principal covenant on the private placement debt is a leverage
ratio of <3.5, which is measured on a rolling 12-month basis at half year and year end. There are no \ufb01nancial covenants in any of the
Group\u2019s other facilities.
The Directors have considered various scenarios in assessing the impact of the economic environment on future \ufb01nancial performance
and\u00a0cash \ufb02ows, including the impact of a signi\ufb01cant global economic downturn, leading to lower healthcare spending across\u00a0both public
and private systems. Throughout these scenarios, which include a severe, but plausible outcome, the Group continues\u00a0to have headroom
on its borrowing facilities and \ufb01nancial covenants.
The Directors have a reasonable expectation that the Company and the Group are well placed to manage their business risks,
have\u00a0su\ufb03cient funds to continue to meet their liabilities as they fall due and to continue in operational existence for a period of at
least\u00a012 months from the date of the approval of these \ufb01nancial statements. The \ufb01nancial statements have therefore been prepared
on\u00a0a\u00a0going\u00a0concern basis.
Accordingly, the Directors continue to adopt the going concern basis (in accordance with the guidance \u2018Guidance on the Going
Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) \u2019 issued by the FRC) in preparing these
\ufb01nancial statements.
New accounting standards e\ufb00ective 2025
A number of new amendments to standards are e\ufb00ective from 1 January 2025, but they do not have a material e\ufb00ect on the Group\u2019s
\ufb01nancial statements.
Accounting standards issued, but not yet e\ufb00ective
A number of new standards and amendments to standards are e\ufb00ective for annual periods beginning on or a\ufb05er 1 January 2026 and
earlier application is permitted; however, the Group has not adopted them early in preparing these \ufb01nancial statements.
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024. The standard is e\ufb00ective for
annual reporting periods beginning on or a\ufb05er 1 January 2027, and also applies to comparative information. IFRS 18 will replace IAS
1 Presentation of Financial Statements and will have a pervasive impact on several aspects of \ufb01nancial statements presentation and
disclosure, particularly in the Group income statement and disclosure requirements for management-de\ufb01ned performance measures
(MPMs) within the \ufb01nancial statements.
The Group has commenced an assessment of the standard\u2019s full impact. Based on the preliminary analysis, the Group anticipates that
the standard will have the following potential impacts:
\u2013
The classi\ufb01cation of items of income and expense into categories de\ufb01ned in IFRS 18 will impact the presentation of the Group income
statement. Whilst the standard does not impact recognition or measurement, changes in classi\ufb01cation will impact the reported
amounts for line items in the income statement. A new subtotal \u2018Pro\ufb01t before \ufb01nancing and income tax\u2019 will be included to separately
present the impact of investing and \ufb01nancing activities. Share of results of associates will be classi\ufb01ed in the investing category,
interest income and expense in the \ufb01nancing category and other \ufb01nance costs will be classi\ufb01ed in the operating, investing or \ufb01nancing
category depending on the nature of the income or expense.
\u2013
The Group is reassessing its aggregation and disaggregation principles to ensure they comply with the enhanced guidance in IFRS 18,
which aims to provide more detailed and useful information to users of the \ufb01nancial statements.
\u2013
Mandatory new disclosures in relation to MPMs will be required within the \ufb01nancial statements.
\u2013
Consequential presentational changes to statement of cash \ufb02ows will be required and operating pro\ufb01t will be the new starting point
for reconciling cash \ufb02ows from operating activities.
The Group will apply IFRS 18 from its mandatory e\ufb00ective date of 1 January 2027. Comparative information for the \ufb01nancial years
ending 31 December 2026 and 31 December 2025 will be restated in accordance with IFRS 18.
1.1
Consolidation
The Group accounts include the accounts of Smith & Nephew plc and its subsidiaries for the periods during which they were members
of\u00a0the Group.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns
from\u00a0its involvement with the entity and has the ability to a\ufb00ect those returns through its power over the entity. Subsidiaries are
consolidated in the Group accounts from the date that the Group obtains control and continue to be consolidated until the date
that such control ceases. Intra-group balances and transactions, and any unrealised income and expenses arising from intra-
group transactions, are eliminated on consolidation. All\u00a0subsidiaries have year ends that are coterminous with the Group\u2019s, with the
exception\u00a0of jurisdictions whereby a di\ufb00erent year end is required by local legislation.
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary and any related components
of\u00a0equity. Any resulting gain or loss is recognised in pro\ufb01t or loss. Any retained interest in the former subsidiary is measured at fair value.
1.2
Critical judgements and estimates
The Group prepares its consolidated \ufb01nancial statements in accordance with IFRS Accounting Standards as issued by the IASB and IFRS
adopted in the UK, the application of which o\ufb05en requires judgements and estimates to\u00a0be made by management when formulating the
Group\u2019s \ufb01nancial position and results. Under IFRS, the Directors are required to adopt those accounting policies most appropriate to the
Group\u2019s\u00a0circumstances for the purpose of presenting fairly the Group\u2019s \ufb01nancial position, \ufb01nancial performance and cash \ufb02ows.
Management regularly reviews, and revises as necessary, the accounting judgements that signi\ufb01cantly impact the amounts recognised
in the \ufb01nancial statements and the estimates that are considered to be critical estimates due to their potential to give rise to material
adjustments in the Group\u2019s \ufb01nancial statements in the next \ufb01nancial year. The Group has determined that there are no critical
accounting judgements and no key sources of estimation uncertainty that have a signi\ufb01cant risk of resulting in a material adjustment to
the carrying amounts of assets and liabilities within the next \ufb01nancial year.
The Group\u2019s accounting policies are set out in Notes 1\u201323 of\u00a0the\u00a0Notes to the Group accounts. Management has considered the impact
of the uncertainties around the\u00a0current economic environment below.
1.3
Climate change considerations
The impact of climate change has been considered as part of the assessment of estimates and judgements in preparing the
Group\u00a0accounts, particularly in the context of the risks identi\ufb01ed in the TCFD disclosures on pages 69 to 72. The climate change
scenario analyses undertaken this year in line with TCFD recommendations did not identify any\u00a0material \ufb01nancial impact. The following
considerations were made in respect of the \ufb01nancial statements:
\u2013
The impact of climate change on the going concern assessment and the viability of the Group over the next three years.
\u2013
The impact of climate change on the cash \ufb02ow forecasts used in the impairment assessments of non-current assets,
including goodwill.
\u2013
The impact of climate change on the carrying value and useful economic lives of property, plant and equipment.
While there is currently no material medium-term impact expected, the Group closely monitors climate-related risks given the changing
nature of these risks and management consider the impact of climate change as part of the decision making process and continue to
assess the impact on judgements and estimates, and on preparation of the consolidated \ufb01nancial statements.
1.4
Foreign currencies
Functional and presentation currency
The Group accounts are presented in US Dollars. The Company\u2019s functional currency is US Dollars.
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group companies at exchange rates
at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional
currency at\u00a0the exchange rate as at\u00a0the reporting date. Non-monetary items are not retranslated.
Foreign operations
Balance sheet items of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into US
Dollars on consolidation at the exchange rates at the reporting date. Income statement items and the cash \ufb02ows of foreign operations
are translated at\u00a0average\u00a0rates as an approximation to actual transaction rates, with actual transaction rates used for large
one-o\ufb00 transactions.
Foreign currency di\ufb00erences are recognised in \u2018Other comprehensive income\u2019 and accumulated in \u2018Other reserves\u2019 within equity.
These include: exchange di\ufb00erences on the translation at closing rates of exchange of non-US Dollar opening net assets; the di\ufb00erences
arising between the translation of pro\ufb01ts into US Dollars at actual (or\u00a0average, as an approximation) and closing exchange rates; to the
extent that the hedging relationship is e\ufb00ective, the di\ufb00erence on translation of foreign currency borrowings or swaps that are used
to\u00a0\ufb01nance or hedge the Group\u2019s net investments in foreign operations; and the movement in the fair value of forward foreign exchange
contracts used to hedge forecast foreign exchange cash \ufb02ows.
The exchange rates used for the translation of currencies into US Dollars that have the most signi\ufb01cant impact on the Group
results were:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
2023\u00a0
Average rates
Sterling
\u00a01.32\u00a0
\u00a01.28\u00a0
\u00a01.24\u00a0
Euro
\u00a01.13\u00a0
\u00a01.08\u00a0
\u00a01.08\u00a0
Swiss Franc
\u00a01.20\u00a0
\u00a01.14\u00a0
\u00a01.11\u00a0
Japanese Yen
\u00a00.0067\u00a0
\u00a00.0066\u00a0
\u00a00.0071\u00a0
Year end rates
Sterling
\u00a01.35\u00a0
\u00a01.25\u00a0
\u00a01.27\u00a0
Euro
\u00a01.17\u00a0
\u00a01.04\u00a0
\u00a01.10\u00a0
Swiss Franc
\u00a01.26\u00a0
\u00a01.10\u00a0
\u00a01.19\u00a0
Japanese Yen
\u00a00.0064\u00a0
\u00a00.0064\u00a0
\u00a00.0071\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00393": { "value": "Smith & Nephew plc", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00402": { "value": "public limited company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00401": { "value": "England and Wales", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00397": { "value": "England and Wales", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00398": { "value": "develop, manufacture, market and sell medical devices and services.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00405": { "value": "The Group has prepared its accounts in accordance with UK-adopted International Accounting Standards. The Group has also prepared
its accounts in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) e\ufb00ective
as at 31 December 2025. IFRS as adopted in the UK di\ufb00ers in certain respects from IFRS Accounting Standards as issued by the IASB.
However, the di\ufb00erences have no impact for the periods presented.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00400": { "value": "2025-12-31", "dimensions": { "concept": "ifrs-full:DateOfEndOfReportingPeriod2013", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00406": { "value": "The uncertainties as to the future impact on the \ufb01nancial performance and cash \ufb02ows of the Group as a result of the current economic
environment have been considered as part of the Group\u2019s adoption of the going concern basis in these \ufb01nancial statements, in\u00a0which
context, the Directors reviewed cash \ufb02ow forecasts prepared for a period of at least 12 months from the date of approval of\u00a0these
\ufb01nancial statements. Having carefully reviewed those forecasts, the Directors concluded that it was appropriate to\u00a0adopt the\u00a0going
concern basis of accounting in preparing these \ufb01nancial statements for the reasons set out below.
The Group had access to $553m of cash and cash equivalents (net of bank overdra\ufb05s) at 31 December 2025. The Group\u2019s net debt,
excluding lease liabilities, at 31 December 2025 was $2,543m with access to committed facilities of $4.1bn with an average maturity
of 4.7 years. At the date of\u00a0approving these \ufb01nancial statements the funding position of the Group has remained materially unchanged
following the upfront payment of $225m for the acquisition of Integrity Orthopaedics, the repayment of $75m of maturing private
placement debt, and an increase of the Revolving Credit Facility by $125m to $1.125bn.
$625m of private placement debt is subject to \ufb01nancial covenants. The principal covenant on the private placement debt is a leverage
ratio of <3.5, which is measured on a rolling 12-month basis at half year and year end. There are no \ufb01nancial covenants in any of the
Group\u2019s other facilities.
The Directors have considered various scenarios in assessing the impact of the economic environment on future \ufb01nancial performance
and\u00a0cash \ufb02ows, including the impact of a signi\ufb01cant global economic downturn, leading to lower healthcare spending across\u00a0both public
and private systems. Throughout these scenarios, which include a severe, but plausible outcome, the Group continues\u00a0to have headroom
on its borrowing facilities and \ufb01nancial covenants.
The Directors have a reasonable expectation that the Company and the Group are well placed to manage their business risks,
have\u00a0su\ufb03cient funds to continue to meet their liabilities as they fall due and to continue in operational existence for a period of at
least\u00a012 months from the date of the approval of these \ufb01nancial statements. The \ufb01nancial statements have therefore been prepared
on\u00a0a\u00a0going\u00a0concern basis.
Accordingly, the Directors continue to adopt the going concern basis (in accordance with the guidance \u2018Guidance on the Going
Concern Basis of Accounting and Related Reporting (including Solvency and Liquidity Risks) \u2019 issued by the FRC) in preparing these
\ufb01nancial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00407": { "value": "New accounting standards e\ufb00ective 2025
A number of new amendments to standards are e\ufb00ective from 1 January 2025, but they do not have a material e\ufb00ect on the Group\u2019s
\ufb01nancial statements.Accounting standards issued, but not yet e\ufb00ective
A number of new standards and amendments to standards are e\ufb00ective for annual periods beginning on or a\ufb05er 1 January 2026 and
earlier application is permitted; however, the Group has not adopted them early in preparing these \ufb01nancial statements.
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024. The standard is e\ufb00ective for
annual reporting periods beginning on or a\ufb05er 1 January 2027, and also applies to comparative information. IFRS 18 will replace IAS
1 Presentation of Financial Statements and will have a pervasive impact on several aspects of \ufb01nancial statements presentation and
disclosure, particularly in the Group income statement and disclosure requirements for management-de\ufb01ned performance measures
(MPMs) within the \ufb01nancial statements.
The Group has commenced an assessment of the standard\u2019s full impact. Based on the preliminary analysis, the Group anticipates that
the standard will have the following potential impacts:
\u2013
The classi\ufb01cation of items of income and expense into categories de\ufb01ned in IFRS 18 will impact the presentation of the Group income
statement. Whilst the standard does not impact recognition or measurement, changes in classi\ufb01cation will impact the reported
amounts for line items in the income statement. A new subtotal \u2018Pro\ufb01t before \ufb01nancing and income tax\u2019 will be included to separately
present the impact of investing and \ufb01nancing activities. Share of results of associates will be classi\ufb01ed in the investing category,
interest income and expense in the \ufb01nancing category and other \ufb01nance costs will be classi\ufb01ed in the operating, investing or \ufb01nancing
category depending on the nature of the income or expense.
\u2013
The Group is reassessing its aggregation and disaggregation principles to ensure they comply with the enhanced guidance in IFRS 18,
which aims to provide more detailed and useful information to users of the \ufb01nancial statements.
\u2013
Mandatory new disclosures in relation to MPMs will be required within the \ufb01nancial statements.
\u2013
Consequential presentational changes to statement of cash \ufb02ows will be required and operating pro\ufb01t will be the new starting point
for reconciling cash \ufb02ows from operating activities.
The Group will apply IFRS 18 from its mandatory e\ufb00ective date of 1 January 2027. Comparative information for the \ufb01nancial years
ending 31 December 2026 and 31 December 2025 will be restated in accordance with IFRS 18.", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00408": { "value": "1.1
Consolidation
The Group accounts include the accounts of Smith & Nephew plc and its subsidiaries for the periods during which they were members
of\u00a0the Group.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns
from\u00a0its involvement with the entity and has the ability to a\ufb00ect those returns through its power over the entity. Subsidiaries are
consolidated in the Group accounts from the date that the Group obtains control and continue to be consolidated until the date
that such control ceases. Intra-group balances and transactions, and any unrealised income and expenses arising from intra-
group transactions, are eliminated on consolidation. All\u00a0subsidiaries have year ends that are coterminous with the Group\u2019s, with the
exception\u00a0of jurisdictions whereby a di\ufb00erent year end is required by local legislation.
When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary and any related components
of\u00a0equity. Any resulting gain or loss is recognised in pro\ufb01t or loss. Any retained interest in the former subsidiary is measured at fair value.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00409": { "value": "1.2
Critical judgements and estimates
The Group prepares its consolidated \ufb01nancial statements in accordance with IFRS Accounting Standards as issued by the IASB and IFRS
adopted in the UK, the application of which o\ufb05en requires judgements and estimates to\u00a0be made by management when formulating the
Group\u2019s \ufb01nancial position and results. Under IFRS, the Directors are required to adopt those accounting policies most appropriate to the
Group\u2019s\u00a0circumstances for the purpose of presenting fairly the Group\u2019s \ufb01nancial position, \ufb01nancial performance and cash \ufb02ows.
Management regularly reviews, and revises as necessary, the accounting judgements that signi\ufb01cantly impact the amounts recognised
in the \ufb01nancial statements and the estimates that are considered to be critical estimates due to their potential to give rise to material
adjustments in the Group\u2019s \ufb01nancial statements in the next \ufb01nancial year. The Group has determined that there are no critical
accounting judgements and no key sources of estimation uncertainty that have a signi\ufb01cant risk of resulting in a material adjustment to
the carrying amounts of assets and liabilities within the next \ufb01nancial year.
The Group\u2019s accounting policies are set out in Notes 1\u201323 of\u00a0the\u00a0Notes to the Group accounts. Management has considered the impact
of the uncertainties around the\u00a0current economic environment below.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00410": { "value": "1.2 Critical judgements and estimates The Group prepares its consolidated \ufb01nancial statements in accordance with IFRS Accounting Standards as issued by the IASB and IFRS adopted in the UK, the application of which o\ufb05en requires judgements and estimates to\u00a0be made by management when formulating the Group\u2019s \ufb01nancial position and results. Under IFRS, the Directors are required to adopt those accounting policies most appropriate to the Group\u2019s\u00a0circumstances for the purpose of presenting fairly the Group\u2019s \ufb01nancial position, \ufb01nancial performance and cash \ufb02ows. Management regularly reviews, and revises as necessary, the accounting judgements that signi\ufb01cantly impact the amounts recognised in the \ufb01nancial statements and the estimates that are considered to be critical estimates due to their potential to give rise to material adjustments in the Group\u2019s \ufb01nancial statements in the next \ufb01nancial year. The Group has determined that there are no critical accounting judgements and no key sources of estimation uncertainty that have a signi\ufb01cant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next \ufb01nancial year. The Group\u2019s accounting policies are set out in Notes 1\u201323 of\u00a0the\u00a0Notes to the Group accounts. Management has considered the impact of the uncertainties around the\u00a0current economic environment below.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00411": { "value": "1.2
Critical judgements and estimates
The Group prepares its consolidated \ufb01nancial statements in accordance with IFRS Accounting Standards as issued by the IASB and IFRS
adopted in the UK, the application of which o\ufb05en requires judgements and estimates to\u00a0be made by management when formulating the
Group\u2019s \ufb01nancial position and results. Under IFRS, the Directors are required to adopt those accounting policies most appropriate to the
Group\u2019s\u00a0circumstances for the purpose of presenting fairly the Group\u2019s \ufb01nancial position, \ufb01nancial performance and cash \ufb02ows.
Management regularly reviews, and revises as necessary, the accounting judgements that signi\ufb01cantly impact the amounts recognised
in the \ufb01nancial statements and the estimates that are considered to be critical estimates due to their potential to give rise to material
adjustments in the Group\u2019s \ufb01nancial statements in the next \ufb01nancial year. The Group has determined that there are no critical
accounting judgements and no key sources of estimation uncertainty that have a signi\ufb01cant risk of resulting in a material adjustment to
the carrying amounts of assets and liabilities within the next \ufb01nancial year.
The Group\u2019s accounting policies are set out in Notes 1\u201323 of\u00a0the\u00a0Notes to the Group accounts. Management has considered the impact
of the uncertainties around the\u00a0current economic environment below.", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00412": { "value": "1.4
Foreign currencies
Functional and presentation currency
The Group accounts are presented in US Dollars. The Company\u2019s functional currency is US Dollars.
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group companies at exchange rates
at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional
currency at\u00a0the exchange rate as at\u00a0the reporting date. Non-monetary items are not retranslated.
Foreign operations
Balance sheet items of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into US
Dollars on consolidation at the exchange rates at the reporting date. Income statement items and the cash \ufb02ows of foreign operations
are translated at\u00a0average\u00a0rates as an approximation to actual transaction rates, with actual transaction rates used for large
one-o\ufb00 transactions.
Foreign currency di\ufb00erences are recognised in \u2018Other comprehensive income\u2019 and accumulated in \u2018Other reserves\u2019 within equity.
These include: exchange di\ufb00erences on the translation at closing rates of exchange of non-US Dollar opening net assets; the di\ufb00erences
arising between the translation of pro\ufb01ts into US Dollars at actual (or\u00a0average, as an approximation) and closing exchange rates; to the
extent that the hedging relationship is e\ufb00ective, the di\ufb00erence on translation of foreign currency borrowings or swaps that are used
to\u00a0\ufb01nance or hedge the Group\u2019s net investments in foreign operations; and the movement in the fair value of forward foreign exchange
contracts used to hedge forecast foreign exchange cash \ufb02ows.
The exchange rates used for the translation of currencies into US Dollars that have the most signi\ufb01cant impact on the Group
results were:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
2023\u00a0
Average rates
Sterling
\u00a01.32\u00a0
\u00a01.28\u00a0
\u00a01.24\u00a0
Euro
\u00a01.13\u00a0
\u00a01.08\u00a0
\u00a01.08\u00a0
Swiss Franc
\u00a01.20\u00a0
\u00a01.14\u00a0
\u00a01.11\u00a0
Japanese Yen
\u00a00.0067\u00a0
\u00a00.0066\u00a0
\u00a00.0071\u00a0
Year end rates
Sterling
\u00a01.35\u00a0
\u00a01.25\u00a0
\u00a01.27\u00a0
Euro
\u00a01.17\u00a0
\u00a01.04\u00a0
\u00a01.10\u00a0
Swiss Franc
\u00a01.26\u00a0
\u00a01.10\u00a0
\u00a01.19\u00a0
Japanese Yen
\u00a00.0064\u00a0
\u00a00.0064\u00a0
\u00a00.0071\u00a0
16.1
Foreign exchange risk management
The Group operates in many countries and, as a consequence, is exposed to movements in foreign exchange, giving rise to both
transaction and translation foreign exchange risk. Foreign exchange risk arises primarily from transactional foreign exchange exposures,
which are managed in line with the Group\u2019s risk management framework, while the Group is also exposed to foreign exchange
translation risk on consolidation.
Transaction foreign exchange risk arises where forecast sales, purchases or other trading cash \ufb02ows are denominated in currencies
other than the functional currency of the operating entity.
The Group is exposed to transactional foreign exchange risk as the majority
of its cost base is denominated in US Dollars while revenues are earned in US Dollars and other currencies.
Movements in exchange
rates may a\ufb00ect the Group\u2019s operating pro\ufb01t, particularly in respect of non- US Dollar operating pro\ufb01ts where the proportion of sales in
those currencies exceeds the proportion of costs. The Group\u2019s policy is to hedge substantially all material transaction foreign exchange
exposures in order to reduce volatility in operating pro\ufb01t and cash \ufb02ows.
The Group mitigates the impact of transaction related currency movements on operating pro\ufb01t through the use of forward foreign
exchange contracts, which are designated as cash \ufb02ow hedges. These hedges are designated against forecast trading cash \ufb02ows
that give rise to foreign exchange risk and impact the Group\u2019s operating pro\ufb01t, re\ufb02ecting di\ufb00erences between the currencies in which
revenues and costs are incurred versus the functional currencies of the respective operating entities. Such exposures are typically
hedged for periods of up to three years, with hedge coverage increased as the proximity to forecast transactions increases. The principal
currencies hedged using forward foreign exchanges contracts are Euro, Japanese Yen, Australian Dollar, Canadian Dollar and Korean
Won.
At 31 December 2025, the Group had outstanding forward foreign exchange contracts with a total notional principal amount of
$1.4 billion (2024: $2.4 billion) maturing across three years (2024: one year) from the balance sheet date.
As part of the Group\u2019s ongoing risk management process, the portfolio of key foreign currency exposures designated for hedging is
reviewed regularly, and speci\ufb01c currencies hedged may vary from year to year based on the Group\u2019s foreign exchange risk assessment.
During 2025, the Group refreshed its foreign exchange risk assessment through an updated Value at Risk analysis. As a result of this
review, the foreign exchange hedging programme was re\ufb01ned, including a reduction in the number of currencies designated for hedging
and an extension of the hedging horizon from one year to periods of up to three years. These changes are aligned with the Group\u2019s risk
management framework and re\ufb02ect the evolving pro\ufb01le of the Group\u2019s forecast transactional foreign exchange exposures.", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00413": { "value": "Functional and presentation currency The Group accounts are presented in US Dollars. The Company\u2019s functional currency is US Dollars.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00414": { "value": "Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group companies at exchange rates
at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional
currency at\u00a0the exchange rate as at\u00a0the reporting date. Non-monetary items are not retranslated.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00415": { "value": "2
Business segment information
The Group\u2019s operating structure is organised around four global business units (Orthopaedics, Sports Medicine, ENT and Advanced
Wound Management) and the chief operating decision maker monitors performance, makes operating decisions and allocates
resources on a global business unit basis. Business unit presidents have responsibility for upstream marketing, driving product portfolio
and technology acquisition decisions, full\u00a0commercial responsibility and for the implementation of\u00a0their business unit strategy globally.
Accordingly, the Group consists of four operating segments.
The Group has concluded that Sports Medicine and ENT meet the aggregation criteria and therefore, these operating segments have
been aggregated into a single operating segment. In applying the aggregation criteria prescribed by IFRS 8 Operating Segments,
management made certain judgements pertaining to the economic indicators relating to these operating segments, including those
relating to the similarities in the expected long-term market growth rates, the geographic and operational risks and the competitive
landscape that these segments operate in. Therefore, in accordance with IFRS 8, the Group has three operating segments which are
also reportable segments.
The Executive Committee (\u2018ExCo\u2019) comprises the Chief Financial O\ufb03cer (\u2018CFO\u2019), the business unit presidents and certain heads of
function, and is chaired by the Chief Executive O\ufb03cer (\u2018CEO\u2019). ExCo is the body through which the CEO uses the authority delegated
to him by the Board of Directors to manage the operations and performance of the Group. All signi\ufb01cant operating decisions regarding
the allocation and prioritisation of the Group\u2019s resources and assessment of the Group\u2019s performance are made by\u00a0ExCo, and while
the members have individual responsibility for the implementation of decisions within their respective areas, it\u00a0is\u00a0at\u00a0the ExCo level
that these decisions are made. Accordingly, ExCo is considered to be the Group\u2019s chief operating decision maker as\u00a0de\ufb01ned by\u00a0IFRS 8
Operating Segments
.
In making decisions about the prioritisation and allocation of the Group\u2019s resources, ExCo reviews \ufb01nancial information for the business
units and determines the best allocation of resources to the business units. This information is prepared substantially on the same basis
as the Group\u2019s IFRS \ufb01nancial\u00a0statements aside from the adjustments described in Note 2.2. In 2024, the Group changed the segment
trading pro\ufb01t measure presented to the ExCo by allocating directly attributable corporate costs to business units. Financial information
for corporate costs relating to centralised infrastructure costs, such as compliance and group functions, is presented on a Group-
wide basis. The ExCo is\u00a0not\u00a0provided with total assets and liabilities by segment, and therefore these measures are not included\u00a0in the
disclosures below. The results of\u00a0the segments are shown below.
2.1
Revenue by business segment and geography
Accounting policy
Revenue is recognised as the performance obligations to deliver products or services are satis\ufb01ed and is recorded based on the
amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised
primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance
with\u00a0the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are ful\ufb01lled
within one year. There is no signi\ufb01cant revenue associated with the provision of services. Payment terms to our customers are based
on commercially reasonable terms for the respective markets while also considering a customer\u2019s credit rating. Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.
The Group is applying the practical expedient in IFRS15.121 not to disclose the aggregate amount of the transaction price allocated
to performance obligations that are unsatis\ufb01ed at the end of the reporting period as substantially all performance obligations are
ful\ufb01lled within one year.
Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.
Segment revenue reconciles to statutory revenues from continuing operations as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Reportable segment revenue
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Revenue from external customers
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Disaggregation of revenue:
The following table shows the disaggregation of Group revenue by product by and business unit:
\n\n \u00a0 \u00a0 \u00a0
2025
2024
1
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Revenue by product from continuing operations
Knee Implants
\u00a01,011\u00a0
\u00a0977\u00a0
\u00a0940\u00a0
Hip Implants
\u00a0641\u00a0
\u00a0619\u00a0
\u00a0599\u00a0
Other Reconstruction
\u00a0136\u00a0
\u00a0101\u00a0
\u00a0111\u00a0
Trauma & Extremities
\u00a0649\u00a0
\u00a0608\u00a0
\u00a0564\u00a0
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine Joint Repair
\u00a01,067\u00a0
\u00a0982\u00a0
\u00a0945\u00a0
Arthroscopic Enabling Technologies
\u00a0647\u00a0
\u00a0632\u00a0
\u00a0588\u00a0
ENT (Ear, Nose and Throat)
\u00a0220\u00a0
\u00a0210\u00a0
\u00a0196\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Care
\u00a0766\u00a0
\u00a0735\u00a0
\u00a0725\u00a0
Advanced Wound Bioactives
\u00a0621\u00a0
\u00a0581\u00a0
\u00a0553\u00a0
Advanced Wound Devices
\u00a0406\u00a0
\u00a0365\u00a0
\u00a0328\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Consolidated revenue from continuing operations
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
\n
1
Robotics consumables revenue has been reclassi\ufb01ed from Other Reconstruction to Knee and Hip implants.
The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of
revenue into the two product categories below re\ufb02ects that in general the products in the Advanced Wound Management business
unit are sold to wholesalers and intermediaries, while products in the other business units are sold directly to hospitals, Ambulatory
Surgery Centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets re\ufb02ects that in
general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the
exception of the Advanced Wound Care and Bioactives products, which are in general sold direct to hospitals and Ambulatory Surgery
Centers. The disaggregation by Established Markets and Emerging Markets also re\ufb02ects their di\ufb00ering economic factors, including
volatility in growth and outlook.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
Established
Emerging
Established
Emerging
Established
Emerging
Markets
1
Markets
Total
Markets
1
Markets
Total
Markets
1
Markets
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
Orthopaedics, Sports Medicine
\u00a03,606\u00a0
\u00a0
\u00a0764\u00a0
\u00a0
\u00a04,370\u00a0
\u00a0
\u00a0
\u00a03,366\u00a0
\u00a0763\u00a0
\u00a04,129\u00a0
\u00a0
\u00a03,184\u00a0
\u00a0759\u00a0
\u00a03,943\u00a0
& ENT
Advanced Wound Management
\u00a01,555\u00a0
\u00a0
\u00a0239\u00a0
\u00a0
\u00a01,794\u00a0
\u00a0
\u00a0
\u00a01,464\u00a0
\u00a0217\u00a0
\u00a01,681\u00a0
\u00a0
\u00a01,406\u00a0
\u00a0200\u00a0
\u00a01,606\u00a0
Total
\u00a05,161\u00a0
\u00a0
\u00a01,003\u00a0
\u00a0
\u00a06,164\u00a0
\u00a0
\u00a0
\u00a04,830\u00a0
\u00a0980\u00a0
\u00a05,810\u00a0
\u00a0
\u00a04,590\u00a0
\u00a0959\u00a0
\u00a05,549\u00a0
\n
1
Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand.
Sales are attributed to the country of destination. US revenue for 2025 was $3,306m (2024: $3,123m, 2023: $2,979m), UK revenue for
2025 was $246m (2024: $226m, 2023: $201m)
and China revenue for 2025 was $128m (2024: $210m, 2023: $275m).
Contract assets and liabilities
The nature of our products and services do not generally give rise to contract assets as we do not typically incur costs to ful\ufb01l a contract
before a product or service is provided to the customer. The Group generally satis\ufb01es performance obligations within one year from
the contract inception date. There was no material revenue recognised in the current reporting period that related to carried-forward
contract liabilities (deferred income) or performance obligations satis\ufb01ed in the previous year. There is no material revenue that is
likely to arise in future periods from unsatis\ufb01ed performance obligations at the balance sheet date. Therefore, there are no associated
signi\ufb01cant accrued income and deferred income balances at 31 December 2025. The Group does not have any material contract assets
and contract liabilities comprise rebates. The accrual for rebates at 31 December 2025 was $114m (2024: $106m) with $405m being
recognised in revenue in 2025 (2024: $412m) .
Major customers
No single customer generates revenue greater than 10% of the consolidated revenue.
2.2
Trading pro\ufb01t by business segment
\n
The segment pro\ufb01t measure presented to the ExCo is the segment trading pro\ufb01t. The Group has identi\ufb01ed the following items, where
\n
material, as those to be excluded from operating pro\ufb01t when arriving at segment trading pro\ufb01t: corporate costs; acquisition and disposal-
\n
related items; signi\ufb01cant restructuring programmes; amortisation and impairment of acquisition intangibles; gains and losses arising from
\n
legal disputes; and other signi\ufb01cant items. Further detail is\u00a0provided below and in Notes 2.3, 2.4, 2.5 and 2.6.
\n
In 2024, the Group changed the segment trading pro\ufb01t measure presented to the ExCo by allocating directly attributable corporate
\n
costs to business units except for corporate costs relating to centralised infrastructure costs, such as compliance and group functions.
\n
Accordingly, 2023 operating segment results have been restated for comparative purposes.
\n
Segment trading pro\ufb01t is reconciled to the statutory measure below:
\n \n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$ million
$\u00a0million
Segment pro\ufb01t
Orthopaedics
\u00a0363\u00a0
\u00a0265\u00a0
\u00a0251\u00a0
Sports Medicine & ENT
\u00a0461\u00a0
\u00a0437\u00a0
\u00a0394\u00a0
Advanced Wound Management
\u00a0447\u00a0
\u00a0399\u00a0
\u00a0372\u00a0
Segment trading pro\ufb01t
\u00a01,271\u00a0
\u00a01,101\u00a0
\u00a01,017\u00a0
Corporate costs
1
\u00a0(60)
\u00a0(52)
\u00a0(47)
Acquisition and disposal-related items
2
\u00a0(32)
\u00a0(94)
\u00a0(60)
Restructuring and rationalisation expenses
\u00a0(47)
\u00a0(123)
\u00a0(220)
Amortisation and impairment of acquisition intangibles
2
\u00a0(176)
\u00a0(187)
\u00a0(207)
Legal and other
2
\u00a0(162)
\u00a012\u00a0
\u00a0(58)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0
\u00a0
\u00a0657\u00a0
\u00a0
\u00a0425\u00a0
Interest income
\u00a028\u00a0
\u00a024\u00a0
\u00a034\u00a0
Interest expense
\u00a0(140)
\u00a0(145)
\u00a0(132)
Other \ufb01nance costs
\u00a0(16)
\u00a0(28)
\u00a0(7)
Share of results of associates
\u00a0113\u00a0
\u00a0(10)
\u00a0(30)
Pro\ufb01t before taxation
\u00a0779\u00a0
\u00a0498\u00a0
\u00a0290\u00a0
\n
1
Corporate costs include centralised infrastructure costs, such as compliance and group functions.
\n
2
During 2025, the Group undertook a strategic review of its inventory portfolio and determined that certain product ranges would be phased out and
\n
simpli\ufb01ed. As a result, the Group recognised an excess and obsolescence charge of $159m within legal and other items. During 2024, the Group announced
\n
its intention to close the Warwick manufacturing site that manufactures Birmingham Hip Resurfacing (BHR) products. As a result, a total of $68m of BHR
\n
assets and liabilities were written o\ufb00, which mainly includes goodwill of $63m (included in acquisition and disposal-related items). During 2023, management
\n
evaluated the commercial viability of Engage products and concluded that they should be discontinued. A total of $109m of Engage\u2019s assets and liabilities
\n
were written o\ufb00 as a result of this action, which includes goodwill of $84m (included in acquisition and disposal-related items), intangible assets of $37m
\n
(included in amortisation and impairment of acquisition intangibles), inventory of $21m (included in legal and other), partially o\ufb00set by remeasurement of
\n
contingent consideration of $33m (included in acquisition and disposal-related items).
\n
Depreciation and amortisation included in the segment pro\ufb01t is presented below:
\n
\u00a0
\u00a0
\n \n
2025
2024
2023
\u00a0
\u00a0
$\u00a0million
$ million
$\u00a0million
Depreciation and amortisation
Orthopaedics
\u00a0
\u00a0
\u00a0227\u00a0
\u00a0213\u00a0
\u00a0194\u00a0
Sports Medicine & ENT
\u00a0
\u00a0
\u00a0105\u00a0
\u00a098\u00a0
\u00a097\u00a0
Advanced Wound Management
\u00a0
\u00a0
\u00a069\u00a0
\u00a062\u00a0
\u00a056\u00a0
\n
2.3
Acquisition and disposal-related items
\n
For the year ended 31 December 2025, costs primarily relate to charge relating to integration costs for prior year acquisitions and
\n
disposal of certain products.
\n
For the year ended 31 December 2024, costs primarily relate to impairment of BHR goodwill, disposal of certain products and integration
\n
costs relating to CartiHeal.
\n
For the year ended 31 December 2023, costs primarily relate to the acquisition of CartiHeal and impairment of Engage goodwill,
\n
partially o\ufb00set by\u00a0credits relating to remeasurement of deferred and contingent consideration for prior year acquisitions.
2.4
Restructuring and rationalisation costs
For the year ended 31 December 2025, 2024 and 2023, these costs include e\ufb03ciency and productivity elements of the 12-Point Plan
and the Operations and Commercial Excellence programme. These costs primarily consist of severance, business advisory services,
asset write-o\ufb00s, contractual terminations and integration and dual running costs.
2.5
Amortisation and impairment of acquisition intangibles
For the years ended 31 December 2025, 2024 and 2023, these costs relate to the amortisation and impairment of intangible assets
acquired in material business combinations.
2.6
Legal and other
For the year ended 31 December 2025, the charge mainly relates to a $159m increase in the excess and obsolescence provision arising
from the Group\u2019s portfolio simpli\ufb01cation initiatives introduced under the 12-Point Plan and further developed in 2025 through the Ortho360
operating model and new RISE strategy. These actions include the planned discontinuation and simpli\ufb01cation of certain product ranges which
will reduce the need for inventory and capital employed in the business, provide a simpler and more e\ufb03cient o\ufb00er to our customers, and will
also allow us to focus on migrating them to our latest technology products. Legal and other also includes $9m reduction in the provision
for ongoing metal-on-metal hip claims as a result of a decrease in the present value of the estimated costs to resolve all known and
anticipated metal-on-metal hip claims,
fully o\ufb00set by legal expenses of $10m for ongoing metal-on-metal hip claims.
For the year ended 31 December 2024, the credit mainly relates to a $28m reduction in the provision for ongoing metal-on-metal hip
claims as a result of a decrease in the present value of the estimated costs to resolve all known and anticipated metal-on-metal hip
claims, partially o\ufb00set by legal expenses for ongoing metal-on-metal hip claims.
For the year ended 31 December 2023, charges primarily relate to legal expenses for ongoing metal-on-metal hip claims partially o\ufb00set
by a decrease of $8m in the provision that re\ufb02ects the decrease in the present value of the estimated costs to resolve all other known
and anticipated metal-on-metal hip claims and by the release of a provision for an intellectual property dispute.
The years ended 31 December 2024 and 2023 also include costs for implementing the requirements of the EU Medical Device
Regulation which came into e\ufb00ect in May 2021 with a transition period to May 2024.
2.7
Non-current assets by geography
The following table presents the non-current assets of the Group based on their location:
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
United Kingdom
\u00a0608\u00a0
\u00a0465\u00a0
\u00a0525\u00a0
United States of America
\u00a03,426\u00a0
\u00a03,517\u00a0
\u00a03,692\u00a0
Other
\u00a01,909\u00a0
\u00a01,538\u00a0
\u00a01,397\u00a0
Total non-current assets of the consolidated Group
1
\u00a05,943\u00a0
\u00a05,520\u00a0
\u00a05,614\u00a0
\n
1
Non-current assets exclude retirement bene\ufb01t assets and deferred tax assets. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00418": { "value": "2.1
Revenue by business segment and geography
Accounting policy
Revenue is recognised as the performance obligations to deliver products or services are satis\ufb01ed and is recorded based on the
amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised
primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance
with\u00a0the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are ful\ufb01lled
within one year. There is no signi\ufb01cant revenue associated with the provision of services. Payment terms to our customers are based
on commercially reasonable terms for the respective markets while also considering a customer\u2019s credit rating. Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.
The Group is applying the practical expedient in IFRS15.121 not to disclose the aggregate amount of the transaction price allocated
to performance obligations that are unsatis\ufb01ed at the end of the reporting period as substantially all performance obligations are
ful\ufb01lled within one year.
Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.
Segment revenue reconciles to statutory revenues from continuing operations as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Reportable segment revenue
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Revenue from external customers
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Disaggregation of revenue:
The following table shows the disaggregation of Group revenue by product by and business unit:
\n\n \u00a0 \u00a0 \u00a0
2025
2024
1
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Revenue by product from continuing operations
Knee Implants
\u00a01,011\u00a0
\u00a0977\u00a0
\u00a0940\u00a0
Hip Implants
\u00a0641\u00a0
\u00a0619\u00a0
\u00a0599\u00a0
Other Reconstruction
\u00a0136\u00a0
\u00a0101\u00a0
\u00a0111\u00a0
Trauma & Extremities
\u00a0649\u00a0
\u00a0608\u00a0
\u00a0564\u00a0
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine Joint Repair
\u00a01,067\u00a0
\u00a0982\u00a0
\u00a0945\u00a0
Arthroscopic Enabling Technologies
\u00a0647\u00a0
\u00a0632\u00a0
\u00a0588\u00a0
ENT (Ear, Nose and Throat)
\u00a0220\u00a0
\u00a0210\u00a0
\u00a0196\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Care
\u00a0766\u00a0
\u00a0735\u00a0
\u00a0725\u00a0
Advanced Wound Bioactives
\u00a0621\u00a0
\u00a0581\u00a0
\u00a0553\u00a0
Advanced Wound Devices
\u00a0406\u00a0
\u00a0365\u00a0
\u00a0328\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Consolidated revenue from continuing operations
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
\n
1
Robotics consumables revenue has been reclassi\ufb01ed from Other Reconstruction to Knee and Hip implants.
The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of
revenue into the two product categories below re\ufb02ects that in general the products in the Advanced Wound Management business
unit are sold to wholesalers and intermediaries, while products in the other business units are sold directly to hospitals, Ambulatory
Surgery Centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets re\ufb02ects that in
general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the
exception of the Advanced Wound Care and Bioactives products, which are in general sold direct to hospitals and Ambulatory Surgery
Centers. The disaggregation by Established Markets and Emerging Markets also re\ufb02ects their di\ufb00ering economic factors, including
volatility in growth and outlook.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
Established
Emerging
Established
Emerging
Established
Emerging
Markets
1
Markets
Total
Markets
1
Markets
Total
Markets
1
Markets
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
Orthopaedics, Sports Medicine
\u00a03,606\u00a0
\u00a0
\u00a0764\u00a0
\u00a0
\u00a04,370\u00a0
\u00a0
\u00a0
\u00a03,366\u00a0
\u00a0763\u00a0
\u00a04,129\u00a0
\u00a0
\u00a03,184\u00a0
\u00a0759\u00a0
\u00a03,943\u00a0
& ENT
Advanced Wound Management
\u00a01,555\u00a0
\u00a0
\u00a0239\u00a0
\u00a0
\u00a01,794\u00a0
\u00a0
\u00a0
\u00a01,464\u00a0
\u00a0217\u00a0
\u00a01,681\u00a0
\u00a0
\u00a01,406\u00a0
\u00a0200\u00a0
\u00a01,606\u00a0
Total
\u00a05,161\u00a0
\u00a0
\u00a01,003\u00a0
\u00a0
\u00a06,164\u00a0
\u00a0
\u00a0
\u00a04,830\u00a0
\u00a0980\u00a0
\u00a05,810\u00a0
\u00a0
\u00a04,590\u00a0
\u00a0959\u00a0
\u00a05,549\u00a0
\n
1
Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand.
Sales are attributed to the country of destination. US revenue for 2025 was $3,306m (2024: $3,123m, 2023: $2,979m), UK revenue for
2025 was $246m (2024: $226m, 2023: $201m)
and China revenue for 2025 was $128m (2024: $210m, 2023: $275m).
Contract assets and liabilities
The nature of our products and services do not generally give rise to contract assets as we do not typically incur costs to ful\ufb01l a contract
before a product or service is provided to the customer. The Group generally satis\ufb01es performance obligations within one year from
the contract inception date. There was no material revenue recognised in the current reporting period that related to carried-forward
contract liabilities (deferred income) or performance obligations satis\ufb01ed in the previous year. There is no material revenue that is
likely to arise in future periods from unsatis\ufb01ed performance obligations at the balance sheet date. Therefore, there are no associated
signi\ufb01cant accrued income and deferred income balances at 31 December 2025. The Group does not have any material contract assets
and contract liabilities comprise rebates. The accrual for rebates at 31 December 2025 was $114m (2024: $106m) with $405m being
recognised in revenue in 2025 (2024: $412m) .
Major customers
No single customer generates revenue greater than 10% of the consolidated revenue.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00417": { "value": "2.1
Revenue by business segment and geography
Accounting policy
Revenue is recognised as the performance obligations to deliver products or services are satis\ufb01ed and is recorded based on the
amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised
primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance
with\u00a0the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are ful\ufb01lled
within one year. There is no signi\ufb01cant revenue associated with the provision of services. Payment terms to our customers are based
on commercially reasonable terms for the respective markets while also considering a customer\u2019s credit rating. Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.
The Group is applying the practical expedient in IFRS15.121 not to disclose the aggregate amount of the transaction price allocated
to performance obligations that are unsatis\ufb01ed at the end of the reporting period as substantially all performance obligations are
ful\ufb01lled within one year.
Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.
Segment revenue reconciles to statutory revenues from continuing operations as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Reportable segment revenue
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Revenue from external customers
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Disaggregation of revenue:
The following table shows the disaggregation of Group revenue by product by and business unit:
\n\n \u00a0 \u00a0 \u00a0
2025
2024
1
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Revenue by product from continuing operations
Knee Implants
\u00a01,011\u00a0
\u00a0977\u00a0
\u00a0940\u00a0
Hip Implants
\u00a0641\u00a0
\u00a0619\u00a0
\u00a0599\u00a0
Other Reconstruction
\u00a0136\u00a0
\u00a0101\u00a0
\u00a0111\u00a0
Trauma & Extremities
\u00a0649\u00a0
\u00a0608\u00a0
\u00a0564\u00a0
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine Joint Repair
\u00a01,067\u00a0
\u00a0982\u00a0
\u00a0945\u00a0
Arthroscopic Enabling Technologies
\u00a0647\u00a0
\u00a0632\u00a0
\u00a0588\u00a0
ENT (Ear, Nose and Throat)
\u00a0220\u00a0
\u00a0210\u00a0
\u00a0196\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Care
\u00a0766\u00a0
\u00a0735\u00a0
\u00a0725\u00a0
Advanced Wound Bioactives
\u00a0621\u00a0
\u00a0581\u00a0
\u00a0553\u00a0
Advanced Wound Devices
\u00a0406\u00a0
\u00a0365\u00a0
\u00a0328\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Consolidated revenue from continuing operations
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
\n
1
Robotics consumables revenue has been reclassi\ufb01ed from Other Reconstruction to Knee and Hip implants.
The following table shows the disaggregation of Group revenue by geographic market and product category. The disaggregation of
revenue into the two product categories below re\ufb02ects that in general the products in the Advanced Wound Management business
unit are sold to wholesalers and intermediaries, while products in the other business units are sold directly to hospitals, Ambulatory
Surgery Centers and distributors. The further disaggregation of revenue by Established Markets and Emerging Markets re\ufb02ects that in
general our products are sold through distributors and intermediaries in the Emerging Markets while in the Established Markets, with the
exception of the Advanced Wound Care and Bioactives products, which are in general sold direct to hospitals and Ambulatory Surgery
Centers. The disaggregation by Established Markets and Emerging Markets also re\ufb02ects their di\ufb00ering economic factors, including
volatility in growth and outlook.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
Established
Emerging
Established
Emerging
Established
Emerging
Markets
1
Markets
Total
Markets
1
Markets
Total
Markets
1
Markets
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million
Orthopaedics, Sports Medicine
\u00a03,606\u00a0
\u00a0
\u00a0764\u00a0
\u00a0
\u00a04,370\u00a0
\u00a0
\u00a0
\u00a03,366\u00a0
\u00a0763\u00a0
\u00a04,129\u00a0
\u00a0
\u00a03,184\u00a0
\u00a0759\u00a0
\u00a03,943\u00a0
& ENT
Advanced Wound Management
\u00a01,555\u00a0
\u00a0
\u00a0239\u00a0
\u00a0
\u00a01,794\u00a0
\u00a0
\u00a0
\u00a01,464\u00a0
\u00a0217\u00a0
\u00a01,681\u00a0
\u00a0
\u00a01,406\u00a0
\u00a0200\u00a0
\u00a01,606\u00a0
Total
\u00a05,161\u00a0
\u00a0
\u00a01,003\u00a0
\u00a0
\u00a06,164\u00a0
\u00a0
\u00a0
\u00a04,830\u00a0
\u00a0980\u00a0
\u00a05,810\u00a0
\u00a0
\u00a04,590\u00a0
\u00a0959\u00a0
\u00a05,549\u00a0
\n
1
Established Markets comprises the US, Australia, Canada, Europe, Japan and New Zealand.
Sales are attributed to the country of destination. US revenue for 2025 was $3,306m (2024: $3,123m, 2023: $2,979m), UK revenue for
2025 was $246m (2024: $226m, 2023: $201m)
and China revenue for 2025 was $128m (2024: $210m, 2023: $275m).
Contract assets and liabilities
The nature of our products and services do not generally give rise to contract assets as we do not typically incur costs to ful\ufb01l a contract
before a product or service is provided to the customer. The Group generally satis\ufb01es performance obligations within one year from
the contract inception date. There was no material revenue recognised in the current reporting period that related to carried-forward
contract liabilities (deferred income) or performance obligations satis\ufb01ed in the previous year. There is no material revenue that is
likely to arise in future periods from unsatis\ufb01ed performance obligations at the balance sheet date. Therefore, there are no associated
signi\ufb01cant accrued income and deferred income balances at 31 December 2025. The Group does not have any material contract assets
and contract liabilities comprise rebates. The accrual for rebates at 31 December 2025 was $114m (2024: $106m) with $405m being
recognised in revenue in 2025 (2024: $412m) .
Major customers
No single customer generates revenue greater than 10% of the consolidated revenue.", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00419": { "value": "Accounting policy
Revenue is recognised as the performance obligations to deliver products or services are satis\ufb01ed and is recorded based on the
amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised
primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance
with\u00a0the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are ful\ufb01lled
within one year. There is no signi\ufb01cant revenue associated with the provision of services. Payment terms to our customers are based
on commercially reasonable terms for the respective markets while also considering a customer\u2019s credit rating. Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.
The Group is applying the practical expedient in IFRS15.121 not to disclose the aggregate amount of the transaction price allocated
to performance obligations that are unsatis\ufb01ed at the end of the reporting period as substantially all performance obligations are
ful\ufb01lled within one year.
Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.Accounting policy
The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or non-deductible.
It is calculated using tax rates that have been enacted or substantively enacted as at the balance sheet date.
The Group operates in numerous tax jurisdictions around the world. At any given time, the Group typically is involved in tax audits
and other disputes and will have other tax returns potentially subject to audit. Signi\ufb01cant issues may take several years to resolve.
In estimating the probability and amount of any tax charge, management takes into account the views of internal and external
advisers and updates the amount of tax provision where considered appropriate. The ultimate tax liability may di\ufb00er from the
amount\u00a0provided depending on factors including interpretations of\u00a0tax law and settlement negotiations.
Deferred tax is recognised in respect of temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised: for temporary di\ufb00erences related to investments in subsidiaries and associates where the Group is
able to control the timing of the reversal of the temporary di\ufb00erence and it is probable that this will not reverse in the foreseeable
future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that
is\u00a0not a business combination and that, at the time of the transaction, does not a\ufb00ect the accounting or taxable pro\ufb01t.
Deferred tax assets are recognised to the extent that it is probable that future taxable pro\ufb01ts will be available against which they
can\u00a0be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets,
future pro\ufb01tability and any restrictions on use. The Group considers available evidence to assess future pro\ufb01tability over a reasonably
foreseeable time period, depending on the circumstances and typically a minimum of \ufb01ve years. Any material unrecognised deferred
tax assets are disclosed in Note 5.2.
Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the
balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income
statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case
the\u00a0deferred tax is also recognised within other comprehensive income or equity respectively.
Deferred tax assets and liabilities are o\ufb00set when they relate to income taxes levied by the same taxation authority, the Group
intends to settle its current tax assets and liabilities on a net basis, o\ufb00set is permissible according to the relevant jurisdiction\u2019s
tax\u00a0laws and that authority permits the Group to make a single net payment. Accounting policy
Earnings per share
Basic earnings per share is calculated by dividing the pro\ufb01t attributable to equity holders by the weighted average number of
ordinary\u00a0shares in\u00a0issue during the year, excluding shares held by the Company in the Employees\u2019 Share Trust or as treasury shares.
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the basic earnings per share for the e\ufb00ect of conversion to ordinary shares
associated with\u00a0dilutive potential ordinary shares, which comprise share options and awards granted to employees.Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
The Group manufactures orthopaedic instruments that are either deployed for use by customers under contractual arrangements or
sold outright to customers. The majority of these instruments are not sold but provided to customers for use in surgery.
At the time of manufacture, instruments are classi\ufb01ed either as Property, Plant and Equipment or Inventory based on management\u2019s
best estimate of expected deployment versus direct sales volumes. Instruments expected to be deployed for use by customers
over their useful economic lives of between three and seven years, are recognised initially as Property, Plant and Equipment.
Instruments expected to be sold outright to customers in the ordinary course of business are recognised as inventory. This estimate is
based on historical deployment and sales patterns, and future expectations, and is reassessed periodically.
Instruments are depreciated over their useful economic lives of between three and seven years once they are deployed.
Depreciation is calculated to write o\ufb00 the cost of items of property, plant and equipment less their estimated residual values using
the\u00a0straight-line method over their estimated useful lives, and is ultimately recognised in pro\ufb01t or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3\u201320 years
and for buildings is 20\u201350 years.
Assets in course of construction are not depreciated until they are available for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than
one year to complete are capitalised based on the Group weighted average borrowing costs. All other \ufb01nance costs are expensed
as incurred.
Leased assets
The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves
whether the Group obtains substantially all the economic bene\ufb01ts from the use of that asset and whether the Group has the right
to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component.
The non-lease component, where it is separately identi\ufb01able, is not included in the right-of-use asset.
The Group leases many assets including properties, motor vehicles and o\ufb03ce equipment. The Group availed itself of the exemptions
for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these
exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement
of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the
commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental
borrowing rate which is country-speci\ufb01c and re\ufb02ective of the lease term. The right-of-use asset is depreciated over the shorter
of\u00a0the\u00a0lease term or the useful life of the underlying asset.
Cash \ufb02ows arising on lease interest payments are included in operating cash \ufb02ows whereas cash \ufb02ows arising on the capital
repayments of the lease liability are included in \ufb01nancing cash \ufb02ows.
Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.Accounting policy
Intangible assets
Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences
and\u00a0distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination
(referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any\u00a0accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a
straight-line basis over their estimated useful economic lives. The estimated useful economic life of so\ufb05ware ranges between three
and seven years. The estimated useful economic life of technology assets ranges between 6\u201320 years, product-related assets ranges
between 2\u201320 years, and customer and distribution assets ranges between 2\u201314 years. Internally-generated intangible assets are
expensed in the income statement as incurred. Expenditure on purchased so\ufb05ware and qualifying IT projects is recognised as an
intangible asset when it provides long-term bene\ufb01ts to the Group. Development costs for internally used applications are capitalised
only when the so\ufb05ware forms a key component of the Group\u2019s IT systems and is controlled by the Group. Certain implementation
costs for cloud-based solutions are capitalised when the Group has control over the underlying so\ufb05ware. So\ufb05ware that is integral to
computer hardware is capitalised as plant and equipment.
Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.Accounting policy
Investments in associates, being those entities over which the Group has a signi\ufb01cant in\ufb02uence and which is neither a subsidiary
nor\u00a0a\u00a0joint\u00a0venture, are accounted for using the equity method, with the Group recording its share of the associates\u2019 pro\ufb01t and loss
and\u00a0other comprehensive income. The Group\u2019s share of associates\u2019 pro\ufb01t or loss is included in one separate income statement line
and\u00a0is\u00a0calculated a\ufb05er\u00a0deduction of their respective taxes.
At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.Accounting policy
Finished goods and work-in-progress are valued at factory cost, including appropriate overheads, on a \ufb01rst-in \ufb01rst-out basis.
Raw materials and bought-in \ufb01nished goods are valued at purchase price. All inventories are reduced to net realisable value where
lower than cost. Inventory acquired as\u00a0part of a business acquisition is valued at selling price less costs to sell and a pro\ufb01t allowance
for\u00a0selling e\ufb00orts.
Instruments expected to be sold outright to customers and distributors in the ordinary course of business are initially recognised as
inventory. Instruments not expected to be sold are recognised in property, plant and equipment (refer to note 7).
Risks and rewards of ownership of consignment inventory are transferred to the customer when the product is used in surgery.
A feature of the orthopaedic business is the high level of product inventory required, some of which is located at customer premises
and is available for customers\u2019 immediate use (referred to as consignment inventory). Complete sets of product, including large and
small sizes, have to be made available in this way. These outer sizes are used less frequently than standard sizes and towards the
end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be
made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on
levels of inventory compared with historical or forecast usage. This formula is applied on an individual product line basis and is \ufb01rst
applied when a product group has been on the market for two years. This method of calculation is considered appropriate based
on\u00a0experience but it involves management judgements on e\ufb00ectiveness of\u00a0inventory deployment, length of product lives, phase-out
of\u00a0old products and e\ufb03ciency of manufacturing planning systems.Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.Accounting policy
In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is
deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is
the plainti\ufb00 in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred.
The recognition of provisions for legal disputes is subject to a signi\ufb01cant degree of estimation. In making its estimates, management
takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where
necessary to re\ufb02ect developments in the disputes. The ultimate liability may di\ufb00er from the amount provided depending on the
outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the
in\ufb02ow of bene\ufb01ts is virtually certain and are presented within other receivables.
A provision for onerous contracts is recognised when the expected bene\ufb01ts to be derived by the Group from a contract are lower
than\u00a0the unavoidable cost of meeting its obligations under the contract.
A provision for restructuring and rationalisation is recognised when the Group has approved a detailed and formal restructuring plan
and the restructuring either has commenced or has been communicated to those a\ufb00ected. Restructuring provisions primarily include
severance costs and are expected to be utilised within one year. Future operating losses and costs associated with ongoing activities
are not provided for.Accounting policy
The Group sponsors de\ufb01ned bene\ufb01t plans in a number of countries. A de\ufb01ned bene\ufb01t pension plan de\ufb01nes an amount of pension
bene\ufb01t that an employee will receive on retirement or a minimum guaranteed return on contributions, which is dependent on various
factors such as age, years of service and \ufb01nal salary. The Group\u2019s obligation is calculated separately for each plan by discounting
the\u00a0estimated future bene\ufb01t that employees have\u00a0earned in return for their service in the current and prior periods. The fair value
of\u00a0any plan assets is deducted to arrive at the net liability.
The calculation of the de\ufb01ned bene\ufb01t obligation is performed annually by external actuaries using the projected unit credit method.
Remeasurements arising from de\ufb01ned bene\ufb01t plans comprise actuarial gains and losses and the return on the plan assets in excess
of the discount rate net of the costs of\u00a0managing the plan assets. The Group recognises these immediately in other comprehensive
income (OCI) and all other expenses, such as service cost, net interest cost, administration costs and taxes, are recognised in the
income statement.
A number of key assumptions are made when calculating the fair value of the Group\u2019s de\ufb01ned bene\ufb01t pension plans. These
assumptions impact the balance sheet asset and liabilities, operating pro\ufb01t, \ufb01nance income/costs and other comprehensive income.
The most critical assumptions are the discount rate, the rate of in\ufb02ation and mortality assumptions to be applied to future pension
plan liabilities. The discount rate is based on the yield at the reporting date on bonds that have a credit rating of AA, denominated
in the currency in which the bene\ufb01ts are expected to be paid and have a maturity pro\ufb01le approximately the same as the\u00a0Group\u2019s
obligations. In determining these assumptions management takes into account the advice of professional external actuaries
and\u00a0benchmarks its assumptions against external data.
The Group determines the net interest expense/income on the net de\ufb01ned bene\ufb01t liability/asset for the period by applying the
discount rate used to\u00a0measure the de\ufb01ned bene\ufb01t obligation at the beginning of the annual period to the net de\ufb01ned bene\ufb01t
liability/asset.
The Group also operates a number of de\ufb01ned contribution plans. A de\ufb01ned contribution plan is a pension plan under which the
Group\u00a0and employees pay \ufb01xed contributions to a third-party \ufb01nancial provider. The Group has no further payment obligations
once\u00a0the contributions have\u00a0been\u00a0paid. Contributions are recognised as an employee bene\ufb01t expense when they are due.Accounting policy
Incremental costs directly attributable to the issue of ordinary shares, net of any tax e\ufb00ects, are recognised as a deduction from equity.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable
costs, net of any tax e\ufb00ects, is recognised as a deduction from equity. Repurchased shares are classi\ufb01ed as treasury shares and
are\u00a0presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in\u00a0equity and the resulting surplus or de\ufb01cit on the transaction is presented within share premium.Accounting policy
In the Group cash \ufb02ow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original
maturities of three months or less and bank overdra\ufb05s. In the Group balance sheet, cash and cash equivalents includes cash at bank,
other short-term liquid investments with original maturities of three months or less and excludes bank overdra\ufb05s.Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss.Accounting policy
The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards,
\n
the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over
\nthe vesting period as an expense, with a corresponding increase in retained earnings. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00509": { "value": "Accounting policy
Revenue is recognised as the performance obligations to deliver products or services are satis\ufb01ed and is recorded based on the
amount of consideration expected to be received in exchange for satisfying the performance obligations. Revenue is recognised
primarily when control is transferred to the customer, which is generally when the goods are shipped or delivered in accordance
with\u00a0the contract terms, with some transfer of services taking place over time. Substantially all performance obligations are ful\ufb01lled
within one year. There is no signi\ufb01cant revenue associated with the provision of services. Payment terms to our customers are based
on commercially reasonable terms for the respective markets while also considering a customer\u2019s credit rating. Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.
The Group is applying the practical expedient in IFRS15.121 not to disclose the aggregate amount of the transaction price allocated
to performance obligations that are unsatis\ufb01ed at the end of the reporting period as substantially all performance obligations are
ful\ufb01lled within one year.
Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00510": { "value": "Appropriate provisions
for returns, trade discounts and rebates are deducted from revenue. Sales returns are estimated based on historical sales and returns
information. These estimates are reviewed regularly and adjusted as necessary. The Group maintains an estimated refund liability
based upon the expected value method that is recorded as a reduction in revenue. Rebates primarily comprise chargebacks and
other discounts granted to certain customers. Chargebacks are discounts that occur when a third-party purchases products from a
wholesaler at its agreed price plus a mark-up. The wholesaler in turn charges the Group for the di\ufb00erence between the price initially
paid by the wholesaler and the agreed price. The provision for chargebacks is based on expected sell-through levels by the Group\u2019s
wholesalers to\u00a0such customers, as well as estimated wholesaler inventory levels.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00511": { "value": "Orthopaedics and Sports Medicine & ENT (Ear, Nose & Throat)
Orthopaedics and Sports Medicine & ENT consists of the following businesses: Knee Implants, Hip Implants, Other Reconstruction,
Trauma & Extremities, Sports Medicine Joint Repair, Arthroscopic Enabling Technologies and ENT. Sales of inventory located
at\u00a0customer premises and available for customers\u2019 immediate use are recognised when noti\ufb01cation is received that the product
has been implanted or used. Substantially all other revenue is recognised when control is transferred to the customer, which is
generally when the goods are\u00a0shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount
of\u00a0consideration expected to\u00a0be received in\u00a0exchange for\u00a0transferring the products or services.
In general, our business in Established Markets is direct to hospitals and Ambulatory Surgery Centers, whereas in the Emerging
Markets we\u00a0generally sell through distributors.
Advanced Wound Management
Advanced Wound Management consists of the following businesses: Advanced Wound Care, Advanced Wound Bioactives and
Advanced Wound Devices. Substantially all revenue is recognised when control is transferred to the customer, which is generally
when the goods are shipped or delivered in accordance with the contract terms. Revenue is recognised for the amount of
consideration expected to be received in exchange for transferring the products or services. Appropriate provisions for returns,
trade\u00a0discounts and rebates are deducted from revenue, as explained above.
The majority of our Advanced Wound Management business, and in particular products used in community and homecare facilities,
is\u00a0through wholesalers and distributors. When control is transferred to a wholesaler or distributor, revenue is recognised accordingly.
The proportion of sales direct to hospitals is higher in our Advanced Wound Devices business in Established Markets.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00420": { "value": "
2025
2024
1
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Revenue by product from continuing operations
Knee Implants
\u00a01,011\u00a0
\u00a0977\u00a0
\u00a0940\u00a0
Hip Implants
\u00a0641\u00a0
\u00a0619\u00a0
\u00a0599\u00a0
Other Reconstruction
\u00a0136\u00a0
\u00a0101\u00a0
\u00a0111\u00a0
Trauma & Extremities
\u00a0649\u00a0
\u00a0608\u00a0
\u00a0564\u00a0
Orthopaedics
\u00a02,437\u00a0
\u00a02,305\u00a0
\u00a02,214\u00a0
Sports Medicine Joint Repair
\u00a01,067\u00a0
\u00a0982\u00a0
\u00a0945\u00a0
Arthroscopic Enabling Technologies
\u00a0647\u00a0
\u00a0632\u00a0
\u00a0588\u00a0
ENT (Ear, Nose and Throat)
\u00a0220\u00a0
\u00a0210\u00a0
\u00a0196\u00a0
Sports Medicine & ENT
\u00a01,934\u00a0
\u00a01,824\u00a0
\u00a01,729\u00a0
Advanced Wound Care
\u00a0766\u00a0
\u00a0735\u00a0
\u00a0725\u00a0
Advanced Wound Bioactives
\u00a0621\u00a0
\u00a0581\u00a0
\u00a0553\u00a0
Advanced Wound Devices
\u00a0406\u00a0
\u00a0365\u00a0
\u00a0328\u00a0
Advanced Wound Management
\u00a01,793\u00a0
\u00a01,681\u00a0
\u00a01,606\u00a0
Consolidated revenue from continuing operations
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
\n
1
Robotics consumables revenue has been reclassi\ufb01ed from Other Reconstruction to Knee and Hip implants.", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00422": { "value": "Contract assets and liabilities
The nature of our products and services do not generally give rise to contract assets as we do not typically incur costs to ful\ufb01l a contract
before a product or service is provided to the customer. The Group generally satis\ufb01es performance obligations within one year from
the contract inception date. There was no material revenue recognised in the current reporting period that related to carried-forward
contract liabilities (deferred income) or performance obligations satis\ufb01ed in the previous year. There is no material revenue that is
likely to arise in future periods from unsatis\ufb01ed performance obligations at the balance sheet date. Therefore, there are no associated
signi\ufb01cant accrued income and deferred income balances at 31 December 2025. The Group does not have any material contract assets
and contract liabilities comprise rebates. The accrual for rebates at 31 December 2025 was $114m (2024: $106m) with $405m being
recognised in revenue in 2025 (2024: $412m) .", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00423": { "value": "2.5
Amortisation and impairment of acquisition intangibles
For the years ended 31 December 2025, 2024 and 2023, these costs relate to the amortisation and impairment of intangible assets
acquired in material business combinations.\n\n \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 \u00a0\n \n
Plant and equipment
Assets in
Land and
course of
buildings
Instruments
1
Other
construction
Total
\u00a0
\u00a0
\u00a0
\u00a0Notes\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
Cost
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0795\u00a0
\u00a01,844\u00a0
\u00a01,433\u00a0
\u00a0170\u00a0
\u00a04,242\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(15)
\u00a0(61)
\u00a0(18)
\u00a0\u2013\u00a0
\u00a0(94)
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0225\u00a0
\u00a035\u00a0
\u00a053\u00a0
\u00a0341\u00a0
Disposals
\u00a0
\u00a0
\u00a0(25)
\u00a0(84)
\u00a0(69)
\u00a0(7)
\u00a0(185)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(12)
\u00a0(12)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a06\u00a0
\u00a0\u2013\u00a0
\u00a068\u00a0
\u00a0(82)
\u00a0(8)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0789\u00a0
\u00a01,924\u00a0
\u00a01,449\u00a0
\u00a0122\u00a0
\u00a04,284\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a084\u00a0
\u00a0
\u00a042\u00a0
\u00a0
\u00a06\u00a0
\u00a0160\u00a0
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a044\u00a0
\u00a0
\u00a0211\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0131\u00a0
\u00a0415\u00a0
Disposals
\u00a0
\u00a0
\u00a0(91)\u00a0
\u00a0
\u00a0(96)\u00a0
\u00a0
\u00a0(93)\u00a0
\u00a0
\u00a0(5)
\u00a0(285)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a02\u00a0
\u00a0(10)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0166\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0(49)
\u00a0164\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0778\u00a0
\u00a02,289\u00a0
\u00a01,454\u00a0
\u00a0207\u00a0
\u00a04,728\u00a0
Depreciation and impairment
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0342\u00a0
\u00a01,452\u00a0
\u00a0978\u00a0
\u00a0\u2013\u00a0
\u00a02,772\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(8)
\u00a0(51)
\u00a0(12)
\u00a0\u2013\u00a0
\u00a0(71)
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a066\u00a0
\u00a0163\u00a0
\u00a096\u00a0
\u00a0\u2013\u00a0
\u00a0325\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(5)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
Disposals
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(24)
\u00a0(73)
\u00a0(64)
\u00a0\u2013\u00a0
\u00a0(161)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0371\u00a0
\u00a01,491\u00a0
\u00a01,000\u00a0
\u00a0\u2013\u00a0
\u00a02,862\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a032\u00a0
\u00a0\u2013\u00a0
\u00a0115\u00a0
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a0177\u00a0
\u00a0
\u00a099\u00a0
\u00a0\u2013\u00a0
\u00a0335\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(21)
Disposals
\u00a0
\u00a0
\u00a0(52)\u00a0
\u00a0
\u00a0(85)\u00a0
\u00a0
\u00a0(93)
\u00a0\u2013\u00a0
\u00a0(230)
Transfers
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a029\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0380\u00a0
\u00a01,681\u00a0
\u00a01,029\u00a0
\u00a0\u2013\u00a0
\u00a03,090\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0398\u00a0
\u00a0608\u00a0
\u00a0425\u00a0
\u00a0207\u00a0
\u00a01,638\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0418\u00a0
\u00a0433\u00a0
\u00a0449\u00a0
\u00a0122\u00a0
\u00a01,422\u00a0
\n8
Goodwill
Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.
\n\n \u00a0 \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Cost and net book value
At 1 January
\u00a0
\u00a0
\u00a03,026\u00a0
\u00a02,992\u00a0
Exchange adjustment
\u00a082\u00a0
\u00a0(47)
Impairment
\u00a0\u2013\u00a0
\u00a0(65)
Acquisitions
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0146\u00a0
At 31 December
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Management has identi\ufb01ed \ufb01ve CGUs in applying the provisions of IAS 36
Impairment of Assets
: Orthopaedics, Sports Medicine, ENT,
Advanced Wound Care & Devices and Bioactives.
For the purpose of goodwill impairment testing, the Advanced Wound Care & Devices and Bioactives CGUs have been aggregated
(Advanced Wound Management), as this is the level at which goodwill is monitored and level at which the economic bene\ufb01ts relating
to\u00a0the goodwill within these CGUs is realised.
During 2025, no impairment losses were recognised and no acquisitions were completed.
During 2024,the Group announced its intention to close the Warwick manufacturing site that manufactures Birmingham Hip Resurfacing
(BHR) products. As a result, goodwill of $63m relating to BHR was written-o\ufb00. In addition, a $2m goodwill impairment charge was
recorded as a result of disposal of certain products.
Goodwill is allocated to the Group\u2019s CGUs as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Orthopaedics\u00a0
\u00a0
\u00a0877\u00a0
\u00a0807\u00a0
Sports Medicine
\u00a01,305\u00a0
\u00a01,302\u00a0
ENT
\u00a0287\u00a0
\u00a0287\u00a0
Advanced Wound Management
\u00a0639\u00a0
\u00a0630\u00a0
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Impairment reviews were performed as of September 2025 and September 2024 by comparing the recoverable amount of each CGU
with\u00a0its carrying amount, including goodwill. These were reviewed during December, taking into account any signi\ufb01cant events that
occurred between September and December.
The current challenging economic environment, including in\ufb02ation, was considered in the goodwill impairment reviews. Additionally,
severe downside sensitivity analyses have been undertaken on the base case scenario.
For each CGU, the recoverable amounts are based on value-in-use which is calculated from pre-tax cash \ufb02ow projections for
\ufb01ve\u00a0years\u00a0using data from the Group\u2019s budget and strategic planning process, the results of which are reviewed and approved by the
Board. The terminal growth rate is based on long term GDP growth. The initial \ufb01ve-year period (2024: three-year period) is in line with
the Group\u2019s strategic planning process. In determining the growth rates used in the calculations of the value-in-use, management
considered annual revenue growth. Projections are based on anticipated volume and value growth in the markets served by the Group
and assumptions as to market share movements. Each year the projections for the previous year are compared to actual results and
variances are factored into the\u00a0assumptions used in the current year.
The discount rates used in the value-in-use calculations re\ufb02ect management\u2019s assessment of risks speci\ufb01c to the assets of each CGU.
Our determination of the discount rates is based on weighted average cost of capital (WACC) which includes a risk-free rate, based on
market participant\u2019s cost of equity, an equity risk premium speci\ufb01cally adjusted to the medical technology industry and a\ufb05er-tax cost
of debt and re\ufb02ects the risks inherent in the cash \ufb02ows adjusted for CGU speci\ufb01c risk. The pre-tax rate is then calculated using WACC
as a starting point.
8.1
Orthopaedics CGU
The cash \ufb02ows used in the value-in-use calculation for the Orthopaedics CGU, which includes the Reconstruction and Trauma
businesses, re\ufb02ects management\u2019s distinctive orthopaedic reconstruction strategy, which combines cutting-edge innovation,
disruptive\u00a0business models and a strong Emerging Markets platform to drive our performance.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Orthopaedics CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.4% (2024: 11.4%).
8.2
Sports Medicine CGU
The cash \ufb02ows used in the value-in-use calculation for the Sports Medicine CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy to maintain growth in Sports Medicine.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Sports Medicine CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.3% (2024: 11.6%).
8.3
ENT CGU
The cash \ufb02ow used in the value-in-use calculation for the ENT CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the ENT CGU value-in-use calculation re\ufb02ects the geographical
mix of the revenues and is 11.3% (2024: 11.0%).
8.4
Advanced Wound Management CGU
The aggregated Advanced Wound Management CGU comprises the Advanced Wound Care & Devices and Bioactives CGUs.
In performing the value-in-use calculation for this combined CGU, management considered the Group\u2019s focus across the wound
product, focusing on widening access to the customer, the higher added value sectors of healing chronic wounds and tissue repair using
bioactives, and by continuing to improve e\ufb03ciency.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre tax discount rate used in the Advanced Wound Management CGU value-in-use
calculation re\ufb02ects the geographical mix and industry sector and is 11.0% (2024: 11.3%).
The value in use for all CGUs indicated su\ufb03cient headroom such that a reasonably possible change to key assumptions is unlikely to
result in an impairment of the related goodwill. \n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Assets
Product-
distribution-
in course of
Technology
related
related
So\ufb05ware
construction
Total
Notes
$ million
$ million
$ million
$ million
$ million
$ million
Cost
At 1 January\u00a02024
\u00a0582\u00a0
\u00a02,273\u00a0
\u00a0236\u00a0
\u00a0547\u00a0
\u00a0178\u00a0
\u00a03,816\u00a0
Exchange adjustment
\u00a0(7)
\u00a0(35)
\u00a0(6)
\u00a0(10)
\u00a0(1)
\u00a0(59)
Acquisitions
21
\u00a081\u00a0
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a084\u00a0
Additions
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a04\u00a0
\u00a030\u00a0
\u00a052\u00a0
\u00a087\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(9)
\u00a0(1)
\u00a0(10)
Transfers
\u00a01\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0143\u00a0
\u00a0(133)
\u00a08\u00a0
At 31 December\u00a02024
\u00a0657\u00a0
\u00a02,239\u00a0
\u00a0234\u00a0
\u00a0701\u00a0
\u00a095\u00a0
\u00a03,926\u00a0
Exchange adjustment
\u00a015\u00a0
\u00a0
\u00a062\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0108\u00a0
Additions
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a076\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0(9)
Transfers
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a067\u00a0
\u00a0
\u00a0(63)\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0672\u00a0
\u00a0
\u00a02,301\u00a0
\u00a0
\u00a0240\u00a0
\u00a0
\u00a0786\u00a0
\u00a0
\u00a0104\u00a0
\u00a04,103\u00a0
Amortisation and impairment
At 1 January\u00a02024
\u00a0276\u00a0
\u00a01,801\u00a0
\u00a0176\u00a0
\u00a0453\u00a0
\u00a0\u2013\u00a0
\u00a02,706\u00a0
Exchange adjustment
\u00a0(3)
\u00a0(33)
\u00a0(5)
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(50)
Charge for the year
\u00a054\u00a0
\u00a0109\u00a0
\u00a015\u00a0
\u00a052\u00a0
\u00a0\u2013\u00a0
\u00a0230\u00a0
Impairment
\u00a015\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a016\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02024
\u00a0342\u00a0
\u00a01,877\u00a0
\u00a0186\u00a0
\u00a0489\u00a0
\u00a0\u2013\u00a0
\u00a02,894\u00a0
Exchange adjustment
\u00a09\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a086\u00a0
Charge for the year
\u00a050\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a065\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0239\u00a0
Impairment
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a010\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02025
\u00a0411\u00a0
\u00a02,046\u00a0
\u00a0205\u00a0
\u00a0559\u00a0
\u00a0\u2013\u00a0
\u00a03,221\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0261\u00a0
\u00a0255\u00a0
\u00a035\u00a0
\u00a0227\u00a0
\u00a0104\u00a0
\u00a0882\u00a0
At 31 December\u00a02024
\u00a0315\u00a0
\u00a0362\u00a0
\u00a048\u00a0
\u00a0212\u00a0
\u00a095\u00a0
\u00a01,032\u00a0
\n
Transfers into so\ufb05ware and assets in course of construction includes $2m (2024: $8m) of so\ufb05ware transferred from property, plant\u00a0and
equipment (refer to Note 7). Group capital expenditure relating to so\ufb05ware contracted but not provided for amounted to
$4m (2024: $4m).
Amortisation and impairment of acquisition intangibles is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Technology
\u00a061\u00a0
\u00a069\u00a0
Product-related
\u00a0105\u00a0
\u00a0108\u00a0
Customer and distribution-related
\u00a010\u00a0
\u00a010\u00a0
Total
\u00a0176\u00a0
\u00a0187\u00a0
In 2025, the Group recognised an impairment charge of $10m in relation to immaterial technology assets in acquisition intangibles.
In 2024, the Group recognised an impairment charge of $15m in relation to immaterial technology assets in acquisition intangibles.
In 2023, the Group impaired $37m of\u00a0Engage intangible assets as a result of the voluntary product discontinuation.
Management has assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of
September\u00a02025. These were updated during December to take into account any signi\ufb01cant events that occurred between September
and December. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected
recoverable value of assets to the carrying value of assets. ", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00427": { "value": "3
Operating pro\ufb01t
Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.
Operating pro\ufb01t is stated a\ufb05er charging the following items:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets.
3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\n
During the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).
3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00425": { "value": "3
Operating pro\ufb01t
Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.
Operating pro\ufb01t is stated a\ufb05er charging the following items:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets.
3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\n
During the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).
3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00424": { "value": "3
Operating pro\ufb01t
Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.
Operating pro\ufb01t is stated a\ufb05er charging the following items:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets.
3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\n
During the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).
3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00426": { "value": "3
Operating pro\ufb01t
Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.
Operating pro\ufb01t is stated a\ufb05er charging the following items:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets.
3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\n
During the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).
3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00416": { "value": "3
Operating pro\ufb01t
Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.
Advertising costs
Advertising costs are expensed as incurred.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.
Operating pro\ufb01t is stated a\ufb05er charging the following items:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets.
3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\n
During the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).
3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00512": { "value": "Accounting policy
Research and development
Research expenditure is expensed as incurred. Internal development expenditure is only capitalised if the recognition criteria in
IAS\u00a038
Intangible Assets
have been satis\ufb01ed. The Group considers that the regulatory, technical and market uncertainties inherent
in\u00a0the development of new products mean that in most cases development costs should not be capitalised as intangible assets
until\u00a0products receive approval from the appropriate regulatory body.
Payments to third parties for research and development projects are accounted for based on the substance of the arrangement.
If the\u00a0arrangement represents outsourced research and development activities the payments are generally expensed except
in limited circumstances where the respective development expenditure would be capitalised under the principles established
in\u00a0IAS\u00a038.\u00a0By contrast, the payments are capitalised if\u00a0the\u00a0arrangement represents consideration for the acquisition of intellectual
property developed at the risk of the third party.
Capitalised development expenditures are amortised on a straight-line basis over their useful economic lives from product launch.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00428": { "value": "\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.", "dimensions": { "concept": "ifrs-full:DisclosureOfResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00429": { "value": "\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.The cost of inventories recognised as an expense and included in cost of goods sold amounted to $1,625m (2024: $1,583m, 2023: $1,459m).", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00430": { "value": "\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Revenue
\u00a06,164\u00a0
\u00a05,810\u00a0
\u00a05,549\u00a0
Cost of goods sold
1
\u00a0(1,972)
\u00a0(1,764)
\u00a0(1,730)
Gross pro\ufb01t
\u00a04,192\u00a0
\u00a04,046\u00a0
\u00a03,819\u00a0
Research and development expenses
2
\u00a0(296)
\u00a0(289)
\u00a0(339)
Selling, general and administrative expenses:
3,4,5,6
Marketing, selling and distribution expenses
\u00a0(2,362)
\u00a0(2,276)
\u00a0(2,218)
Administrative expenses
\u00a0(740)
\u00a0(824)
\u00a0(837)
\u00a0(3,102)
\u00a0(3,100)
\u00a0(3,055)
Operating pro\ufb01t
\u00a0794\u00a0
\u00a0657\u00a0
\u00a0425\u00a0
\n
1
2025 includes $161m charge relating to legal and other items, $13m charge relating to restructuring and rationalisation expenses and $2m charge relating to
acquisition and disposal-related items (2024 includes $6m charge relating to legal and other items, $20m charge relating to restructuring and rationalisation
expenses and $13m charge relating to acquisition and disposal-related items, 2023 includes $27m charge relating to legal and other items, $73m charge
relating to restructuring and rationalisation expenses and $3m charge relating to acquisition and disposal-related items).
2
2025 includes $2m charge\u00a0relating to restructuring and rationalisation expenses (2024: nil, 2023: $18m), $nil relating to legal and other items (2024: $1m,
2023: $21m) and $nil charge relating to acquisition and disposal-related items (2024: $nil, 2023: $1m).
3
2025 includes $73m of amortisation and impairment of so\ufb05ware and other intangible assets (2024: $58m, 2023: $51m).
4
2025 includes $176m of amortisation and impairment of acquisition intangibles and $32m of restructuring and rationalisation expenses (2024 : $187m of
amortisation and impairment of acquisition intangibles and $103m of restructuring and rationalisation expenses, 2023 : $207m of amortisation and
impairment of acquisition intangibles and $129m of restructuring and rationalisation expenses).
5
2025 includes $1m charge relating to legal and other items (2024: $19m credit, 2023: $10m charge).
6
2025 includes $30m charge relating to acquisition and disposal-related items (2024: $81m charge, 2023: $56m charge).
Note that items detailed in 1, 2, 4, 5 and 6 are excluded from the calculation of trading pro\ufb01t, the segments\u2019 pro\ufb01t measure.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00431": { "value": "Operating pro\ufb01t is stated a\ufb05er charging the following items: \n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Amortisation of intangible assets
\u00a0239\u00a0
\u00a0230\u00a0
\u00a0221\u00a0
Impairment of intangible assets
\u00a010\u00a0
\u00a016\u00a0
\u00a037\u00a0
Impairment of goodwill
1
\u00a0\u2013\u00a0
\u00a065\u00a0
\u00a084\u00a0
Impairment of property, plant and equipment (reversal)/ charge
\u00a0(11)
\u00a09\u00a0
\u00a031\u00a0
Fair value remeasurement of trade investments
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
Restructuring and rationalisation costs
\u00a047\u00a0
\u00a0123\u00a0
\u00a0220\u00a0
Depreciation of property, plant and equipment
2
\u00a0335\u00a0
\u00a0325\u00a0
\u00a0306\u00a0
Loss on disposal of property, plant and equipment and intangible assets
\u00a023\u00a0
\u00a022\u00a0
\u00a018\u00a0
Advertising costs
\u00a091\u00a0
\u00a084\u00a0
\u00a088\u00a0
\n
1
The 2024 impairment of goodwill includes BHR\u2019s goodwill of $63m and 2023 includes impairment of Engage\u2019s goodwill of $84m.
2
The 2025 depreciation charge includes $49m (2024: $54m, 2023: $54m ) related to right-of-use assets. ", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00433": { "value": "3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\nDuring the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00432": { "value": "3.1
Sta\ufb00 costs and employee numbers
Sta\ufb00 costs during the year amounted to:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Wages and salaries
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,671\u00a0
\u00a01,663\u00a0
\u00a01,683\u00a0
Social security costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0244\u00a0
\u00a0242\u00a0
Pension costs (including retirement healthcare)
\u00a018\u00a0
\u00a094\u00a0
\u00a095\u00a0
\u00a095\u00a0
Share-based payments
\u00a022\u00a0
\u00a043\u00a0
\u00a040\u00a0
\u00a039\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a02,063\u00a0
\u00a02,042\u00a0
\u00a02,059\u00a0
\nDuring the year ended 31 December 2025, the average number of employees was 17,530 (2024: 18,060, 2023: 19,081).18
Retirement bene\ufb01t obligations
Accounting policy
The Group sponsors de\ufb01ned bene\ufb01t plans in a number of countries. A de\ufb01ned bene\ufb01t pension plan de\ufb01nes an amount of pension
bene\ufb01t that an employee will receive on retirement or a minimum guaranteed return on contributions, which is dependent on various
factors such as age, years of service and \ufb01nal salary. The Group\u2019s obligation is calculated separately for each plan by discounting
the\u00a0estimated future bene\ufb01t that employees have\u00a0earned in return for their service in the current and prior periods. The fair value
of\u00a0any plan assets is deducted to arrive at the net liability.
The calculation of the de\ufb01ned bene\ufb01t obligation is performed annually by external actuaries using the projected unit credit method.
Remeasurements arising from de\ufb01ned bene\ufb01t plans comprise actuarial gains and losses and the return on the plan assets in excess
of the discount rate net of the costs of\u00a0managing the plan assets. The Group recognises these immediately in other comprehensive
income (OCI) and all other expenses, such as service cost, net interest cost, administration costs and taxes, are recognised in the
income statement.
A number of key assumptions are made when calculating the fair value of the Group\u2019s de\ufb01ned bene\ufb01t pension plans. These
assumptions impact the balance sheet asset and liabilities, operating pro\ufb01t, \ufb01nance income/costs and other comprehensive income.
The most critical assumptions are the discount rate, the rate of in\ufb02ation and mortality assumptions to be applied to future pension
plan liabilities. The discount rate is based on the yield at the reporting date on bonds that have a credit rating of AA, denominated
in the currency in which the bene\ufb01ts are expected to be paid and have a maturity pro\ufb01le approximately the same as the\u00a0Group\u2019s
obligations. In determining these assumptions management takes into account the advice of professional external actuaries
and\u00a0benchmarks its assumptions against external data.
The Group determines the net interest expense/income on the net de\ufb01ned bene\ufb01t liability/asset for the period by applying the
discount rate used to\u00a0measure the de\ufb01ned bene\ufb01t obligation at the beginning of the annual period to the net de\ufb01ned bene\ufb01t
liability/asset.
The Group also operates a number of de\ufb01ned contribution plans. A de\ufb01ned contribution plan is a pension plan under which the
Group\u00a0and employees pay \ufb01xed contributions to a third-party \ufb01nancial provider. The Group has no further payment obligations
once\u00a0the contributions have\u00a0been\u00a0paid. Contributions are recognised as an employee bene\ufb01t expense when they are due.
18.1
Retirement bene\ufb01t assets and obligations
The Group\u2019s retirement bene\ufb01t assets/(obligations) comprise:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$ million
$ million
Funded plans:
UK Plan
\u00a064\u00a0
\u00a063\u00a0
US Plan
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Other plans
\u00a0(16)
\u00a0(10)
\u00a048\u00a0
\u00a053\u00a0
Unfunded plans:
Other plans
\u00a0(59)
\u00a0(60)
Retirement healthcare
\u00a0(9)
\u00a0(9)
\u00a0(20)
\u00a0(16)
Amount recognised on the balance sheet\u00a0\u2013 liability
\u00a0(84)
\u00a0(79)
Amount recognised on the balance sheet\u00a0\u2013 asset
\u00a064\u00a0
\u00a063\u00a0
\n
The Group sponsors de\ufb01ned bene\ufb01t pension plans for its employees or former employees in 12 countries and these are established
under the laws of the relevant country. Funded plans are funded by the payment of contributions and the assets are held by separate
trust funds or insurance companies. The provision of retirement and related bene\ufb01ts across the Group is kept under regular review.
Employees\u2019 retirement bene\ufb01ts are the subject of regular management review. The Group\u2019s de\ufb01ned bene\ufb01t plans provide employees
with an entitlement to bene\ufb01ts, payable typically either as a lump sum or annuity, or a mixture of the two. Most plans are now closed
to future accrual. The level of entitlement is typically dependent on the salary and years of service of the employee, in line with local
practices. Pension bene\ufb01ts are generally limited to 66.7% of \ufb01nal salary in key markets.
The Groups two major de\ufb01ned bene\ufb01t pension plans were in
UK and US. Both these plans were closed to new employees in 2003
\n
and\u00a0de\ufb01ned contribution plans are o\ufb00ered to new joiners. The US and UK Plans were closed to future accrual in March 2014 and
\n
December 2016 respectively.
\n
The UK Plan operates under trust law and responsibility for its governance lies with a Board of Trustees. This Board is composed of
\n
representatives of the Group, plan participants and an independent trustee, who act on behalf of members in accordance with the
\n
terms\u00a0of\u00a0the Trust Deed and Rules and relevant legislation. The UK Plan\u2019s assets are held by the trust. Annual increases on bene\ufb01ts
\n
in\u00a0payment are\u00a0dependent on in\ufb02ation.
\n
The 2018 and 2020 court cases in relation to Guaranteed Minimum Pensions do not impact the UK Plan as members were not
\n
contracted out of\u00a0the State Earnings-Related Pension Scheme (SERPS) between 1990 and 1997.
\n
In June 2023, the Trustee with the support of the Company concluded a full buy-in of the Main Fund with Rothesay Life. The total
\n
transaction value was \u00a3260m. The transaction completed the Main Fund and Executive Scheme de-risking journey which included
\n
partial buy-in transactions in 2013, 2017, and 2022, whereby the liabilities of the scheme are now covered by a bulk annuity insurance
\n
policy, that operate as investment assets, insuring all liabilities to pay all future de\ufb01ned bene\ufb01t pensions for the remaining members
\n
of the Fund. The bulk annuity policy matches the Trust\u2019s cash \ufb02ow bene\ufb01t obligations to its members, removing longevity and other
\n
demographic risks as well as investment, interest rate and in\ufb02ation risks.
\n
When the full UK Fund buy-in was concluded in June 2023 no decision on a future buy-out had been reached by the Company.
\n
While the\u00a0contract between the Life Insurer (Rothesay) and the Trustee allows for a buy-out, a number of steps would need to be
\n
concluded before this could be achieved. The Trustee and the Company could not act unilaterally to move to a buy-out and the UK Fund
\n
governance structure lays out a number of steps the Company would be required to conclude for a buy-out decision. The transaction
\n
resulted in a $58m loss being recognised in OCI in 2023 with $nil cash impact.
\n
The US Plan is governed by a US Pension Committee which comprises representatives of the Group. In the US, the Pension Protection
\n
Act (2006) established both a minimum required contribution and a maximum deductible contribution. Failure to contribute at least
\n
the\u00a0minimum required amount will subject the Company to signi\ufb01cant penalties, and contributions in excess of the maximum deductible
\n
contribution have negative tax consequences. The minimum funding requirement is intended to fully fund the present value of accrued
\n
bene\ufb01ts over\u00a0seven years.
\n
In October 2022, US Pension Plan members were noti\ufb01ed that Smith & Nephew Inc. (SNI) would begin the termination process for the
\n
US\u00a0Plan. In December 2023, Fidelity & Guaranty Life was selected to take over responsibility for the remaining US Pension Plan obligation
\n
and administration upon termination. A premium amount of $245m was paid in cash by the US Plan on 4 January 2024. Certain active
\n
employees and terminated vested participants elected to receive a lump sum in exchange for their plan bene\ufb01t of $80m. This resulted
\n
in $4m settlement costs which were recognised in 2023, representing the di\ufb00erence between de\ufb01ned bene\ufb01t obligation (DBO) and the
\n
lump sums paid to members in December 2023. Following the US buyout, members move to having a direct relationship with Fidelity &
\n
Guaranty Life with SNI no longer retaining any obligation for the settlement of accrued member bene\ufb01ts.
\n
There is no legislative minimum funding requirement in the UK. The Trust Deed of the UK Plan and the Plan Document of the US Plan
\n
provide the Group with a right to a refund of surplus assets assuming the full settlement of plan liabilities in the event of a plan wind-
\n
up. Furthermore, in the ordinary course of business the UK Board of Trustees and US Pension Committee have no rights to unilaterally
\n
wind up, or otherwise augment the bene\ufb01ts due to members of the Plans. Based on these rights, any net surplus in the UK and US Plans
\n
is\u00a0recognised in full.
18.2
Reconciliation of retirement bene\ufb01t obligations and pension assets
\n
The movement in the Group\u2019s pension bene\ufb01t obligation and pension assets is as follows:
\n \n \n
2025
2024\u00a0
\u00a0
\u00a0
Obligation
Asset
Total
Obligation
Asset
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Amounts recognised on the balance sheet at
beginning of the period
\u00a0
\u00a0(625)
\u00a0609\u00a0
\u00a0(16)
\u00a0(961)
\u00a0942\u00a0
\u00a0(19)
Income statement expense:
Current service cost
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(7)
\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(7)
Settlements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0255\u00a0
\u00a0
\u00a0(250)\u00a0
\u00a0
\u00a05\u00a0
Interest (expense)/income
\u00a0
\u00a0(28)\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0
\u00a0(26)\u00a0
\u00a0
\u00a026\u00a0
\u00a0
\u00a0\u2013\u00a0
Administration costs and taxes
\u00a0(7)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(7)
\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4)
Costs recognised in income statement
\u00a0
\u00a0(42)\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0(13)
\u00a0
\u00a0
\u00a0218\u00a0
\u00a0
\u00a0(224)\u00a0
\u00a0
\u00a0(6)
Remeasurements:
Actuarial (loss)/gain due to liability experience
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0(6)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(6)
Actuarial gain due to \ufb01nancial assumptions
change
\u00a0
\u00a023\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a023\u00a0
\u00a0
\u00a0
\u00a062\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a062\u00a0
Actuarial (loss)/gain due to demographic
assumptions
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
Return on plan assets (less)/greater than
discount rate
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a0(41)
Remeasurements recognised in OCI
\u00a0
\u00a013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a0
\u00a057\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a016\u00a0
Cash:
Employer contributions
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)\u00a0
\u00a0
\u00a0(9)
Employee contributions
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
Bene\ufb01ts paid directly by the Group
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a03\u00a0
Bene\ufb01ts paid, taxes and administration costs
paid from scheme assets
\u00a0
\u00a048\u00a0
\u00a0
\u00a0(52)\u00a0
\u00a0
\u00a0(4)
\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0(45)\u00a0
\u00a0
\u00a0(4)
Net cash
\u00a0
\u00a049\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0(51)\u00a0
\u00a0
\u00a0(10)
Exchange movements
\u00a0
\u00a0(55)\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a051\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(4)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a020\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(17)\u00a0
\u00a0
\u00a0
\u00a0
\u00a03\u00a0
Amount recognised on the balance sheet
\u00a0
\u00a0(660)\u00a0
\u00a0
\u00a0640\u00a0
\u00a0
\u00a0(20)
\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0609\u00a0
\u00a0
\u00a0(16)
Amount recognised on the balance sheet\u00a0\u2013
liability
\u00a0
\u00a0(230)\u00a0
\u00a0
\u00a0146\u00a0
\u00a0
\u00a0(84)
\u00a0
\u00a0
\u00a0(213)\u00a0
\u00a0
\u00a0134\u00a0
\u00a0
\u00a0(79)
Amount recognised on the balance sheet\u00a0\u2013
asset
\u00a0
\u00a0(430)\u00a0
\u00a0
\u00a0494\u00a0
\u00a0
\u00a064\u00a0
\u00a0
\u00a0
\u00a0(412)\u00a0
\u00a0
\u00a0475\u00a0
\u00a0
\u00a063\u00a0
\n
Represented by:
\n \n \n
2025
2024
\u00a0
\u00a0
Obligation
Asset
Total
Obligation
Asset
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
UK Plan
\u00a0(414)\u00a0
\u00a0
\u00a0478\u00a0
\u00a0
\u00a064\u00a0
\u00a0(396)
\u00a0459\u00a0
\u00a063\u00a0
Other Plans
\u00a0(246)\u00a0
\u00a0
\u00a0162\u00a0
\u00a0
\u00a0(84)
\u00a0(229)
\u00a0150\u00a0
\u00a0(79)
Total
\u00a0(660)\u00a0
\u00a0
\u00a0640\u00a0
\u00a0
\u00a0(20)
\u00a0(625)
\u00a0609\u00a0
\u00a0(16)
\n
The actuarial gain on obligation of $13m primarily relates to the increase in discount rates in 2025 compared to 2024 and the
\n
actuarial loss from the return on plan assets of $8m is mainly due to the impact of the UK Plan.
\n
All bene\ufb01ts are vested at the end of each reporting period. The weighted average duration of the de\ufb01ned bene\ufb01t obligation at the
\n
end\u00a0of\u00a0the reporting period is 13 years for the UK Plan.
18.3
Plan assets
The market value of the US, UK and Other Plans assets are as follows:
\n \n
2025
2024
2023
$\u00a0million
$\u00a0million
$\u00a0million
UK Plan:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Assets with a quoted market price:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a056\u00a0
\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a061\u00a0
Other bonds
\u00a08\u00a0
\u00a0
\u00a0
\u00a07\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a064\u00a0
\u00a0
\u00a0
\u00a063\u00a0
\u00a0
\u00a061\u00a0
Other assets:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Insurance contract
\u00a0414\u00a0
\u00a0
\u00a0
\u00a0396\u00a0
\u00a0
\u00a0457\u00a0
Market value of assets
\u00a0478\u00a0
\u00a0
\u00a0
\u00a0459\u00a0
\u00a0
\u00a0518\u00a0
US Plan:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Assets with a quoted market price:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0267\u00a0
Market value of assets
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0267\u00a0
Other Plans:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Assets with a quoted market price:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a08\u00a0
\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a07\u00a0
Equity securities
\u00a056\u00a0
\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a050\u00a0
Government bonds\u00a0\u2013 \ufb01xed interest
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a05\u00a0
Corporate and other bonds
\u00a013\u00a0
\u00a0
\u00a0
\u00a012\u00a0
\u00a0
\u00a010\u00a0
Insurance contracts
\u00a019\u00a0
\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a023\u00a0
Property
\u00a024\u00a0
\u00a0
\u00a0
\u00a025\u00a0
\u00a0
\u00a028\u00a0
Other quoted securities
\u00a014\u00a0
\u00a0
\u00a0
\u00a011\u00a0
\u00a0
\u00a010\u00a0
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0130\u00a0
\u00a0
\u00a0133\u00a0
Other assets:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Insurance contracts
\u00a022\u00a0
\u00a0
\u00a0
\u00a020\u00a0
\u00a0
\u00a024\u00a0
Market value of assets
\u00a0162\u00a0
\u00a0
\u00a0
\u00a0150\u00a0
\u00a0
\u00a0157\u00a0
Total market value of assets
\u00a0640\u00a0
\u00a0
\u00a0
\u00a0609\u00a0
\u00a0
\u00a0942\u00a0
No plans invest directly in property occupied by the Group or in \ufb01nancial securities issued by the Group.
The UK Plan is comprised of annuity policies purchased by the Trustee. In 2024, following the US scheme termination,
the investment risks have been transferred to a US Life Insurer.
18.4
Expenses recognised in the income statement
\n
The total expense relating to retirement bene\ufb01ts recognised for the year is $94m (2024: $95m, 2023: $95m). Of this cost recognised
\n
for\u00a0the year, $81m (2024: $89m, 2023: $84m) relates to de\ufb01ned contribution plans and $13m (2024: $6m, 2023: $11m) relates to
\n
de\ufb01ned\u00a0bene\ufb01t plans.
\n
The cost charged in respect of the Group\u2019s de\ufb01ned contribution plans represents contributions payable to these plans by the Group at
\n
rates speci\ufb01ed in the rules of the Plans. These were charged to operating pro\ufb01t in costs of goods sold, selling, general and administrative
\n
expenses, and research and development expenses. There were $nil outstanding payments as at\u00a031 December 2025 due to be paid
\n
over\u00a0to the Plans (2024: $nil, 2023: $nil).
\n
De\ufb01ned bene\ufb01t plan costs comprise service cost which is charged to operating pro\ufb01t in selling, general and administrative expenses
\n
and\u00a0net interest cost and administration costs and taxes which are reported as other \ufb01nance costs.
\n
The de\ufb01ned bene\ufb01t pension costs charged for the UK and US Plans are $nil (2024: $nil, 2023: $nil).
\n
18.5
Principal actuarial assumptions
\n
The following are the principal \ufb01nancial actuarial assumptions used at the reporting date to determine the UK and US de\ufb01ned bene\ufb01t
\n
obligations and expense.
\n \n \n
2025
2024
2023
%\u00a0per\u00a0annum
%\u00a0per\u00a0annum
%\u00a0per\u00a0annum
UK Plan:
Discount rate
\u00a05.5\u00a0
\u00a05.5\u00a0
\u00a04.5\u00a0
Future salary increases
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a0n/a\u00a0
Future pension increases
\u00a02.8\u00a0
\u00a03.0\u00a0
\u00a03.0\u00a0
In\ufb02ation (RPI)
\u00a02.9\u00a0
\u00a03.2\u00a0
\u00a03.1\u00a0
In\ufb02ation (CPI)
\u00a02.4\u00a0
\u00a02.7\u00a0
\u00a02.5\u00a0
US Plan:
Discount rate
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a05.0\u00a0
Future salary increases
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a0n/a\u00a0
In\ufb02ation
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\n
Actuarial assumptions regarding future mortality are based on mortality tables. The UK uses the S3NA with projections in line with
\n
the\u00a0CMI 2024 table, which places partial weight on post pandemic experience. The Directors will continue to monitor any potential
\n
future impact on the mortality assumptions used.
\n
The current longevities underlying the values of the obligations in the de\ufb01ned bene\ufb01t plans are as follows:
\n \n \n
2025
2024
2023
years
years
years
Life expectancy at age 60
UK Plan:
Males
\u00a026.9\u00a0
\u00a026.6\u00a0
\u00a026.9\u00a0
Females
\u00a029.6\u00a0
\u00a029.5\u00a0
\u00a029.7\u00a0
US Plan:
Males
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a025.0\u00a0
Females
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a027.2\u00a0
Life expectancy at age 60 in 20\u00a0years\u2019 time
UK Plan:
Males
\u00a028.5\u00a0
\u00a028.1\u00a0
\u00a028.4\u00a0
Females
\u00a031.0\u00a0
\u00a030.9\u00a0
\u00a031.1\u00a0
US Plan:
Males
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a025.0\u00a0
Females
\u00a0n/a\u00a0
\u00a0n/a\u00a0
\u00a027.6\u00a0
18.6
Sensitivity analysis
\n
The calculation of the de\ufb01ned bene\ufb01t obligation is sensitive to the assumptions used. The following table summarises the increase/
\n
decrease on the\u00a0UK de\ufb01ned bene\ufb01t obligation and pension costs as a result of reasonably possible changes in some of the assumptions
\n
while holding all other assumptions consistent. The sensitivity to the in\ufb02ation assumption change includes corresponding changes to the
\n
future pension increase assumptions. The analysis does not take into account the full distribution of cash \ufb02ows expected under the Plan.
\n\n \n
Increase/(decrease) in
Increase /(decrease) in
pension obligation
pension cost
\u00a0
$ million
+50bps/+1yr
-50bps/-1yr
+50bps/+1yr
-50bps/-1yr\u00a0
UK Plan:
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Discount rate
\u00a0(25.0)
\u00a028.0\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
In\ufb02ation
\u00a021.5\u00a0
\u00a0(19.4)
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
Mortality
\u00a018.0\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(18.0)\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
18.7
Risk
\n
The pension plans expose the Group to the following risks:
\n\n \n
Interest rate risk
Volatility in \ufb01nancial markets can change the calculations of the obligation signi\ufb01cantly as the calculation
of\u00a0the obligation is linked to yields on AA rated corporate bonds. A decrease in the bond yield will increase
the measure of\u00a0plan liabilities, although this will be partially o\ufb00set by increases in the value of\u00a0matching
plan assets such as bonds and insurance contracts.
The UK buy-in in June 2023 removed all remaining material pension liability exposure from the balance
sheet, hence, eliminating the interest rate risk for the UK Plan. Following the completion of the US buy-out
on 4 January 2024, no further interest risk is linked to the valuation of liability for the US Plan as no liability
remains in the Plan.
In\ufb02ation risk
The UK Plan is linked to in\ufb02ation. A high rate of in\ufb02ation will lead to a higher liability. This risk is managed
by holding in\ufb02ation-linked bonds and an in\ufb02ation-linked insurance contract in respect of some of the
obligation. In the UK, the liability matching portfolio held in conventional and index-linked gilts was
transferred into liability driven investments in\u00a0order to reduce in\ufb02ation risk.
The UK Plan is closed to future accrual which reduces the exposure to this risk. The US Plan is also closed
to future accrual and has no other in\ufb02ation-linkage thus eliminating the exposure to this risk. Following the
full UK Pension buy-in in 2023, the residual in\ufb02ation risks associated with the UK Plan have been
transferred to the UK Plan\u2019s Life Insurance Partners.
Investment risk
If the return on plan assets is below the discount rate, all else being equal, there will be an increase
in\u00a0the\u00a0Plan de\ufb01cit.
In the UK, following the full buy-in for the UK Plan, the investment risk has been transferred to the UK
Plan\u2019s Life Insurer Partners.
The US Plan has a dynamic de-risking policy to shi\ufb05 plan assets from return-seeking (growth) assets to
liability matching assets over time. The US Pension Plan has an established glide path that is designed to
stabilise funding status by reducing the Plan\u2019s exposure to return-seeking assets. Following the completion
of the US buy-out on 4 January 2024, no further investment risk is linked to the valuation of liability for the
US Plan as no liability remains in the Plan.
Longevity risk
The present value of the Plan\u2019s de\ufb01ned bene\ufb01t liability is calculated by reference to the best estimate
of the mortality of the Plan participants both during and a\ufb05er their employment. An increase in the life
expectancy of plan participants above that assumed will increase the bene\ufb01t obligation.
Following the full buy-in, the UK Plan has entered into insurance contract which covers all of the
pensioners\u2019 obligations.
Following the completion of the US buy-out on 4 January 2024, there is no further longevity risk linked to
the valuation of liability for the US Plan as no liability remains in the Plan.
18.8
Funding
A full valuation is performed by actuaries for the Trustees/Pension Committee of each plan to determine the level of funding required.
Employer contribution rates, based on these full valuations, are agreed between the Trustees/Pension Committee of each plan and
the Group. The assumptions used in the actuarial valuations used for funding purposes may di\ufb00er from the accounting assumptions
set\u00a0out above.
UK Plan
The most recent full actuarial valuation of the UK Plan was undertaken as at 30 September 2023. Future accruals to the UK Plan ceased
as at 31 December 2016. Contributions to the UK Plan in 2025 were $nil (2024: $nil, 2023: $nil). This included supplementary payments
of\u00a0$nil (2024: $nil, 2023: $nil).
Following the completion of the 30 September 2023 valuation, a dynamic contribution mechanism was agreed. The Fund was expected
to be in surplus at 30 September 2023, therefore no recovery plan was required.
The Fund will meet administrative and other running
costs from the surplus, with no expense contributions due from the Company.
In 2023, the Trustees concluded a full buy-in of the UK De\ufb01ned Bene\ufb01t Fund. The transaction resulted in a $58m loss being
recognised in OCI with $nil cash impact. Following the conclusion of the UK full buy-in, no further contributions are expected from the
sponsor company.
US Plan
The most recent full actuarial valuation of the US Plan was undertaken as at 1 January 2022. Future accruals to the US Plan ceased as
at\u00a031 March 2014. Contributions to the US Plan were $nil (2024: $nil, 2023:\u00a0$nil) which represented supplementary payments of $nil
(2024: $nil, 2023: $nil).
A premium amount of $245m was paid in cash by the US Plan on 4 January 2024 to settle the annuity purchase agreement with Fidelity
& Guaranty Life. $4m of settlement costs were accounted for in 2023 and are linked to the lump sum payments settled in December
2023 of $80m. A $2m credit was recorded in 2024 linked to the annuity purchase contract concluded with Fidelity & Guaranty Life
on\u00a04 January 2024.22.1
Share-based payments
\n
Accounting policy
\n
The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards,
\n
the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over
\n
the vesting period as an expense, with a corresponding increase in retained earnings.
\n
The Group operates the following equity-settled and employee shareplans: Smith & Nephew Global Share Plan 2010, Smith &
\n
Nephew Global Share Plan 2020, Smith & Nephew Share Save Plan (2012) and Smith & Nephew International Share Save Plan\u00a0(2012).
\n
At 31 December 2025, 3,259,000 options (2024: 4,587,000, 2023: 5,138,000) were outstanding with a range of exercise\u00a0prices\u00a0from
\n
843\u00a0to 1,235 pence.
\n
At 31 December 2025, the maximum number of shares that could be awarded under the Group\u2019s long-term incentive plans was
\n
7,542,000 (2024: 9,899,000, 2023: 8,452,000). These include conditional share awards granted to senior employees and equity
\n
and\u00a0performance share awards granted to senior executives under the Global Share Plan 2010 and Global Share Plan 2020.
\n
The expense charged to the income statement for share-based payments for the year is $43m (2024: $40m, 2023: $39m).
\n
22.2
Related party transactions
\n
Trading transactions
\n
In the course of normal operations, the Group traded with its associates detailed in Note 11. The aggregated transactions,
\n
which\u00a0have not been disclosed elsewhere in the \ufb01nancial statements, are $nil (2024: $nil, 2023: $nil).
\n
Key management personnel
\n
The remuneration of Executive O\ufb03cers (including Executive Directors and Non-Executive Directors) during the year is
\n
summarised below:
2025
2024
2023\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
\u00a0
Short-term employee bene\ufb01ts
\u00a023\u00a0
\u00a022\u00a0
\u00a021\u00a0
Share-based payments expense
\u00a015\u00a0
\u00a010\u00a0
\u00a09\u00a0
Pension and post-employment bene\ufb01t entitlements
\u00a02\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a040\u00a0
\u00a033\u00a0
\u00a031\u00a0
\n
Directors\u2019 remuneration disclosures are included on pages 147\u2013193.
\n
Retirement bene\ufb01t schemes
\nDetails of the Group\u2019s retirement bene\ufb01t schemes are set out in Note 18. ", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00434": { "value": "3.2
Audit Fees \u2013 information about the nature and cost of services provided by the auditors
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Audit services:
Group accounts
\u00a07.3\u00a0
\u00a0
\u00a0
\u00a07.1\u00a0
\u00a0
\u00a07.9\u00a0
Local statutory audit pursuant to legislation
\u00a02.1\u00a0
\u00a0
\u00a0
\u00a02.0\u00a0
\u00a0
\u00a02.1\u00a0
Other services:
Audit-related services
\u00a00.6\u00a0
\u00a0
\u00a0
\u00a00.4\u00a0
\u00a0
\u00a00.3\u00a0
Total auditor\u2019s remuneration
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
Arising:
In the UK
\u00a07.4\u00a0
\u00a0
\u00a0
\u00a07.0\u00a0
\u00a0
\u00a06.0\u00a0
Outside the UK
\u00a02.6\u00a0
\u00a0
\u00a0
\u00a02.5\u00a0
\u00a0
\u00a04.3\u00a0
\u00a010.0\u00a0
\u00a0
\u00a0
\u00a09.5\u00a0
\u00a0
\u00a010.3\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00440": { "value": "4
Interest and other \ufb01nance costs
4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n
4.2
Other \ufb01nance costs
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Retirement bene\ufb01t net interest expense
\u00a018\u00a0
\u00a0(6)
\u00a0(4)
\u00a0(1)
Unwinding of discount
1
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(33)
\u00a0(19)
\u00a0(6)
Investment income relating to deferred compensation arrangements
\u00a0
\u00a0
\u00a014\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Gain on repurchase of bonds
\u00a015\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Other
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(1)
\u00a0(5)
\u00a0\u2013\u00a0
Other \ufb01nance costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(16)
\u00a0(28)
\u00a0(7)
\n
1
Includes discount unwind on provision for metal-on-metal hip claims and acquisition related liabilities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00439": { "value": "4
Interest and other \ufb01nance costs
4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n
4.2
Other \ufb01nance costs
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Retirement bene\ufb01t net interest expense
\u00a018\u00a0
\u00a0(6)
\u00a0(4)
\u00a0(1)
Unwinding of discount
1
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(33)
\u00a0(19)
\u00a0(6)
Investment income relating to deferred compensation arrangements
\u00a0
\u00a0
\u00a014\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Gain on repurchase of bonds
\u00a015\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Other
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(1)
\u00a0(5)
\u00a0\u2013\u00a0
Other \ufb01nance costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(16)
\u00a0(28)
\u00a0(7)
\n
1
Includes discount unwind on provision for metal-on-metal hip claims and acquisition related liabilities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00438": { "value": "4
Interest and other \ufb01nance costs
4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n
4.2
Other \ufb01nance costs
\n\n \u00a0 \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Retirement bene\ufb01t net interest expense
\u00a018\u00a0
\u00a0(6)
\u00a0(4)
\u00a0(1)
Unwinding of discount
1
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(33)
\u00a0(19)
\u00a0(6)
Investment income relating to deferred compensation arrangements
\u00a0
\u00a0
\u00a014\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Gain on repurchase of bonds
\u00a015\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
Other
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(1)
\u00a0(5)
\u00a0\u2013\u00a0
Other \ufb01nance costs
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(16)
\u00a0(28)
\u00a0(7)
\n
1
Includes discount unwind on provision for metal-on-metal hip claims and acquisition related liabilities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00437": { "value": "4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00436": { "value": "4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00435": { "value": "4.1
Interest income/(expense)
\n\n \u00a0 \u00a0 \u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Interest income
\u00a028\u00a0
\u00a0
\u00a0
\u00a024\u00a0
\u00a0
\u00a034\u00a0
Interest expense:
Bank borrowings
\u00a0(5)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(10)
Private placement notes
\u00a0(19)
\u00a0
\u00a0
\u00a0(29)\u00a0
\u00a0
\u00a0(38)
Corporate bond
\u00a0(104)
\u00a0
\u00a0
\u00a0(89)\u00a0
\u00a0
\u00a0(46)
Lease liabilities
\u00a0(8)
\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(8)
Other
\u00a0(4)
\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(30)
\u00a0(140)
\u00a0
\u00a0
\u00a0(145)\u00a0
\u00a0
\u00a0(132)
Net interest expense
\u00a0(112)
\u00a0
\u00a0
\u00a0(121)\u00a0
\u00a0
\u00a0(98)
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00441": { "value": "5
Taxation
Accounting policy
The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or non-deductible.
It is calculated using tax rates that have been enacted or substantively enacted as at the balance sheet date.
The Group operates in numerous tax jurisdictions around the world. At any given time, the Group typically is involved in tax audits
and other disputes and will have other tax returns potentially subject to audit. Signi\ufb01cant issues may take several years to resolve.
In estimating the probability and amount of any tax charge, management takes into account the views of internal and external
advisers and updates the amount of tax provision where considered appropriate. The ultimate tax liability may di\ufb00er from the
amount\u00a0provided depending on factors including interpretations of\u00a0tax law and settlement negotiations.
Deferred tax is recognised in respect of temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised: for temporary di\ufb00erences related to investments in subsidiaries and associates where the Group is
able to control the timing of the reversal of the temporary di\ufb00erence and it is probable that this will not reverse in the foreseeable
future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that
is\u00a0not a business combination and that, at the time of the transaction, does not a\ufb00ect the accounting or taxable pro\ufb01t.
Deferred tax assets are recognised to the extent that it is probable that future taxable pro\ufb01ts will be available against which they
can\u00a0be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets,
future pro\ufb01tability and any restrictions on use. The Group considers available evidence to assess future pro\ufb01tability over a reasonably
foreseeable time period, depending on the circumstances and typically a minimum of \ufb01ve years. Any material unrecognised deferred
tax assets are disclosed in Note 5.2.
Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the
balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income
statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case
the\u00a0deferred tax is also recognised within other comprehensive income or equity respectively.
Deferred tax assets and liabilities are o\ufb00set when they relate to income taxes levied by the same taxation authority, the Group
intends to settle its current tax assets and liabilities on a net basis, o\ufb00set is permissible according to the relevant jurisdiction\u2019s
tax\u00a0laws and that authority permits the Group to make a single net payment.
5.1
Taxation charge attributable to the Group
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current taxation:\u00a0
UK corporation tax at 25.0% (2024: 25.0%; 2023: 23.5%)
\u00a023\u00a0
\u00a013\u00a0
\u00a015\u00a0
Overseas tax
\u00a0147\u00a0
\u00a0182\u00a0
\u00a0165\u00a0
Current income tax charge
\u00a0170\u00a0
\u00a0195\u00a0
\u00a0180\u00a0
Adjustments in respect of prior periods
\u00a0(41)
\u00a0(37)
\u00a0(45)
Total current taxation
\u00a0129\u00a0
\u00a0158\u00a0
\u00a0135\u00a0
Deferred taxation:
Origination and reversal of temporary di\ufb00erences
\u00a010\u00a0
\u00a0(79)
\u00a0(116)
Changes in tax rates
\u00a0(1)
\u00a0\u2013\u00a0
\u00a0(2)
Adjustments to estimated amounts arising in prior periods
\u00a016\u00a0
\u00a07\u00a0
\u00a010\u00a0
Total deferred taxation
\u00a025\u00a0
\u00a0(72)
\u00a0(108)
Total taxation as per the income statement
\u00a0154\u00a0
\u00a086\u00a0
\u00a027\u00a0
Taxation in other comprehensive income
\u00a0(4)
\u00a06\u00a0
\u00a0(18)
Taxation in equity
\u00a0(4)
\u00a01\u00a0
\u00a0\u2013\u00a0
Taxation charge attributable to the Group
\u00a0146\u00a0
\u00a093\u00a0
\u00a09\u00a0
The 2025, 2024 and 2023 net prior period adjustments of $25m, $30m and $35m respectively relate principally to provision releases
\n
following the resolution of tax audits and other uncertain tax matters, and other one-o\ufb00 items.
\n
The total taxation charge of $154m as per the income statement includes a $58m net credit (2024: $87m net credit, 2023: $113m net
\n
credit) as a consequence of restructuring and rationalisation-related costs, acquisition and disposal-related items, amortisation and
\n
impairment of acquisition intangibles and legal and other items.
\n
Factors a\ufb00ecting future tax charges
\n
The Group operates in numerous tax jurisdictions around the world and is subject to factors that may a\ufb00ect future tax charges, including
\n
transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statute of limitations, tax litigation,
\n
and\u00a0resolution of tax audits and disputes.
\n
At any given time, the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some
\n
of which may take several years to resolve. Provisions are based on best estimates and management\u2019s judgements concerning the
\n
likely ultimate outcome of any audit or dispute. Management considers the speci\ufb01c circumstances of each tax position and takes
\n
external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. Total tax
\n
liabilities include $71m (2024: $95m) in relation to uncertain tax positions which relate to multiple issues across the jurisdictions in
\n
which the Group operates. Other payables include $17m (2024: $14m) of interest on these provisions. There are $16m (2024: $34m)
\n
of\u00a0tax receivables.
\n
The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from unagreed years, tax
\n
audits and disputes, the majority of which relate to transfer pricing matters, as would be expected for a Group operating internationally.
\n
However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting in a negative or positive
\n
e\ufb00ect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons such as an expiry of the relevant
\n
statute of limitations. Depending on the \ufb01nal outcome of tax audits which are currently in progress, statute of limitations expiry, and
\n
other factors, an impact on the tax charge could arise. While such an impact can vary from year to year, these releases depend on
\n
factors which are uncertain, both as to outcome and timing. However, at the current time, we believe the possibility of a material impact
\n
on\u00a0the tax charge for 2026 is unlikely.
\n
Pillar Two
\n
The OECD Pillar Two GloBE Rules (Pillar Two) introduced a global minimum corporation tax rate of 15% applicable to multinational
\n
enterprise groups with global revenue over \u20ac750m. The Pillar Two rules \ufb01rst applied to the Group for its accounting period commencing
\n
1 January 2024.
\n
On 23 May 2023, the International Accounting Standards Board (IASB) amended IAS 12 to introduce a mandatory temporary exception
\n
to the accounting for deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules. On 19 July 2023 the UK
\n
Endorsement Board adopted the IASB amendments to IAS 12.
\n
The Group has performed an assessment of its exposure to Pillar Two income taxes and the Pillar Two current tax charge for the period
\n
ended 31 December 2025 is approximately $8m (2024:$8m).
\n
The Group is adopting the mandatory temporary exception from the recognition and disclosure of deferred taxes arising the Pillar Two
\n
model rules.
\n
The Group does not meet the threshold for application of the Pillar One transfer pricing rules.
The UK standard rate of corporation tax for 2025 is 25.0% (2024: 25.0%, 2023: 23.5%). Overseas taxation is calculated at the rates prevailing
in\u00a0the respective jurisdictions. The table below reconciles the expected tax charge at the UK statutory rate with the actual tax charge.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Pro\ufb01t before taxation
\u00a0779\u00a0
\u00a0498\u00a0
\u00a0290\u00a0
Expected taxation at UK statutory rate of 25.0% (2024: 25.0%, 2023: 23.5%)
\u00a0195\u00a0
\u00a0125\u00a0
\u00a068\u00a0
Di\ufb00erences in overseas taxation rates
1
\u00a0(30)
\u00a0(33)
\u00a0(24)
Innovation reliefs
2
\u00a0(9)
\u00a0(10)
\u00a0(7)
Recognition of previously unrecognised temporary di\ufb00erences
3
\u00a0(10)
\u00a0(8)
\u00a0(14)
Expenses not deductible for tax purposes
4
\u00a024\u00a0
\u00a032\u00a0
\u00a038\u00a0
Pillar Two top up taxes
5
\u00a08\u00a0
\u00a08\u00a0
\u00a0\u2013\u00a0
Change in tax rates
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(2)
Withholding tax
\u00a03\u00a0
\u00a02\u00a0
\u00a03\u00a0
Adjustments in respect of prior\u00a0years
6
\u00a0(25)
\u00a0(30)
\u00a0(35)
Total taxation charge as per the income statement
\u00a0154\u00a0
\u00a086\u00a0
\u00a027\u00a0
\n
1
Di\ufb00erence between pro\ufb01ts taxed at UK tax rate and countries with a lower tax rate, partially o\ufb00set by pro\ufb01ts taxed in countries with a higher tax rate than the UK.
2
Innovation incentives relating to R&D expenditure and income arising from UK patents.
3
Deferred tax credit arising from reassessment of deferred tax asset recoverability using latest forecasts.
4
In 2025, this includes a $13m impact relating to non-tax deductible acquisition related costs, and other permanent di\ufb00erences where items are deductible
for accounting but not tax purposes (2024: $16m impact of non-tax deductible impairment on UK owned investments, 2023: $7m impact of non-tax
deductible impairment on UK owned investments).
5
Additional taxes arising from the implementation of Pillar Two legislation (see above) which was e\ufb00ective from 1 January 2024.
6
The adjustments in respect of prior years are explained on page 224.
5.2
Deferred taxation
Movements in the main components of deferred tax assets and liabilities were as follows:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Inventory,
Accelerated
Retirement
Losses
provisions
tax
bene\ufb01t
and other
and\u00a0other
depreciation
Intangibles
obligations
tax credits
di\ufb00erences
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
At 31 December 2023
\u00a0(91)
\u00a0(138)
\u00a0(6)
\u00a0198\u00a0
\u00a0302\u00a0
\u00a0265\u00a0
Exchange adjustment
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0(7)
\u00a0(8)
Movement in income statement\u00a0\u2013 current\u00a0year
\u00a07\u00a0
\u00a022\u00a0
\u00a04\u00a0
\u00a032\u00a0
\u00a014\u00a0
\u00a079\u00a0
Movement in income statement\u00a0\u2013 prior\u00a0years
\u00a0(11)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a0(7)
Movement in other comprehensive income
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0\u2013\u00a0
\u00a0(5)
\u00a0(6)
Movement in equity
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0(1)
Acquisitions
\u00a0\u2013\u00a0
\u00a0(19)
\u00a0\u2013\u00a0
\u00a016\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
At 31 December\u00a02024
\u00a0(95)
\u00a0(135)
\u00a0(3)
\u00a0245\u00a0
\u00a0307\u00a0
\u00a0319\u00a0
Exchange adjustment
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(1)
\u00a05\u00a0
\u00a03\u00a0
\u00a05\u00a0
Movement in income statement\u00a0\u2013 current\u00a0year
\u00a0(18)
\u00a018\u00a0
\u00a0(1)
\u00a0(4)
\u00a0(5)
\u00a0(10)
Movement in income statement\u00a0\u2013 prior\u00a0years
\u00a0(16)
\u00a017\u00a0
\u00a0\u2013\u00a0
\u00a0(7)
\u00a0(10)
\u00a0(16)
Movement in other comprehensive income
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a04\u00a0
Changes in tax rate
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a01\u00a0
Movement in equity
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a04\u00a0
At 31 December\u00a02025
\u00a0(131)
\u00a0(100)
\u00a0(6)
\u00a0239\u00a0
\u00a0305\u00a0
\u00a0307\u00a0
\n
Represented by:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Deferred tax assets
\u00a0347\u00a0
\u00a0350\u00a0
Deferred tax liabilities
\u00a0(40)
\u00a0(31)
Net position at 31 December
\u00a0307\u00a0
\u00a0319\u00a0
The deferred tax asset of $305m (2024: $307m) relating to inventory, provisions and other di\ufb00erences comprises deferred tax relating
to inventory of $127m (2024: $92m), provisions and other short-term temporary di\ufb00erences of $169m (2024: $206m) and bad debt
provisions of $9m (2024: $9m).
The Group has gross unused tax losses and other credits of $1,368m (2024: $1,342m), gross unused research and development tax
credits of $24m (2024: $28m) and gross unused capital losses of $153m (2024: $142m), available for o\ufb00set against future pro\ufb01ts. $313m
of losses will expire within 3-7 years from the balance sheet date if not utilised.
A deferred tax asset of $239m (2024: $245m) has been recognised in respect of $1,112m (2024: $1,094m) of tax\u00a0losses and other tax
credits and $12m (2024: $16m) of research and development tax credits. No deferred tax asset has been recognised on the remaining
unused tax losses as it is not probable that future taxable pro\ufb01ts will be available against which they can be utilised.
Management will reassess the recoverability of deferred tax assets at each balance sheet date by taking into account all relevant and
available information. The Group assesses the likelihood of these being recovered within a reasonably foreseeable timeframe, being
typically a minimum of \ufb01ve years, taking into account the future expected pro\ufb01t pro\ufb01le and business model of each relevant company
or country, and any potential legislative restrictions on use. Short-term timing di\ufb00erences are generally recognised ahead of losses
and\u00a0other tax attributes as being likely to reverse more quickly.", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00513": { "value": "Accounting policy
The charge for current taxation is based on the results for the year as adjusted for items which are non-assessable or non-deductible.
It is calculated using tax rates that have been enacted or substantively enacted as at the balance sheet date.
The Group operates in numerous tax jurisdictions around the world. At any given time, the Group typically is involved in tax audits
and other disputes and will have other tax returns potentially subject to audit. Signi\ufb01cant issues may take several years to resolve.
In estimating the probability and amount of any tax charge, management takes into account the views of internal and external
advisers and updates the amount of tax provision where considered appropriate. The ultimate tax liability may di\ufb00er from the
amount\u00a0provided depending on factors including interpretations of\u00a0tax law and settlement negotiations.
Deferred tax is recognised in respect of temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised: for temporary di\ufb00erences related to investments in subsidiaries and associates where the Group is
able to control the timing of the reversal of the temporary di\ufb00erence and it is probable that this will not reverse in the foreseeable
future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that
is\u00a0not a business combination and that, at the time of the transaction, does not a\ufb00ect the accounting or taxable pro\ufb01t.
Deferred tax assets are recognised to the extent that it is probable that future taxable pro\ufb01ts will be available against which they
can\u00a0be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets,
future pro\ufb01tability and any restrictions on use. The Group considers available evidence to assess future pro\ufb01tability over a reasonably
foreseeable time period, depending on the circumstances and typically a minimum of \ufb01ve years. Any material unrecognised deferred
tax assets are disclosed in Note 5.2.
Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the
balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income
statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case
the\u00a0deferred tax is also recognised within other comprehensive income or equity respectively.
Deferred tax assets and liabilities are o\ufb00set when they relate to income taxes levied by the same taxation authority, the Group
intends to settle its current tax assets and liabilities on a net basis, o\ufb00set is permissible according to the relevant jurisdiction\u2019s
tax\u00a0laws and that authority permits the Group to make a single net payment. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00514": { "value": "Deferred tax is recognised in respect of temporary di\ufb00erences between the carrying amounts of assets and liabilities for \ufb01nancial
reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised: for temporary di\ufb00erences related to investments in subsidiaries and associates where the Group is
able to control the timing of the reversal of the temporary di\ufb00erence and it is probable that this will not reverse in the foreseeable
future; on the initial recognition of non-deductible goodwill; and on the initial recognition of an asset or liability in a transaction that
is\u00a0not a business combination and that, at the time of the transaction, does not a\ufb00ect the accounting or taxable pro\ufb01t.
Deferred tax assets are recognised to the extent that it is probable that future taxable pro\ufb01ts will be available against which they
can\u00a0be used. Deferred tax assets are reviewed at each reporting date taking into account the recoverability of the deferred tax assets,
future pro\ufb01tability and any restrictions on use. The Group considers available evidence to assess future pro\ufb01tability over a reasonably
foreseeable time period, depending on the circumstances and typically a minimum of \ufb01ve years. Any material unrecognised deferred
tax assets are disclosed in Note 5.2.
Deferred tax is measured on an undiscounted basis, and at the tax rates that have been enacted or substantively enacted as at the
balance sheet date that are expected to apply in the periods in which the asset or liability is settled. It is recognised in the income
statement except when it relates to items credited or charged directly to other comprehensive income or equity, in which case
the\u00a0deferred tax is also recognised within other comprehensive income or equity respectively.
Deferred tax assets and liabilities are o\ufb00set when they relate to income taxes levied by the same taxation authority, the Group
intends to settle its current tax assets and liabilities on a net basis, o\ufb00set is permissible according to the relevant jurisdiction\u2019s
tax\u00a0laws and that authority permits the Group to make a single net payment. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00421": { "value": "At any given time, the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some
of which may take several years to resolve. Provisions are based on best estimates and management\u2019s judgements concerning the
\n
likely ultimate outcome of any audit or dispute. Management considers the speci\ufb01c circumstances of each tax position and takes
\n
external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. Total tax
\n
liabilities include $71m (2024: $95m) in relation to uncertain tax positions which relate to multiple issues across the jurisdictions in
\n
which the Group operates. Other payables include $17m (2024: $14m) of interest on these provisions. There are $16m (2024: $34m)
\nof\u00a0tax receivables.", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00442": { "value": "5.2
Deferred taxation
Movements in the main components of deferred tax assets and liabilities were as follows:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Inventory,
Accelerated
Retirement
Losses
provisions
tax
bene\ufb01t
and other
and\u00a0other
depreciation
Intangibles
obligations
tax credits
di\ufb00erences
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
At 31 December 2023
\u00a0(91)
\u00a0(138)
\u00a0(6)
\u00a0198\u00a0
\u00a0302\u00a0
\u00a0265\u00a0
Exchange adjustment
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0(7)
\u00a0(8)
Movement in income statement\u00a0\u2013 current\u00a0year
\u00a07\u00a0
\u00a022\u00a0
\u00a04\u00a0
\u00a032\u00a0
\u00a014\u00a0
\u00a079\u00a0
Movement in income statement\u00a0\u2013 prior\u00a0years
\u00a0(11)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a0(7)
Movement in other comprehensive income
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0\u2013\u00a0
\u00a0(5)
\u00a0(6)
Movement in equity
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0(1)
Acquisitions
\u00a0\u2013\u00a0
\u00a0(19)
\u00a0\u2013\u00a0
\u00a016\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
At 31 December\u00a02024
\u00a0(95)
\u00a0(135)
\u00a0(3)
\u00a0245\u00a0
\u00a0307\u00a0
\u00a0319\u00a0
Exchange adjustment
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(1)
\u00a05\u00a0
\u00a03\u00a0
\u00a05\u00a0
Movement in income statement\u00a0\u2013 current\u00a0year
\u00a0(18)
\u00a018\u00a0
\u00a0(1)
\u00a0(4)
\u00a0(5)
\u00a0(10)
Movement in income statement\u00a0\u2013 prior\u00a0years
\u00a0(16)
\u00a017\u00a0
\u00a0\u2013\u00a0
\u00a0(7)
\u00a0(10)
\u00a0(16)
Movement in other comprehensive income
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a04\u00a0
Changes in tax rate
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(1)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a01\u00a0
Movement in equity
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a04\u00a0
\u00a04\u00a0
At 31 December\u00a02025
\u00a0(131)
\u00a0(100)
\u00a0(6)
\u00a0239\u00a0
\u00a0305\u00a0
\u00a0307\u00a0
\n
Represented by:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Deferred tax assets
\u00a0347\u00a0
\u00a0350\u00a0
Deferred tax liabilities
\u00a0(40)
\u00a0(31)
Net position at 31 December
\u00a0307\u00a0
\u00a0319\u00a0
The deferred tax asset of $305m (2024: $307m) relating to inventory, provisions and other di\ufb00erences comprises deferred tax relating
to inventory of $127m (2024: $92m), provisions and other short-term temporary di\ufb00erences of $169m (2024: $206m) and bad debt
provisions of $9m (2024: $9m).
The Group has gross unused tax losses and other credits of $1,368m (2024: $1,342m), gross unused research and development tax
credits of $24m (2024: $28m) and gross unused capital losses of $153m (2024: $142m), available for o\ufb00set against future pro\ufb01ts. $313m
of losses will expire within 3-7 years from the balance sheet date if not utilised.
A deferred tax asset of $239m (2024: $245m) has been recognised in respect of $1,112m (2024: $1,094m) of tax\u00a0losses and other tax
credits and $12m (2024: $16m) of research and development tax credits. No deferred tax asset has been recognised on the remaining
unused tax losses as it is not probable that future taxable pro\ufb01ts will be available against which they can be utilised.
Management will reassess the recoverability of deferred tax assets at each balance sheet date by taking into account all relevant and
available information. The Group assesses the likelihood of these being recovered within a reasonably foreseeable timeframe, being
typically a minimum of \ufb01ve years, taking into account the future expected pro\ufb01t pro\ufb01le and business model of each relevant company
or country, and any potential legislative restrictions on use. Short-term timing di\ufb00erences are generally recognised ahead of losses
and\u00a0other tax attributes as being likely to reverse more quickly.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00443": { "value": "6
Earnings per ordinary share
Accounting policy
Earnings per share
Basic earnings per share is calculated by dividing the pro\ufb01t attributable to equity holders by the weighted average number of
ordinary\u00a0shares in\u00a0issue during the year, excluding shares held by the Company in the Employees\u2019 Share Trust or as treasury shares.
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the basic earnings per share for the e\ufb00ect of conversion to ordinary shares
associated with\u00a0dilutive potential ordinary shares, which comprise share options and awards granted to employees.
The calculations of the basic and diluted earnings per ordinary share are based on the following attributable pro\ufb01t and numbers
of shares:
\n\n \u00a0 \u00a0 \u00a0 \n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Earnings
Attributable pro\ufb01t for the\u00a0year
\u00a0625\u00a0
\u00a0412\u00a0
\u00a0263\u00a0
\n
The numerators used for basic and diluted earnings per ordinary share are the same. The denominators used for all categories of earnings
per ordinary share are as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
2023\u00a0
Number\u00a0of\u00a0shares\u00a0(millions)
Basic weighted number of shares
\u00a0867\u00a0
\u00a0873\u00a0
\u00a0871\u00a0
Dilutive impact of share incentive schemes outstanding
\u00a06\u00a0
\u00a03\u00a0
\u00a02\u00a0
Diluted weighted average number of shares
\u00a0873\u00a0
\u00a0876\u00a0
\u00a0873\u00a0
Earnings per ordinary share
Basic
\u00a072.1\u00a2\u00a0
\u00a047.2\u00a2\u00a0
\u00a030.2\u00a2\u00a0
Diluted
\u00a071.6\u00a2\u00a0
\u00a047.0\u00a2\u00a0
\u00a030.1\u00a2\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00515": { "value": "Accounting policy
Earnings per share
Basic earnings per share is calculated by dividing the pro\ufb01t attributable to equity holders by the weighted average number of
ordinary\u00a0shares in\u00a0issue during the year, excluding shares held by the Company in the Employees\u2019 Share Trust or as treasury shares.
Diluted earnings per share
Diluted earnings per share is calculated by adjusting the basic earnings per share for the e\ufb00ect of conversion to ordinary shares
associated with\u00a0dilutive potential ordinary shares, which comprise share options and awards granted to employees.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00446": { "value": "7
Property, plant and equipment
Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
The Group manufactures orthopaedic instruments that are either deployed for use by customers under contractual arrangements or
sold outright to customers. The majority of these instruments are not sold but provided to customers for use in surgery.
At the time of manufacture, instruments are classi\ufb01ed either as Property, Plant and Equipment or Inventory based on management\u2019s
best estimate of expected deployment versus direct sales volumes. Instruments expected to be deployed for use by customers
over their useful economic lives of between three and seven years, are recognised initially as Property, Plant and Equipment.
Instruments expected to be sold outright to customers in the ordinary course of business are recognised as inventory. This estimate is
based on historical deployment and sales patterns, and future expectations, and is reassessed periodically.
Instruments are depreciated over their useful economic lives of between three and seven years once they are deployed.
Depreciation is calculated to write o\ufb00 the cost of items of property, plant and equipment less their estimated residual values using
the\u00a0straight-line method over their estimated useful lives, and is ultimately recognised in pro\ufb01t or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3\u201320 years
and for buildings is 20\u201350 years.
Assets in course of construction are not depreciated until they are available for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than
one year to complete are capitalised based on the Group weighted average borrowing costs. All other \ufb01nance costs are expensed
as incurred.
Leased assets
The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves
whether the Group obtains substantially all the economic bene\ufb01ts from the use of that asset and whether the Group has the right
to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component.
The non-lease component, where it is separately identi\ufb01able, is not included in the right-of-use asset.
The Group leases many assets including properties, motor vehicles and o\ufb03ce equipment. The Group availed itself of the exemptions
for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these
exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement
of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the
commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental
borrowing rate which is country-speci\ufb01c and re\ufb02ective of the lease term. The right-of-use asset is depreciated over the shorter
of\u00a0the\u00a0lease term or the useful life of the underlying asset.
Cash \ufb02ows arising on lease interest payments are included in operating cash \ufb02ows whereas cash \ufb02ows arising on the capital
repayments of the lease liability are included in \ufb01nancing cash \ufb02ows.
Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.
\n\n \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 \u00a0\n \n
Plant and equipment
Assets in
Land and
course of
buildings
Instruments
1
Other
construction
Total
\u00a0
\u00a0
\u00a0
\u00a0Notes\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
Cost
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0795\u00a0
\u00a01,844\u00a0
\u00a01,433\u00a0
\u00a0170\u00a0
\u00a04,242\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(15)
\u00a0(61)
\u00a0(18)
\u00a0\u2013\u00a0
\u00a0(94)
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0225\u00a0
\u00a035\u00a0
\u00a053\u00a0
\u00a0341\u00a0
Disposals
\u00a0
\u00a0
\u00a0(25)
\u00a0(84)
\u00a0(69)
\u00a0(7)
\u00a0(185)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(12)
\u00a0(12)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a06\u00a0
\u00a0\u2013\u00a0
\u00a068\u00a0
\u00a0(82)
\u00a0(8)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0789\u00a0
\u00a01,924\u00a0
\u00a01,449\u00a0
\u00a0122\u00a0
\u00a04,284\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a084\u00a0
\u00a0
\u00a042\u00a0
\u00a0
\u00a06\u00a0
\u00a0160\u00a0
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a044\u00a0
\u00a0
\u00a0211\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0131\u00a0
\u00a0415\u00a0
Disposals
\u00a0
\u00a0
\u00a0(91)\u00a0
\u00a0
\u00a0(96)\u00a0
\u00a0
\u00a0(93)\u00a0
\u00a0
\u00a0(5)
\u00a0(285)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a02\u00a0
\u00a0(10)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0166\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0(49)
\u00a0164\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0778\u00a0
\u00a02,289\u00a0
\u00a01,454\u00a0
\u00a0207\u00a0
\u00a04,728\u00a0
Depreciation and impairment
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0342\u00a0
\u00a01,452\u00a0
\u00a0978\u00a0
\u00a0\u2013\u00a0
\u00a02,772\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(8)
\u00a0(51)
\u00a0(12)
\u00a0\u2013\u00a0
\u00a0(71)
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a066\u00a0
\u00a0163\u00a0
\u00a096\u00a0
\u00a0\u2013\u00a0
\u00a0325\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(5)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
Disposals
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(24)
\u00a0(73)
\u00a0(64)
\u00a0\u2013\u00a0
\u00a0(161)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0371\u00a0
\u00a01,491\u00a0
\u00a01,000\u00a0
\u00a0\u2013\u00a0
\u00a02,862\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a032\u00a0
\u00a0\u2013\u00a0
\u00a0115\u00a0
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a0177\u00a0
\u00a0
\u00a099\u00a0
\u00a0\u2013\u00a0
\u00a0335\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(21)
Disposals
\u00a0
\u00a0
\u00a0(52)\u00a0
\u00a0
\u00a0(85)\u00a0
\u00a0
\u00a0(93)
\u00a0\u2013\u00a0
\u00a0(230)
Transfers
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a029\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0380\u00a0
\u00a01,681\u00a0
\u00a01,029\u00a0
\u00a0\u2013\u00a0
\u00a03,090\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0398\u00a0
\u00a0608\u00a0
\u00a0425\u00a0
\u00a0207\u00a0
\u00a01,638\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0418\u00a0
\u00a0433\u00a0
\u00a0449\u00a0
\u00a0122\u00a0
\u00a01,422\u00a0
\n
1
Instruments include $156m of assets not yet deployed, for which depreciation has not yet commenced.
Land and buildings includes land with a cost of $32m (2024: $37m) that is not subject to depreciation. Transfers from assets in course
of construction includes $2m (2024: $8m) of so\ufb05ware (refer to Note 9). Assets under construction in 2025 re\ufb02ect that the Group\u2019s
development of a new manufacturing facility in Hull, UK. Group capital expenditure relating to property, plant and equipment contracted
but not provided for amounted to $62m (2024: $15m). The amount of\u00a0borrowing costs capitalised in 2025 and 2024 was immaterial.
Information about the Group\u2019s right-of-use assets is outlined below:
\n\n \u00a0 \u00a0 \u00a0 \n \n
2025
2024
Land and
Plant and
Land and
Plant and
buildings
equipment
buildings
equipment
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Opening Balance
\u00a0137\u00a0
\u00a0
\u00a036\u00a0
\u00a0
\u00a0
\u00a0157\u00a0
\u00a0
\u00a028\u00a0
Exchange Adjustment
\u00a08\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0
\u00a0(5)\u00a0
\u00a0
\u00a0(1)
Additions
\u00a043\u00a0
\u00a0
\u00a015\u00a0
\u00a0
\u00a0
\u00a025\u00a0
\u00a0
\u00a022\u00a0
Depreciation charge in the year
\u00a0(35)\u00a0
\u00a0
\u00a0(14)
\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a0(13)
Impairment
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
Net book value at 31 December
\u00a0153\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0
137\u00a0
\u00a0
\u00a036\u00a0
\n15.1
Net debt
Net debt comprises borrowings and credit balances on currency swaps less cash and cash equivalents.
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Bank overdra\ufb05s, borrowings and loans - current
\u00a083\u00a0
\u00a0
\u00a0
\u00a02\u00a0
Corporate bond
\u00a02,478\u00a0
\u00a0
\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0550\u00a0
\u00a0
\u00a0
\u00a0625\u00a0
Borrowings
\u00a03,111\u00a0
\u00a0
\u00a0
\u00a03,125\u00a0
Cash and cash equivalents
1
\u00a0(557)
\u00a0
\u00a0
\u00a0(619)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
(Asset)/liability balance on derivatives\u00a0\u2013 interest rate swaps
\u00a0(11)
\u00a0
\u00a0
\u00a06\u00a0
Net debt excluding lease liabilities
\u00a02,543\u00a0
\u00a0
\u00a0
\u00a02,513\u00a0
Non-current lease liabilities
\u00a0149\u00a0
\u00a0
\u00a0
\u00a0135\u00a0
Current lease liabilities
\u00a067\u00a0
\u00a0
\u00a0
\u00a061\u00a0
Net debt
\u00a02,759\u00a0
\u00a0
\u00a0
\u00a02,709\u00a0
\n
1
In 2025, cash and cash equivalents include cash at bank of $457m (2024: $419m) and cash equivalents of $100m (2024: $200m).
Borrowings are repayable as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within
Between
Between
Between
Between
one\u00a0year\u00a0or
one\u00a0and
two\u00a0and
three\u00a0and
four\u00a0and
A\ufb05er
on\u00a0demand
two\u00a0years
three\u00a0years
four\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a08\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0
\u00a0349\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0591\u00a0
\u00a0
\u00a0897\u00a0
\u00a0
\u00a0641\u00a0
\u00a02,478\u00a0
Private placement notes
\u00a075\u00a0
\u00a0
\u00a0140\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0100\u00a0
\u00a0
\u00a095\u00a0
\u00a0
\u00a0155\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a067\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a038\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a017\u00a0
\u00a0
\u00a024\u00a0
\u00a0226\u00a0
\u00a0150\u00a0
\u00a0542\u00a0
\u00a098\u00a0
\u00a0718\u00a0
\u00a01,009\u00a0
\u00a0820\u00a0
\u00a03,337\u00a0
At 31 December\u00a02024
Bank overdra\ufb05s
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0348\u00a0
\u00a0\u2013\u00a0
\u00a0527\u00a0
\u00a01,623\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0\u2013\u00a0
\u00a075\u00a0
\u00a0140\u00a0
\u00a060\u00a0
\u00a0100\u00a0
\u00a0250\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a061\u00a0
\u00a046\u00a0
\u00a036\u00a0
\u00a023\u00a0
\u00a017\u00a0
\u00a024\u00a0
\u00a0207\u00a0
\u00a063\u00a0
\u00a0121\u00a0
\u00a0524\u00a0
\u00a083\u00a0
\u00a0644\u00a0
\u00a01,897\u00a0
\u00a03,332\u00a0
\n
1
The lease liabilities presented above of $226m (2024: $207m) are on an undiscounted basis. The lease liabilities on a discounted basis are $216m
(2024:\u00a0$196m).", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00444": { "value": "7
Property, plant and equipment
Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
The Group manufactures orthopaedic instruments that are either deployed for use by customers under contractual arrangements or
sold outright to customers. The majority of these instruments are not sold but provided to customers for use in surgery.
At the time of manufacture, instruments are classi\ufb01ed either as Property, Plant and Equipment or Inventory based on management\u2019s
best estimate of expected deployment versus direct sales volumes. Instruments expected to be deployed for use by customers
over their useful economic lives of between three and seven years, are recognised initially as Property, Plant and Equipment.
Instruments expected to be sold outright to customers in the ordinary course of business are recognised as inventory. This estimate is
based on historical deployment and sales patterns, and future expectations, and is reassessed periodically.
Instruments are depreciated over their useful economic lives of between three and seven years once they are deployed.
Depreciation is calculated to write o\ufb00 the cost of items of property, plant and equipment less their estimated residual values using
the\u00a0straight-line method over their estimated useful lives, and is ultimately recognised in pro\ufb01t or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3\u201320 years
and for buildings is 20\u201350 years.
Assets in course of construction are not depreciated until they are available for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than
one year to complete are capitalised based on the Group weighted average borrowing costs. All other \ufb01nance costs are expensed
as incurred.
Leased assets
The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves
whether the Group obtains substantially all the economic bene\ufb01ts from the use of that asset and whether the Group has the right
to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component.
The non-lease component, where it is separately identi\ufb01able, is not included in the right-of-use asset.
The Group leases many assets including properties, motor vehicles and o\ufb03ce equipment. The Group availed itself of the exemptions
for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these
exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement
of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the
commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental
borrowing rate which is country-speci\ufb01c and re\ufb02ective of the lease term. The right-of-use asset is depreciated over the shorter
of\u00a0the\u00a0lease term or the useful life of the underlying asset.
Cash \ufb02ows arising on lease interest payments are included in operating cash \ufb02ows whereas cash \ufb02ows arising on the capital
repayments of the lease liability are included in \ufb01nancing cash \ufb02ows.
Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.
\n\n \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 \u00a0\n \n
Plant and equipment
Assets in
Land and
course of
buildings
Instruments
1
Other
construction
Total
\u00a0
\u00a0
\u00a0
\u00a0Notes\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
Cost
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0795\u00a0
\u00a01,844\u00a0
\u00a01,433\u00a0
\u00a0170\u00a0
\u00a04,242\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(15)
\u00a0(61)
\u00a0(18)
\u00a0\u2013\u00a0
\u00a0(94)
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0225\u00a0
\u00a035\u00a0
\u00a053\u00a0
\u00a0341\u00a0
Disposals
\u00a0
\u00a0
\u00a0(25)
\u00a0(84)
\u00a0(69)
\u00a0(7)
\u00a0(185)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(12)
\u00a0(12)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a06\u00a0
\u00a0\u2013\u00a0
\u00a068\u00a0
\u00a0(82)
\u00a0(8)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0789\u00a0
\u00a01,924\u00a0
\u00a01,449\u00a0
\u00a0122\u00a0
\u00a04,284\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a084\u00a0
\u00a0
\u00a042\u00a0
\u00a0
\u00a06\u00a0
\u00a0160\u00a0
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a044\u00a0
\u00a0
\u00a0211\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0131\u00a0
\u00a0415\u00a0
Disposals
\u00a0
\u00a0
\u00a0(91)\u00a0
\u00a0
\u00a0(96)\u00a0
\u00a0
\u00a0(93)\u00a0
\u00a0
\u00a0(5)
\u00a0(285)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a02\u00a0
\u00a0(10)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0166\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0(49)
\u00a0164\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0778\u00a0
\u00a02,289\u00a0
\u00a01,454\u00a0
\u00a0207\u00a0
\u00a04,728\u00a0
Depreciation and impairment
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0342\u00a0
\u00a01,452\u00a0
\u00a0978\u00a0
\u00a0\u2013\u00a0
\u00a02,772\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(8)
\u00a0(51)
\u00a0(12)
\u00a0\u2013\u00a0
\u00a0(71)
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a066\u00a0
\u00a0163\u00a0
\u00a096\u00a0
\u00a0\u2013\u00a0
\u00a0325\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(5)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
Disposals
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(24)
\u00a0(73)
\u00a0(64)
\u00a0\u2013\u00a0
\u00a0(161)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0371\u00a0
\u00a01,491\u00a0
\u00a01,000\u00a0
\u00a0\u2013\u00a0
\u00a02,862\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a032\u00a0
\u00a0\u2013\u00a0
\u00a0115\u00a0
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a0177\u00a0
\u00a0
\u00a099\u00a0
\u00a0\u2013\u00a0
\u00a0335\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(21)
Disposals
\u00a0
\u00a0
\u00a0(52)\u00a0
\u00a0
\u00a0(85)\u00a0
\u00a0
\u00a0(93)
\u00a0\u2013\u00a0
\u00a0(230)
Transfers
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a029\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0380\u00a0
\u00a01,681\u00a0
\u00a01,029\u00a0
\u00a0\u2013\u00a0
\u00a03,090\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0398\u00a0
\u00a0608\u00a0
\u00a0425\u00a0
\u00a0207\u00a0
\u00a01,638\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0418\u00a0
\u00a0433\u00a0
\u00a0449\u00a0
\u00a0122\u00a0
\u00a01,422\u00a0
\n
1
Instruments include $156m of assets not yet deployed, for which depreciation has not yet commenced.
Land and buildings includes land with a cost of $32m (2024: $37m) that is not subject to depreciation. Transfers from assets in course
of construction includes $2m (2024: $8m) of so\ufb05ware (refer to Note 9). Assets under construction in 2025 re\ufb02ect that the Group\u2019s
development of a new manufacturing facility in Hull, UK. Group capital expenditure relating to property, plant and equipment contracted
but not provided for amounted to $62m (2024: $15m). The amount of\u00a0borrowing costs capitalised in 2025 and 2024 was immaterial.
Information about the Group\u2019s right-of-use assets is outlined below:
\n\n \u00a0 \u00a0 \u00a0 \n \n
2025
2024
Land and
Plant and
Land and
Plant and
buildings
equipment
buildings
equipment
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Opening Balance
\u00a0137\u00a0
\u00a0
\u00a036\u00a0
\u00a0
\u00a0
\u00a0157\u00a0
\u00a0
\u00a028\u00a0
Exchange Adjustment
\u00a08\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0
\u00a0(5)\u00a0
\u00a0
\u00a0(1)
Additions
\u00a043\u00a0
\u00a0
\u00a015\u00a0
\u00a0
\u00a0
\u00a025\u00a0
\u00a0
\u00a022\u00a0
Depreciation charge in the year
\u00a0(35)\u00a0
\u00a0
\u00a0(14)
\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a0(13)
Impairment
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
Net book value at 31 December
\u00a0153\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0
137\u00a0
\u00a0
\u00a036\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00516": { "value": "Accounting policy
Property, plant and equipment
Owned assets
Items of property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
The Group manufactures orthopaedic instruments that are either deployed for use by customers under contractual arrangements or
sold outright to customers. The majority of these instruments are not sold but provided to customers for use in surgery.
At the time of manufacture, instruments are classi\ufb01ed either as Property, Plant and Equipment or Inventory based on management\u2019s
best estimate of expected deployment versus direct sales volumes. Instruments expected to be deployed for use by customers
over their useful economic lives of between three and seven years, are recognised initially as Property, Plant and Equipment.
Instruments expected to be sold outright to customers in the ordinary course of business are recognised as inventory. This estimate is
based on historical deployment and sales patterns, and future expectations, and is reassessed periodically.
Instruments are depreciated over their useful economic lives of between three and seven years once they are deployed.
Depreciation is calculated to write o\ufb00 the cost of items of property, plant and equipment less their estimated residual values using
the\u00a0straight-line method over their estimated useful lives, and is ultimately recognised in pro\ufb01t or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3\u201320 years
and for buildings is 20\u201350 years.
Assets in course of construction are not depreciated until they are available for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Finance costs relating to the purchase or construction of property, plant and equipment and intangible assets that take longer than
one year to complete are capitalised based on the Group weighted average borrowing costs. All other \ufb01nance costs are expensed
as incurred.
Leased assets
The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves
whether the Group obtains substantially all the economic bene\ufb01ts from the use of that asset and whether the Group has the right
to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component.
The non-lease component, where it is separately identi\ufb01able, is not included in the right-of-use asset.
The Group leases many assets including properties, motor vehicles and o\ufb03ce equipment. The Group availed itself of the exemptions
for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these
exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement
of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the
commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental
borrowing rate which is country-speci\ufb01c and re\ufb02ective of the lease term. The right-of-use asset is depreciated over the shorter
of\u00a0the\u00a0lease term or the useful life of the underlying asset.
Cash \ufb02ows arising on lease interest payments are included in operating cash \ufb02ows whereas cash \ufb02ows arising on the capital
repayments of the lease liability are included in \ufb01nancing cash \ufb02ows.
Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00517": { "value": "Depreciation is calculated to write o\ufb00 the cost of items of property, plant and equipment less their estimated residual values using
the\u00a0straight-line method over their estimated useful lives, and is ultimately recognised in pro\ufb01t or loss. Leased assets are depreciated
over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end
of the lease term. Freehold land is not depreciated. The estimated useful lives of items of property, plant and equipment is 3\u201320 years
and for buildings is 20\u201350 years.
Assets in course of construction are not depreciated until they are available for use.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00518": { "value": "Assets in course of construction are not depreciated until they are available for use.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00519": { "value": "Leased assets
The assessment of whether a contract is or contains a lease takes place at the inception of the contract. The assessment involves
whether the Group obtains substantially all the economic bene\ufb01ts from the use of that asset and whether the Group has the right
to direct the use of the asset. The Group allocates the consideration in the contract to each lease and non-lease component.
The non-lease component, where it is separately identi\ufb01able, is not included in the right-of-use asset.
The Group leases many assets including properties, motor vehicles and o\ufb03ce equipment. The Group availed itself of the exemptions
for short-term leases and leases of low-value items for leases other than those for properties and motor vehicles. The use of these
exemptions does not have a material impact. The Group recognises a right-of-use asset and a lease liability at the commencement
of the lease. The right-of-use asset is initially measured based on the present value of lease payments that are not paid at the
commencement date plus initial direct costs less any incentives received. The lease payments are discounted using an incremental
borrowing rate which is country-speci\ufb01c and re\ufb02ective of the lease term. The right-of-use asset is depreciated over the shorter
of\u00a0the\u00a0lease term or the useful life of the underlying asset.
Cash \ufb02ows arising on lease interest payments are included in operating cash \ufb02ows whereas cash \ufb02ows arising on the capital
repayments of the lease liability are included in \ufb01nancing cash \ufb02ows.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00521": { "value": "Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00520": { "value": "Impairment of assets
The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order
to determine the extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset,
the\u00a0Group estimates the recoverable amount of the cash-generating unit to which it belongs.
An asset\u2019s recoverable amount is the higher of an asset\u2019s or cash-generating unit\u2019s fair value less costs to sell and its value-in-use.
In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using a pre-tax discount rate that re\ufb02ects
the\u00a0current market assessment of the time value of money and the risks speci\ufb01c to the asset.Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00445": { "value": "\n\n \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 \u00a0\n \n
Plant and equipment
Assets in
Land and
course of
buildings
Instruments
1
Other
construction
Total
\u00a0
\u00a0
\u00a0
\u00a0Notes\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
$ million
Cost
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0795\u00a0
\u00a01,844\u00a0
\u00a01,433\u00a0
\u00a0170\u00a0
\u00a04,242\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(15)
\u00a0(61)
\u00a0(18)
\u00a0\u2013\u00a0
\u00a0(94)
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0225\u00a0
\u00a035\u00a0
\u00a053\u00a0
\u00a0341\u00a0
Disposals
\u00a0
\u00a0
\u00a0(25)
\u00a0(84)
\u00a0(69)
\u00a0(7)
\u00a0(185)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(12)
\u00a0(12)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a06\u00a0
\u00a0\u2013\u00a0
\u00a068\u00a0
\u00a0(82)
\u00a0(8)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0789\u00a0
\u00a01,924\u00a0
\u00a01,449\u00a0
\u00a0122\u00a0
\u00a04,284\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a084\u00a0
\u00a0
\u00a042\u00a0
\u00a0
\u00a06\u00a0
\u00a0160\u00a0
Additions
\u00a0
\u00a0
\u00a0
\u00a0
\u00a044\u00a0
\u00a0
\u00a0211\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0131\u00a0
\u00a0415\u00a0
Disposals
\u00a0
\u00a0
\u00a0(91)\u00a0
\u00a0
\u00a0(96)\u00a0
\u00a0
\u00a0(93)\u00a0
\u00a0
\u00a0(5)
\u00a0(285)
Impairment
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a02\u00a0
\u00a0(10)
Transfers
\u00a0
\u00a0
\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0166\u00a0
\u00a0
\u00a039\u00a0
\u00a0
\u00a0(49)
\u00a0164\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0778\u00a0
\u00a02,289\u00a0
\u00a01,454\u00a0
\u00a0207\u00a0
\u00a04,728\u00a0
Depreciation and impairment
At 1 January\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0342\u00a0
\u00a01,452\u00a0
\u00a0978\u00a0
\u00a0\u2013\u00a0
\u00a02,772\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(8)
\u00a0(51)
\u00a0(12)
\u00a0\u2013\u00a0
\u00a0(71)
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a066\u00a0
\u00a0163\u00a0
\u00a096\u00a0
\u00a0\u2013\u00a0
\u00a0325\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(5)
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
Disposals
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(24)
\u00a0(73)
\u00a0(64)
\u00a0\u2013\u00a0
\u00a0(161)
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0371\u00a0
\u00a01,491\u00a0
\u00a01,000\u00a0
\u00a0\u2013\u00a0
\u00a02,862\u00a0
Exchange adjustment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a032\u00a0
\u00a0\u2013\u00a0
\u00a0115\u00a0
Charge for the\u00a0year
\u00a0
\u00a0
\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a0177\u00a0
\u00a0
\u00a099\u00a0
\u00a0\u2013\u00a0
\u00a0335\u00a0
Impairment
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(12)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(21)
Disposals
\u00a0
\u00a0
\u00a0(52)\u00a0
\u00a0
\u00a0(85)\u00a0
\u00a0
\u00a0(93)
\u00a0\u2013\u00a0
\u00a0(230)
Transfers
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a029\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0380\u00a0
\u00a01,681\u00a0
\u00a01,029\u00a0
\u00a0\u2013\u00a0
\u00a03,090\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0398\u00a0
\u00a0608\u00a0
\u00a0425\u00a0
\u00a0207\u00a0
\u00a01,638\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0418\u00a0
\u00a0433\u00a0
\u00a0449\u00a0
\u00a0122\u00a0
\u00a01,422\u00a0
\n\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Assets
Product-
distribution-
in course of
Technology
related
related
So\ufb05ware
construction
Total
Notes
$ million
$ million
$ million
$ million
$ million
$ million
Cost
At 1 January\u00a02024
\u00a0582\u00a0
\u00a02,273\u00a0
\u00a0236\u00a0
\u00a0547\u00a0
\u00a0178\u00a0
\u00a03,816\u00a0
Exchange adjustment
\u00a0(7)
\u00a0(35)
\u00a0(6)
\u00a0(10)
\u00a0(1)
\u00a0(59)
Acquisitions
21
\u00a081\u00a0
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a084\u00a0
Additions
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a04\u00a0
\u00a030\u00a0
\u00a052\u00a0
\u00a087\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(9)
\u00a0(1)
\u00a0(10)
Transfers
\u00a01\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0143\u00a0
\u00a0(133)
\u00a08\u00a0
At 31 December\u00a02024
\u00a0657\u00a0
\u00a02,239\u00a0
\u00a0234\u00a0
\u00a0701\u00a0
\u00a095\u00a0
\u00a03,926\u00a0
Exchange adjustment
\u00a015\u00a0
\u00a0
\u00a062\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0108\u00a0
Additions
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a076\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0(9)
Transfers
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a067\u00a0
\u00a0
\u00a0(63)\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0672\u00a0
\u00a0
\u00a02,301\u00a0
\u00a0
\u00a0240\u00a0
\u00a0
\u00a0786\u00a0
\u00a0
\u00a0104\u00a0
\u00a04,103\u00a0
Amortisation and impairment
At 1 January\u00a02024
\u00a0276\u00a0
\u00a01,801\u00a0
\u00a0176\u00a0
\u00a0453\u00a0
\u00a0\u2013\u00a0
\u00a02,706\u00a0
Exchange adjustment
\u00a0(3)
\u00a0(33)
\u00a0(5)
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(50)
Charge for the year
\u00a054\u00a0
\u00a0109\u00a0
\u00a015\u00a0
\u00a052\u00a0
\u00a0\u2013\u00a0
\u00a0230\u00a0
Impairment
\u00a015\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a016\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02024
\u00a0342\u00a0
\u00a01,877\u00a0
\u00a0186\u00a0
\u00a0489\u00a0
\u00a0\u2013\u00a0
\u00a02,894\u00a0
Exchange adjustment
\u00a09\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a086\u00a0
Charge for the year
\u00a050\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a065\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0239\u00a0
Impairment
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a010\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02025
\u00a0411\u00a0
\u00a02,046\u00a0
\u00a0205\u00a0
\u00a0559\u00a0
\u00a0\u2013\u00a0
\u00a03,221\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0261\u00a0
\u00a0255\u00a0
\u00a035\u00a0
\u00a0227\u00a0
\u00a0104\u00a0
\u00a0882\u00a0
At 31 December\u00a02024
\u00a0315\u00a0
\u00a0362\u00a0
\u00a048\u00a0
\u00a0212\u00a0
\u00a095\u00a0
\u00a01,032\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00447": { "value": "8
Goodwill
Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.
\n\n \u00a0 \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Cost and net book value
At 1 January
\u00a0
\u00a0
\u00a03,026\u00a0
\u00a02,992\u00a0
Exchange adjustment
\u00a082\u00a0
\u00a0(47)
Impairment
\u00a0\u2013\u00a0
\u00a0(65)
Acquisitions
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0146\u00a0
At 31 December
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Management has identi\ufb01ed \ufb01ve CGUs in applying the provisions of IAS 36
Impairment of Assets
: Orthopaedics, Sports Medicine, ENT,
Advanced Wound Care & Devices and Bioactives.
For the purpose of goodwill impairment testing, the Advanced Wound Care & Devices and Bioactives CGUs have been aggregated
(Advanced Wound Management), as this is the level at which goodwill is monitored and level at which the economic bene\ufb01ts relating
to\u00a0the goodwill within these CGUs is realised.
During 2025, no impairment losses were recognised and no acquisitions were completed.
During 2024,the Group announced its intention to close the Warwick manufacturing site that manufactures Birmingham Hip Resurfacing
(BHR) products. As a result, goodwill of $63m relating to BHR was written-o\ufb00. In addition, a $2m goodwill impairment charge was
recorded as a result of disposal of certain products.
Goodwill is allocated to the Group\u2019s CGUs as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Orthopaedics\u00a0
\u00a0
\u00a0877\u00a0
\u00a0807\u00a0
Sports Medicine
\u00a01,305\u00a0
\u00a01,302\u00a0
ENT
\u00a0287\u00a0
\u00a0287\u00a0
Advanced Wound Management
\u00a0639\u00a0
\u00a0630\u00a0
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Impairment reviews were performed as of September 2025 and September 2024 by comparing the recoverable amount of each CGU
with\u00a0its carrying amount, including goodwill. These were reviewed during December, taking into account any signi\ufb01cant events that
occurred between September and December.
The current challenging economic environment, including in\ufb02ation, was considered in the goodwill impairment reviews. Additionally,
severe downside sensitivity analyses have been undertaken on the base case scenario.
For each CGU, the recoverable amounts are based on value-in-use which is calculated from pre-tax cash \ufb02ow projections for
\ufb01ve\u00a0years\u00a0using data from the Group\u2019s budget and strategic planning process, the results of which are reviewed and approved by the
Board. The terminal growth rate is based on long term GDP growth. The initial \ufb01ve-year period (2024: three-year period) is in line with
the Group\u2019s strategic planning process. In determining the growth rates used in the calculations of the value-in-use, management
considered annual revenue growth. Projections are based on anticipated volume and value growth in the markets served by the Group
and assumptions as to market share movements. Each year the projections for the previous year are compared to actual results and
variances are factored into the\u00a0assumptions used in the current year.
The discount rates used in the value-in-use calculations re\ufb02ect management\u2019s assessment of risks speci\ufb01c to the assets of each CGU.
Our determination of the discount rates is based on weighted average cost of capital (WACC) which includes a risk-free rate, based on
market participant\u2019s cost of equity, an equity risk premium speci\ufb01cally adjusted to the medical technology industry and a\ufb05er-tax cost
of debt and re\ufb02ects the risks inherent in the cash \ufb02ows adjusted for CGU speci\ufb01c risk. The pre-tax rate is then calculated using WACC
as a starting point.
8.1
Orthopaedics CGU
The cash \ufb02ows used in the value-in-use calculation for the Orthopaedics CGU, which includes the Reconstruction and Trauma
businesses, re\ufb02ects management\u2019s distinctive orthopaedic reconstruction strategy, which combines cutting-edge innovation,
disruptive\u00a0business models and a strong Emerging Markets platform to drive our performance.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Orthopaedics CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.4% (2024: 11.4%).
8.2
Sports Medicine CGU
The cash \ufb02ows used in the value-in-use calculation for the Sports Medicine CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy to maintain growth in Sports Medicine.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Sports Medicine CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.3% (2024: 11.6%).
8.3
ENT CGU
The cash \ufb02ow used in the value-in-use calculation for the ENT CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the ENT CGU value-in-use calculation re\ufb02ects the geographical
mix of the revenues and is 11.3% (2024: 11.0%).
8.4
Advanced Wound Management CGU
The aggregated Advanced Wound Management CGU comprises the Advanced Wound Care & Devices and Bioactives CGUs.
In performing the value-in-use calculation for this combined CGU, management considered the Group\u2019s focus across the wound
product, focusing on widening access to the customer, the higher added value sectors of healing chronic wounds and tissue repair using
bioactives, and by continuing to improve e\ufb03ciency.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre tax discount rate used in the Advanced Wound Management CGU value-in-use
calculation re\ufb02ects the geographical mix and industry sector and is 11.0% (2024: 11.3%).
The value in use for all CGUs indicated su\ufb03cient headroom such that a reasonably possible change to key assumptions is unlikely to
result in an impairment of the related goodwill.
9
Intangible assets
Accounting policy
Intangible assets
Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences
and\u00a0distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination
(referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any\u00a0accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a
straight-line basis over their estimated useful economic lives. The estimated useful economic life of so\ufb05ware ranges between three
and seven years. The estimated useful economic life of technology assets ranges between 6\u201320 years, product-related assets ranges
between 2\u201320 years, and customer and distribution assets ranges between 2\u201314 years. Internally-generated intangible assets are
expensed in the income statement as incurred. Expenditure on purchased so\ufb05ware and qualifying IT projects is recognised as an
intangible asset when it provides long-term bene\ufb01ts to the Group. Development costs for internally used applications are capitalised
only when the so\ufb05ware forms a key component of the Group\u2019s IT systems and is controlled by the Group. Certain implementation
costs for cloud-based solutions are capitalised when the Group has control over the underlying so\ufb05ware. So\ufb05ware that is integral to
computer hardware is capitalised as plant and equipment.
Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Assets
Product-
distribution-
in course of
Technology
related
related
So\ufb05ware
construction
Total
Notes
$ million
$ million
$ million
$ million
$ million
$ million
Cost
At 1 January\u00a02024
\u00a0582\u00a0
\u00a02,273\u00a0
\u00a0236\u00a0
\u00a0547\u00a0
\u00a0178\u00a0
\u00a03,816\u00a0
Exchange adjustment
\u00a0(7)
\u00a0(35)
\u00a0(6)
\u00a0(10)
\u00a0(1)
\u00a0(59)
Acquisitions
21
\u00a081\u00a0
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a084\u00a0
Additions
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a04\u00a0
\u00a030\u00a0
\u00a052\u00a0
\u00a087\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(9)
\u00a0(1)
\u00a0(10)
Transfers
\u00a01\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0143\u00a0
\u00a0(133)
\u00a08\u00a0
At 31 December\u00a02024
\u00a0657\u00a0
\u00a02,239\u00a0
\u00a0234\u00a0
\u00a0701\u00a0
\u00a095\u00a0
\u00a03,926\u00a0
Exchange adjustment
\u00a015\u00a0
\u00a0
\u00a062\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0108\u00a0
Additions
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a076\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0(9)
Transfers
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a067\u00a0
\u00a0
\u00a0(63)\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0672\u00a0
\u00a0
\u00a02,301\u00a0
\u00a0
\u00a0240\u00a0
\u00a0
\u00a0786\u00a0
\u00a0
\u00a0104\u00a0
\u00a04,103\u00a0
Amortisation and impairment
At 1 January\u00a02024
\u00a0276\u00a0
\u00a01,801\u00a0
\u00a0176\u00a0
\u00a0453\u00a0
\u00a0\u2013\u00a0
\u00a02,706\u00a0
Exchange adjustment
\u00a0(3)
\u00a0(33)
\u00a0(5)
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(50)
Charge for the year
\u00a054\u00a0
\u00a0109\u00a0
\u00a015\u00a0
\u00a052\u00a0
\u00a0\u2013\u00a0
\u00a0230\u00a0
Impairment
\u00a015\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a016\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02024
\u00a0342\u00a0
\u00a01,877\u00a0
\u00a0186\u00a0
\u00a0489\u00a0
\u00a0\u2013\u00a0
\u00a02,894\u00a0
Exchange adjustment
\u00a09\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a086\u00a0
Charge for the year
\u00a050\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a065\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0239\u00a0
Impairment
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a010\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02025
\u00a0411\u00a0
\u00a02,046\u00a0
\u00a0205\u00a0
\u00a0559\u00a0
\u00a0\u2013\u00a0
\u00a03,221\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0261\u00a0
\u00a0255\u00a0
\u00a035\u00a0
\u00a0227\u00a0
\u00a0104\u00a0
\u00a0882\u00a0
At 31 December\u00a02024
\u00a0315\u00a0
\u00a0362\u00a0
\u00a048\u00a0
\u00a0212\u00a0
\u00a095\u00a0
\u00a01,032\u00a0
\n
Transfers into so\ufb05ware and assets in course of construction includes $2m (2024: $8m) of so\ufb05ware transferred from property, plant\u00a0and
equipment (refer to Note 7). Group capital expenditure relating to so\ufb05ware contracted but not provided for amounted to
$4m (2024: $4m).
Amortisation and impairment of acquisition intangibles is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Technology
\u00a061\u00a0
\u00a069\u00a0
Product-related
\u00a0105\u00a0
\u00a0108\u00a0
Customer and distribution-related
\u00a010\u00a0
\u00a010\u00a0
Total
\u00a0176\u00a0
\u00a0187\u00a0
In 2025, the Group recognised an impairment charge of $10m in relation to immaterial technology assets in acquisition intangibles.
In 2024, the Group recognised an impairment charge of $15m in relation to immaterial technology assets in acquisition intangibles.
In 2023, the Group impaired $37m of\u00a0Engage intangible assets as a result of the voluntary product discontinuation.
Management has assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of
September\u00a02025. These were updated during December to take into account any signi\ufb01cant events that occurred between September
and December. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected
recoverable value of assets to the carrying value of assets.
The table below provides further detail on the largest intangible assets and their remaining amortisation period:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Product-
distribution-
Total
Remaining
Technology
related
related
Carrying value
amortisation
$ million
$ million
$ million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
period
Intangibles acquired as part of the CartiHeal acquisition
\u00a066\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a08-9 years\u00a0
Intangibles acquired as part of the ArthroCare acquisition
\u00a097\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0165\u00a0
\u00a0
\u00a08-9 years\u00a0
Intangibles acquired as part of the Osiris acquisition
\u00a0\u2013\u00a0
\u00a0
\u00a080\u00a0
\u00a0
\u00a026\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a02-3 years\u00a0
Intangibles acquired as part of the Healthpoint acquisition
\u00a032\u00a0
\u00a0
\u00a072\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0107\u00a0
\u00a0
\u00a02 years\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00448": { "value": "8
Goodwill
Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.
\n\n \u00a0 \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
Notes\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Cost and net book value
At 1 January
\u00a0
\u00a0
\u00a03,026\u00a0
\u00a02,992\u00a0
Exchange adjustment
\u00a082\u00a0
\u00a0(47)
Impairment
\u00a0\u2013\u00a0
\u00a0(65)
Acquisitions
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0146\u00a0
At 31 December
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Management has identi\ufb01ed \ufb01ve CGUs in applying the provisions of IAS 36
Impairment of Assets
: Orthopaedics, Sports Medicine, ENT,
Advanced Wound Care & Devices and Bioactives.
For the purpose of goodwill impairment testing, the Advanced Wound Care & Devices and Bioactives CGUs have been aggregated
(Advanced Wound Management), as this is the level at which goodwill is monitored and level at which the economic bene\ufb01ts relating
to\u00a0the goodwill within these CGUs is realised.
During 2025, no impairment losses were recognised and no acquisitions were completed.
During 2024,the Group announced its intention to close the Warwick manufacturing site that manufactures Birmingham Hip Resurfacing
(BHR) products. As a result, goodwill of $63m relating to BHR was written-o\ufb00. In addition, a $2m goodwill impairment charge was
recorded as a result of disposal of certain products.
Goodwill is allocated to the Group\u2019s CGUs as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Orthopaedics\u00a0
\u00a0
\u00a0877\u00a0
\u00a0807\u00a0
Sports Medicine
\u00a01,305\u00a0
\u00a01,302\u00a0
ENT
\u00a0287\u00a0
\u00a0287\u00a0
Advanced Wound Management
\u00a0639\u00a0
\u00a0630\u00a0
\u00a03,108\u00a0
\u00a03,026\u00a0
\n
Impairment reviews were performed as of September 2025 and September 2024 by comparing the recoverable amount of each CGU
with\u00a0its carrying amount, including goodwill. These were reviewed during December, taking into account any signi\ufb01cant events that
occurred between September and December.
The current challenging economic environment, including in\ufb02ation, was considered in the goodwill impairment reviews. Additionally,
severe downside sensitivity analyses have been undertaken on the base case scenario.
For each CGU, the recoverable amounts are based on value-in-use which is calculated from pre-tax cash \ufb02ow projections for
\ufb01ve\u00a0years\u00a0using data from the Group\u2019s budget and strategic planning process, the results of which are reviewed and approved by the
Board. The terminal growth rate is based on long term GDP growth. The initial \ufb01ve-year period (2024: three-year period) is in line with
the Group\u2019s strategic planning process. In determining the growth rates used in the calculations of the value-in-use, management
considered annual revenue growth. Projections are based on anticipated volume and value growth in the markets served by the Group
and assumptions as to market share movements. Each year the projections for the previous year are compared to actual results and
variances are factored into the\u00a0assumptions used in the current year.
The discount rates used in the value-in-use calculations re\ufb02ect management\u2019s assessment of risks speci\ufb01c to the assets of each CGU.
Our determination of the discount rates is based on weighted average cost of capital (WACC) which includes a risk-free rate, based on
market participant\u2019s cost of equity, an equity risk premium speci\ufb01cally adjusted to the medical technology industry and a\ufb05er-tax cost
of debt and re\ufb02ects the risks inherent in the cash \ufb02ows adjusted for CGU speci\ufb01c risk. The pre-tax rate is then calculated using WACC
as a starting point.
8.1
Orthopaedics CGU
The cash \ufb02ows used in the value-in-use calculation for the Orthopaedics CGU, which includes the Reconstruction and Trauma
businesses, re\ufb02ects management\u2019s distinctive orthopaedic reconstruction strategy, which combines cutting-edge innovation,
disruptive\u00a0business models and a strong Emerging Markets platform to drive our performance.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Orthopaedics CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.4% (2024: 11.4%).
8.2
Sports Medicine CGU
The cash \ufb02ows used in the value-in-use calculation for the Sports Medicine CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy to maintain growth in Sports Medicine.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the Sports Medicine CGU value-in-use calculation re\ufb02ects the
geographical mix of the revenues and is 11.3% (2024: 11.6%).
8.3
ENT CGU
The cash \ufb02ow used in the value-in-use calculation for the ENT CGU re\ufb02ects growth rates and cash \ufb02ows consistent with
management\u2019s strategy.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre-tax discount rate used in the ENT CGU value-in-use calculation re\ufb02ects the geographical
mix of the revenues and is 11.3% (2024: 11.0%).
8.4
Advanced Wound Management CGU
The aggregated Advanced Wound Management CGU comprises the Advanced Wound Care & Devices and Bioactives CGUs.
In performing the value-in-use calculation for this combined CGU, management considered the Group\u2019s focus across the wound
product, focusing on widening access to the customer, the higher added value sectors of healing chronic wounds and tissue repair using
bioactives, and by continuing to improve e\ufb03ciency.
The weighted average growth rate used to extrapolate the cash \ufb02ows beyond the \ufb01ve-year period (2024: \ufb01ve-year period) in calculating
the terminal value is 2.0% (2024: 2.0%). The pre tax discount rate used in the Advanced Wound Management CGU value-in-use
calculation re\ufb02ects the geographical mix and industry sector and is 11.0% (2024: 11.3%).
The value in use for all CGUs indicated su\ufb03cient headroom such that a reasonably possible change to key assumptions is unlikely to
result in an impairment of the related goodwill. ", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00523": { "value": "Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.Accounting policy
Intangible assets
Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences
and\u00a0distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination
(referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any\u00a0accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a
straight-line basis over their estimated useful economic lives. The estimated useful economic life of so\ufb05ware ranges between three
and seven years. The estimated useful economic life of technology assets ranges between 6\u201320 years, product-related assets ranges
between 2\u201320 years, and customer and distribution assets ranges between 2\u201314 years. Internally-generated intangible assets are
expensed in the income statement as incurred. Expenditure on purchased so\ufb05ware and qualifying IT projects is recognised as an
intangible asset when it provides long-term bene\ufb01ts to the Group. Development costs for internally used applications are capitalised
only when the so\ufb05ware forms a key component of the Group\u2019s IT systems and is controlled by the Group. Certain implementation
costs for cloud-based solutions are capitalised when the Group has control over the underlying so\ufb05ware. So\ufb05ware that is integral to
computer hardware is capitalised as plant and equipment.
Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00524": { "value": "Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00522": { "value": "Accounting policy
Goodwill is not amortised but is reviewed for impairment annually. Goodwill is allocated to the cash-generating unit (CGU) that is
expected to bene\ufb01t from the acquisition. The goodwill is tested annually for impairment by comparing the recoverable amount to
the\u00a0carrying value of the CGUs. The CGUs identi\ufb01ed by management are at the aggregated product operating levels of Orthopaedics,
Sports Medicine, ENT and Advanced Wound Management, in the way the core assets are used to generate cash \ufb02ows.
If the recoverable amount of the CGU is less than its carrying amount then an impairment loss is determined to have occurred.
Any impairment losses that arise are recognised immediately in the income statement and are allocated \ufb01rst to reduce the
carrying\u00a0amount of goodwill and then to the carrying amounts of the other assets of the CGU.
When an acquired business included within a CGU ceases to operate permanently, then the acquired business no longer forms part
of the CGU and is therefore tested for impairment on a standalone basis. The portion of goodwill allocated to this acquired business
is\u00a0measured based on its relative value within the CGU, unless another method is considered more appropriate.
In carrying out impairment reviews of goodwill, a number of signi\ufb01cant assumptions have to be made when preparing cash \ufb02ow
projections. These include the future rate of market growth, discount rates, the market demand for the products acquired, the
future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or changes in expectations arise, impairment charges may be required which would adversely
impact\u00a0operating results.
When the composition of CGUs changed, goodwill would be allocated using a relative value approach at the date of the reorganisation
similar to that used when an operation within a CGU is disposed of or a method that could provide a better allocation of goodwill to
the reorganised units.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00449": { "value": "9
Intangible assets
Accounting policy
Intangible assets
Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences
and\u00a0distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination
(referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any\u00a0accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a
straight-line basis over their estimated useful economic lives. The estimated useful economic life of so\ufb05ware ranges between three
and seven years. The estimated useful economic life of technology assets ranges between 6\u201320 years, product-related assets ranges
between 2\u201320 years, and customer and distribution assets ranges between 2\u201314 years. Internally-generated intangible assets are
expensed in the income statement as incurred. Expenditure on purchased so\ufb05ware and qualifying IT projects is recognised as an
intangible asset when it provides long-term bene\ufb01ts to the Group. Development costs for internally used applications are capitalised
only when the so\ufb05ware forms a key component of the Group\u2019s IT systems and is controlled by the Group. Certain implementation
costs for cloud-based solutions are capitalised when the Group has control over the underlying so\ufb05ware. So\ufb05ware that is integral to
computer hardware is capitalised as plant and equipment.
Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Assets
Product-
distribution-
in course of
Technology
related
related
So\ufb05ware
construction
Total
Notes
$ million
$ million
$ million
$ million
$ million
$ million
Cost
At 1 January\u00a02024
\u00a0582\u00a0
\u00a02,273\u00a0
\u00a0236\u00a0
\u00a0547\u00a0
\u00a0178\u00a0
\u00a03,816\u00a0
Exchange adjustment
\u00a0(7)
\u00a0(35)
\u00a0(6)
\u00a0(10)
\u00a0(1)
\u00a0(59)
Acquisitions
21
\u00a081\u00a0
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a084\u00a0
Additions
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a04\u00a0
\u00a030\u00a0
\u00a052\u00a0
\u00a087\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(9)
\u00a0(1)
\u00a0(10)
Transfers
\u00a01\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0143\u00a0
\u00a0(133)
\u00a08\u00a0
At 31 December\u00a02024
\u00a0657\u00a0
\u00a02,239\u00a0
\u00a0234\u00a0
\u00a0701\u00a0
\u00a095\u00a0
\u00a03,926\u00a0
Exchange adjustment
\u00a015\u00a0
\u00a0
\u00a062\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0108\u00a0
Additions
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a076\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0(9)
Transfers
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a067\u00a0
\u00a0
\u00a0(63)\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0672\u00a0
\u00a0
\u00a02,301\u00a0
\u00a0
\u00a0240\u00a0
\u00a0
\u00a0786\u00a0
\u00a0
\u00a0104\u00a0
\u00a04,103\u00a0
Amortisation and impairment
At 1 January\u00a02024
\u00a0276\u00a0
\u00a01,801\u00a0
\u00a0176\u00a0
\u00a0453\u00a0
\u00a0\u2013\u00a0
\u00a02,706\u00a0
Exchange adjustment
\u00a0(3)
\u00a0(33)
\u00a0(5)
\u00a0(9)
\u00a0\u2013\u00a0
\u00a0(50)
Charge for the year
\u00a054\u00a0
\u00a0109\u00a0
\u00a015\u00a0
\u00a052\u00a0
\u00a0\u2013\u00a0
\u00a0230\u00a0
Impairment
\u00a015\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a016\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02024
\u00a0342\u00a0
\u00a01,877\u00a0
\u00a0186\u00a0
\u00a0489\u00a0
\u00a0\u2013\u00a0
\u00a02,894\u00a0
Exchange adjustment
\u00a09\u00a0
\u00a0
\u00a059\u00a0
\u00a0
\u00a05\u00a0
\u00a0
\u00a013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a086\u00a0
Charge for the year
\u00a050\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a065\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0239\u00a0
Impairment
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a010\u00a0
Disposals
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(8)
At 31 December\u00a02025
\u00a0411\u00a0
\u00a02,046\u00a0
\u00a0205\u00a0
\u00a0559\u00a0
\u00a0\u2013\u00a0
\u00a03,221\u00a0
Net book amounts
At 31 December\u00a02025
\u00a0261\u00a0
\u00a0255\u00a0
\u00a035\u00a0
\u00a0227\u00a0
\u00a0104\u00a0
\u00a0882\u00a0
At 31 December\u00a02024
\u00a0315\u00a0
\u00a0362\u00a0
\u00a048\u00a0
\u00a0212\u00a0
\u00a095\u00a0
\u00a01,032\u00a0
\n
Transfers into so\ufb05ware and assets in course of construction includes $2m (2024: $8m) of so\ufb05ware transferred from property, plant\u00a0and
equipment (refer to Note 7). Group capital expenditure relating to so\ufb05ware contracted but not provided for amounted to
$4m (2024: $4m).
Amortisation and impairment of acquisition intangibles is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Technology
\u00a061\u00a0
\u00a069\u00a0
Product-related
\u00a0105\u00a0
\u00a0108\u00a0
Customer and distribution-related
\u00a010\u00a0
\u00a010\u00a0
Total
\u00a0176\u00a0
\u00a0187\u00a0
In 2025, the Group recognised an impairment charge of $10m in relation to immaterial technology assets in acquisition intangibles.
In 2024, the Group recognised an impairment charge of $15m in relation to immaterial technology assets in acquisition intangibles.
In 2023, the Group impaired $37m of\u00a0Engage intangible assets as a result of the voluntary product discontinuation.
Management has assessed the acquisition intangible assets held by the Group to identify any indicators of impairment as of
September\u00a02025. These were updated during December to take into account any signi\ufb01cant events that occurred between September
and December. Where an impairment indicator has arisen, impairment reviews have been undertaken by comparing the expected
recoverable value of assets to the carrying value of assets.
The table below provides further detail on the largest intangible assets and their remaining amortisation period:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Customer\u00a0and
Product-
distribution-
Total
Remaining
Technology
related
related
Carrying value
amortisation
$ million
$ million
$ million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
period
Intangibles acquired as part of the CartiHeal acquisition
\u00a066\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a069\u00a0
\u00a0
\u00a08-9 years\u00a0
Intangibles acquired as part of the ArthroCare acquisition
\u00a097\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0165\u00a0
\u00a0
\u00a08-9 years\u00a0
Intangibles acquired as part of the Osiris acquisition
\u00a0\u2013\u00a0
\u00a0
\u00a080\u00a0
\u00a0
\u00a026\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a02-3 years\u00a0
Intangibles acquired as part of the Healthpoint acquisition
\u00a032\u00a0
\u00a0
\u00a072\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0107\u00a0
\u00a0
\u00a02 years\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00525": { "value": "Accounting policy
Intangible assets
Intangible assets acquired separately from a business combination (including purchased patents, know-how, trademarks, licences
and\u00a0distribution rights) are initially measured at cost. The cost of intangible assets acquired in a material business combination
(referred to as acquisition intangibles) is the fair value as at the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any\u00a0accumulated amortisation and any accumulated impairment losses. All intangible assets are amortised on a
straight-line basis over their estimated useful economic lives. The estimated useful economic life of so\ufb05ware ranges between three
and seven years. The estimated useful economic life of technology assets ranges between 6\u201320 years, product-related assets ranges
between 2\u201320 years, and customer and distribution assets ranges between 2\u201314 years. Internally-generated intangible assets are
expensed in the income statement as incurred. Expenditure on purchased so\ufb05ware and qualifying IT projects is recognised as an
intangible asset when it provides long-term bene\ufb01ts to the Group. Development costs for internally used applications are capitalised
only when the so\ufb05ware forms a key component of the Group\u2019s IT systems and is controlled by the Group. Certain implementation
costs for cloud-based solutions are capitalised when the Group has control over the underlying so\ufb05ware. So\ufb05ware that is integral to
computer hardware is capitalised as plant and equipment.
Impairment of intangible assets
The carrying values of intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying
value may be impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the CGU to which it belongs. An asset\u2019s recoverable amount is the higher of an asset\u2019s or CGU\u2019s fair value
less costs to sell and its value-in-use. In assessing value-in-use, its estimated future cash \ufb02ow is discounted to its present value using
a\u00a0pre-tax discount rate that re\ufb02ects the current market assessments of the time value of money and the risks speci\ufb01c to the asset.
In carrying out impairment reviews of intangible assets, a number of signi\ufb01cant assumptions have to be made when preparing cash
\ufb02ow\u00a0projections. These include the future rate of market growth, discount rates, the market demand for the products acquired,
the future pro\ufb01tability of acquired businesses or products, levels of reimbursement and success in obtaining regulatory approvals.
If actual results should di\ufb00er, or\u00a0changes in expectations should arise, impairment charges may be required which would adversely
impact operating results.
Intangible assets which are not yet available for use are tested for impairment annually. Any provision for impairment is charged to the
income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00451": { "value": "10
Investments
Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.
\n\n \u00a0 \u00a0\u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 1 January
\u00a09\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a09\u00a0
\n16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
21
Acquisitions
Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss.
Year ended 31 December 2025
No acquisitions were completed in 2025.
Year ended 31 December 2024
On 9 January 2024, the Group completed the acquisition of 100% of the share capital of CartiHeal (2009) Ltd (CartiHeal), the
developer of CARTIHEAL
\u25ca
AGILI-C
\u25ca
, a novel Sports Medicine technology for cartilage regeneration in the knee. The acquisition of this
disruptive technology supports our strategy to invest behind our successful Sports Medicine & ENT business unit. The fair value of the
consideration amounted to $231m. This is comprised of contingent consideration of $49m, which represents the discounted value of
$150m of consideration contingent upon the achievement of a single future \ufb01nancial performance milestone in the next 10 years, and
initial cash consideration of $180m adjusted for cash acquired and other liabilities assumed, of which $18m was transferred in to escrow
to be released in equal instalments to the seller in 12 and 18 months from completion. The fair value of assets acquired and liabilities
assumed is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
CartiHeal
(2009) Ltd
$\u00a0million
Intangible assets \u2013 Product-related and trade name
\u00a084\u00a0
Inventory
\u00a01\u00a0
Cash
\u00a0
\u00a0
\u00a06\u00a0
Other liabilities
\u00a0
\u00a0
\u00a0(2)
Trade and other payables
\u00a0
\u00a0
\u00a0(1)
Net deferred tax liability
\u00a0
\u00a0
\u00a0(3)
Net assets
\u00a085\u00a0
Goodwill
\u00a0146\u00a0
Consideration
231\u00a0
\n
The product-related intangible assets and trade name were valued using a relief-from-royalty methodology with the key inputs
being revenue, pro\ufb01t and\u00a0discount rate. The cash out\ufb02ow from acquisitions in 2024 was $186m (2023: $21m) comprises payments of
consideration of $177m\u00a0net of cash acquired (2023: $nil) relating to acquisitions and payments of deferred and contingent consideration
of $9m (2023:\u00a0$21m) relating to acquisitions completed in prior years.
The goodwill represents the control premium, acquired workforce and the synergies expected from integrating CartiHeal into the
Group\u2019s existing business. The carrying value of goodwill increased from $2,992m at 31 December 2023 to $3,026m at 31 December
2024. The acquisition in the\u00a0year ended 31 December 2024 increased goodwill by $146m, this was partially o\ufb00set by goodwill
impairment of $65m and foreign exchange movements of $47m.
For the year ended 31 December 2024, the contribution from CartiHeal to the Group\u2019s revenue and pro\ufb01t was immaterial. If the business
combination had occurred at the beginning of the year the contribution to revenue and pro\ufb01t would not have been materially di\ufb00erent.
Year ended 31 December 2023
No acquisitions were completed in 2023. During 2023, management evaluated the commercial viability of Engage products and
concluded that they should be discontinued (see\u00a0Note 2.2 for further details).", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00450": { "value": "10
Investments
Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.
\n\n \u00a0 \u00a0\u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 1 January
\u00a09\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a09\u00a0
\n13
Trade and other receivables
Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade receivables
\u00a01,200\u00a0
\u00a01,100\u00a0
Less: loss allowance
\u00a0(44)
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a01,059\u00a0
Derivatives
1
\u00a020\u00a0
\u00a047\u00a0
Other receivables
2
\u00a0138\u00a0
\u00a0148\u00a0
Prepayments
\u00a099\u00a0
\u00a0127\u00a0
\u00a01,413\u00a0
\u00a01,381\u00a0
Non-current
Derivatives
1
\u00a026\u00a0
\u00a011\u00a0
Investments relating to deferred compensation arrangements
\u00a0109\u00a0
\u00a0\u2013\u00a0
Other non- current assets
\u00a029\u00a0
\u00a013\u00a0
\u00a0164\u00a0
\u00a024\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
2
Other receivables include deposits, rebates, \ufb01nance lease receivables and other items of a similar nature.
The
Group holds investments in \ufb01nancial assets in connection with deferred compensation and employee bene\ufb01t arrangements
(refer to note 16.6). Refer to note 14 for details of deferred compensation obligations.
Other non-current assets primarily relate to long-term prepayments and \ufb01nance lease receivables. Refer to note 16.2 for details of
interest rate contracts. Management considers that the carrying amount of trade and other receivables\u00a0approximates the fair value.
Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.
The loss allowance expense for the year was $12m (2024: $1m, 2023: $3m).
The following table provides information about the ageing of and expected credit losses for trade receivables:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0Weighted
2025\u00a0Gross
2024\u00a0Weighted
2024\u00a0Gross
average\u00a0loss
2025\u00a0Loss
carrying
average\u00a0loss
2024\u00a0Loss
carrying
rate
allowance
amount
rate
allowance
amount\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Not past due
-0.8%\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0949\u00a0
-0.8%\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0860\u00a0
Past due not more than 3 months
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0169\u00a0
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0154\u00a0
Past due more than 3 months
-9.7%\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a031\u00a0
-7.7%\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a026\u00a0
Past due more than 6 months
-62.7%\u00a0
\u00a0
\u00a0(32)\u00a0
\u00a0
\u00a051\u00a0
-51.7%\u00a0
\u00a0
\u00a0(31)\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)\u00a0
\u00a0
\u00a01,200\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a01,100\u00a0
Loss allowance
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,156\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,059\u00a0
The Group\u2019s expected credit loss accounting policy includes guidance on how the expected credit loss percentages should be
determined; it\u00a0does not include present limits as the customer groups and risk pro\ufb01les are not consistent across all of our markets.
Each market determines their own percentages based on historic experience and future expectations, and in line with the
general\u00a0guidance in\u00a0the Group\u2019s policy.
Movements in the loss allowance were as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
At 1 January
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\u00a0
\u00a0
\u00a049\u00a0
Exchange adjustment
\u00a0
\u00a02\u00a0
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Net receivables provided during the\u00a0year
\u00a0
\u00a012\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0
\u00a03\u00a0
Utilisation of provision
\u00a0
\u00a0(11)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0
\u00a0(8)
At 31 December
\u00a0
\u00a044\u00a0
\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\n
Trade receivables include amounts denominated in the following major currencies:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
US Dollar
\u00a0502\u00a0
\u00a0
\u00a0518\u00a0
Sterling
\u00a038\u00a0
\u00a0
\u00a036\u00a0
Euro
\u00a0253\u00a0
\u00a0
\u00a0207\u00a0
Other
\u00a0363\u00a0
\u00a0
\u00a0298\u00a0
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a0
\u00a01,059\u00a0
\n
14
Trade and other payables
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade and other payables
\u00a01,160\u00a0
\u00a01,082\u00a0
Derivatives
1
\u00a011\u00a0
\u00a018\u00a0
Acquisition consideration
\u00a06\u00a0
\u00a028\u00a0
\u00a01,177\u00a0
\u00a01,128\u00a0
Non-current
Acquisition consideration
\u00a0101\u00a0
\u00a077\u00a0
Derivatives
1
\u00a06\u00a0
\u00a016\u00a0
Other payables
\u00a083\u00a0
\u00a02\u00a0
\u00a0190\u00a0
\u00a095\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
Other payables primarily comprises deferred compensation obligations. These relate to employee compensation earned but payable in
future periods.
The acquisition consideration includes $107m (2024: $84m) contingent upon future events.
The acquisition consideration due a\ufb05er more than one year is expected to be payable as follows: ($13m in 2029 and $88m in 2030
(2024: $5m in 2026, $13m in 2028, $59m\u00a0in\u00a02029).
15
Cash and borrowings
15.1
Net debt
Net debt comprises borrowings and credit balances on currency swaps less cash and cash equivalents.
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Bank overdra\ufb05s, borrowings and loans - current
\u00a083\u00a0
\u00a0
\u00a0
\u00a02\u00a0
Corporate bond
\u00a02,478\u00a0
\u00a0
\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0550\u00a0
\u00a0
\u00a0
\u00a0625\u00a0
Borrowings
\u00a03,111\u00a0
\u00a0
\u00a0
\u00a03,125\u00a0
Cash and cash equivalents
1
\u00a0(557)
\u00a0
\u00a0
\u00a0(619)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
(Asset)/liability balance on derivatives\u00a0\u2013 interest rate swaps
\u00a0(11)
\u00a0
\u00a0
\u00a06\u00a0
Net debt excluding lease liabilities
\u00a02,543\u00a0
\u00a0
\u00a0
\u00a02,513\u00a0
Non-current lease liabilities
\u00a0149\u00a0
\u00a0
\u00a0
\u00a0135\u00a0
Current lease liabilities
\u00a067\u00a0
\u00a0
\u00a0
\u00a061\u00a0
Net debt
\u00a02,759\u00a0
\u00a0
\u00a0
\u00a02,709\u00a0
\n
1
In 2025, cash and cash equivalents include cash at bank of $457m (2024: $419m) and cash equivalents of $100m (2024: $200m).
Borrowings are repayable as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within
Between
Between
Between
Between
one\u00a0year\u00a0or
one\u00a0and
two\u00a0and
three\u00a0and
four\u00a0and
A\ufb05er
on\u00a0demand
two\u00a0years
three\u00a0years
four\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a08\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0
\u00a0349\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0591\u00a0
\u00a0
\u00a0897\u00a0
\u00a0
\u00a0641\u00a0
\u00a02,478\u00a0
Private placement notes
\u00a075\u00a0
\u00a0
\u00a0140\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0100\u00a0
\u00a0
\u00a095\u00a0
\u00a0
\u00a0155\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a067\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a038\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a017\u00a0
\u00a0
\u00a024\u00a0
\u00a0226\u00a0
\u00a0150\u00a0
\u00a0542\u00a0
\u00a098\u00a0
\u00a0718\u00a0
\u00a01,009\u00a0
\u00a0820\u00a0
\u00a03,337\u00a0
At 31 December\u00a02024
Bank overdra\ufb05s
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0348\u00a0
\u00a0\u2013\u00a0
\u00a0527\u00a0
\u00a01,623\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0\u2013\u00a0
\u00a075\u00a0
\u00a0140\u00a0
\u00a060\u00a0
\u00a0100\u00a0
\u00a0250\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a061\u00a0
\u00a046\u00a0
\u00a036\u00a0
\u00a023\u00a0
\u00a017\u00a0
\u00a024\u00a0
\u00a0207\u00a0
\u00a063\u00a0
\u00a0121\u00a0
\u00a0524\u00a0
\u00a083\u00a0
\u00a0644\u00a0
\u00a01,897\u00a0
\u00a03,332\u00a0
\n
1
The lease liabilities presented above of $226m (2024: $207m) are on an undiscounted basis. The lease liabilities on a discounted basis are $216m
(2024:\u00a0$196m).
15.2
Liquidity risk exposures
The Group has established a set of policies to manage funding and currency risks. The Group only uses derivative \ufb01nancial instruments
to\u00a0manage the \ufb01nancial risks associated with underlying business activities and their \ufb01nancing. Liquidity risk is the risk that the Group is
not able to meet its obligations. The Group\u2019s policy is to ensure that there are su\ufb03cient facilities in place to meet funding requirements.
The Group manages and monitors liquidity risk through preparation and review of short and\u00a0medium-term cash forecasts, having\u00a0
regard to the maturities of investments and borrowing facilities. The Group has available committed facilities of $4.1bn (2024:\u00a0$4.1bn).
In 2025, the Group repurchased $100 million of its $1.0 billion 2.032% USD corporate bond to manage the maturity pro\ufb01le of the Group\u2019s
borrowings. The repurchase consideration amounted to $90m and resulted in a gain of $10m in Other \ufb01nance costs. During 2024, the
Group issued two corporate bonds of $350m and $650m (before expenses and underwriting discounts) of\u00a0notes bearing an interest
rate of 5.15% and 5.40% repayable in 2027 and 2034. In 2024, the Group repaid $405m of private placement debt.
The interest payable on borrowings under committed facilities is either at\u00a0\ufb01xed\u00a0or \ufb02oating rates. Euro \ufb02oating rates are typically
based\u00a0on\u00a0EURIBOR and US Dollar rates are typically based on the Term Secured Overnight Financing Rate (Term SOFR). The Company
is subject to \ufb01nancial covenants under its private placement agreements. The principal covenant on the private placement debt is a
leverage ratio of <3.5 which is measured on a rolling 12-month basis at half year and year end using net debt excluding lease liabilities
as set out in note 15.1. The \ufb01nancial covenants are tested at the end of each half year for the 12 months ending on the last day of
the testing period. As of 31 December 2025, the Company was in compliance with these covenants. The facilities are also subject
to\u00a0customary events of default, none of which are currently anticipated to occur. As the measure included in the \ufb01nancial covenants
represents net debt excluding lease liabilities, the Group also presents the net debt position to provide a complete and comprehensive
view of its \ufb01nancial position.
The Group\u2019s $1.0 billion Revolving Credit Facility (\u201cRCF\u201d) maturity date was extended to 2030 during the year.
The Group\u2019s committed facilities at 31 December 2025 and at 31 December 2024 are:
\n\n \u00a0 \u00a0\n \n
Facility 2025
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02030
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$900 million 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n\n \u00a0 \u00a0\n \n
Facility 2024
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02029
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$1.0 billion 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n
15.3
Year end \ufb01nancial liabilities by contractual maturity
The table below analyses the Group\u2019s year end \ufb01nancial liabilities by contractual maturity date, including contractual interest payments
and excluding the impact of netting arrangements:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within\u00a0one
Between
Between
year\u00a0or\u00a0on
one\u00a0and
two\u00a0and
A\ufb05er
demand
two\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Non-derivative \ufb01nancial liabilities:
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a08\u00a0
Corporate bond
\u00a090\u00a0
\u00a0
\u00a0426\u00a0
\u00a0
\u00a01,682\u00a0
\u00a0
\u00a0773\u00a0
\u00a0
\u00a02,971\u00a0
Trade and other payables
\u00a01,253\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,255\u00a0
Private placement notes
\u00a092\u00a0
\u00a0
\u00a0154\u00a0
\u00a0
\u00a0282\u00a0
\u00a0
\u00a0162\u00a0
\u00a0
\u00a0690\u00a0
Acquisition consideration
\u00a07\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0165\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0172\u00a0
Derivative \ufb01nancial liabilities:
Currency swaps\u00a0\u2013 out\ufb02ow
\u00a0419\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0419\u00a0
Currency swaps\u00a0\u2013 in\ufb02ow
\u00a0(417)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(417)
Forward foreign exchange contracts\u00a0\u2013 out\ufb02ow
1
\u00a0401\u00a0
\u00a0
\u00a0279\u00a0
\u00a0
\u00a091\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0771\u00a0
Forward foreign exchange contracts\u00a0\u2013 in\ufb02ow
1
\u00a0(394)\u00a0
\u00a0
\u00a0(278)\u00a0
\u00a0
\u00a0(92)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(764)
\u00a01,459\u00a0
\u00a0
\u00a0581\u00a0
\u00a0
\u00a02,130\u00a0
\u00a0
\u00a0935\u00a0
\u00a0
\u00a05,105\u00a0
At 31 December\u00a02024
Non-derivative \ufb01nancial liabilities:
Bank overdra\ufb05s and loans
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a098\u00a0
\u00a095\u00a0
\u00a01,109\u00a0
\u00a01,825\u00a0
\u00a03,127\u00a0
Trade and other payables
\u00a01,082\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01,082\u00a0
Private placement notes
\u00a019\u00a0
\u00a092\u00a0
\u00a0335\u00a0
\u00a0263\u00a0
\u00a0709\u00a0
Acquisition consideration
\u00a028\u00a0
\u00a05\u00a0
\u00a0165\u00a0
\u00a0\u2013\u00a0
\u00a0198\u00a0
Derivative \ufb01nancial instruments:
Currency swaps\u00a0\u2013 out\ufb02ow
\u00a0455\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0455\u00a0
Currency swaps\u00a0\u2013 in\ufb02ow
\u00a0(454)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(454)
Forward foreign exchange contracts\u00a0\u2013 out\ufb02ow
1
\u00a02,415\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02,415\u00a0
Forward foreign exchange contracts\u00a0\u2013 in\ufb02ow
1
\u00a0(2,445)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(2,445)
\u00a01,200\u00a0
\u00a0192\u00a0
\u00a01,609\u00a0
\u00a02,088\u00a0
\u00a05,089\u00a0
\n
1
Refer to note 16.1 for details of foreign exchange risk management and the currencies being hedged.
The amounts in the tables above are undiscounted cash \ufb02ows, which di\ufb00er from the amounts included in the balance sheet where the
underlying cash \ufb02ows have been discounted.
15.4
Liquidity and capital resources
The Group\u2019s policy is to ensure that it has su\ufb03cient funding and facilities to meet foreseeable borrowing requirements.
At 31 December 2025, the Group held $553m (2024: $617m, 2023: $300m) in cash and cash equivalents net of bank overdra\ufb05s.
The Group had committed facilities available of $4.1bn (2024: $4.1bn) at 31 December 2025 of which $3.1bn (2024: $3.1bn) was drawn.
The $1bn (2024: $1bn) undrawn amount relates to the RCF.
The Group has su\ufb03cient liquidity to support all known or expected business requirements for 2026 such as dividend payments,
acquisitions and disposals of businesses, capital expenditure, working capital \ufb02uctuations and trading activity.
16
Financial instruments and risk management
Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.
16.1
Foreign exchange risk management
The Group operates in many countries and, as a consequence, is exposed to movements in foreign exchange, giving rise to both
transaction and translation foreign exchange risk. Foreign exchange risk arises primarily from transactional foreign exchange exposures,
which are managed in line with the Group\u2019s risk management framework, while the Group is also exposed to foreign exchange
translation risk on consolidation.
Transaction foreign exchange risk arises where forecast sales, purchases or other trading cash \ufb02ows are denominated in currencies
other than the functional currency of the operating entity.
The Group is exposed to transactional foreign exchange risk as the majority
of its cost base is denominated in US Dollars while revenues are earned in US Dollars and other currencies.
Movements in exchange
rates may a\ufb00ect the Group\u2019s operating pro\ufb01t, particularly in respect of non- US Dollar operating pro\ufb01ts where the proportion of sales in
those currencies exceeds the proportion of costs. The Group\u2019s policy is to hedge substantially all material transaction foreign exchange
exposures in order to reduce volatility in operating pro\ufb01t and cash \ufb02ows.
The Group mitigates the impact of transaction related currency movements on operating pro\ufb01t through the use of forward foreign
exchange contracts, which are designated as cash \ufb02ow hedges. These hedges are designated against forecast trading cash \ufb02ows
that give rise to foreign exchange risk and impact the Group\u2019s operating pro\ufb01t, re\ufb02ecting di\ufb00erences between the currencies in which
revenues and costs are incurred versus the functional currencies of the respective operating entities. Such exposures are typically
hedged for periods of up to three years, with hedge coverage increased as the proximity to forecast transactions increases. The principal
currencies hedged using forward foreign exchanges contracts are Euro, Japanese Yen, Australian Dollar, Canadian Dollar and Korean
Won.
At 31 December 2025, the Group had outstanding forward foreign exchange contracts with a total notional principal amount of
$1.4 billion (2024: $2.4 billion) maturing across three years (2024: one year) from the balance sheet date.
As part of the Group\u2019s ongoing risk management process, the portfolio of key foreign currency exposures designated for hedging is
reviewed regularly, and speci\ufb01c currencies hedged may vary from year to year based on the Group\u2019s foreign exchange risk assessment.
During 2025, the Group refreshed its foreign exchange risk assessment through an updated Value at Risk analysis. As a result of this
review, the foreign exchange hedging programme was re\ufb01ned, including a reduction in the number of currencies designated for hedging
and an extension of the hedging horizon from one year to periods of up to three years. These changes are aligned with the Group\u2019s risk
management framework and re\ufb02ect the evolving pro\ufb01le of the Group\u2019s forecast transactional foreign exchange exposures.
All exchange rates are presented in accordance with standard Foreign exchange market quoting conventions.
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2025
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros
< 1 year
\u00a01.17\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.20\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Australian Dollars
< 1 year
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Canadian Dollars
< 1 year
\u00a01.36\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.35\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Japanese Yen
< 1 year
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell South Korean won
< 1 year
\u00a01,372\u00a0
\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01,366\u00a0
\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,428\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2024
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros (net) for US Dollars
\u00a01.10\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Buy Pound sterling (net) for
\u00a01.24\u00a0
\u00a0
\u00a0438\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Sell Euros (net) for Pound
\u00a00.85\u00a0
\u00a0
\u00a0335\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
sterling
Sell Singapore Dollars (net) for
\u00a01.32\u00a0
\u00a0
\u00a0174\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Buy Swiss Franc (net) for
\u00a00.93\u00a0
\u00a0
\u00a0134\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Euros
Sell Australian Dollars (net) for
\u00a00.87\u00a0
\u00a0
\u00a0122\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Sell Japanese Yen (net) for
\u00a0110\u00a0
\u00a0
\u00a0101\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Other currencies
\u00a0
\u00a0
\u00a0
\u00a0541\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a02,415\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
The movement in cash \ufb02ow hedge reserve is as follows:
\n \n \n
Terminated hedges
Active hedges
Total
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Opening balance
\u00a0(25)
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0(34)
\u00a0
\u00a0
3
Gains recognised in OCI
\u00a03\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(38)\u00a0
\u00a0
\u00a0(13)
\u00a0
\u00a0
\u00a0(38)
Amounts recycled to income statement
\u00a020\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0
\u00a01\u00a0
At 31 December
\u00a0(2)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(34)\u00a0
\u00a0
\u00a0(18)
\u00a0
\u00a0
\u00a0(34)
\n
The Group designates forward foreign exchange contracts as cash \ufb02ow hedges against the exchange rate \ufb02uctuation risk on certain
\n
intercompany transactions associated with third-party sales and purchases. Amounts recycled to the consolidated income statement
\n
are recognised within cost of sales when the third-party sales and purchases occur.
\n
During the year, certain forward foreign exchange contracts relating to currency pairs that no longer form part of the Group\u2019s updated
\n
foreign exchange risk management strategy were early terminated. A portion of the cumulative gains and losses previously recognised
\n
in the cash \ufb02ow hedge reserve in respect of these instruments has been recycled to the consolidated income statement, in line with the
\n
timing of the underlying hedged transactions.
At 31 December 2025, approximately $2m remains within the cash \ufb02ow hedge reserve
\n
relating to these discontinued hedging relationships, which is expected to be recycled to the income statement within the next twelve
\n
months, in line with the timing of the underlying hedged items.
\n
Based on the Group\u2019s net borrowings as at 31 December 2025, if the US Dollar were to weaken against all currencies by 10%, the
\n
Group\u2019s net borrowings would increase by $45m (2024: $40m) principally due to the \u20ac500m Euro corporate bond which is designated as
\n
a hedging instrument to hedge part of Group\u2019s net investment in its Euro subsidiaries (refer to note 16.4 for details). The corresponding
\n
impact on the income statement and other comprehensive income is illustrated in the table below. The other comprehensive income
\n
impact relates to the Euro corporate bond.
\n
\u00a0
\u00a0
\n \n
2025
2024
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a01\u00a0
\u00a0(46)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(40)
10% strengthening of the US Dollar
\u00a0
\u00a0(1)
\u00a046\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a040\u00a0
\n
If the US Dollar were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as
\n
at 31 December 2025 would have been $144m lower (2024: $48m lower). Movements in the fair value of forward foreign exchange
\n
contracts would be recognised in other comprehensive income or in the income statement as illustrated in the table below.
\n
\u00a0
\u00a0
\n \n
2025
2024\u00a0
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a0(6)
\u00a0(138)
\u00a0
\u00a0
\u00a0(7)
\u00a0(41)
10% strengthening of the US Dollar
\u00a0
\u00a06\u00a0
\u00a0129\u00a0
\u00a0
\u00a0
\u00a07\u00a0
\u00a041\u00a0
\n
The Group is exposed to foreign exchange translation risk arising from the translation on consolidation of monetary assets and liabilities
\n
denominated in currencies other than the functional currencies of the Group\u2019s operating entities. It is the Group\u2019s policy that operating
\n
units do not hold material unhedged monetary assets or liabilities other than in their functional currencies. Movements in exchange rates
\n
may a\ufb00ect reported revenue, pro\ufb01t and net assets but do not impact the Group\u2019s underlying cash \ufb02ows.
Hedge ine\ufb00ectiveness is caused
\n
by actual cash \ufb02ows in foreign currencies varying from forecast cash \ufb02ows.
16.2
Interest rate risk management
The Group is exposed to interest rate risk on cash, borrowings and certain currency and interest rate swaps which are at \ufb02oating
rates. The Group uses interest rate swaps to reduce the overall level of \ufb01xed rate debt, consistent with its policy of maintaining at
least 50% of gross debt at \ufb01xed rates. When used in this way, interest rate derivatives are accounted for as fair value hedges. The fair
value movement of the derivative is o\ufb00set in the income statement against the fair value movement in the underlying \ufb01xed rate debt.
When required the Group uses interest rate derivatives to meet its objective of protecting borrowing costs within parameters set by the
Board. These interest rate derivatives are accounted for as cash \ufb02ow hedges and, as such, changes in fair value resulting from changes in
market interest rates are recognised in other comprehensive income and accumulated in the hedging reserve, with the fair value of the
interest rate derivatives recorded in the balance sheet.
Based on the Group\u2019s gross borrowings and cash as at 31 December 2025, if \ufb02oating interest rates were to increase by 100 basis points
in all currencies, then the annual net interest charge would increase by $7m (2024: $5m). A decrease in interest rates by 100 basis points
in\u00a0all\u00a0currencies would have an equal but opposite e\ufb00ect to the amounts shown above.
The amounts relating to items designated as hedging instruments to manage the interest rate risk were as follows:
\n\n \u00a0 \u00a0\u00a0\n \n
Derivatives - Interest rate swaps
Fixed rate debt
Fair value
Fair value
change used for
Cumulative
change used for
Group
recognising hedge
fair value
Group
recognising hedge
Carrying amount
Carrying
hedge
Balance
ine\ufb00ectiveness
Balance
Nominal
ine\ufb00ectiveness
amount
1
adjustments
Sheet
charge/(credit)
assets
liabilities
Sheet
amount
charge/(credit)
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
line item
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
line item
\u00a0
\u00a0
\u00a0
million
$ million
At 31
December\u00a02025
US Dollar bond
\u00a0(500)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0\u00a0Long-term
\u00a020\u00a0
\u00a04\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0Other non-
\u00a0(500)
\u00a0(20)
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(588)
\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0
\u00a0
and lease
\u00a0(3)
\u00a07\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
assets\u00a0
\u00a0(500)
\u00a03\u00a0
liabilities\u00a0
At 31
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
December\u00a02024
US Dollar bond
\u00a0(500)\u00a0
\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Long-term
\u00a0(16)
\u00a0\u2013\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Other non-
\u00a0(500)
\u00a016\u00a0
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(520)\u00a0
\u00a0
\u00a010\u00a0
\u00a0
and lease
\u00a03\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0
assets/
\u00a0(500)
\u00a0(3)
liabilities\u00a0
(liabilities)\u00a0
\u00a0\u00a0\n
1
The carrying amount relates to a hedge of the \u20ac500m EUR corporate bond ($588m translated at closing USD/EUR rate (2024: $520m)) and a hedge of
$500m out of the $650m corporate bond.
16.3
Credit risk management
The Group limits exposure to credit risk on counterparties used for \ufb01nancial instruments through a system of internal credit limits.
The \ufb01nancial exposure of a counterparty is determined as the total of cash and deposits, plus the risk on derivative instruments,
assessed as the fair value of the instrument plus a risk element based on the nominal value and the historic volatility of the market
value of the instrument. The Group does not anticipate non-performance of counterparties and believes it is not subject to material
concentration of credit risk as the Group operates within a policy of counterparty limits designed to reduce exposure to any
single counterparty.
The maximum credit risk exposure on derivatives at 31 December 2025 was $46m (2024: $56m), being the total debit fair values
on\u00a0forward foreign exchange contracts, currency swaps and interest rate swaps. The maximum credit risk exposure on cash and cash
equivalents at 31 December 2025 was\u00a0$557m (2024: $619m). The\u00a0Group\u2019s exposure to credit risk on cash is mitigated as the amounts
are held in a wide number of\u00a0high\u00a0credit quality \ufb01nancial institutions. Credit risk on trade receivables is detailed in Note 13.
16.4
Net investment hedge
Part of the Group\u2019s net investment in its Euro subsidiaries is hedged by \u20ac500m ($588m equivalent) of our EUR corporate bond which
mitigates the\u00a0foreign currency risk arising from the subsidiaries\u2019 net assets. The Bond is designated as a hedging instrument for
the\u00a0changes in\u00a0the\u00a0value of the net investment that is attributable to changes in the EUR/USD spot rate.
\n\n \u00a0 \u00a0\n \n
Balance sheet classi\ufb01cation
(Gains) / losses
Carrying value of
recognised in Other
Amounts reclassi\ufb01ed
hedging instrument
Comprehensive Income
to income statement
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Long-term borrowings and lease liabilities
\u00a0588\u00a0
\u00a0
\u00a0
\u00a0520\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
To assess hedge e\ufb00ectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item
by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the investment
in the foreign operation due to movements in the spot rate (the o\ufb00set method). The Group\u2019s policy is to hedge the net investment only
to\u00a0the extent of the debt principal. Hedge ine\ufb00ectiveness occurs if the value of the Euro-denominated corporate bond exceeds the
value\u00a0of\u00a0the Euro subsidiaries.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Change in value used for
Currency risk on foreign operations
Hedging
Balance in translation reserve
calculating ine\ufb00ectiveness
instrument
Continuing
Discontinued
Hedged
Hedging
Hedge
notional
hedges
hedges
item
instrument
ine\ufb00ectiveness
million
$ million
$ million
$ million
$ million
$ million
At 31 December 2025
\u00a0500\u00a0
\u00a0
\u00a0102\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0500\u00a0
\u00a0
\u00a034\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0(33)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
16.5
Currency and interest rate pro\ufb01le of interest bearing liabilities and assets
Short-term receivables and payables are excluded from the following disclosures.
Currency and interest rate pro\ufb01le of interest bearing liabilities:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Fixed rate liabilities
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Weighted\u00a0
average
Interest
Weighted
time\u00a0
Gross
Currency
rate
Total
Floating
Fixed\u00a0rate
average
for\u00a0which
borrowings
swaps
swaps
liabilities
rate liabilities
liabilities
interest\u00a0rate
rate\u00a0is\u00a0\ufb01xed
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
Years\u00a0
At 31 December\u00a02025
US Dollar
\u00a0(2,510)
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(2,512)
\u00a0(492)
\u00a0(2,020)
\u00a03.1\u00a0
\u00a04.0\u00a0
Euro
\u00a0(591)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(591)
\u00a0(591)
\u00a0\u2013\u00a0
Other
\u00a0(10)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(10)
\u00a0(10)
\u00a0\u2013\u00a0
Total interest bearing
liabilities
\u00a0(3,111)
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(3,113)
\u00a0(1,093)
\u00a0(2,020)
At 31 December\u00a02024
US Dollar
\u00a0(2,594)
\u00a0(310)
\u00a0(16)
\u00a0(2,920)
\u00a0(324)
\u00a0(2,596)
\u00a03.5\u00a0
\u00a04.1\u00a0
Euro
\u00a0(527)
\u00a0(130)
\u00a0\u2013\u00a0
\u00a0(657)
\u00a0(130)
\u00a0(527)
Other
\u00a0(4)
\u00a0(14)
\u00a0\u2013\u00a0
\u00a0(18)
\u00a0(18)
\u00a0\u2013\u00a0
Total interest bearing
liabilities
\u00a0(3,125)
\u00a0(454)
\u00a0(16)
\u00a0(3,595)
\u00a0(472)
\u00a0(3,123)\u00a0
In 2025, the Group also had liabilities due for deferred and contingent acquisition consideration (denominated in US Dollars and Euros)
totalling $107m (2024: $105m) on which no interest was payable (see Note 14). There were no other\u00a0signi\ufb01cant interest bearing or
non-interest bearing \ufb01nancial liabilities. Euro \ufb02oating rates are typically based on EURIBOR and US Dollar rates are typically based on
Term SOFR. The\u00a0weighted average interest rate on \ufb02oating rate borrowings as at\u00a031 December 2025 was 4.6% (2024:\u00a05.1%). The Group
has entered into interest rate swap contracts to convert the interest payments on \u20ac500m and $500m debt from \ufb01xed rate to \ufb02oating
rate basis.
Currency and interest rate pro\ufb01le of interest bearing assets:
\n\n \u00a0 \u00a0
\u00a0
\u00a0
Cash and cash
Currency
Interest rate
\u00a0
\u00a0
\u00a0
Floating
Fixed\u00a0
equivalents
swaps
swaps
Total\u00a0assets
rate\u00a0assets
rate\u00a0assets
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
US Dollar
\u00a0393\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0399\u00a0
\u00a0
\u00a0395\u00a0
\u00a0
\u00a04\u00a0
Euro
\u00a026\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a07\u00a0
\u00a0
\u00a033\u00a0
\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
Other
\u00a0138\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0\u2013\u00a0
Total interest bearing assets
\u00a0557\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a011\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a0566\u00a0
\u00a0
\u00a04\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
US Dollar
\u00a0482\u00a0
\u00a0
\u00a0146\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0628\u00a0
\u00a0
\u00a0628\u00a0
\u00a0
\u00a0\u2013\u00a0
Euro
\u00a09\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
Other
\u00a0128\u00a0
\u00a0
\u00a0270\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0398\u00a0
\u00a0
\u00a0398\u00a0
\u00a0
\u00a0\u2013\u00a0
Total interest bearing assets
\u00a0619\u00a0
\u00a0
\u00a0453\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a01,082\u00a0
\u00a0
\u00a01,082\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
Floating rates on assets are typically based on the short-term deposit rates relevant to the currency concerned.
16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00455": { "value": "10
Investments
Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.
\n\n \u00a0 \u00a0\u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 1 January
\u00a09\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a09\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00454": { "value": "10
Investments
Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.
\n\n \u00a0 \u00a0\u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 1 January
\u00a09\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a09\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00452": { "value": "10
Investments
Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.
\n\n \u00a0 \u00a0\u00a0\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 1 January
\u00a09\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a09\u00a0
\n\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00527": { "value": "Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00529": { "value": "Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00528": { "value": "Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00526": { "value": "Accounting policy
Investments, other than those related to associates, are initially recorded at fair value on the trade date. Transaction costs relating
to investments are expensed as incurred. The Group has investments in unquoted entities and an entity that holds mainly unquoted
equity securities, which by their nature have no \ufb01xed maturity date or coupon rate. These investments are classed as fair value
through pro\ufb01t or loss. The fair value of these investments is based on the underlying fair value of the equity securities: marketable
securities are valued by reference to closing prices in the market; non-marketable securities are estimated considering factors
including the purchase price; prices of recent signi\ufb01cant private placements of securities of the same issuer; and estimates of
liquidation value. Changes in fair value based on externally observable valuation events are recognised in pro\ufb01t or loss.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00453": { "value": "11
Investments in associates
Accounting policy
Investments in associates, being those entities over which the Group has a signi\ufb01cant in\ufb02uence and which is neither a subsidiary
nor\u00a0a\u00a0joint\u00a0venture, are accounted for using the equity method, with the Group recording its share of the associates\u2019 pro\ufb01t and loss
and\u00a0other comprehensive income. The Group\u2019s share of associates\u2019 pro\ufb01t or loss is included in one separate income statement line
and\u00a0is\u00a0calculated a\ufb05er\u00a0deduction of their respective taxes.
At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.
At 31 December 2025, the Group holds 26.60% (2024: 27.13%) of Bioventus Inc. (Bioventus) which is the holding company of
Bioventus\u00a0LLC. The decrease in the Group\u2019s holding between 2025 and 2024 was because of the exercise of Bioventus employee share
options. The Company\u2019s headquarters is located in Durham, North Carolina, US, and its medical product development is focused around
active healing therapies and the surgical performance of orthobiologics. The active healing therapies product line supports accelerated
and\u00a0more complete healing of bone fractures, and treats the chronic pain associated with osteoarthritis.
The gain a\ufb05er taxation recognised in the income statement relating to Bioventus was $113m, includes reversal of impairment of $109m
(2024: $10m loss, 2023: $30m loss). The balance sheet carrying value relating to Bioventus is $119m (2024: $6m). The Group\u2019s ability to
recover the value of its investment is\u00a0dependent upon the ongoing clinical and commercial success of these products.
In 2022, the Group recognised an impairment charge of $109m on its investment in Bioventus due to a signi\ufb01cant decline in share price
and the company has disclosed a substantial doubt about their ability to continue as a going concern. Since then, Bioventus returned to
pro\ufb01tability, resolved its liquidity constraints and materially improved operating performance through 2025, supported by restructuring
and divestment initiatives. These improvements were re\ufb02ected in a sustained recovery and stabilisation of the share price, with market
indicators no longer suggesting distress.
Based on these developments, management performed an impairment review by comparing the fair value of Bioventus using its market
share price of $7.44 as at 31 December 2025 less carrying amount and concluded that the prior impairment loss of $109m should be
reversed (2024: $nil, 2023: $nil).
The amounts recognised in the balance sheet and income statement for associates are as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
Balance sheet
\u00a0121\u00a0
\u00a07\u00a0
\u00a016\u00a0
Income statement gain/(loss)
\u00a04\u00a0
\u00a0(10)
\u00a0(30)
Reversal of impairment of interest in associate
\u00a0109\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\n
Summarised \ufb01nancial information for signi\ufb01cant associates
Set out below is the summarised \ufb01nancial information for Bioventus, adjusted for di\ufb00erences with Group accounting policies.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0
\u00a0
2024
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
Summarised statement of comprehensive income
Revenue
\u00a0410\u00a0
\u00a0420\u00a0
\u00a0377\u00a0
Attributable pro\ufb01t / (loss) for the\u00a0year
\u00a08\u00a0
\u00a0(34)
\u00a0(152)
Group adjustments
1
\u00a09\u00a0
\u00a0(2)
\u00a046\u00a0
Total comprehensive pro\ufb01t / (loss)
\u00a017\u00a0
\u00a0(36)
\u00a0(106)
Group share of gain / (loss) for the\u00a0year at 26.60% (2024: 27.13%, 2023: 27.96%)
\u00a05\u00a0
\u00a0(10)
\u00a0(30)
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Summarised balance sheet
Non-current assets
\u00a0421\u00a0
\u00a0471\u00a0
Current assets
\u00a0281\u00a0
\u00a0299\u00a0
Non-current liabilities
\u00a0(333)
\u00a0(371)
Current liabilities
\u00a0(162)
\u00a0(211)
Net assets
\u00a0207\u00a0
\u00a0188\u00a0
Net equity attributable to owners
\u00a0207\u00a0
\u00a0188\u00a0
Group\u2019s share of net assets at 26.60% (2024: 27.13%)
\u00a055\u00a0
\u00a051\u00a0
Group adjustments
1
\u00a064\u00a0
\u00a0(45)
Group\u2019s carrying amount of investment at 26.60% (2024: 27.13%)
\u00a0119\u00a0
\u00a06\u00a0
\n
1
Group adjustments include adjustments to align with Group policy.
The investment in Bioventus had a fair value less costs of disposal of $133m as at 31 December 2025 (2024: $186m).
During the year, the Group received a $nil (2024: $nil) cash distribution from its associates.
At 31 December 2025, the Group held equity investments in two other associates (2024: two) with a carrying value of $2m (2024: $1m).", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00456": { "value": "11
Investments in associates
Accounting policy
Investments in associates, being those entities over which the Group has a signi\ufb01cant in\ufb02uence and which is neither a subsidiary
nor\u00a0a\u00a0joint\u00a0venture, are accounted for using the equity method, with the Group recording its share of the associates\u2019 pro\ufb01t and loss
and\u00a0other comprehensive income. The Group\u2019s share of associates\u2019 pro\ufb01t or loss is included in one separate income statement line
and\u00a0is\u00a0calculated a\ufb05er\u00a0deduction of their respective taxes.
At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.
At 31 December 2025, the Group holds 26.60% (2024: 27.13%) of Bioventus Inc. (Bioventus) which is the holding company of
Bioventus\u00a0LLC. The decrease in the Group\u2019s holding between 2025 and 2024 was because of the exercise of Bioventus employee share
options. The Company\u2019s headquarters is located in Durham, North Carolina, US, and its medical product development is focused around
active healing therapies and the surgical performance of orthobiologics. The active healing therapies product line supports accelerated
and\u00a0more complete healing of bone fractures, and treats the chronic pain associated with osteoarthritis.
The gain a\ufb05er taxation recognised in the income statement relating to Bioventus was $113m, includes reversal of impairment of $109m
(2024: $10m loss, 2023: $30m loss). The balance sheet carrying value relating to Bioventus is $119m (2024: $6m). The Group\u2019s ability to
recover the value of its investment is\u00a0dependent upon the ongoing clinical and commercial success of these products.
In 2022, the Group recognised an impairment charge of $109m on its investment in Bioventus due to a signi\ufb01cant decline in share price
and the company has disclosed a substantial doubt about their ability to continue as a going concern. Since then, Bioventus returned to
pro\ufb01tability, resolved its liquidity constraints and materially improved operating performance through 2025, supported by restructuring
and divestment initiatives. These improvements were re\ufb02ected in a sustained recovery and stabilisation of the share price, with market
indicators no longer suggesting distress.
Based on these developments, management performed an impairment review by comparing the fair value of Bioventus using its market
share price of $7.44 as at 31 December 2025 less carrying amount and concluded that the prior impairment loss of $109m should be
reversed (2024: $nil, 2023: $nil).
The amounts recognised in the balance sheet and income statement for associates are as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
Balance sheet
\u00a0121\u00a0
\u00a07\u00a0
\u00a016\u00a0
Income statement gain/(loss)
\u00a04\u00a0
\u00a0(10)
\u00a0(30)
Reversal of impairment of interest in associate
\u00a0109\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\n
Summarised \ufb01nancial information for signi\ufb01cant associates
Set out below is the summarised \ufb01nancial information for Bioventus, adjusted for di\ufb00erences with Group accounting policies.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0
\u00a0
2024
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
Summarised statement of comprehensive income
Revenue
\u00a0410\u00a0
\u00a0420\u00a0
\u00a0377\u00a0
Attributable pro\ufb01t / (loss) for the\u00a0year
\u00a08\u00a0
\u00a0(34)
\u00a0(152)
Group adjustments
1
\u00a09\u00a0
\u00a0(2)
\u00a046\u00a0
Total comprehensive pro\ufb01t / (loss)
\u00a017\u00a0
\u00a0(36)
\u00a0(106)
Group share of gain / (loss) for the\u00a0year at 26.60% (2024: 27.13%, 2023: 27.96%)
\u00a05\u00a0
\u00a0(10)
\u00a0(30)
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Summarised balance sheet
Non-current assets
\u00a0421\u00a0
\u00a0471\u00a0
Current assets
\u00a0281\u00a0
\u00a0299\u00a0
Non-current liabilities
\u00a0(333)
\u00a0(371)
Current liabilities
\u00a0(162)
\u00a0(211)
Net assets
\u00a0207\u00a0
\u00a0188\u00a0
Net equity attributable to owners
\u00a0207\u00a0
\u00a0188\u00a0
Group\u2019s share of net assets at 26.60% (2024: 27.13%)
\u00a055\u00a0
\u00a051\u00a0
Group adjustments
1
\u00a064\u00a0
\u00a0(45)
Group\u2019s carrying amount of investment at 26.60% (2024: 27.13%)
\u00a0119\u00a0
\u00a06\u00a0
\n
1
Group adjustments include adjustments to align with Group policy.
The investment in Bioventus had a fair value less costs of disposal of $133m as at 31 December 2025 (2024: $186m).
During the year, the Group received a $nil (2024: $nil) cash distribution from its associates.
At 31 December 2025, the Group held equity investments in two other associates (2024: two) with a carrying value of $2m (2024: $1m).", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00531": { "value": "Accounting policy
Investments in associates, being those entities over which the Group has a signi\ufb01cant in\ufb02uence and which is neither a subsidiary
nor\u00a0a\u00a0joint\u00a0venture, are accounted for using the equity method, with the Group recording its share of the associates\u2019 pro\ufb01t and loss
and\u00a0other comprehensive income. The Group\u2019s share of associates\u2019 pro\ufb01t or loss is included in one separate income statement line
and\u00a0is\u00a0calculated a\ufb05er\u00a0deduction of their respective taxes.
At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00530": { "value": "Accounting policy
Investments in associates, being those entities over which the Group has a signi\ufb01cant in\ufb02uence and which is neither a subsidiary
nor\u00a0a\u00a0joint\u00a0venture, are accounted for using the equity method, with the Group recording its share of the associates\u2019 pro\ufb01t and loss
and\u00a0other comprehensive income. The Group\u2019s share of associates\u2019 pro\ufb01t or loss is included in one separate income statement line
and\u00a0is\u00a0calculated a\ufb05er\u00a0deduction of their respective taxes.
At each reporting date we assess, in accordance with IAS 28 and IAS 36, whether there is any indication that an equity-accounted
investment may be impaired or that a previously recognised impairment may have decreased. Where indicators exist, impairment is
taken to re\ufb02ect the recoverable amount accordingly.
An impairment loss is recognised when the carrying amount exceeds the recoverable amount. Any subsequent reversal is recognised
only when supported by indicators and is limited, in accordance with IAS 36, so that the carrying amount a\ufb05er reversal does not
exceed the amount that would have been determined had no impairment been recognised (a\ufb05er equity-method movements).
The investment is assessed as a single asset for impairment purposes.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00457": { "value": "12
Inventories
Accounting policy
Finished goods and work-in-progress are valued at factory cost, including appropriate overheads, on a \ufb01rst-in \ufb01rst-out basis.
Raw materials and bought-in \ufb01nished goods are valued at purchase price. All inventories are reduced to net realisable value where
lower than cost. Inventory acquired as\u00a0part of a business acquisition is valued at selling price less costs to sell and a pro\ufb01t allowance
for\u00a0selling e\ufb00orts.
Instruments expected to be sold outright to customers and distributors in the ordinary course of business are initially recognised as
inventory. Instruments not expected to be sold are recognised in property, plant and equipment (refer to note 7).
Risks and rewards of ownership of consignment inventory are transferred to the customer when the product is used in surgery.
A feature of the orthopaedic business is the high level of product inventory required, some of which is located at customer premises
and is available for customers\u2019 immediate use (referred to as consignment inventory). Complete sets of product, including large and
small sizes, have to be made available in this way. These outer sizes are used less frequently than standard sizes and towards the
end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be
made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on
levels of inventory compared with historical or forecast usage. This formula is applied on an individual product line basis and is \ufb01rst
applied when a product group has been on the market for two years. This method of calculation is considered appropriate based
on\u00a0experience but it involves management judgements on e\ufb00ectiveness of\u00a0inventory deployment, length of product lives, phase-out
of\u00a0old products and e\ufb03ciency of manufacturing planning systems.
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Raw materials and consumables
\u00a0412\u00a0
\u00a0469\u00a0
Work-in-progress
\u00a054\u00a0
\u00a045\u00a0
Finished goods and goods for resale
\u00a01,651\u00a0
\u00a01,873\u00a0
\u00a02,117\u00a0
\u00a02,387\u00a0
\n
The determination of the estimate of excess and obsolete inventory includes assumptions on the future usage of all di\ufb00erent items of
\ufb01nished goods. The provision has a high degree of estimation uncertainty given the range of products and sizes, with a potential range
of reasonable outcomes that could be material over the longer term (i.e, more than 12 months).
In 2025, the Group advanced its portfolio simpli\ufb01cation initiatives introduced under the 12-point plan and further developed through
the Ortho 360 operating model and new RISE strategy. These actions include the planned discontinuation and simpli\ufb01cation of certain
product ranges which will reduce the need for inventory and capital employed in the business, provide a simpler and more e\ufb03cient o\ufb00er
to our customers, and will also allow us to focus on migrating them to our latest technology products. As a result, the Group recognised
an excess and obsolescence charge of $159m (2024: $nil, 2023: $nil) within Cost of goods sold.
The determination of the provision
involves assumptions regarding timing of product discontinuation and future sales patterns.
Management has not changed their policy for calculating the excess and obsolete provision since 31 December 2024, in relation to
inventory that is not subject to the inventory portfolio rationalisation programme described above. The provision has increased from
$511m at 31 December 2024 to $644m at 31 December 2025 and includes a charge to the provision of $159m in relation to the
inventory rationalisation programme (2024: $nil) as noted above. Foreign exchange movements of $15m contributed to the increase in
provision. $231m was recognised as an expense within cost of goods sold resulting from inventory write-o\ufb00s and provision movements
(2024: $120m, 2023: $106m) which included $159m arising from the inventory portfolio rationalisation programme (2024: $nil, 2023:
$nil).
The cost of inventories recognised as an expense and included in cost of goods sold amounted to $1,625m (2024: $1,583m,
2023: $1,459m).
In 2025, no inventory write-o\ufb00s were recognised (2024: $17m) relating to the disposal of certain products and voluntary
product discontinuation.
Notwithstanding inventory acquired within acquisitions, no inventory is carried at fair value less costs to sell in any year.", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00532": { "value": "Accounting policy
Finished goods and work-in-progress are valued at factory cost, including appropriate overheads, on a \ufb01rst-in \ufb01rst-out basis.
Raw materials and bought-in \ufb01nished goods are valued at purchase price. All inventories are reduced to net realisable value where
lower than cost. Inventory acquired as\u00a0part of a business acquisition is valued at selling price less costs to sell and a pro\ufb01t allowance
for\u00a0selling e\ufb00orts.
Instruments expected to be sold outright to customers and distributors in the ordinary course of business are initially recognised as
inventory. Instruments not expected to be sold are recognised in property, plant and equipment (refer to note 7).
Risks and rewards of ownership of consignment inventory are transferred to the customer when the product is used in surgery.
A feature of the orthopaedic business is the high level of product inventory required, some of which is located at customer premises
and is available for customers\u2019 immediate use (referred to as consignment inventory). Complete sets of product, including large and
small sizes, have to be made available in this way. These outer sizes are used less frequently than standard sizes and towards the
end of the product life cycle are inevitably in excess of requirements. Adjustments to carrying value are therefore required to be
made to orthopaedic inventory to anticipate this situation. These adjustments are calculated in accordance with a formula based on
levels of inventory compared with historical or forecast usage. This formula is applied on an individual product line basis and is \ufb01rst
applied when a product group has been on the market for two years. This method of calculation is considered appropriate based
on\u00a0experience but it involves management judgements on e\ufb00ectiveness of\u00a0inventory deployment, length of product lives, phase-out
of\u00a0old products and e\ufb03ciency of manufacturing planning systems.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00458": { "value": "13
Trade and other receivables
Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade receivables
\u00a01,200\u00a0
\u00a01,100\u00a0
Less: loss allowance
\u00a0(44)
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a01,059\u00a0
Derivatives
1
\u00a020\u00a0
\u00a047\u00a0
Other receivables
2
\u00a0138\u00a0
\u00a0148\u00a0
Prepayments
\u00a099\u00a0
\u00a0127\u00a0
\u00a01,413\u00a0
\u00a01,381\u00a0
Non-current
Derivatives
1
\u00a026\u00a0
\u00a011\u00a0
Investments relating to deferred compensation arrangements
\u00a0109\u00a0
\u00a0\u2013\u00a0
Other non- current assets
\u00a029\u00a0
\u00a013\u00a0
\u00a0164\u00a0
\u00a024\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
2
Other receivables include deposits, rebates, \ufb01nance lease receivables and other items of a similar nature.
The
Group holds investments in \ufb01nancial assets in connection with deferred compensation and employee bene\ufb01t arrangements
(refer to note 16.6). Refer to note 14 for details of deferred compensation obligations.
Other non-current assets primarily relate to long-term prepayments and \ufb01nance lease receivables. Refer to note 16.2 for details of
interest rate contracts. Management considers that the carrying amount of trade and other receivables\u00a0approximates the fair value.
Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.
The loss allowance expense for the year was $12m (2024: $1m, 2023: $3m).
The following table provides information about the ageing of and expected credit losses for trade receivables:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0Weighted
2025\u00a0Gross
2024\u00a0Weighted
2024\u00a0Gross
average\u00a0loss
2025\u00a0Loss
carrying
average\u00a0loss
2024\u00a0Loss
carrying
rate
allowance
amount
rate
allowance
amount\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Not past due
-0.8%\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0949\u00a0
-0.8%\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0860\u00a0
Past due not more than 3 months
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0169\u00a0
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0154\u00a0
Past due more than 3 months
-9.7%\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a031\u00a0
-7.7%\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a026\u00a0
Past due more than 6 months
-62.7%\u00a0
\u00a0
\u00a0(32)\u00a0
\u00a0
\u00a051\u00a0
-51.7%\u00a0
\u00a0
\u00a0(31)\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)\u00a0
\u00a0
\u00a01,200\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a01,100\u00a0
Loss allowance
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,156\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,059\u00a0
The Group\u2019s expected credit loss accounting policy includes guidance on how the expected credit loss percentages should be
determined; it\u00a0does not include present limits as the customer groups and risk pro\ufb01les are not consistent across all of our markets.
Each market determines their own percentages based on historic experience and future expectations, and in line with the
general\u00a0guidance in\u00a0the Group\u2019s policy.
Movements in the loss allowance were as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
At 1 January
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\u00a0
\u00a0
\u00a049\u00a0
Exchange adjustment
\u00a0
\u00a02\u00a0
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Net receivables provided during the\u00a0year
\u00a0
\u00a012\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0
\u00a03\u00a0
Utilisation of provision
\u00a0
\u00a0(11)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0
\u00a0(8)
At 31 December
\u00a0
\u00a044\u00a0
\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\n
Trade receivables include amounts denominated in the following major currencies:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
US Dollar
\u00a0502\u00a0
\u00a0
\u00a0518\u00a0
Sterling
\u00a038\u00a0
\u00a0
\u00a036\u00a0
Euro
\u00a0253\u00a0
\u00a0
\u00a0207\u00a0
Other
\u00a0363\u00a0
\u00a0
\u00a0298\u00a0
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a0
\u00a01,059\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00533": { "value": "Accounting policy
Trade and other receivables are carried at amortised cost, less any allowances for uncollectable amounts. They are included
in\u00a0current\u00a0assets, except for maturities greater than 12 months a\ufb05er the balance sheet date when they are classi\ufb01ed as
non-current assets.
The Group manages credit risk through credit limits which require authorisation commensurate with the size of the limit and
which are regularly reviewed. Credit limit decisions are made based on available \ufb01nancial information and the business case.
Signi\ufb01cant receivables are regularly reviewed and monitored at Group level. The Group has no signi\ufb01cant concentration of credit risk,
with exposure spread over a large number of customers and geographies. Furthermore, the Group\u2019s principal customers are backed
by government and public or private medical insurance funding, which historically represent a lower risk of default. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of\u00a0receivable. The Group does not hold any collateral as
security. The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00534": { "value": "The Group applies the simpli\ufb01ed approach and allowance losses are calculated by reviewing lifetime expected credit losses
using historic and forward-looking data on credit risk. The Group performed the calculation of expected credit loss rates separately
for customer groups which were segmented based on common risk characteristics such as credit risk grade and type of customer
(such as government and non-government).", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00460": { "value": "\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade receivables
\u00a01,200\u00a0
\u00a01,100\u00a0
Less: loss allowance
\u00a0(44)
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a01,059\u00a0
Derivatives
1
\u00a020\u00a0
\u00a047\u00a0
Other receivables
2
\u00a0138\u00a0
\u00a0148\u00a0
Prepayments
\u00a099\u00a0
\u00a0127\u00a0
\u00a01,413\u00a0
\u00a01,381\u00a0
Non-current
Derivatives
1
\u00a026\u00a0
\u00a011\u00a0
Investments relating to deferred compensation arrangements
\u00a0109\u00a0
\u00a0\u2013\u00a0
Other non- current assets
\u00a029\u00a0
\u00a013\u00a0
\u00a0164\u00a0
\u00a024\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
2
Other receivables include deposits, rebates, \ufb01nance lease receivables and other items of a similar nature.
The
Group holds investments in \ufb01nancial assets in connection with deferred compensation and employee bene\ufb01t arrangements
(refer to note 16.6). Refer to note 14 for details of deferred compensation obligations.
Other non-current assets primarily relate to long-term prepayments and \ufb01nance lease receivables. Refer to note 16.2 for details of
interest rate contracts. Management considers that the carrying amount of trade and other receivables\u00a0approximates the fair value.
Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00461": { "value": "\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade receivables
\u00a01,200\u00a0
\u00a01,100\u00a0
Less: loss allowance
\u00a0(44)
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a01,059\u00a0
Derivatives
1
\u00a020\u00a0
\u00a047\u00a0
Other receivables
2
\u00a0138\u00a0
\u00a0148\u00a0
Prepayments
\u00a099\u00a0
\u00a0127\u00a0
\u00a01,413\u00a0
\u00a01,381\u00a0
Non-current
Derivatives
1
\u00a026\u00a0
\u00a011\u00a0
Investments relating to deferred compensation arrangements
\u00a0109\u00a0
\u00a0\u2013\u00a0
Other non- current assets
\u00a029\u00a0
\u00a013\u00a0
\u00a0164\u00a0
\u00a024\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
2
Other receivables include deposits, rebates, \ufb01nance lease receivables and other items of a similar nature.
The
Group holds investments in \ufb01nancial assets in connection with deferred compensation and employee bene\ufb01t arrangements
(refer to note 16.6). Refer to note 14 for details of deferred compensation obligations.
Other non-current assets primarily relate to long-term prepayments and \ufb01nance lease receivables. Refer to note 16.2 for details of
interest rate contracts. Management considers that the carrying amount of trade and other receivables\u00a0approximates the fair value.
Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00459": { "value": "\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade receivables
\u00a01,200\u00a0
\u00a01,100\u00a0
Less: loss allowance
\u00a0(44)
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a01,059\u00a0
Derivatives
1
\u00a020\u00a0
\u00a047\u00a0
Other receivables
2
\u00a0138\u00a0
\u00a0148\u00a0
Prepayments
\u00a099\u00a0
\u00a0127\u00a0
\u00a01,413\u00a0
\u00a01,381\u00a0
Non-current
Derivatives
1
\u00a026\u00a0
\u00a011\u00a0
Investments relating to deferred compensation arrangements
\u00a0109\u00a0
\u00a0\u2013\u00a0
Other non- current assets
\u00a029\u00a0
\u00a013\u00a0
\u00a0164\u00a0
\u00a024\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
2
Other receivables include deposits, rebates, \ufb01nance lease receivables and other items of a similar nature.
The
Group holds investments in \ufb01nancial assets in connection with deferred compensation and employee bene\ufb01t arrangements
(refer to note 16.6). Refer to note 14 for details of deferred compensation obligations.
Other non-current assets primarily relate to long-term prepayments and \ufb01nance lease receivables. Refer to note 16.2 for details of
interest rate contracts. Management considers that the carrying amount of trade and other receivables\u00a0approximates the fair value.
Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00462": { "value": "Allowance losses are calculated by reviewing lifetime expected credit losses using historic and forward-looking data on credit risk.
The loss allowance relating to other receivables is\u00a0de minimis.
The loss allowance expense for the year was $12m (2024: $1m, 2023: $3m).
The following table provides information about the ageing of and expected credit losses for trade receivables:
\n\n \u00a0 \u00a0 \u00a0\n \n
2025\u00a0Weighted
2025\u00a0Gross
2024\u00a0Weighted
2024\u00a0Gross
average\u00a0loss
2025\u00a0Loss
carrying
average\u00a0loss
2024\u00a0Loss
carrying
rate
allowance
amount
rate
allowance
amount\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Not past due
-0.8%\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0949\u00a0
-0.8%\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0860\u00a0
Past due not more than 3 months
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0169\u00a0
-0.6%\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0154\u00a0
Past due more than 3 months
-9.7%\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a031\u00a0
-7.7%\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a026\u00a0
Past due more than 6 months
-62.7%\u00a0
\u00a0
\u00a0(32)\u00a0
\u00a0
\u00a051\u00a0
-51.7%\u00a0
\u00a0
\u00a0(31)\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)\u00a0
\u00a0
\u00a01,200\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)\u00a0
\u00a0
\u00a01,100\u00a0
Loss allowance
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(44)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(41)
Trade receivables\u00a0\u2013 net
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,156\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,059\u00a0
The Group\u2019s expected credit loss accounting policy includes guidance on how the expected credit loss percentages should be
determined; it\u00a0does not include present limits as the customer groups and risk pro\ufb01les are not consistent across all of our markets.
Each market determines their own percentages based on historic experience and future expectations, and in line with the
general\u00a0guidance in\u00a0the Group\u2019s policy.
Movements in the loss allowance were as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
At 1 January
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\u00a0
\u00a0
\u00a049\u00a0
Exchange adjustment
\u00a0
\u00a02\u00a0
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Net receivables provided during the\u00a0year
\u00a0
\u00a012\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0
\u00a03\u00a0
Utilisation of provision
\u00a0
\u00a0(11)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0
\u00a0(8)
At 31 December
\u00a0
\u00a044\u00a0
\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0
\u00a045\u00a0
\n
Trade receivables include amounts denominated in the following major currencies:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025\u00a0
\u00a0
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
US Dollar
\u00a0502\u00a0
\u00a0
\u00a0518\u00a0
Sterling
\u00a038\u00a0
\u00a0
\u00a036\u00a0
Euro
\u00a0253\u00a0
\u00a0
\u00a0207\u00a0
Other
\u00a0363\u00a0
\u00a0
\u00a0298\u00a0
Trade receivables\u00a0\u2013 net
\u00a01,156\u00a0
\u00a0
\u00a01,059\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00463": { "value": "14
Trade and other payables
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Current
Trade and other payables
\u00a01,160\u00a0
\u00a01,082\u00a0
Derivatives
1
\u00a011\u00a0
\u00a018\u00a0
Acquisition consideration
\u00a06\u00a0
\u00a028\u00a0
\u00a01,177\u00a0
\u00a01,128\u00a0
Non-current
Acquisition consideration
\u00a0101\u00a0
\u00a077\u00a0
Derivatives
1
\u00a06\u00a0
\u00a016\u00a0
Other payables
\u00a083\u00a0
\u00a02\u00a0
\u00a0190\u00a0
\u00a095\u00a0
\n
1 Refer to note 16.6 for details of derivatives.
Other payables primarily comprises deferred compensation obligations. These relate to employee compensation earned but payable in
future periods.
The acquisition consideration includes $107m (2024: $84m) contingent upon future events.
The acquisition consideration due a\ufb05er more than one year is expected to be payable as follows: ($13m in 2029 and $88m in 2030
(2024: $5m in 2026, $13m in 2028, $59m\u00a0in\u00a02029).", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00464": { "value": "15
Cash and borrowings
15.1
Net debt
Net debt comprises borrowings and credit balances on currency swaps less cash and cash equivalents.
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Bank overdra\ufb05s, borrowings and loans - current
\u00a083\u00a0
\u00a0
\u00a0
\u00a02\u00a0
Corporate bond
\u00a02,478\u00a0
\u00a0
\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0550\u00a0
\u00a0
\u00a0
\u00a0625\u00a0
Borrowings
\u00a03,111\u00a0
\u00a0
\u00a0
\u00a03,125\u00a0
Cash and cash equivalents
1
\u00a0(557)
\u00a0
\u00a0
\u00a0(619)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
(Asset)/liability balance on derivatives\u00a0\u2013 interest rate swaps
\u00a0(11)
\u00a0
\u00a0
\u00a06\u00a0
Net debt excluding lease liabilities
\u00a02,543\u00a0
\u00a0
\u00a0
\u00a02,513\u00a0
Non-current lease liabilities
\u00a0149\u00a0
\u00a0
\u00a0
\u00a0135\u00a0
Current lease liabilities
\u00a067\u00a0
\u00a0
\u00a0
\u00a061\u00a0
Net debt
\u00a02,759\u00a0
\u00a0
\u00a0
\u00a02,709\u00a0
\n
1
In 2025, cash and cash equivalents include cash at bank of $457m (2024: $419m) and cash equivalents of $100m (2024: $200m).
Borrowings are repayable as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within
Between
Between
Between
Between
one\u00a0year\u00a0or
one\u00a0and
two\u00a0and
three\u00a0and
four\u00a0and
A\ufb05er
on\u00a0demand
two\u00a0years
three\u00a0years
four\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a08\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0
\u00a0349\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0591\u00a0
\u00a0
\u00a0897\u00a0
\u00a0
\u00a0641\u00a0
\u00a02,478\u00a0
Private placement notes
\u00a075\u00a0
\u00a0
\u00a0140\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0100\u00a0
\u00a0
\u00a095\u00a0
\u00a0
\u00a0155\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a067\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a038\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a017\u00a0
\u00a0
\u00a024\u00a0
\u00a0226\u00a0
\u00a0150\u00a0
\u00a0542\u00a0
\u00a098\u00a0
\u00a0718\u00a0
\u00a01,009\u00a0
\u00a0820\u00a0
\u00a03,337\u00a0
At 31 December\u00a02024
Bank overdra\ufb05s
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0348\u00a0
\u00a0\u2013\u00a0
\u00a0527\u00a0
\u00a01,623\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0\u2013\u00a0
\u00a075\u00a0
\u00a0140\u00a0
\u00a060\u00a0
\u00a0100\u00a0
\u00a0250\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a061\u00a0
\u00a046\u00a0
\u00a036\u00a0
\u00a023\u00a0
\u00a017\u00a0
\u00a024\u00a0
\u00a0207\u00a0
\u00a063\u00a0
\u00a0121\u00a0
\u00a0524\u00a0
\u00a083\u00a0
\u00a0644\u00a0
\u00a01,897\u00a0
\u00a03,332\u00a0
\n
1
The lease liabilities presented above of $226m (2024: $207m) are on an undiscounted basis. The lease liabilities on a discounted basis are $216m
(2024:\u00a0$196m).
15.2
Liquidity risk exposures
The Group has established a set of policies to manage funding and currency risks. The Group only uses derivative \ufb01nancial instruments
to\u00a0manage the \ufb01nancial risks associated with underlying business activities and their \ufb01nancing. Liquidity risk is the risk that the Group is
not able to meet its obligations. The Group\u2019s policy is to ensure that there are su\ufb03cient facilities in place to meet funding requirements.
The Group manages and monitors liquidity risk through preparation and review of short and\u00a0medium-term cash forecasts, having\u00a0
regard to the maturities of investments and borrowing facilities. The Group has available committed facilities of $4.1bn (2024:\u00a0$4.1bn).
In 2025, the Group repurchased $100 million of its $1.0 billion 2.032% USD corporate bond to manage the maturity pro\ufb01le of the Group\u2019s
borrowings. The repurchase consideration amounted to $90m and resulted in a gain of $10m in Other \ufb01nance costs. During 2024, the
Group issued two corporate bonds of $350m and $650m (before expenses and underwriting discounts) of\u00a0notes bearing an interest
rate of 5.15% and 5.40% repayable in 2027 and 2034. In 2024, the Group repaid $405m of private placement debt.
The interest payable on borrowings under committed facilities is either at\u00a0\ufb01xed\u00a0or \ufb02oating rates. Euro \ufb02oating rates are typically
based\u00a0on\u00a0EURIBOR and US Dollar rates are typically based on the Term Secured Overnight Financing Rate (Term SOFR). The Company
is subject to \ufb01nancial covenants under its private placement agreements. The principal covenant on the private placement debt is a
leverage ratio of <3.5 which is measured on a rolling 12-month basis at half year and year end using net debt excluding lease liabilities
as set out in note 15.1. The \ufb01nancial covenants are tested at the end of each half year for the 12 months ending on the last day of
the testing period. As of 31 December 2025, the Company was in compliance with these covenants. The facilities are also subject
to\u00a0customary events of default, none of which are currently anticipated to occur. As the measure included in the \ufb01nancial covenants
represents net debt excluding lease liabilities, the Group also presents the net debt position to provide a complete and comprehensive
view of its \ufb01nancial position.
The Group\u2019s $1.0 billion Revolving Credit Facility (\u201cRCF\u201d) maturity date was extended to 2030 during the year.
The Group\u2019s committed facilities at 31 December 2025 and at 31 December 2024 are:
\n\n \u00a0 \u00a0\n \n
Facility 2025
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02030
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$900 million 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n\n \u00a0 \u00a0\n \n
Facility 2024
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02029
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$1.0 billion 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n
15.3
Year end \ufb01nancial liabilities by contractual maturity
The table below analyses the Group\u2019s year end \ufb01nancial liabilities by contractual maturity date, including contractual interest payments
and excluding the impact of netting arrangements:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within\u00a0one
Between
Between
year\u00a0or\u00a0on
one\u00a0and
two\u00a0and
A\ufb05er
demand
two\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Non-derivative \ufb01nancial liabilities:
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a08\u00a0
Corporate bond
\u00a090\u00a0
\u00a0
\u00a0426\u00a0
\u00a0
\u00a01,682\u00a0
\u00a0
\u00a0773\u00a0
\u00a0
\u00a02,971\u00a0
Trade and other payables
\u00a01,253\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,255\u00a0
Private placement notes
\u00a092\u00a0
\u00a0
\u00a0154\u00a0
\u00a0
\u00a0282\u00a0
\u00a0
\u00a0162\u00a0
\u00a0
\u00a0690\u00a0
Acquisition consideration
\u00a07\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0165\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0172\u00a0
Derivative \ufb01nancial liabilities:
Currency swaps\u00a0\u2013 out\ufb02ow
\u00a0419\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0419\u00a0
Currency swaps\u00a0\u2013 in\ufb02ow
\u00a0(417)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(417)
Forward foreign exchange contracts\u00a0\u2013 out\ufb02ow
1
\u00a0401\u00a0
\u00a0
\u00a0279\u00a0
\u00a0
\u00a091\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0771\u00a0
Forward foreign exchange contracts\u00a0\u2013 in\ufb02ow
1
\u00a0(394)\u00a0
\u00a0
\u00a0(278)\u00a0
\u00a0
\u00a0(92)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(764)
\u00a01,459\u00a0
\u00a0
\u00a0581\u00a0
\u00a0
\u00a02,130\u00a0
\u00a0
\u00a0935\u00a0
\u00a0
\u00a05,105\u00a0
At 31 December\u00a02024
Non-derivative \ufb01nancial liabilities:
Bank overdra\ufb05s and loans
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a098\u00a0
\u00a095\u00a0
\u00a01,109\u00a0
\u00a01,825\u00a0
\u00a03,127\u00a0
Trade and other payables
\u00a01,082\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01,082\u00a0
Private placement notes
\u00a019\u00a0
\u00a092\u00a0
\u00a0335\u00a0
\u00a0263\u00a0
\u00a0709\u00a0
Acquisition consideration
\u00a028\u00a0
\u00a05\u00a0
\u00a0165\u00a0
\u00a0\u2013\u00a0
\u00a0198\u00a0
Derivative \ufb01nancial instruments:
Currency swaps\u00a0\u2013 out\ufb02ow
\u00a0455\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0455\u00a0
Currency swaps\u00a0\u2013 in\ufb02ow
\u00a0(454)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(454)
Forward foreign exchange contracts\u00a0\u2013 out\ufb02ow
1
\u00a02,415\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02,415\u00a0
Forward foreign exchange contracts\u00a0\u2013 in\ufb02ow
1
\u00a0(2,445)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(2,445)
\u00a01,200\u00a0
\u00a0192\u00a0
\u00a01,609\u00a0
\u00a02,088\u00a0
\u00a05,089\u00a0
\n
1
Refer to note 16.1 for details of foreign exchange risk management and the currencies being hedged.
The amounts in the tables above are undiscounted cash \ufb02ows, which di\ufb00er from the amounts included in the balance sheet where the
underlying cash \ufb02ows have been discounted.
15.4
Liquidity and capital resources
The Group\u2019s policy is to ensure that it has su\ufb03cient funding and facilities to meet foreseeable borrowing requirements.
At 31 December 2025, the Group held $553m (2024: $617m, 2023: $300m) in cash and cash equivalents net of bank overdra\ufb05s.
The Group had committed facilities available of $4.1bn (2024: $4.1bn) at 31 December 2025 of which $3.1bn (2024: $3.1bn) was drawn.
The $1bn (2024: $1bn) undrawn amount relates to the RCF.
The Group has su\ufb03cient liquidity to support all known or expected business requirements for 2026 such as dividend payments,
acquisitions and disposals of businesses, capital expenditure, working capital \ufb02uctuations and trading activity.On 9 February 2026, the Group amended its $1bn revolving credit facility, increasing total commitments to $1.125bn. The facility remains undrawn and its maturity is unchanged.", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00465": { "value": "15.1
Net debt
Net debt comprises borrowings and credit balances on currency swaps less cash and cash equivalents.
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
Bank overdra\ufb05s, borrowings and loans - current
\u00a083\u00a0
\u00a0
\u00a0
\u00a02\u00a0
Corporate bond
\u00a02,478\u00a0
\u00a0
\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0550\u00a0
\u00a0
\u00a0
\u00a0625\u00a0
Borrowings
\u00a03,111\u00a0
\u00a0
\u00a0
\u00a03,125\u00a0
Cash and cash equivalents
1
\u00a0(557)
\u00a0
\u00a0
\u00a0(619)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a01\u00a0
(Asset)/liability balance on derivatives\u00a0\u2013 interest rate swaps
\u00a0(11)
\u00a0
\u00a0
\u00a06\u00a0
Net debt excluding lease liabilities
\u00a02,543\u00a0
\u00a0
\u00a0
\u00a02,513\u00a0
Non-current lease liabilities
\u00a0149\u00a0
\u00a0
\u00a0
\u00a0135\u00a0
Current lease liabilities
\u00a067\u00a0
\u00a0
\u00a0
\u00a061\u00a0
Net debt
\u00a02,759\u00a0
\u00a0
\u00a0
\u00a02,709\u00a0
\n
1
In 2025, cash and cash equivalents include cash at bank of $457m (2024: $419m) and cash equivalents of $100m (2024: $200m).
Borrowings are repayable as follows:
\n\n \u00a0 \u00a0 \u00a0\n \n
Within
Between
Between
Between
Between
one\u00a0year\u00a0or
one\u00a0and
two\u00a0and
three\u00a0and
four\u00a0and
A\ufb05er
on\u00a0demand
two\u00a0years
three\u00a0years
four\u00a0years
\ufb01ve\u00a0years
\ufb01ve\u00a0years
Total
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
At 31 December\u00a02025
Bank overdra\ufb05s and loans
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a08\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0
\u00a0349\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0591\u00a0
\u00a0
\u00a0897\u00a0
\u00a0
\u00a0641\u00a0
\u00a02,478\u00a0
Private placement notes
\u00a075\u00a0
\u00a0
\u00a0140\u00a0
\u00a0
\u00a060\u00a0
\u00a0
\u00a0100\u00a0
\u00a0
\u00a095\u00a0
\u00a0
\u00a0155\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a067\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a038\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a017\u00a0
\u00a0
\u00a024\u00a0
\u00a0226\u00a0
\u00a0150\u00a0
\u00a0542\u00a0
\u00a098\u00a0
\u00a0718\u00a0
\u00a01,009\u00a0
\u00a0820\u00a0
\u00a03,337\u00a0
At 31 December\u00a02024
Bank overdra\ufb05s
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
Corporate bond
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0348\u00a0
\u00a0\u2013\u00a0
\u00a0527\u00a0
\u00a01,623\u00a0
\u00a02,498\u00a0
Private placement notes
\u00a0\u2013\u00a0
\u00a075\u00a0
\u00a0140\u00a0
\u00a060\u00a0
\u00a0100\u00a0
\u00a0250\u00a0
\u00a0625\u00a0
Lease liabilities
1
\u00a061\u00a0
\u00a046\u00a0
\u00a036\u00a0
\u00a023\u00a0
\u00a017\u00a0
\u00a024\u00a0
\u00a0207\u00a0
\u00a063\u00a0
\u00a0121\u00a0
\u00a0524\u00a0
\u00a083\u00a0
\u00a0644\u00a0
\u00a01,897\u00a0
\u00a03,332\u00a0
\n
1
The lease liabilities presented above of $226m (2024: $207m) are on an undiscounted basis. The lease liabilities on a discounted basis are $216m
(2024:\u00a0$196m).", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00466": { "value": "15.2
Liquidity risk exposures
The Group has established a set of policies to manage funding and currency risks. The Group only uses derivative \ufb01nancial instruments
to\u00a0manage the \ufb01nancial risks associated with underlying business activities and their \ufb01nancing. Liquidity risk is the risk that the Group is
not able to meet its obligations. The Group\u2019s policy is to ensure that there are su\ufb03cient facilities in place to meet funding requirements.
The Group manages and monitors liquidity risk through preparation and review of short and\u00a0medium-term cash forecasts, having\u00a0
regard to the maturities of investments and borrowing facilities. The Group has available committed facilities of $4.1bn (2024:\u00a0$4.1bn).
In 2025, the Group repurchased $100 million of its $1.0 billion 2.032% USD corporate bond to manage the maturity pro\ufb01le of the Group\u2019s
borrowings. The repurchase consideration amounted to $90m and resulted in a gain of $10m in Other \ufb01nance costs. During 2024, the
Group issued two corporate bonds of $350m and $650m (before expenses and underwriting discounts) of\u00a0notes bearing an interest
rate of 5.15% and 5.40% repayable in 2027 and 2034. In 2024, the Group repaid $405m of private placement debt.
The interest payable on borrowings under committed facilities is either at\u00a0\ufb01xed\u00a0or \ufb02oating rates. Euro \ufb02oating rates are typically
based\u00a0on\u00a0EURIBOR and US Dollar rates are typically based on the Term Secured Overnight Financing Rate (Term SOFR). The Company
is subject to \ufb01nancial covenants under its private placement agreements. The principal covenant on the private placement debt is a
leverage ratio of <3.5 which is measured on a rolling 12-month basis at half year and year end using net debt excluding lease liabilities
as set out in note 15.1. The \ufb01nancial covenants are tested at the end of each half year for the 12 months ending on the last day of
the testing period. As of 31 December 2025, the Company was in compliance with these covenants. The facilities are also subject
to\u00a0customary events of default, none of which are currently anticipated to occur. As the measure included in the \ufb01nancial covenants
represents net debt excluding lease liabilities, the Group also presents the net debt position to provide a complete and comprehensive
view of its \ufb01nancial position.
The Group\u2019s $1.0 billion Revolving Credit Facility (\u201cRCF\u201d) maturity date was extended to 2030 during the year.
The Group\u2019s committed facilities at 31 December 2025 and at 31 December 2024 are:
\n\n \u00a0 \u00a0\n \n
Facility 2025
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02030
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$900 million 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n\n \u00a0 \u00a0\n \n
Facility 2024
\u00a0
\u00a0
\u00a0
\u00a0
Date due
$75 million 3.99% Senior Notes
January\u00a02026
$350 million 5.15% US Corporate Bond
March\u00a02027
$140 million 2.83% Senior Notes
June\u00a02027
$60 million 2.90% Senior Notes
June\u00a02028
$1.0 billion syndicated revolving credit facility
October\u00a02029
$100 million 2.97% Senior Notes
June\u00a02029
\u20ac500 million 4.565% EUR Corporate Bond
October\u00a02029
$95 million 2.99% Senior Notes
June\u00a02030
$1.0 billion 2.032% USD Corporate Bond
October\u00a02030
$155 million 3.09% Senior Notes
June\u00a02032
$650 million 5.40% USD Corporate Bond
March\u00a02034
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00467": { "value": "15.4
Liquidity and capital resources
The Group\u2019s policy is to ensure that it has su\ufb03cient funding and facilities to meet foreseeable borrowing requirements.
At 31 December 2025, the Group held $553m (2024: $617m, 2023: $300m) in cash and cash equivalents net of bank overdra\ufb05s.
The Group had committed facilities available of $4.1bn (2024: $4.1bn) at 31 December 2025 of which $3.1bn (2024: $3.1bn) was drawn.
The $1bn (2024: $1bn) undrawn amount relates to the RCF.
The Group has su\ufb03cient liquidity to support all known or expected business requirements for 2026 such as dividend payments,
acquisitions and disposals of businesses, capital expenditure, working capital \ufb02uctuations and trading activity. ", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00468": { "value": "16
Financial instruments and risk management
Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.
16.1
Foreign exchange risk management
The Group operates in many countries and, as a consequence, is exposed to movements in foreign exchange, giving rise to both
transaction and translation foreign exchange risk. Foreign exchange risk arises primarily from transactional foreign exchange exposures,
which are managed in line with the Group\u2019s risk management framework, while the Group is also exposed to foreign exchange
translation risk on consolidation.
Transaction foreign exchange risk arises where forecast sales, purchases or other trading cash \ufb02ows are denominated in currencies
other than the functional currency of the operating entity.
The Group is exposed to transactional foreign exchange risk as the majority
of its cost base is denominated in US Dollars while revenues are earned in US Dollars and other currencies.
Movements in exchange
rates may a\ufb00ect the Group\u2019s operating pro\ufb01t, particularly in respect of non- US Dollar operating pro\ufb01ts where the proportion of sales in
those currencies exceeds the proportion of costs. The Group\u2019s policy is to hedge substantially all material transaction foreign exchange
exposures in order to reduce volatility in operating pro\ufb01t and cash \ufb02ows.
The Group mitigates the impact of transaction related currency movements on operating pro\ufb01t through the use of forward foreign
exchange contracts, which are designated as cash \ufb02ow hedges. These hedges are designated against forecast trading cash \ufb02ows
that give rise to foreign exchange risk and impact the Group\u2019s operating pro\ufb01t, re\ufb02ecting di\ufb00erences between the currencies in which
revenues and costs are incurred versus the functional currencies of the respective operating entities. Such exposures are typically
hedged for periods of up to three years, with hedge coverage increased as the proximity to forecast transactions increases. The principal
currencies hedged using forward foreign exchanges contracts are Euro, Japanese Yen, Australian Dollar, Canadian Dollar and Korean
Won.
At 31 December 2025, the Group had outstanding forward foreign exchange contracts with a total notional principal amount of
$1.4 billion (2024: $2.4 billion) maturing across three years (2024: one year) from the balance sheet date.
As part of the Group\u2019s ongoing risk management process, the portfolio of key foreign currency exposures designated for hedging is
reviewed regularly, and speci\ufb01c currencies hedged may vary from year to year based on the Group\u2019s foreign exchange risk assessment.
During 2025, the Group refreshed its foreign exchange risk assessment through an updated Value at Risk analysis. As a result of this
review, the foreign exchange hedging programme was re\ufb01ned, including a reduction in the number of currencies designated for hedging
and an extension of the hedging horizon from one year to periods of up to three years. These changes are aligned with the Group\u2019s risk
management framework and re\ufb02ect the evolving pro\ufb01le of the Group\u2019s forecast transactional foreign exchange exposures.
All exchange rates are presented in accordance with standard Foreign exchange market quoting conventions.
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2025
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros
< 1 year
\u00a01.17\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.20\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Australian Dollars
< 1 year
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Canadian Dollars
< 1 year
\u00a01.36\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.35\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Japanese Yen
< 1 year
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell South Korean won
< 1 year
\u00a01,372\u00a0
\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01,366\u00a0
\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,428\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2024
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros (net) for US Dollars
\u00a01.10\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Buy Pound sterling (net) for
\u00a01.24\u00a0
\u00a0
\u00a0438\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Sell Euros (net) for Pound
\u00a00.85\u00a0
\u00a0
\u00a0335\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
sterling
Sell Singapore Dollars (net) for
\u00a01.32\u00a0
\u00a0
\u00a0174\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Buy Swiss Franc (net) for
\u00a00.93\u00a0
\u00a0
\u00a0134\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Euros
Sell Australian Dollars (net) for
\u00a00.87\u00a0
\u00a0
\u00a0122\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Sell Japanese Yen (net) for
\u00a0110\u00a0
\u00a0
\u00a0101\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Other currencies
\u00a0
\u00a0
\u00a0
\u00a0541\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a02,415\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n
The movement in cash \ufb02ow hedge reserve is as follows:
\n \n \n
Terminated hedges
Active hedges
Total
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Opening balance
\u00a0(25)
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0(34)
\u00a0
\u00a0
3
Gains recognised in OCI
\u00a03\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(38)\u00a0
\u00a0
\u00a0(13)
\u00a0
\u00a0
\u00a0(38)
Amounts recycled to income statement
\u00a020\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0
\u00a01\u00a0
At 31 December
\u00a0(2)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(34)\u00a0
\u00a0
\u00a0(18)
\u00a0
\u00a0
\u00a0(34)
\n
The Group designates forward foreign exchange contracts as cash \ufb02ow hedges against the exchange rate \ufb02uctuation risk on certain
\n
intercompany transactions associated with third-party sales and purchases. Amounts recycled to the consolidated income statement
\n
are recognised within cost of sales when the third-party sales and purchases occur.
\n
During the year, certain forward foreign exchange contracts relating to currency pairs that no longer form part of the Group\u2019s updated
\n
foreign exchange risk management strategy were early terminated. A portion of the cumulative gains and losses previously recognised
\n
in the cash \ufb02ow hedge reserve in respect of these instruments has been recycled to the consolidated income statement, in line with the
\n
timing of the underlying hedged transactions.
At 31 December 2025, approximately $2m remains within the cash \ufb02ow hedge reserve
\n
relating to these discontinued hedging relationships, which is expected to be recycled to the income statement within the next twelve
\n
months, in line with the timing of the underlying hedged items.
\n
Based on the Group\u2019s net borrowings as at 31 December 2025, if the US Dollar were to weaken against all currencies by 10%, the
\n
Group\u2019s net borrowings would increase by $45m (2024: $40m) principally due to the \u20ac500m Euro corporate bond which is designated as
\n
a hedging instrument to hedge part of Group\u2019s net investment in its Euro subsidiaries (refer to note 16.4 for details). The corresponding
\n
impact on the income statement and other comprehensive income is illustrated in the table below. The other comprehensive income
\n
impact relates to the Euro corporate bond.
\n
\u00a0
\u00a0
\n \n
2025
2024
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a01\u00a0
\u00a0(46)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(40)
10% strengthening of the US Dollar
\u00a0
\u00a0(1)
\u00a046\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a040\u00a0
\n
If the US Dollar were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as
\n
at 31 December 2025 would have been $144m lower (2024: $48m lower). Movements in the fair value of forward foreign exchange
\n
contracts would be recognised in other comprehensive income or in the income statement as illustrated in the table below.
\n
\u00a0
\u00a0
\n \n
2025
2024\u00a0
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a0(6)
\u00a0(138)
\u00a0
\u00a0
\u00a0(7)
\u00a0(41)
10% strengthening of the US Dollar
\u00a0
\u00a06\u00a0
\u00a0129\u00a0
\u00a0
\u00a0
\u00a07\u00a0
\u00a041\u00a0
\n
The Group is exposed to foreign exchange translation risk arising from the translation on consolidation of monetary assets and liabilities
\n
denominated in currencies other than the functional currencies of the Group\u2019s operating entities. It is the Group\u2019s policy that operating
\n
units do not hold material unhedged monetary assets or liabilities other than in their functional currencies. Movements in exchange rates
\n
may a\ufb00ect reported revenue, pro\ufb01t and net assets but do not impact the Group\u2019s underlying cash \ufb02ows.
Hedge ine\ufb00ectiveness is caused
\n
by actual cash \ufb02ows in foreign currencies varying from forecast cash \ufb02ows.
16.2
Interest rate risk management
The Group is exposed to interest rate risk on cash, borrowings and certain currency and interest rate swaps which are at \ufb02oating
rates. The Group uses interest rate swaps to reduce the overall level of \ufb01xed rate debt, consistent with its policy of maintaining at
least 50% of gross debt at \ufb01xed rates. When used in this way, interest rate derivatives are accounted for as fair value hedges. The fair
value movement of the derivative is o\ufb00set in the income statement against the fair value movement in the underlying \ufb01xed rate debt.
When required the Group uses interest rate derivatives to meet its objective of protecting borrowing costs within parameters set by the
Board. These interest rate derivatives are accounted for as cash \ufb02ow hedges and, as such, changes in fair value resulting from changes in
market interest rates are recognised in other comprehensive income and accumulated in the hedging reserve, with the fair value of the
interest rate derivatives recorded in the balance sheet.
Based on the Group\u2019s gross borrowings and cash as at 31 December 2025, if \ufb02oating interest rates were to increase by 100 basis points
in all currencies, then the annual net interest charge would increase by $7m (2024: $5m). A decrease in interest rates by 100 basis points
in\u00a0all\u00a0currencies would have an equal but opposite e\ufb00ect to the amounts shown above.
The amounts relating to items designated as hedging instruments to manage the interest rate risk were as follows:
\n\n \u00a0 \u00a0\u00a0\n \n
Derivatives - Interest rate swaps
Fixed rate debt
Fair value
Fair value
change used for
Cumulative
change used for
Group
recognising hedge
fair value
Group
recognising hedge
Carrying amount
Carrying
hedge
Balance
ine\ufb00ectiveness
Balance
Nominal
ine\ufb00ectiveness
amount
1
adjustments
Sheet
charge/(credit)
assets
liabilities
Sheet
amount
charge/(credit)
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
line item
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
line item
\u00a0
\u00a0
\u00a0
million
$ million
At 31
December\u00a02025
US Dollar bond
\u00a0(500)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0\u00a0Long-term
\u00a020\u00a0
\u00a04\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0Other non-
\u00a0(500)
\u00a0(20)
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(588)
\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0
\u00a0
and lease
\u00a0(3)
\u00a07\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
assets\u00a0
\u00a0(500)
\u00a03\u00a0
liabilities\u00a0
At 31
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
December\u00a02024
US Dollar bond
\u00a0(500)\u00a0
\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Long-term
\u00a0(16)
\u00a0\u2013\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Other non-
\u00a0(500)
\u00a016\u00a0
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(520)\u00a0
\u00a0
\u00a010\u00a0
\u00a0
and lease
\u00a03\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0
assets/
\u00a0(500)
\u00a0(3)
liabilities\u00a0
(liabilities)\u00a0
\u00a0\u00a0\n
1
The carrying amount relates to a hedge of the \u20ac500m EUR corporate bond ($588m translated at closing USD/EUR rate (2024: $520m)) and a hedge of
$500m out of the $650m corporate bond.
16.3
Credit risk management
The Group limits exposure to credit risk on counterparties used for \ufb01nancial instruments through a system of internal credit limits.
The \ufb01nancial exposure of a counterparty is determined as the total of cash and deposits, plus the risk on derivative instruments,
assessed as the fair value of the instrument plus a risk element based on the nominal value and the historic volatility of the market
value of the instrument. The Group does not anticipate non-performance of counterparties and believes it is not subject to material
concentration of credit risk as the Group operates within a policy of counterparty limits designed to reduce exposure to any
single counterparty.
The maximum credit risk exposure on derivatives at 31 December 2025 was $46m (2024: $56m), being the total debit fair values
on\u00a0forward foreign exchange contracts, currency swaps and interest rate swaps. The maximum credit risk exposure on cash and cash
equivalents at 31 December 2025 was\u00a0$557m (2024: $619m). The\u00a0Group\u2019s exposure to credit risk on cash is mitigated as the amounts
are held in a wide number of\u00a0high\u00a0credit quality \ufb01nancial institutions. Credit risk on trade receivables is detailed in Note 13.
16.4
Net investment hedge
Part of the Group\u2019s net investment in its Euro subsidiaries is hedged by \u20ac500m ($588m equivalent) of our EUR corporate bond which
mitigates the\u00a0foreign currency risk arising from the subsidiaries\u2019 net assets. The Bond is designated as a hedging instrument for
the\u00a0changes in\u00a0the\u00a0value of the net investment that is attributable to changes in the EUR/USD spot rate.
\n\n \u00a0 \u00a0\n \n
Balance sheet classi\ufb01cation
(Gains) / losses
Carrying value of
recognised in Other
Amounts reclassi\ufb01ed
hedging instrument
Comprehensive Income
to income statement
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Long-term borrowings and lease liabilities
\u00a0588\u00a0
\u00a0
\u00a0
\u00a0520\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
To assess hedge e\ufb00ectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item
by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the investment
in the foreign operation due to movements in the spot rate (the o\ufb00set method). The Group\u2019s policy is to hedge the net investment only
to\u00a0the extent of the debt principal. Hedge ine\ufb00ectiveness occurs if the value of the Euro-denominated corporate bond exceeds the
value\u00a0of\u00a0the Euro subsidiaries.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Change in value used for
Currency risk on foreign operations
Hedging
Balance in translation reserve
calculating ine\ufb00ectiveness
instrument
Continuing
Discontinued
Hedged
Hedging
Hedge
notional
hedges
hedges
item
instrument
ine\ufb00ectiveness
million
$ million
$ million
$ million
$ million
$ million
At 31 December 2025
\u00a0500\u00a0
\u00a0
\u00a0102\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0500\u00a0
\u00a0
\u00a034\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0(33)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
16.5
Currency and interest rate pro\ufb01le of interest bearing liabilities and assets
Short-term receivables and payables are excluded from the following disclosures.
Currency and interest rate pro\ufb01le of interest bearing liabilities:
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Fixed rate liabilities
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Weighted\u00a0
average
Interest
Weighted
time\u00a0
Gross
Currency
rate
Total
Floating
Fixed\u00a0rate
average
for\u00a0which
borrowings
swaps
swaps
liabilities
rate liabilities
liabilities
interest\u00a0rate
rate\u00a0is\u00a0\ufb01xed
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
%\u00a0
\u00a0
\u00a0
Years\u00a0
At 31 December\u00a02025
US Dollar
\u00a0(2,510)
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(2,512)
\u00a0(492)
\u00a0(2,020)
\u00a03.1\u00a0
\u00a04.0\u00a0
Euro
\u00a0(591)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(591)
\u00a0(591)
\u00a0\u2013\u00a0
Other
\u00a0(10)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(10)
\u00a0(10)
\u00a0\u2013\u00a0
Total interest bearing
liabilities
\u00a0(3,111)
\u00a0(2)
\u00a0\u2013\u00a0
\u00a0(3,113)
\u00a0(1,093)
\u00a0(2,020)
At 31 December\u00a02024
US Dollar
\u00a0(2,594)
\u00a0(310)
\u00a0(16)
\u00a0(2,920)
\u00a0(324)
\u00a0(2,596)
\u00a03.5\u00a0
\u00a04.1\u00a0
Euro
\u00a0(527)
\u00a0(130)
\u00a0\u2013\u00a0
\u00a0(657)
\u00a0(130)
\u00a0(527)
Other
\u00a0(4)
\u00a0(14)
\u00a0\u2013\u00a0
\u00a0(18)
\u00a0(18)
\u00a0\u2013\u00a0
Total interest bearing
liabilities
\u00a0(3,125)
\u00a0(454)
\u00a0(16)
\u00a0(3,595)
\u00a0(472)
\u00a0(3,123)\u00a0
In 2025, the Group also had liabilities due for deferred and contingent acquisition consideration (denominated in US Dollars and Euros)
totalling $107m (2024: $105m) on which no interest was payable (see Note 14). There were no other\u00a0signi\ufb01cant interest bearing or
non-interest bearing \ufb01nancial liabilities. Euro \ufb02oating rates are typically based on EURIBOR and US Dollar rates are typically based on
Term SOFR. The\u00a0weighted average interest rate on \ufb02oating rate borrowings as at\u00a031 December 2025 was 4.6% (2024:\u00a05.1%). The Group
has entered into interest rate swap contracts to convert the interest payments on \u20ac500m and $500m debt from \ufb01xed rate to \ufb02oating
rate basis.
Currency and interest rate pro\ufb01le of interest bearing assets:
\n\n \u00a0 \u00a0
\u00a0
\u00a0
Cash and cash
Currency
Interest rate
\u00a0
\u00a0
\u00a0
Floating
Fixed\u00a0
equivalents
swaps
swaps
Total\u00a0assets
rate\u00a0assets
rate\u00a0assets
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
At 31 December\u00a02025
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
US Dollar
\u00a0393\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0399\u00a0
\u00a0
\u00a0395\u00a0
\u00a0
\u00a04\u00a0
Euro
\u00a026\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a07\u00a0
\u00a0
\u00a033\u00a0
\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
Other
\u00a0138\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0\u2013\u00a0
Total interest bearing assets
\u00a0557\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a011\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a0566\u00a0
\u00a0
\u00a04\u00a0
At 31 December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
US Dollar
\u00a0482\u00a0
\u00a0
\u00a0146\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0628\u00a0
\u00a0
\u00a0628\u00a0
\u00a0
\u00a0\u2013\u00a0
Euro
\u00a09\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
Other
\u00a0128\u00a0
\u00a0
\u00a0270\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0398\u00a0
\u00a0
\u00a0398\u00a0
\u00a0
\u00a0\u2013\u00a0
Total interest bearing assets
\u00a0619\u00a0
\u00a0
\u00a0453\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a01,082\u00a0
\u00a0
\u00a01,082\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
Floating rates on assets are typically based on the short-term deposit rates relevant to the currency concerned.
16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00535": { "value": "Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00536": { "value": "Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00538": { "value": "Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00537": { "value": "Accounting policy
Derivative \ufb01nancial instruments
Derivative \ufb01nancial instruments are initially recognised at fair value on the date a derivative contract is entered into and are
subsequently remeasured at their fair value at subsequent balance sheet dates. Changes in the fair value of derivative \ufb01nancial
instruments that are designated and e\ufb00ective as cash \ufb02ow hedges of forecast transactions are recognised in other comprehensive
income until the associated asset or liability is recognised. Amounts taken to other comprehensive income are transferred to the
income statement in the period in which the hedged transaction a\ufb00ects pro\ufb01t and loss. Changes in the fair value of derivative \ufb01nancial
instruments that are not designated as cash \ufb02ow hedges are recognised directly in pro\ufb01t and loss.
On adoption of IFRS 9 on 1 January 2018, the Group elected to continue to apply the hedge accounting guidance in IAS 39
Financial
Instruments: Recognition and Measurement
. Changes in the fair values of hedging instruments that are designated and e\ufb00ective as
net investment hedges are matched in other comprehensive income against changes in value of the related net assets. Interest rate
derivatives transacted to \ufb01x interest rates on \ufb02oating rate borrowings are accounted for as cash \ufb02ow hedges and changes in the
fair values resulting from changes in market interest rates are recognised in other comprehensive income. Amounts taken to other
comprehensive income are transferred to the income statement when the hedged transaction a\ufb00ects pro\ufb01t and loss. Interest rate
derivatives transacted to convert \ufb01xed rate borrowings into \ufb02oating rate borrowings are accounted for as fair value hedges and
changes in the fair values resulting from changes in market interest rates are recognised in the income statement. Any ine\ufb00ectiveness
on hedging instruments and changes in the fair value of derivative \ufb01nancial instruments that do not qualify for hedge accounting
are\u00a0recognised in the income statement within other\u00a0\ufb01nance costs as they arise.
Hedge accounting is discontinued when the hedged transaction expires or is sold, terminated or exercised, or no longer quali\ufb01es for
hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive
income is retained there until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net
cumulative gain or loss recognised in other comprehensive income is transferred to the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00470": { "value": "16.1
Foreign exchange risk management
The Group operates in many countries and, as a consequence, is exposed to movements in foreign exchange, giving rise to both
transaction and translation foreign exchange risk. Foreign exchange risk arises primarily from transactional foreign exchange exposures,
which are managed in line with the Group\u2019s risk management framework, while the Group is also exposed to foreign exchange
translation risk on consolidation.
Transaction foreign exchange risk arises where forecast sales, purchases or other trading cash \ufb02ows are denominated in currencies
other than the functional currency of the operating entity.
The Group is exposed to transactional foreign exchange risk as the majority
of its cost base is denominated in US Dollars while revenues are earned in US Dollars and other currencies.
Movements in exchange
rates may a\ufb00ect the Group\u2019s operating pro\ufb01t, particularly in respect of non- US Dollar operating pro\ufb01ts where the proportion of sales in
those currencies exceeds the proportion of costs. The Group\u2019s policy is to hedge substantially all material transaction foreign exchange
exposures in order to reduce volatility in operating pro\ufb01t and cash \ufb02ows.
The Group mitigates the impact of transaction related currency movements on operating pro\ufb01t through the use of forward foreign
exchange contracts, which are designated as cash \ufb02ow hedges. These hedges are designated against forecast trading cash \ufb02ows
that give rise to foreign exchange risk and impact the Group\u2019s operating pro\ufb01t, re\ufb02ecting di\ufb00erences between the currencies in which
revenues and costs are incurred versus the functional currencies of the respective operating entities. Such exposures are typically
hedged for periods of up to three years, with hedge coverage increased as the proximity to forecast transactions increases. The principal
currencies hedged using forward foreign exchanges contracts are Euro, Japanese Yen, Australian Dollar, Canadian Dollar and Korean
Won.
At 31 December 2025, the Group had outstanding forward foreign exchange contracts with a total notional principal amount of
$1.4 billion (2024: $2.4 billion) maturing across three years (2024: one year) from the balance sheet date.
As part of the Group\u2019s ongoing risk management process, the portfolio of key foreign currency exposures designated for hedging is
reviewed regularly, and speci\ufb01c currencies hedged may vary from year to year based on the Group\u2019s foreign exchange risk assessment.
During 2025, the Group refreshed its foreign exchange risk assessment through an updated Value at Risk analysis. As a result of this
review, the foreign exchange hedging programme was re\ufb01ned, including a reduction in the number of currencies designated for hedging
and an extension of the hedging horizon from one year to periods of up to three years. These changes are aligned with the Group\u2019s risk
management framework and re\ufb02ect the evolving pro\ufb01le of the Group\u2019s forecast transactional foreign exchange exposures.
All exchange rates are presented in accordance with standard Foreign exchange market quoting conventions.
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2025
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros
< 1 year
\u00a01.17\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.20\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Australian Dollars
< 1 year
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Canadian Dollars
< 1 year
\u00a01.36\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.35\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Japanese Yen
< 1 year
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell South Korean won
< 1 year
\u00a01,372\u00a0
\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01,366\u00a0
\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,428\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2024
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros (net) for US Dollars
\u00a01.10\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Buy Pound sterling (net) for
\u00a01.24\u00a0
\u00a0
\u00a0438\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Sell Euros (net) for Pound
\u00a00.85\u00a0
\u00a0
\u00a0335\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
sterling
Sell Singapore Dollars (net) for
\u00a01.32\u00a0
\u00a0
\u00a0174\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Buy Swiss Franc (net) for
\u00a00.93\u00a0
\u00a0
\u00a0134\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Euros
Sell Australian Dollars (net) for
\u00a00.87\u00a0
\u00a0
\u00a0122\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Sell Japanese Yen (net) for
\u00a0110\u00a0
\u00a0
\u00a0101\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Other currencies
\u00a0
\u00a0
\u00a0
\u00a0541\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a02,415\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n
The movement in cash \ufb02ow hedge reserve is as follows:
\n \n \n
Terminated hedges
Active hedges
Total
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Opening balance
\u00a0(25)
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0(34)
\u00a0
\u00a0
3
Gains recognised in OCI
\u00a03\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(38)\u00a0
\u00a0
\u00a0(13)
\u00a0
\u00a0
\u00a0(38)
Amounts recycled to income statement
\u00a020\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0
\u00a01\u00a0
At 31 December
\u00a0(2)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(34)\u00a0
\u00a0
\u00a0(18)
\u00a0
\u00a0
\u00a0(34)
\n
The Group designates forward foreign exchange contracts as cash \ufb02ow hedges against the exchange rate \ufb02uctuation risk on certain
\n
intercompany transactions associated with third-party sales and purchases. Amounts recycled to the consolidated income statement
\n
are recognised within cost of sales when the third-party sales and purchases occur.
\n
During the year, certain forward foreign exchange contracts relating to currency pairs that no longer form part of the Group\u2019s updated
\n
foreign exchange risk management strategy were early terminated. A portion of the cumulative gains and losses previously recognised
\n
in the cash \ufb02ow hedge reserve in respect of these instruments has been recycled to the consolidated income statement, in line with the
\n
timing of the underlying hedged transactions.
At 31 December 2025, approximately $2m remains within the cash \ufb02ow hedge reserve
\n
relating to these discontinued hedging relationships, which is expected to be recycled to the income statement within the next twelve
\n
months, in line with the timing of the underlying hedged items.
\n
Based on the Group\u2019s net borrowings as at 31 December 2025, if the US Dollar were to weaken against all currencies by 10%, the
\n
Group\u2019s net borrowings would increase by $45m (2024: $40m) principally due to the \u20ac500m Euro corporate bond which is designated as
\n
a hedging instrument to hedge part of Group\u2019s net investment in its Euro subsidiaries (refer to note 16.4 for details). The corresponding
\n
impact on the income statement and other comprehensive income is illustrated in the table below. The other comprehensive income
\n
impact relates to the Euro corporate bond.
\n
\u00a0
\u00a0
\n \n
2025
2024
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a01\u00a0
\u00a0(46)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(40)
10% strengthening of the US Dollar
\u00a0
\u00a0(1)
\u00a046\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a040\u00a0
\n
If the US Dollar were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as
\n
at 31 December 2025 would have been $144m lower (2024: $48m lower). Movements in the fair value of forward foreign exchange
\n
contracts would be recognised in other comprehensive income or in the income statement as illustrated in the table below.
\n
\u00a0
\u00a0
\n \n
2025
2024\u00a0
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a0(6)
\u00a0(138)
\u00a0
\u00a0
\u00a0(7)
\u00a0(41)
10% strengthening of the US Dollar
\u00a0
\u00a06\u00a0
\u00a0129\u00a0
\u00a0
\u00a0
\u00a07\u00a0
\u00a041\u00a0
\n
The Group is exposed to foreign exchange translation risk arising from the translation on consolidation of monetary assets and liabilities
\n
denominated in currencies other than the functional currencies of the Group\u2019s operating entities. It is the Group\u2019s policy that operating
\n
units do not hold material unhedged monetary assets or liabilities other than in their functional currencies. Movements in exchange rates
\n
may a\ufb00ect reported revenue, pro\ufb01t and net assets but do not impact the Group\u2019s underlying cash \ufb02ows.
Hedge ine\ufb00ectiveness is caused
\n
by actual cash \ufb02ows in foreign currencies varying from forecast cash \ufb02ows.
16.2
Interest rate risk management
The Group is exposed to interest rate risk on cash, borrowings and certain currency and interest rate swaps which are at \ufb02oating
rates. The Group uses interest rate swaps to reduce the overall level of \ufb01xed rate debt, consistent with its policy of maintaining at
least 50% of gross debt at \ufb01xed rates. When used in this way, interest rate derivatives are accounted for as fair value hedges. The fair
value movement of the derivative is o\ufb00set in the income statement against the fair value movement in the underlying \ufb01xed rate debt.
When required the Group uses interest rate derivatives to meet its objective of protecting borrowing costs within parameters set by the
Board. These interest rate derivatives are accounted for as cash \ufb02ow hedges and, as such, changes in fair value resulting from changes in
market interest rates are recognised in other comprehensive income and accumulated in the hedging reserve, with the fair value of the
interest rate derivatives recorded in the balance sheet.
Based on the Group\u2019s gross borrowings and cash as at 31 December 2025, if \ufb02oating interest rates were to increase by 100 basis points
in all currencies, then the annual net interest charge would increase by $7m (2024: $5m). A decrease in interest rates by 100 basis points
in\u00a0all\u00a0currencies would have an equal but opposite e\ufb00ect to the amounts shown above.
The amounts relating to items designated as hedging instruments to manage the interest rate risk were as follows:
\n\n \u00a0 \u00a0\u00a0\n \n
Derivatives - Interest rate swaps
Fixed rate debt
Fair value
Fair value
change used for
Cumulative
change used for
Group
recognising hedge
fair value
Group
recognising hedge
Carrying amount
Carrying
hedge
Balance
ine\ufb00ectiveness
Balance
Nominal
ine\ufb00ectiveness
amount
1
adjustments
Sheet
charge/(credit)
assets
liabilities
Sheet
amount
charge/(credit)
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
line item
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
line item
\u00a0
\u00a0
\u00a0
million
$ million
At 31
December\u00a02025
US Dollar bond
\u00a0(500)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0\u00a0Long-term
\u00a020\u00a0
\u00a04\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0Other non-
\u00a0(500)
\u00a0(20)
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(588)
\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0
\u00a0
and lease
\u00a0(3)
\u00a07\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
assets\u00a0
\u00a0(500)
\u00a03\u00a0
liabilities\u00a0
At 31
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
December\u00a02024
US Dollar bond
\u00a0(500)\u00a0
\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Long-term
\u00a0(16)
\u00a0\u2013\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Other non-
\u00a0(500)
\u00a016\u00a0
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(520)\u00a0
\u00a0
\u00a010\u00a0
\u00a0
and lease
\u00a03\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0
assets/
\u00a0(500)
\u00a0(3)
liabilities\u00a0
(liabilities)\u00a0
\u00a0\u00a0\n
1
The carrying amount relates to a hedge of the \u20ac500m EUR corporate bond ($588m translated at closing USD/EUR rate (2024: $520m)) and a hedge of
$500m out of the $650m corporate bond.
16.3
Credit risk management
The Group limits exposure to credit risk on counterparties used for \ufb01nancial instruments through a system of internal credit limits.
The \ufb01nancial exposure of a counterparty is determined as the total of cash and deposits, plus the risk on derivative instruments,
assessed as the fair value of the instrument plus a risk element based on the nominal value and the historic volatility of the market
value of the instrument. The Group does not anticipate non-performance of counterparties and believes it is not subject to material
concentration of credit risk as the Group operates within a policy of counterparty limits designed to reduce exposure to any
single counterparty.
The maximum credit risk exposure on derivatives at 31 December 2025 was $46m (2024: $56m), being the total debit fair values
on\u00a0forward foreign exchange contracts, currency swaps and interest rate swaps. The maximum credit risk exposure on cash and cash
equivalents at 31 December 2025 was\u00a0$557m (2024: $619m). The\u00a0Group\u2019s exposure to credit risk on cash is mitigated as the amounts
are held in a wide number of\u00a0high\u00a0credit quality \ufb01nancial institutions. Credit risk on trade receivables is detailed in Note 13.
16.4
Net investment hedge
Part of the Group\u2019s net investment in its Euro subsidiaries is hedged by \u20ac500m ($588m equivalent) of our EUR corporate bond which
mitigates the\u00a0foreign currency risk arising from the subsidiaries\u2019 net assets. The Bond is designated as a hedging instrument for
the\u00a0changes in\u00a0the\u00a0value of the net investment that is attributable to changes in the EUR/USD spot rate.
\n\n \u00a0 \u00a0\n \n
Balance sheet classi\ufb01cation
(Gains) / losses
Carrying value of
recognised in Other
Amounts reclassi\ufb01ed
hedging instrument
Comprehensive Income
to income statement
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Long-term borrowings and lease liabilities
\u00a0588\u00a0
\u00a0
\u00a0
\u00a0520\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n
To assess hedge e\ufb00ectiveness, the Group determines the economic relationship between the hedging instrument and the hedged item
by comparing changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the investment
in the foreign operation due to movements in the spot rate (the o\ufb00set method). The Group\u2019s policy is to hedge the net investment only
to\u00a0the extent of the debt principal. Hedge ine\ufb00ectiveness occurs if the value of the Euro-denominated corporate bond exceeds the
value\u00a0of\u00a0the Euro subsidiaries.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Change in value used for
Currency risk on foreign operations
Hedging
Balance in translation reserve
calculating ine\ufb00ectiveness
instrument
Continuing
Discontinued
Hedged
Hedging
Hedge
notional
hedges
hedges
item
instrument
ine\ufb00ectiveness
million
$ million
$ million
$ million
$ million
$ million
At 31 December 2025
\u00a0500\u00a0
\u00a0
\u00a0102\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a068\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0500\u00a0
\u00a0
\u00a034\u00a0
\u00a0
\u00a016\u00a0
\u00a0
\u00a0
\u00a0(33)\u00a0
\u00a0
\u00a0(33)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\n16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00469": { "value": "16.1
Foreign exchange risk management
The Group operates in many countries and, as a consequence, is exposed to movements in foreign exchange, giving rise to both
transaction and translation foreign exchange risk. Foreign exchange risk arises primarily from transactional foreign exchange exposures,
which are managed in line with the Group\u2019s risk management framework, while the Group is also exposed to foreign exchange
translation risk on consolidation.
Transaction foreign exchange risk arises where forecast sales, purchases or other trading cash \ufb02ows are denominated in currencies
other than the functional currency of the operating entity.
The Group is exposed to transactional foreign exchange risk as the majority
of its cost base is denominated in US Dollars while revenues are earned in US Dollars and other currencies.
Movements in exchange
rates may a\ufb00ect the Group\u2019s operating pro\ufb01t, particularly in respect of non- US Dollar operating pro\ufb01ts where the proportion of sales in
those currencies exceeds the proportion of costs. The Group\u2019s policy is to hedge substantially all material transaction foreign exchange
exposures in order to reduce volatility in operating pro\ufb01t and cash \ufb02ows.
The Group mitigates the impact of transaction related currency movements on operating pro\ufb01t through the use of forward foreign
exchange contracts, which are designated as cash \ufb02ow hedges. These hedges are designated against forecast trading cash \ufb02ows
that give rise to foreign exchange risk and impact the Group\u2019s operating pro\ufb01t, re\ufb02ecting di\ufb00erences between the currencies in which
revenues and costs are incurred versus the functional currencies of the respective operating entities. Such exposures are typically
hedged for periods of up to three years, with hedge coverage increased as the proximity to forecast transactions increases. The principal
currencies hedged using forward foreign exchanges contracts are Euro, Japanese Yen, Australian Dollar, Canadian Dollar and Korean
Won.
At 31 December 2025, the Group had outstanding forward foreign exchange contracts with a total notional principal amount of
$1.4 billion (2024: $2.4 billion) maturing across three years (2024: one year) from the balance sheet date.
As part of the Group\u2019s ongoing risk management process, the portfolio of key foreign currency exposures designated for hedging is
reviewed regularly, and speci\ufb01c currencies hedged may vary from year to year based on the Group\u2019s foreign exchange risk assessment.
During 2025, the Group refreshed its foreign exchange risk assessment through an updated Value at Risk analysis. As a result of this
review, the foreign exchange hedging programme was re\ufb01ned, including a reduction in the number of currencies designated for hedging
and an extension of the hedging horizon from one year to periods of up to three years. These changes are aligned with the Group\u2019s risk
management framework and re\ufb02ect the evolving pro\ufb01le of the Group\u2019s forecast transactional foreign exchange exposures.
All exchange rates are presented in accordance with standard Foreign exchange market quoting conventions.
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2025
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros
< 1 year
\u00a01.17\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.20\u00a0
\u00a0
\u00a0
\u00a0390\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Australian Dollars
< 1 year
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a00.65\u00a0
\u00a0
\u00a0
\u00a0110\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Canadian Dollars
< 1 year
\u00a01.36\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01.35\u00a0
\u00a0
\u00a0
\u00a053\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell Japanese Yen
< 1 year
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a014\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a0140\u00a0
\u00a0
\u00a0
\u00a0131\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Sell South Korean won
< 1 year
\u00a01,372\u00a0
\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
1 - 3 years
\u00a01,366\u00a0
\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Non-current assets / non-current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a0
\u00a01,428\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n \n \n
Carrying
Hedge
Average
Nominal
value assets/
ine\ufb00ectiveness
strike
amounts
(liabilities)
in pro\ufb01t or loss
As at 31 December 2024
rate
$ million
$ million
$ million
Balance Sheet classi\ufb01cation
Forward exchange contracts
Sell Euros (net) for US Dollars
\u00a01.10\u00a0
\u00a0
\u00a0570\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Buy Pound sterling (net) for
\u00a01.24\u00a0
\u00a0
\u00a0438\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Sell Euros (net) for Pound
\u00a00.85\u00a0
\u00a0
\u00a0335\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
sterling
Sell Singapore Dollars (net) for
\u00a01.32\u00a0
\u00a0
\u00a0174\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
US Dollars
Buy Swiss Franc (net) for
\u00a00.93\u00a0
\u00a0
\u00a0134\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Euros
Sell Australian Dollars (net) for
\u00a00.87\u00a0
\u00a0
\u00a0122\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Sell Japanese Yen (net) for
\u00a0110\u00a0
\u00a0
\u00a0101\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Singapore Dollars
Other currencies
\u00a0
\u00a0
\u00a0
\u00a0541\u00a0
\u00a0
\u00a08\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0Current assets / current liabilities\u00a0
Total cash \ufb02ow hedges of
\u00a0
\u00a0
\u00a0
\u00a02,415\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a0\u2013\u00a0
foreign currency risk on
forecast transactions
\n
The movement in cash \ufb02ow hedge reserve is as follows:
\n \n \n
Terminated hedges
Active hedges
Total
2025
2024
2025
2024
2025
2024
$ million
$ million
$ million
$ million
$ million
$ million
Opening balance
\u00a0(25)
\u00a0\u2013\u00a0
\u00a0
\u00a0(9)
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0(34)
\u00a0
\u00a0
3
Gains recognised in OCI
\u00a03\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(38)\u00a0
\u00a0
\u00a0(13)
\u00a0
\u00a0
\u00a0(38)
Amounts recycled to income statement
\u00a020\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a029\u00a0
\u00a0
\u00a0
\u00a01\u00a0
At 31 December
\u00a0(2)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0
\u00a0
\u00a0(34)\u00a0
\u00a0
\u00a0(18)
\u00a0
\u00a0
\u00a0(34)
\n
The Group designates forward foreign exchange contracts as cash \ufb02ow hedges against the exchange rate \ufb02uctuation risk on certain
\n
intercompany transactions associated with third-party sales and purchases. Amounts recycled to the consolidated income statement
\n
are recognised within cost of sales when the third-party sales and purchases occur.
\n
During the year, certain forward foreign exchange contracts relating to currency pairs that no longer form part of the Group\u2019s updated
\n
foreign exchange risk management strategy were early terminated. A portion of the cumulative gains and losses previously recognised
\n
in the cash \ufb02ow hedge reserve in respect of these instruments has been recycled to the consolidated income statement, in line with the
\n
timing of the underlying hedged transactions.
At 31 December 2025, approximately $2m remains within the cash \ufb02ow hedge reserve
\n
relating to these discontinued hedging relationships, which is expected to be recycled to the income statement within the next twelve
\n
months, in line with the timing of the underlying hedged items.
\n
Based on the Group\u2019s net borrowings as at 31 December 2025, if the US Dollar were to weaken against all currencies by 10%, the
\n
Group\u2019s net borrowings would increase by $45m (2024: $40m) principally due to the \u20ac500m Euro corporate bond which is designated as
\n
a hedging instrument to hedge part of Group\u2019s net investment in its Euro subsidiaries (refer to note 16.4 for details). The corresponding
\n
impact on the income statement and other comprehensive income is illustrated in the table below. The other comprehensive income
\n
impact relates to the Euro corporate bond.
\n
\u00a0
\u00a0
\n \n
2025
2024
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a01\u00a0
\u00a0(46)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0(40)
10% strengthening of the US Dollar
\u00a0
\u00a0(1)
\u00a046\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a040\u00a0
\n
If the US Dollar were to weaken by 10% against all other currencies, then the fair value of the forward foreign exchange contracts as
\n
at 31 December 2025 would have been $144m lower (2024: $48m lower). Movements in the fair value of forward foreign exchange
\n
contracts would be recognised in other comprehensive income or in the income statement as illustrated in the table below.
\n
\u00a0
\u00a0
\n \n
2025
2024\u00a0
Increase/
Increase/
(decrease) in
Increase/
(decrease) in
Increase/
income
(decrease) in
income
(decrease) in
statement
OCI
statement
OCI
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
10% weakening of the US Dollar
\u00a0
\u00a0(6)
\u00a0(138)
\u00a0
\u00a0
\u00a0(7)
\u00a0(41)
10% strengthening of the US Dollar
\u00a0
\u00a06\u00a0
\u00a0129\u00a0
\u00a0
\u00a0
\u00a07\u00a0
\u00a041\u00a0
\n
The Group is exposed to foreign exchange translation risk arising from the translation on consolidation of monetary assets and liabilities
\n
denominated in currencies other than the functional currencies of the Group\u2019s operating entities. It is the Group\u2019s policy that operating
\n
units do not hold material unhedged monetary assets or liabilities other than in their functional currencies. Movements in exchange rates
\n
may a\ufb00ect reported revenue, pro\ufb01t and net assets but do not impact the Group\u2019s underlying cash \ufb02ows.
Hedge ine\ufb00ectiveness is caused
\n
by actual cash \ufb02ows in foreign currencies varying from forecast cash \ufb02ows.
16.2
Interest rate risk management
The Group is exposed to interest rate risk on cash, borrowings and certain currency and interest rate swaps which are at \ufb02oating
rates. The Group uses interest rate swaps to reduce the overall level of \ufb01xed rate debt, consistent with its policy of maintaining at
least 50% of gross debt at \ufb01xed rates. When used in this way, interest rate derivatives are accounted for as fair value hedges. The fair
value movement of the derivative is o\ufb00set in the income statement against the fair value movement in the underlying \ufb01xed rate debt.
When required the Group uses interest rate derivatives to meet its objective of protecting borrowing costs within parameters set by the
Board. These interest rate derivatives are accounted for as cash \ufb02ow hedges and, as such, changes in fair value resulting from changes in
market interest rates are recognised in other comprehensive income and accumulated in the hedging reserve, with the fair value of the
interest rate derivatives recorded in the balance sheet.
Based on the Group\u2019s gross borrowings and cash as at 31 December 2025, if \ufb02oating interest rates were to increase by 100 basis points
in all currencies, then the annual net interest charge would increase by $7m (2024: $5m). A decrease in interest rates by 100 basis points
in\u00a0all\u00a0currencies would have an equal but opposite e\ufb00ect to the amounts shown above.
The amounts relating to items designated as hedging instruments to manage the interest rate risk were as follows:
\n\n \u00a0 \u00a0\u00a0\n \n
Derivatives - Interest rate swaps
Fixed rate debt
Fair value
Fair value
change used for
Cumulative
change used for
Group
recognising hedge
fair value
Group
recognising hedge
Carrying amount
Carrying
hedge
Balance
ine\ufb00ectiveness
Balance
Nominal
ine\ufb00ectiveness
amount
1
adjustments
Sheet
charge/(credit)
assets
liabilities
Sheet
amount
charge/(credit)
\u00a0
\u00a0
\u00a0$\u00a0million
$\u00a0million
line item
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0$\u00a0million
\u00a0
\u00a0
\u00a0
$ million
line item
\u00a0
\u00a0
\u00a0
million
$ million
At 31
December\u00a02025
US Dollar bond
\u00a0(500)
\u00a0
\u00a0
\u00a0(3)\u00a0
\u00a0\u00a0Long-term
\u00a020\u00a0
\u00a04\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0Other non-
\u00a0(500)
\u00a0(20)
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(588)
\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0
\u00a0
and lease
\u00a0(3)
\u00a07\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
assets\u00a0
\u00a0(500)
\u00a03\u00a0
liabilities\u00a0
At 31
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
December\u00a02024
US Dollar bond
\u00a0(500)\u00a0
\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Long-term
\u00a0(16)
\u00a0\u2013\u00a0
\u00a0(16)\u00a0
\u00a0\u00a0Other non-
\u00a0(500)
\u00a016\u00a0
borrowings\u00a0
current\u00a0
Euro bond
\u00a0(520)\u00a0
\u00a0
\u00a010\u00a0
\u00a0
and lease
\u00a03\u00a0
\u00a010\u00a0
\u00a0\u2013\u00a0
\u00a0
assets/
\u00a0(500)
\u00a0(3)
liabilities\u00a0
(liabilities)\u00a0
\u00a0\u00a0\n
1
The carrying amount relates to a hedge of the \u20ac500m EUR corporate bond ($588m translated at closing USD/EUR rate (2024: $520m)) and a hedge of
$500m out of the $650m corporate bond.", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00471": { "value": "16.3
Credit risk management
The Group limits exposure to credit risk on counterparties used for \ufb01nancial instruments through a system of internal credit limits.
The \ufb01nancial exposure of a counterparty is determined as the total of cash and deposits, plus the risk on derivative instruments,
assessed as the fair value of the instrument plus a risk element based on the nominal value and the historic volatility of the market
value of the instrument. The Group does not anticipate non-performance of counterparties and believes it is not subject to material
concentration of credit risk as the Group operates within a policy of counterparty limits designed to reduce exposure to any
single counterparty.
The maximum credit risk exposure on derivatives at 31 December 2025 was $46m (2024: $56m), being the total debit fair values
on\u00a0forward foreign exchange contracts, currency swaps and interest rate swaps. The maximum credit risk exposure on cash and cash
equivalents at 31 December 2025 was\u00a0$557m (2024: $619m). The\u00a0Group\u2019s exposure to credit risk on cash is mitigated as the amounts
are held in a wide number of\u00a0high\u00a0credit quality \ufb01nancial institutions. Credit risk on trade receivables is detailed in Note 13.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00472": { "value": "16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00473": { "value": "16.6
Fair value of \ufb01nancial assets and liabilities
Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.
There has been no change in the classi\ufb01cation of \ufb01nancial assets and liabilities, the method and assumptions used in determining fair
value and the categorisation of \ufb01nancial assets and liabilities within the fair value hierarchy from those disclosed in the Annual Report
for\u00a0the year ended 31 December 2024.
The Group holds investments in relation to deferred compensation and employee bene\ufb01t arrangements. These assets mainly comprise
investments in mutual funds and similar investment vehicles with quoted prices in active markets that the Group can access at the
reporting date. Fair value is therefore determined using unadjusted quoted market prices, and accordingly these investments are
classi\ufb01ed as Level 1 within the fair value hierarchy. The assets are measured at fair value through pro\ufb01t or loss. The Group enters
into derivative \ufb01nancial instruments with \ufb01nancial institutions with investment grade credit ratings. The fair value of forward foreign
exchange contracts is calculated by reference to quoted market forward exchange rates for contracts with similar maturity pro\ufb01les.
The fair value of interest rate swaps is determined by reference to quoted market interest rates. The fair value of currency swaps is
determined by reference to quoted market spot rates. As a result, foreign forward exchange contracts, interest rate swaps and currency
swaps are classi\ufb01ed as Level 2 within the fair value hierarchy. For Level 2 instruments, the valuation method used is the discounted
cash \ufb02ow technique, which estimates expected future cash \ufb02ows or payo\ufb00s using observable market inputs and discounts them to
present value using market-derived discount factors. The changes in counterparty credit risk had no material e\ufb00ect on the hedge
e\ufb00ectiveness for derivatives designated in hedge relationships and other \ufb01nancial instruments recognised at fair value. The fair value of
investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3 in the fair value
hierarchy. There were no transfers between Levels 1, 2 and 3 during 2025 and 2024. For cash and cash equivalents, short-term loans and
receivables, overdra\ufb05s and other short-term liabilities which have a maturity of less than three\u00a0months, the book values approximate the
fair values\u00a0because of\u00a0their short-term nature.
Long-term borrowings are measured in the balance sheet at amortised cost. The corporate bonds issued in October 2020, October
2022 and March 2024 are publicly listed and a market price is available. The Group\u2019s other long-term borrowings are not quoted publicly,
their fair values are estimated by\u00a0discounting future contractual cash \ufb02ows to net present\u00a0values at the current market interest rates
available to the Group for similar\u00a0\ufb01nancial instruments as at the year end. The fair\u00a0value of\u00a0the\u00a0private placement notes is determined
using a discounted cash \ufb02ow model based on prevailing market rates.
There are no \ufb01nancial assets and liabilities that are subject to master netting or similar arrangements.
The following table shows the carrying amounts and fair values of \ufb01nancial assets and \ufb01nancial liabilities, including their levels in the
fair\u00a0value hierarchy. It does not include fair value information for \ufb01nancial assets and \ufb01nancial liabilities not measured at fair value.
\n\n \u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n \n
Carrying amount
Fair\u00a0value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a01
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02025
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Forward foreign exchange
contracts
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
\u00a0\u2013\u00a0
\u00a033\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a033\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a030\u00a0
\u00a0
\u00a030\u00a0
Investments relating to deferred
compensation arrangements
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
\u00a0
\u00a0106\u00a0
\u00a0106\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0106\u00a0
Interest rate swaps
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a011\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a0
\u00a02\u00a0
\u00a0\u2013\u00a0
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
\u00a044\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0138\u00a0
\u00a0
\u00a0182\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(107)\u00a0
\u00a0
\u00a0(107)
Forward foreign exchange
contracts
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
\u00a0\u2013\u00a0
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(15)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(15)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(109)\u00a0
\u00a0
\u00a0(124)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial assets not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,278\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0557\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,835\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Bank overdra\ufb05s and loans
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(8)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,394)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,394)
\u00a0
\u00a0
\u00a0
\u00a0
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,084)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
\u00a0
\u00a0
\u00a0
\u00a0
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,243)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(1,243)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,354)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0\u00a0(4,354)
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\n
During the year ended 31 December 2025, acquisition consideration increased by $2m due to a $17m increase in relation to the
remeasurement of CartiHeal acquisition,
a $12m increase due to discount unwind, partially o\ufb00set by $27m of payments for CartiHeal
and other acquisitions made in prior years. The fair value of contingent consideration is\u00a0estimated using a discounted cash \ufb02ow model.
The valuation model considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected
payment is determined by considering the possible scenarios, which relate\u00a0to the achievement of established milestones and targets,
the amount to\u00a0be paid under each scenario and the probability of\u00a0each\u00a0scenario. As a\u00a0result, contingent consideration is classi\ufb01ed as
Level 3 within the fair value hierarchy.
\n\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\n \n
Carrying amount
Fair value
Fair value
Fair\u00a0value\u00a0\u2013
Fair value
through
hedging
Amortised
through
pro\ufb01t
instruments
cost
OCI
or loss
Total
Level\u00a02
Level\u00a03
Total
At\u00a031\u00a0December\u00a02024
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
$\u00a0million
Financial assets measured
at\u00a0fair\u00a0value
Forward foreign exchange
contracts
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
\u00a046\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a046\u00a0
Investments
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a09\u00a0
Interest rate swaps
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a010\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a056\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a066\u00a0
Financial liabilities measured
at\u00a0fair\u00a0value
Acquisition consideration -
contingent
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
\u00a0\u2013\u00a0
\u00a0
\u00a0(84)\u00a0
\u00a0
\u00a0(84)
Forward foreign exchange
contracts
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Interest rate swaps
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
\u00a0(16)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(16)
Currency swaps
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(2)
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
\u00a0(32)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(86)\u00a0
\u00a0
\u00a0(118)
Financial assets not measured
at\u00a0fair\u00a0value
Trade and other receivables
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,190\u00a0
Cash and cash equivalents
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0619\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01,809\u00a0
Financial liabilities not measured
at\u00a0fair\u00a0value
Acquisition consideration -
deferred
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(21)
Bank overdra\ufb05s
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
Corporate bond not in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,492)
Corporate bond in a hedge
relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,006)
Private placement debt not in a
hedge relationship
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(625)
Trade and other payables
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,084)
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4,230)
\u00a0 \u00a0 \u00a0\n
The following table shows the book value and market value of corporate bonds and private placement debt.
\u00a0
\u00a0
\u00a0
2025
2024\u00a0
Book
Market
Book
Market\u00a0
value
value
value
value\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
2030 USD corporate bond
\u00a0
\u00a0897\u00a0
\u00a0810\u00a0
\u00a0
\u00a0
\u00a0995\u00a0
\u00a0836\u00a0
2034 USD corporate bond
\u00a0
\u00a0641\u00a0
\u00a0672\u00a0
\u00a0
\u00a0
\u00a0628\u00a0
\u00a0642\u00a0
2027 USD corporate bond
\u00a0349\u00a0
\u00a0354\u00a0
\u00a0348\u00a0
\u00a0352\u00a0
2029 EUR corporate bond
\u00a0591\u00a0
\u00a0617\u00a0
\u00a0527\u00a0
\u00a0547\u00a0
Private placement debt
\u00a0625\u00a0
\u00a0594\u00a0
\u00a0625\u00a0
\u00a0573\u00a0
The fair value of investments is based upon third-party pricing models for share issues. As a result, investments are considered Level 3
in\u00a0the fair value hierarchy.
The movements in 2025 and 2024 for \ufb01nancial instruments measured using Level 3 valuation methods are presented below:
\u00a0
2025
2024
$ million
$ million
Investments
At 1 January
\u00a09\u00a0
\u00a0
\u00a0
\u00a08\u00a0
Additions
\u00a02\u00a0
\u00a0
\u00a0
\u00a01\u00a0
Transferred from receivables
\u00a018\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Fair value remeasurement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
At 31 December
\u00a030\u00a0
\u00a0
\u00a0
\u00a09\u00a0
Contingent consideration receivable
At 1 January
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a018\u00a0
Transferred to receivables
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(18)
At 31 December
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0\u2013\u00a0
Contingent acquisition consideration liability
At 1 January
\u00a0(84)
\u00a0
\u00a0
\u00a0(32)
Arising on acquisitions
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0(49)
Payments
\u00a06\u00a0
\u00a0
\u00a0
\u00a06\u00a0
Remeasurements
\u00a0(29)
\u00a0
\u00a0
\u00a0(9)
At 31 December
\u00a0(107)
\u00a0
\u00a0
\u00a0(84)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00539": { "value": "Accounting policy
Measurement of fair values
A number of the Group\u2019s accounting policies and disclosures require the measurement of fair values, for both \ufb01nancial assets
and\u00a0liabilities and non-\ufb01nancial assets acquired in a business combination (see Note 21).
When measuring the fair value of an asset or liability, the Group uses market observable data as far as possible. Fair values
are categorised into di\ufb00erent levels in the fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level\u00a01:\u00a0quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices
included\u00a0in Level\u00a01 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices);
and\u00a0Level 3: inputs\u00a0for the asset or liability that are not based on observable data (unobservable inputs).
The Group recognises transfers between the levels of the fair value hierarchy at the end of the reporting period during which
the\u00a0change has occurred.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00490": { "value": "17
Provisions and contingencies
Accounting policy
In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is
deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is
the plainti\ufb00 in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred.
The recognition of provisions for legal disputes is subject to a signi\ufb01cant degree of estimation. In making its estimates, management
takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where
necessary to re\ufb02ect developments in the disputes. The ultimate liability may di\ufb00er from the amount provided depending on the
outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the
in\ufb02ow of bene\ufb01ts is virtually certain and are presented within other receivables.
A provision for onerous contracts is recognised when the expected bene\ufb01ts to be derived by the Group from a contract are lower
than\u00a0the unavoidable cost of meeting its obligations under the contract.
A provision for restructuring and rationalisation is recognised when the Group has approved a detailed and formal restructuring plan
and the restructuring either has commenced or has been communicated to those a\ufb00ected. Restructuring provisions primarily include
severance costs and are expected to be utilised within one year. Future operating losses and costs associated with ongoing activities
are not provided for.
17.1
Provisions
\u00a0
\u00a0
\n \n
\u00a0Restructuring\u00a0
\u00a0and\u00a0
\u00a0rationalisation\u00a0
\u00a0
\u00a0Legal\u00a0and\u00a0other\u00a0
\u00a0provisions\u00a0
\u00a0Metal-on-metal\u00a0
\u00a0provisions\u00a0
\u00a0Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
At 1 January\u00a02024
\u00a091\u00a0
\u00a0
\u00a0149\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0281\u00a0
Charge to income statement
\u00a0123\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a012\u00a0
\u00a0
\u00a0135\u00a0
Release to income statement
\u00a0\u2013\u00a0
\u00a0
\u00a0(28)\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(30)
Unwinding of discount
\u00a0\u2013\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a06\u00a0
Utilised
\u00a0(153)\u00a0
\u00a0
\u00a0(14)\u00a0
\u00a0
\u00a0(20)\u00a0
\u00a0
\u00a0(187)
Exchange adjustment
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
At 31 December\u00a02024
\u00a059\u00a0
\u00a0
\u00a0113\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a0203\u00a0
Charge to income statement
\u00a049\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a015\u00a0
\u00a0
\u00a064\u00a0
Release to income statement
\u00a0(2)\u00a0
\u00a0
\u00a0(9)\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0(18)
Unwinding of discount
\u00a0\u2013\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a04\u00a0
Utilised
\u00a0(86)\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(99)
Exchange adjustment
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0
22\u00a0
\u00a0
\u00a097\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a0156\u00a0
Provisions\u00a0\u2013 due within one\u00a0year
\u00a022\u00a0
\u00a0
\u00a025\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a074\u00a0
Provisions\u00a0\u2013 due a\ufb05er one\u00a0year
\u00a0\u2013\u00a0
\u00a0
\u00a072\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a082\u00a0
At 31 December\u00a02025
\u00a0
22\u00a0
\u00a0
\u00a097\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a0156\u00a0
Provisions\u00a0\u2013 due within one\u00a0year
\u00a059\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a0108\u00a0
Provisions\u00a0\u2013 due a\ufb05er one\u00a0year
\u00a0\u2013\u00a0
\u00a0
\u00a085\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a095\u00a0
At 31 December\u00a02024
\u00a059\u00a0
\u00a0
\u00a0113\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a0203\u00a0
\n
The principal elements within restructuring and rationalisation provisions relate to the Operations and Commercial Excellence
\n
programme announced in\u00a0February 2020 and the e\ufb03ciency and productivity elements of the 12-Point Plan.
\n
For the year ended 31 December 2025 and 2024, charges primarily include severance, asset write-o\ufb00s and integration and dual
\n
running costs.
\n
The Group has estimated a provision of $97m (2024: $113m) relating to the present value at 31 December 2025 of the estimated costs
\n
to\u00a0resolve all other known and anticipated metal-on-metal hip claims globally. The estimated value of the provision has been determined
\n
using an actuarial model. While the provision is based on a number of assumptions, including factors such as the number, outcome and
\n
value of claims, a reasonable change in assumptions would not give rise to a material adjustment. The provision does not include any
\n
possible further insurance recoveries on these claims or legal fees associated with defending claims.
\n
The legal and other provisions mainly relate to various other product liability and intellectual property litigation matters. The Group
\n
carries considerable product liability insurance, and will continue to defend claims vigorously.
\n
All provisions are expected to be substantially utilised within \ufb01ve years of 31 December 2025 and none are treated as
\n
\ufb01nancial instruments.
17.2
Contingencies
The Company and its subsidiaries are party to various legal proceedings, some of which include claims for substantial damages.
The outcome of these proceedings cannot readily be foreseen, but except as described herein management believes none of them are
likely to result in a material adverse e\ufb00ect on the \ufb01nancial position of the Group. The Group provides for outcomes that are deemed to be
probable and can be reliably estimated. There is no assurance that losses will not exceed provisions or will not have a signi\ufb01cant impact
on the Group\u2019s results of operations in the period in which they are realised.
17.3
Legal proceedings
Product liability claims
The Group faces claims from time to time for alleged defects in its products and has on occasion recalled or withdrawn products from
the market. Such claims are endemic to the medical device industry. The Group maintains product liability insurance subject to limits
and deductibles that management believes are reasonable. All policies contain exclusions and limitations, however, and there can be no
assurance that insurance will be available or adequate to cover all claims.
This includes matters raising concerns about possible adverse e\ufb00ects of hip implant products with metal-on-metal (MoM) bearing
surfaces for which the Group has incurred and will continue to incur expenses to defend claims in this area.
As of December 2025, approximately 192 such claims were pending with the Group around the world. Most claims relate to the Group\u2019s
BHR product, including its two modular metal-on-metal components: the Birmingham Hip Modular Head (BHMH) and the optional metal
liner component of the R3
\u25ca
Acetabular System (R3ML). The BHMH and R3ML are no longer on the market: the R3ML was withdrawn in
2012 and the BHMH was phased out in 2014. In 2015, the Group ceased o\ufb00ering smaller sizes of the BHR and restricted instructions for
BHR use in female patients. These actions were taken to ensure that the BHR is used only in those patient groups where it continues to
demonstrate strong performance.
Through the end of 2025, entities of the Group have entered several group, as well as individual, MoM related settlements without
admitting liability. The Group requested indemnity from its product liability insurers for most of these MoM hip implant settlements and
insurers have indemni\ufb01ed the Group to the limits of their respective applicable policies.
Litigation outcomes are di\ufb03cult to predict and defence costs can be signi\ufb01cant. The Group takes care to monitor the clinical evidence
relating to its products, including its metal hip implant products, to help ensure that its product o\ufb00erings are designed to serve patients\u2019
interests.
Intellectual property disputes
The Group engages, as both plainti\ufb00 and defendant, in litigation with various competitors and others over claims of patent infringement
and other intellectual property matters. These disputes are heard in courts in the US and other jurisdictions and also before agencies
that examine patents. Outcomes are rarely certain and costs are o\ufb05en signi\ufb01cant. The Group provides for these types of matters when
and where appropriate.
17.4
Tax matters
At any given time the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some of
which may take several years to resolve. Provisions are based on best estimates and management\u2019s judgements concerning the likely
ultimate outcome of any audit or dispute. Management considers the speci\ufb01c circumstances of each tax position and takes external
advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. The Group believes
that it has made adequate provision in respect of additional tax liabilities that may arise. See Note 5 for further details.", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00489": { "value": "17
Provisions and contingencies
Accounting policy
In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is
deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is
the plainti\ufb00 in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred.
The recognition of provisions for legal disputes is subject to a signi\ufb01cant degree of estimation. In making its estimates, management
takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where
necessary to re\ufb02ect developments in the disputes. The ultimate liability may di\ufb00er from the amount provided depending on the
outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the
in\ufb02ow of bene\ufb01ts is virtually certain and are presented within other receivables.
A provision for onerous contracts is recognised when the expected bene\ufb01ts to be derived by the Group from a contract are lower
than\u00a0the unavoidable cost of meeting its obligations under the contract.
A provision for restructuring and rationalisation is recognised when the Group has approved a detailed and formal restructuring plan
and the restructuring either has commenced or has been communicated to those a\ufb00ected. Restructuring provisions primarily include
severance costs and are expected to be utilised within one year. Future operating losses and costs associated with ongoing activities
are not provided for.
\n
17.1
Provisions
\u00a0
\u00a0
\n \n
\u00a0Restructuring\u00a0
\u00a0and\u00a0
\u00a0rationalisation\u00a0
\u00a0
\u00a0Legal\u00a0and\u00a0other\u00a0
\u00a0provisions\u00a0
\u00a0Metal-on-metal\u00a0
\u00a0provisions\u00a0
\u00a0Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
\u00a0$\u00a0million\u00a0
At 1 January\u00a02024
\u00a091\u00a0
\u00a0
\u00a0149\u00a0
\u00a0
\u00a041\u00a0
\u00a0
\u00a0281\u00a0
Charge to income statement
\u00a0123\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a012\u00a0
\u00a0
\u00a0135\u00a0
Release to income statement
\u00a0\u2013\u00a0
\u00a0
\u00a0(28)\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(30)
Unwinding of discount
\u00a0\u2013\u00a0
\u00a0
\u00a06\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a06\u00a0
Utilised
\u00a0(153)\u00a0
\u00a0
\u00a0(14)\u00a0
\u00a0
\u00a0(20)\u00a0
\u00a0
\u00a0(187)
Exchange adjustment
\u00a0(2)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(2)
At 31 December\u00a02024
\u00a059\u00a0
\u00a0
\u00a0113\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a0203\u00a0
Charge to income statement
\u00a049\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a015\u00a0
\u00a0
\u00a064\u00a0
Release to income statement
\u00a0(2)\u00a0
\u00a0
\u00a0(9)\u00a0
\u00a0
\u00a0(7)\u00a0
\u00a0
\u00a0(18)
Unwinding of discount
\u00a0\u2013\u00a0
\u00a0
\u00a04\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a04\u00a0
Utilised
\u00a0(86)\u00a0
\u00a0
\u00a0(11)\u00a0
\u00a0
\u00a0(2)\u00a0
\u00a0
\u00a0(99)
Exchange adjustment
\u00a02\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a02\u00a0
At 31 December\u00a02025
\u00a0
22\u00a0
\u00a0
\u00a097\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a0156\u00a0
Provisions\u00a0\u2013 due within one\u00a0year
\u00a022\u00a0
\u00a0
\u00a025\u00a0
\u00a0
\u00a027\u00a0
\u00a0
\u00a074\u00a0
Provisions\u00a0\u2013 due a\ufb05er one\u00a0year
\u00a0\u2013\u00a0
\u00a0
\u00a072\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a082\u00a0
At 31 December\u00a02025
\u00a0
22\u00a0
\u00a0
\u00a097\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a0156\u00a0
Provisions\u00a0\u2013 due within one\u00a0year
\u00a059\u00a0
\u00a0
\u00a028\u00a0
\u00a0
\u00a021\u00a0
\u00a0
\u00a0108\u00a0
Provisions\u00a0\u2013 due a\ufb05er one\u00a0year
\u00a0\u2013\u00a0
\u00a0
\u00a085\u00a0
\u00a0
\u00a010\u00a0
\u00a0
\u00a095\u00a0
At 31 December\u00a02024
\u00a059\u00a0
\u00a0
\u00a0113\u00a0
\u00a0
\u00a031\u00a0
\u00a0
\u00a0203\u00a0
\n
The principal elements within restructuring and rationalisation provisions relate to the Operations and Commercial Excellence
\n
programme announced in\u00a0February 2020 and the e\ufb03ciency and productivity elements of the 12-Point Plan.
\n
For the year ended 31 December 2025 and 2024, charges primarily include severance, asset write-o\ufb00s and integration and dual
\n
running costs.
\n
The Group has estimated a provision of $97m (2024: $113m) relating to the present value at 31 December 2025 of the estimated costs
\n
to\u00a0resolve all other known and anticipated metal-on-metal hip claims globally. The estimated value of the provision has been determined
\n
using an actuarial model. While the provision is based on a number of assumptions, including factors such as the number, outcome and
\n
value of claims, a reasonable change in assumptions would not give rise to a material adjustment. The provision does not include any
\n
possible further insurance recoveries on these claims or legal fees associated with defending claims.
\n
The legal and other provisions mainly relate to various other product liability and intellectual property litigation matters. The Group
\n
carries considerable product liability insurance, and will continue to defend claims vigorously.
\n
All provisions are expected to be substantially utilised within \ufb01ve years of 31 December 2025 and none are treated as
\n
\ufb01nancial instruments.
17.2
Contingencies
The Company and its subsidiaries are party to various legal proceedings, some of which include claims for substantial damages.
The outcome of these proceedings cannot readily be foreseen, but except as described herein management believes none of them are
likely to result in a material adverse e\ufb00ect on the \ufb01nancial position of the Group. The Group provides for outcomes that are deemed to be
probable and can be reliably estimated. There is no assurance that losses will not exceed provisions or will not have a signi\ufb01cant impact
on the Group\u2019s results of operations in the period in which they are realised.
17.3
Legal proceedings
Product liability claims
The Group faces claims from time to time for alleged defects in its products and has on occasion recalled or withdrawn products from
the market. Such claims are endemic to the medical device industry. The Group maintains product liability insurance subject to limits
and deductibles that management believes are reasonable. All policies contain exclusions and limitations, however, and there can be no
assurance that insurance will be available or adequate to cover all claims.
This includes matters raising concerns about possible adverse e\ufb00ects of hip implant products with metal-on-metal (MoM) bearing
surfaces for which the Group has incurred and will continue to incur expenses to defend claims in this area.
As of December 2025, approximately 192 such claims were pending with the Group around the world. Most claims relate to the Group\u2019s
BHR product, including its two modular metal-on-metal components: the Birmingham Hip Modular Head (BHMH) and the optional metal
liner component of the R3
\u25ca
Acetabular System (R3ML). The BHMH and R3ML are no longer on the market: the R3ML was withdrawn in
2012 and the BHMH was phased out in 2014. In 2015, the Group ceased o\ufb00ering smaller sizes of the BHR and restricted instructions for
BHR use in female patients. These actions were taken to ensure that the BHR is used only in those patient groups where it continues to
demonstrate strong performance.
Through the end of 2025, entities of the Group have entered several group, as well as individual, MoM related settlements without
admitting liability. The Group requested indemnity from its product liability insurers for most of these MoM hip implant settlements and
insurers have indemni\ufb01ed the Group to the limits of their respective applicable policies.
Litigation outcomes are di\ufb03cult to predict and defence costs can be signi\ufb01cant. The Group takes care to monitor the clinical evidence
relating to its products, including its metal hip implant products, to help ensure that its product o\ufb00erings are designed to serve patients\u2019
interests.
Intellectual property disputes
The Group engages, as both plainti\ufb00 and defendant, in litigation with various competitors and others over claims of patent infringement
and other intellectual property matters. These disputes are heard in courts in the US and other jurisdictions and also before agencies
that examine patents. Outcomes are rarely certain and costs are o\ufb05en signi\ufb01cant. The Group provides for these types of matters when
and where appropriate.
17.4
Tax matters
At any given time the Group has unagreed years outstanding in various countries and is involved in tax audits and disputes, some of
which may take several years to resolve. Provisions are based on best estimates and management\u2019s judgements concerning the likely
ultimate outcome of any audit or dispute. Management considers the speci\ufb01c circumstances of each tax position and takes external
advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due. The Group believes
that it has made adequate provision in respect of additional tax liabilities that may arise. See Note 5 for further details.", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00540": { "value": "Accounting policy
In the normal course of business the Group is involved in various legal disputes. Provisions are made for loss contingencies when it is
deemed probable that an adverse outcome will occur and the amount of the losses can be reasonably estimated. Where the Group is
the plainti\ufb00 in pursuing claims against third parties, legal and associated expenses are charged to the income statement as incurred.
The recognition of provisions for legal disputes is subject to a signi\ufb01cant degree of estimation. In making its estimates, management
takes into account the advice of internal and external legal counsel. Provisions are reviewed regularly and amounts updated where
necessary to re\ufb02ect developments in the disputes. The ultimate liability may di\ufb00er from the amount provided depending on the
outcome of court proceedings or settlement negotiations or as new facts emerge. Insurance recoveries are recognised when the
in\ufb02ow of bene\ufb01ts is virtually certain and are presented within other receivables.
A provision for onerous contracts is recognised when the expected bene\ufb01ts to be derived by the Group from a contract are lower
than\u00a0the unavoidable cost of meeting its obligations under the contract.
A provision for restructuring and rationalisation is recognised when the Group has approved a detailed and formal restructuring plan
and the restructuring either has commenced or has been communicated to those a\ufb00ected. Restructuring provisions primarily include
severance costs and are expected to be utilised within one year. Future operating losses and costs associated with ongoing activities
are not provided for.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00491": { "value": "17.2
Contingencies
The Company and its subsidiaries are party to various legal proceedings, some of which include claims for substantial damages.
The outcome of these proceedings cannot readily be foreseen, but except as described herein management believes none of them are
likely to result in a material adverse e\ufb00ect on the \ufb01nancial position of the Group. The Group provides for outcomes that are deemed to be
probable and can be reliably estimated. There is no assurance that losses will not exceed provisions or will not have a signi\ufb01cant impact
on the Group\u2019s results of operations in the period in which they are realised.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00492": { "value": "17.2
Contingencies
The Company and its subsidiaries are party to various legal proceedings, some of which include claims for substantial damages.
The outcome of these proceedings cannot readily be foreseen, but except as described herein management believes none of them are
likely to result in a material adverse e\ufb00ect on the \ufb01nancial position of the Group. The Group provides for outcomes that are deemed to be
probable and can be reliably estimated. There is no assurance that losses will not exceed provisions or will not have a signi\ufb01cant impact
on the Group\u2019s results of operations in the period in which they are realised.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00565": { "value": "Accounting policy
The Group sponsors de\ufb01ned bene\ufb01t plans in a number of countries. A de\ufb01ned bene\ufb01t pension plan de\ufb01nes an amount of pension
bene\ufb01t that an employee will receive on retirement or a minimum guaranteed return on contributions, which is dependent on various
factors such as age, years of service and \ufb01nal salary. The Group\u2019s obligation is calculated separately for each plan by discounting
the\u00a0estimated future bene\ufb01t that employees have\u00a0earned in return for their service in the current and prior periods. The fair value
of\u00a0any plan assets is deducted to arrive at the net liability.
The calculation of the de\ufb01ned bene\ufb01t obligation is performed annually by external actuaries using the projected unit credit method.
Remeasurements arising from de\ufb01ned bene\ufb01t plans comprise actuarial gains and losses and the return on the plan assets in excess
of the discount rate net of the costs of\u00a0managing the plan assets. The Group recognises these immediately in other comprehensive
income (OCI) and all other expenses, such as service cost, net interest cost, administration costs and taxes, are recognised in the
income statement.
A number of key assumptions are made when calculating the fair value of the Group\u2019s de\ufb01ned bene\ufb01t pension plans. These
assumptions impact the balance sheet asset and liabilities, operating pro\ufb01t, \ufb01nance income/costs and other comprehensive income.
The most critical assumptions are the discount rate, the rate of in\ufb02ation and mortality assumptions to be applied to future pension
plan liabilities. The discount rate is based on the yield at the reporting date on bonds that have a credit rating of AA, denominated
in the currency in which the bene\ufb01ts are expected to be paid and have a maturity pro\ufb01le approximately the same as the\u00a0Group\u2019s
obligations. In determining these assumptions management takes into account the advice of professional external actuaries
and\u00a0benchmarks its assumptions against external data.
The Group determines the net interest expense/income on the net de\ufb01ned bene\ufb01t liability/asset for the period by applying the
discount rate used to\u00a0measure the de\ufb01ned bene\ufb01t obligation at the beginning of the annual period to the net de\ufb01ned bene\ufb01t
liability/asset.
The Group also operates a number of de\ufb01ned contribution plans. A de\ufb01ned contribution plan is a pension plan under which the
Group\u00a0and employees pay \ufb01xed contributions to a third-party \ufb01nancial provider. The Group has no further payment obligations
once\u00a0the contributions have\u00a0been\u00a0paid. Contributions are recognised as an employee bene\ufb01t expense when they are due. Accounting policy
The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards,
\n
the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over
\nthe vesting period as an expense, with a corresponding increase in retained earnings. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00493": { "value": "19
Equity
Accounting policy
Incremental costs directly attributable to the issue of ordinary shares, net of any tax e\ufb00ects, are recognised as a deduction from equity.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable
costs, net of any tax e\ufb00ects, is recognised as a deduction from equity. Repurchased shares are classi\ufb01ed as treasury shares and
are\u00a0presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in\u00a0equity and the resulting surplus or de\ufb01cit on the transaction is presented within share premium.
19.1
Share capital
\n\n \u00a0 \u00a0\u00a0
Ordinary shares (20\u00a2)
Deferred shares (\u00a31.00)
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
$ million
\u00a0
Authorised
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 31 December 2023
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2024
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2025
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
Allotted, issued and fully paid
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 1 January\u00a02023
\u00a0877,650\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a023\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2023
\u00a0877,673\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a031\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0877,704\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2025
\u00a0877,725\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
The deferred shares were issued in 2006 in order to comply with English Company law. They are not listed on any stock exchange
and\u00a0have extremely limited rights and e\ufb00ectively have no value. These rights are summarised as follows:
\u2013
The holder shall not be entitled to participate in the pro\ufb01ts of the Company;
\u2013
The holder shall not have any right to participate in any distribution of the Company\u2019s assets on a winding-up or other distribution
except that a\ufb05er the return of the nominal amount paid up on each share in the capital of the Company of any class other than
the deferred shares and the distribution of a further $1,000 in respect of each such share there shall be distributed to a holder
of a deferred share (for\u00a0each deferred share held) an amount equal to the nominal value of the deferred share;
\u2013
The holder shall not be entitled to receive notice, attend, speak or vote at any general meeting of the Company; and
\u2013
The Company may create, allot and issue further shares or reduce or repay the whole or any part of its share capital or other
capital\u00a0reserves without obtaining the consent of the holders of the deferred shares.
The Group\u2019s objectives when managing capital are to ensure the Group has adequate funds to continue as a going concern and
su\ufb03cient \ufb02exibility within the capital structure to fund the ongoing growth of the business and to take advantage of business
development opportunities including acquisitions.
The Group determines the amount of capital taking into account changes in business risks and future cash requirements. The Group
reviews its capital structure on an ongoing basis and uses share buybacks, dividends and the issue of new shares to adjust the
retained capital.
The Group considers the capital that it manages to be as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Share capital
\u00a0175\u00a0
\u00a0175\u00a0
\u00a0175\u00a0
Share premium
\u00a0615\u00a0
\u00a0615\u00a0
\u00a0615\u00a0
Capital redemption reserve
\u00a020\u00a0
\u00a020\u00a0
\u00a020\u00a0
Treasury shares
\u00a0(515)
\u00a0(66)
\u00a0(94)
Retained earnings and other reserves
\u00a04,994\u00a0
\u00a04,521\u00a0
\u00a04,501\u00a0
\u00a05,289\u00a0
\u00a05,265\u00a0
\u00a05,217\u00a0
\n
19.2
Treasury shares
Treasury shares represent the holding of the Company\u2019s own shares in respect of the Smith & Nephew Employees\u2019 Share Trust and
shares bought back as part of the share buyback programme.
The Smith & Nephew 2004 Employees\u2019 Share Trust (the Trust) was established to hold shares relating to the long-term incentive plans
referred to in the Directors\u2019 Remuneration Report. The Trust is administered by an independent professional trust company resident
in\u00a0Jersey and is funded by a loan from the Company. The cost of the Trust is charged to the income statement as it accrues. A dividend
waiver is in place in respect of those shares held under the long-term incentive plans. The Trust only accepts dividends in respect of nil-
cost options and deferred bonus plan shares. The waiver represents less than 1% of the total dividends paid.
The movements in Treasury shares and the Employees\u2019 Share Trust are as follows:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
Employees\u2019
Treasury
Share\u00a0Trust
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
At 1 January\u00a02024
\u00a053\u00a0
\u00a041\u00a0
\u00a094\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(2)
\u00a0(26)
\u00a0(28)
At 31 December 2024
\u00a051\u00a0
\u00a015\u00a0
\u00a066\u00a0
Shares purchased
\u00a0502\u00a0
\u00a0\u2013\u00a0
\u00a0502\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(44)
\u00a0(9)
\u00a0(53)
At 31 December\u00a02025
\u00a0509\u00a0
\u00a06\u00a0
\u00a0515\u00a0
\n\n \u00a0 \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
Employees\u2019
Treasury
Share\u00a0Trust
Total
Number
Number
Number
of\u00a0shares
of\u00a0shares
of\u00a0shares
\u00a0
\u00a0
\u00a0
\u00a0
million
million
million\u00a0
At 1 January\u00a02024
\u00a03.4\u00a0
\u00a02.4\u00a0
\u00a05.8\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(0.1)
\u00a0(1.5)
\u00a0(1.6)
At 31 December 2024
\u00a03.3\u00a0
\u00a00.9\u00a0
\u00a04.2\u00a0
Shares purchased
\u00a027.4\u00a0
\u00a0\u2013\u00a0
\u00a027.4\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(2.7)
\u00a0(0.5)
\u00a0(3.2)
At 31 December\u00a02025
\u00a028.0\u00a0
\u00a00.4\u00a0
\u00a028.4\u00a0
\n
In August 2025, the Group announced a $500m share buyback programme
in order to return capital to shareholders. The Group
purchased 27,411,845 shares under the programme for a total cost of $502m inclusive of transaction costs of $2m that have been
deducted from equity. The programme was completed on 7 October 2025. No shares were purchased in 2024.
19.3
Dividends
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
The following dividends were declared and paid in the\u00a0year:
Ordinary \ufb01nal of 23.1\u00a2 for 2024 (2023: 23.1\u00a2, 2022: 23.1\u00a2) paid 28 May 2025
\u00a0202\u00a0
\u00a0202\u00a0
\u00a0201\u00a0
Ordinary interim of 15.0\u00a2 for 2025 (2024: 14.4\u00a2, 2023: 14.4\u00a2) paid 7 November 2025
\u00a0128\u00a0
\u00a0125\u00a0
\u00a0126\u00a0
\u00a0330\u00a0
\u00a0327\u00a0
\u00a0327\u00a0
\n
A \ufb01nal dividend for 2025 of 24.1 US cents per ordinary share was proposed by the Board on 26 February 2026 and will be paid, subject
to shareholder approval, on 27 May 2026 to shareholders on the Register of Members on 27 March 2026. The estimated amount of this
dividend is $204m. The Group pursues a progressive dividend policy, with the aim of increasing the US Dollar value of ordinary dividends
over time broadly based on the Group\u2019s underlying growth in earnings, while taking into account capital requirements and cash \ufb02ows.
Future dividends will be dependent upon future earnings, the future \ufb01nancial condition of the Group and the Board\u2019s dividend policy.
The Board reviews the appropriate level of total annual dividend each year at the time of the full-year results. Smith & Nephew plc,
the\u00a0Parent Company of the Group, is a non-trading investment holding company which derives its distributable reserves from dividends
paid by subsidiary companies. The distributable reserves of the Parent Company approximate to the balance on the pro\ufb01t and loss
account reserve, less treasury shares and exchange reserves, which at 31 December 2025 amounted to $2,265m (2024: $3,119m).", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00566": { "value": "Accounting policy
Incremental costs directly attributable to the issue of ordinary shares, net of any tax e\ufb00ects, are recognised as a deduction from equity.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable
costs, net of any tax e\ufb00ects, is recognised as a deduction from equity. Repurchased shares are classi\ufb01ed as treasury shares and
are\u00a0presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in\u00a0equity and the resulting surplus or de\ufb01cit on the transaction is presented within share premium.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00567": { "value": "When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable
costs, net of any tax e\ufb00ects, is recognised as a deduction from equity. Repurchased shares are classi\ufb01ed as treasury shares and
are\u00a0presented in the treasury share reserve. When treasury shares are sold or reissued subsequently, the amount received is
recognised as an increase in\u00a0equity and the resulting surplus or de\ufb01cit on the transaction is presented within share premium.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00495": { "value": "19.1
Share capital
\n\n \u00a0 \u00a0\u00a0
Ordinary shares (20\u00a2)
Deferred shares (\u00a31.00)
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
$ million
\u00a0
Authorised
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 31 December 2023
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2024
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2025
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
Allotted, issued and fully paid
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 1 January\u00a02023
\u00a0877,650\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a023\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2023
\u00a0877,673\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a031\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0877,704\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2025
\u00a0877,725\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
The deferred shares were issued in 2006 in order to comply with English Company law. They are not listed on any stock exchange
and\u00a0have extremely limited rights and e\ufb00ectively have no value. These rights are summarised as follows:
\u2013
The holder shall not be entitled to participate in the pro\ufb01ts of the Company;
\u2013
The holder shall not have any right to participate in any distribution of the Company\u2019s assets on a winding-up or other distribution
except that a\ufb05er the return of the nominal amount paid up on each share in the capital of the Company of any class other than
the deferred shares and the distribution of a further $1,000 in respect of each such share there shall be distributed to a holder
of a deferred share (for\u00a0each deferred share held) an amount equal to the nominal value of the deferred share;
\u2013
The holder shall not be entitled to receive notice, attend, speak or vote at any general meeting of the Company; and
\u2013
The Company may create, allot and issue further shares or reduce or repay the whole or any part of its share capital or other
capital\u00a0reserves without obtaining the consent of the holders of the deferred shares.
The Group\u2019s objectives when managing capital are to ensure the Group has adequate funds to continue as a going concern and
su\ufb03cient \ufb02exibility within the capital structure to fund the ongoing growth of the business and to take advantage of business
development opportunities including acquisitions.
The Group determines the amount of capital taking into account changes in business risks and future cash requirements. The Group
reviews its capital structure on an ongoing basis and uses share buybacks, dividends and the issue of new shares to adjust the
retained capital.
The Group considers the capital that it manages to be as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Share capital
\u00a0175\u00a0
\u00a0175\u00a0
\u00a0175\u00a0
Share premium
\u00a0615\u00a0
\u00a0615\u00a0
\u00a0615\u00a0
Capital redemption reserve
\u00a020\u00a0
\u00a020\u00a0
\u00a020\u00a0
Treasury shares
\u00a0(515)
\u00a0(66)
\u00a0(94)
Retained earnings and other reserves
\u00a04,994\u00a0
\u00a04,521\u00a0
\u00a04,501\u00a0
\u00a05,289\u00a0
\u00a05,265\u00a0
\u00a05,217\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00494": { "value": "19.1
Share capital
\n\n \u00a0 \u00a0\u00a0
Ordinary shares (20\u00a2)
Deferred shares (\u00a31.00)
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
\u00a0
\u00a0
\u00a0
\u00a0
Thousand\u00a0
\u00a0
\u00a0
\u00a0
$ million
$ million
\u00a0
Authorised
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 31 December 2023
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2024
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
At 31 December 2025
\u00a01,223,591\u00a0
\u00a0245\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0245\u00a0
Allotted, issued and fully paid
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
At 1 January\u00a02023
\u00a0877,650\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a023\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2023
\u00a0877,673\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a031\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2024
\u00a0877,704\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
Share options
\u00a021\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
At 31 December 2025
\u00a0877,725\u00a0
\u00a0175\u00a0
\u00a050\u00a0
\u00a0\u2013\u00a0
\u00a0175\u00a0
The deferred shares were issued in 2006 in order to comply with English Company law. They are not listed on any stock exchange
and\u00a0have extremely limited rights and e\ufb00ectively have no value. These rights are summarised as follows:
\u2013
The holder shall not be entitled to participate in the pro\ufb01ts of the Company;
\u2013
The holder shall not have any right to participate in any distribution of the Company\u2019s assets on a winding-up or other distribution
except that a\ufb05er the return of the nominal amount paid up on each share in the capital of the Company of any class other than
the deferred shares and the distribution of a further $1,000 in respect of each such share there shall be distributed to a holder
of a deferred share (for\u00a0each deferred share held) an amount equal to the nominal value of the deferred share;
\u2013
The holder shall not be entitled to receive notice, attend, speak or vote at any general meeting of the Company; and
\u2013
The Company may create, allot and issue further shares or reduce or repay the whole or any part of its share capital or other
capital\u00a0reserves without obtaining the consent of the holders of the deferred shares.
The Group\u2019s objectives when managing capital are to ensure the Group has adequate funds to continue as a going concern and
su\ufb03cient \ufb02exibility within the capital structure to fund the ongoing growth of the business and to take advantage of business
development opportunities including acquisitions.
The Group determines the amount of capital taking into account changes in business risks and future cash requirements. The Group
reviews its capital structure on an ongoing basis and uses share buybacks, dividends and the issue of new shares to adjust the
retained capital.
The Group considers the capital that it manages to be as follows:
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
\n \n
2025
2024
2023\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
Share capital
\u00a0175\u00a0
\u00a0175\u00a0
\u00a0175\u00a0
Share premium
\u00a0615\u00a0
\u00a0615\u00a0
\u00a0615\u00a0
Capital redemption reserve
\u00a020\u00a0
\u00a020\u00a0
\u00a020\u00a0
Treasury shares
\u00a0(515)
\u00a0(66)
\u00a0(94)
Retained earnings and other reserves
\u00a04,994\u00a0
\u00a04,521\u00a0
\u00a04,501\u00a0
\u00a05,289\u00a0
\u00a05,265\u00a0
\u00a05,217\u00a0
\n", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00496": { "value": "19.2
Treasury shares
Treasury shares represent the holding of the Company\u2019s own shares in respect of the Smith & Nephew Employees\u2019 Share Trust and
shares bought back as part of the share buyback programme.
The Smith & Nephew 2004 Employees\u2019 Share Trust (the Trust) was established to hold shares relating to the long-term incentive plans
referred to in the Directors\u2019 Remuneration Report. The Trust is administered by an independent professional trust company resident
in\u00a0Jersey and is funded by a loan from the Company. The cost of the Trust is charged to the income statement as it accrues. A dividend
waiver is in place in respect of those shares held under the long-term incentive plans. The Trust only accepts dividends in respect of nil-
cost options and deferred bonus plan shares. The waiver represents less than 1% of the total dividends paid.
The movements in Treasury shares and the Employees\u2019 Share Trust are as follows:
\n\n \u00a0 \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
Employees\u2019
Treasury
Share\u00a0Trust
Total\u00a0
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
At 1 January\u00a02024
\u00a053\u00a0
\u00a041\u00a0
\u00a094\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(2)
\u00a0(26)
\u00a0(28)
At 31 December 2024
\u00a051\u00a0
\u00a015\u00a0
\u00a066\u00a0
Shares purchased
\u00a0502\u00a0
\u00a0\u2013\u00a0
\u00a0502\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(44)
\u00a0(9)
\u00a0(53)
At 31 December\u00a02025
\u00a0509\u00a0
\u00a06\u00a0
\u00a0515\u00a0
\n\n \u00a0 \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
Employees\u2019
Treasury
Share\u00a0Trust
Total
Number
Number
Number
of\u00a0shares
of\u00a0shares
of\u00a0shares
\u00a0
\u00a0
\u00a0
\u00a0
million
million
million\u00a0
At 1 January\u00a02024
\u00a03.4\u00a0
\u00a02.4\u00a0
\u00a05.8\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(0.1)
\u00a0(1.5)
\u00a0(1.6)
At 31 December 2024
\u00a03.3\u00a0
\u00a00.9\u00a0
\u00a04.2\u00a0
Shares purchased
\u00a027.4\u00a0
\u00a0\u2013\u00a0
\u00a027.4\u00a0
Shares transferred to Group bene\ufb01ciaries
\u00a0(2.7)
\u00a0(0.5)
\u00a0(3.2)
At 31 December\u00a02025
\u00a028.0\u00a0
\u00a00.4\u00a0
\u00a028.4\u00a0
\n
In August 2025, the Group announced a $500m share buyback programme
in order to return capital to shareholders. The Group
purchased 27,411,845 shares under the programme for a total cost of $502m inclusive of transaction costs of $2m that have been
deducted from equity. The programme was completed on 7 October 2025. No shares were purchased in 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00497": { "value": "19.3
Dividends
\n\n \u00a0 \u00a0 \u00a0
\u00a0
\u00a0
2025
2024
2023
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
\u00a0
\u00a0
\u00a0
\u00a0
$\u00a0million
The following dividends were declared and paid in the\u00a0year:
Ordinary \ufb01nal of 23.1\u00a2 for 2024 (2023: 23.1\u00a2, 2022: 23.1\u00a2) paid 28 May 2025
\u00a0202\u00a0
\u00a0202\u00a0
\u00a0201\u00a0
Ordinary interim of 15.0\u00a2 for 2025 (2024: 14.4\u00a2, 2023: 14.4\u00a2) paid 7 November 2025
\u00a0128\u00a0
\u00a0125\u00a0
\u00a0126\u00a0
\u00a0330\u00a0
\u00a0327\u00a0
\u00a0327\u00a0
\n
A \ufb01nal dividend for 2025 of 24.1 US cents per ordinary share was proposed by the Board on 26 February 2026 and will be paid, subject
to shareholder approval, on 27 May 2026 to shareholders on the Register of Members on 27 March 2026. The estimated amount of this
dividend is $204m. The Group pursues a progressive dividend policy, with the aim of increasing the US Dollar value of ordinary dividends
over time broadly based on the Group\u2019s underlying growth in earnings, while taking into account capital requirements and cash \ufb02ows.
Future dividends will be dependent upon future earnings, the future \ufb01nancial condition of the Group and the Board\u2019s dividend policy.
The Board reviews the appropriate level of total annual dividend each year at the time of the full-year results. Smith & Nephew plc,
the\u00a0Parent Company of the Group, is a non-trading investment holding company which derives its distributable reserves from dividends
paid by subsidiary companies. The distributable reserves of the Parent Company approximate to the balance on the pro\ufb01t and loss
account reserve, less treasury shares and exchange reserves, which at 31 December 2025 amounted to $2,265m (2024: $3,119m).", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00499": { "value": "0.241", "decimals": 3, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:USD/xbrli:shares" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00498": { "value": "204000000.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwners", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:USD" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00399": { "value": "Smith & Nephew plc", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00500": { "value": "20
Cash \ufb02ow statement
Accounting policy
In the Group cash \ufb02ow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original
maturities of three months or less and bank overdra\ufb05s. In the Group balance sheet, cash and cash equivalents includes cash at bank,
other short-term liquid investments with original maturities of three months or less and excludes bank overdra\ufb05s.
Analysis of net debt including lease liabilities
\n\n \u00a0 \u00a0 \u00a0 \n \n
Borrowings
Total
Net debt
Net
Net
liabilities
Cash
including
Due within
Due a\ufb05er
currency
interest
- \ufb01nancing
and cash
lease
Overdra\ufb05s
one\u00a0year
one\u00a0year
swaps
swaps
activities
equivalents
liabilities
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
At 1 January\u00a02023
\u00a0(6)
\u00a0(154)
\u00a0(2,712)
\u00a0\u2013\u00a0
\u00a0(13)\u00a0
\u00a0
\u00a0(2,885)
\u00a0350\u00a0
\u00a0(2,535)
Net cash \ufb02ow/debt movement
\u00a08\u00a0
\u00a0(604)
\u00a0429\u00a0
\u00a0(4)
\u00a0\u2013\u00a0
\u00a0
\u00a0(171)
\u00a0(48)
\u00a0(219)
Fair value changes including exchange
\u00a0(4)
\u00a0\u2013\u00a0
\u00a0(39)
\u00a03\u00a0
\u00a020\u00a0
\u00a0
\u00a0(20)
\u00a0\u2013\u00a0
\u00a0(20)
adjustments
Corporate bond issuance expense
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a01\u00a0
\u00a0\u2013\u00a0
\u00a01\u00a0
IFRS 16 lease liabilities movement
\u00a0\u2013\u00a0
\u00a0(6)
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0(3)
At 31 December\u00a02023
\u00a0(2)
\u00a0(764)
\u00a0(2,318)
\u00a0(1)
\u00a07\u00a0
\u00a0
\u00a0(3,078)
\u00a0302\u00a0
\u00a0(2,776)
Net cash \ufb02ow/debt movement
\u00a01\u00a0
\u00a0
\u00a0
\u00a0705\u00a0
\u00a0
\u00a0(1,000)
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
\u00a0(294)
\u00a0
\u00a0331\u00a0
\u00a0
\u00a037\u00a0
Fair value changes including exchange
\u00a0(1)
\u00a0\u2013\u00a0
\u00a046\u00a0
\u00a0\u2013\u00a0
\u00a0(13)\u00a0
\u00a0
\u00a032\u00a0
\u00a0(14)
\u00a018\u00a0
adjustments
Corporate bond issuance expense
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a09\u00a0
\u00a0\u2013\u00a0
\u00a09\u00a0
IFRS 16 lease liabilities movement
\u00a0\u2013\u00a0
\u00a0(2)
\u00a05\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a03\u00a0
\u00a0\u2013\u00a0
\u00a03\u00a0
At 31 December\u00a02024
\u00a0(2)
\u00a0(61)
\u00a0(3,258)
\u00a0(1)
\u00a0(6)\u00a0
\u00a0
\u00a0(3,328)
\u00a0619\u00a0
\u00a0(2,709)
Net cash \ufb02ow/debt movement
\u00a0(2)
\u00a0
\u00a0
\u00a0(4)
\u00a0
\u00a090\u00a0
\u00a0
\u00a0(1)
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0
\u00a0
\u00a083\u00a0
\u00a0
\u00a0(74)
\u00a0
\u00a09\u00a0
Non cash changes including exchange
\u00a0\u2013\u00a0
\u00a0(75)
\u00a08\u00a0
\u00a02\u00a0
\u00a017\u00a0
\u00a0
\u00a0(48)
\u00a012\u00a0
\u00a0(36)
adjustments
Corporate bond issuance expense
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(3)
\u00a0\u2013\u00a0
\u00a0(3)
IFRS 16 lease liabilities movement
\u00a0\u2013\u00a0
\u00a0(6)
\u00a0(14)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(20)
\u00a0\u2013\u00a0
\u00a0(20)
At 31 December\u00a02025
\u00a0(4)
\u00a0(146)
\u00a0(3,177)
\u00a0\u2013\u00a0
\u00a011\u00a0
\u00a0
\u00a0(3,316)
\u00a0557\u00a0
\u00a0(2,759)
\n
In 2025, the Group repurchased $100 million of its $1.0 billion 2.032% USD corporate bond (refer to Note 15.2).
Reconciliation of net cash \ufb02ow to movement in net debt including lease liabilities
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
$\u00a0million
$\u00a0million
$\u00a0million
Net cash \ufb02ow from cash net of overdra\ufb05s
\u00a0(76)
\u00a0
\u00a0
\u00a0332\u00a0
\u00a0
\u00a0(40)
Settlement of currency swaps
\u00a0(1)
\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(4)
Net cash \ufb02ow from borrowings
\u00a086\u00a0
\u00a0
\u00a0
\u00a0(295)\u00a0
\u00a0
\u00a0(175)
Change in net debt from net cash \ufb02ow
\u00a09\u00a0
\u00a0
\u00a0
\u00a037\u00a0
\u00a0
\u00a0(219)
IFRS 16 lease liabilities
\u00a0(20)
\u00a0
\u00a0
\u00a03\u00a0
\u00a0
\u00a0(3)
Other non cash movements
1
\u00a0(36)
\u00a0
\u00a0
\u00a018\u00a0
\u00a0
\u00a0(20)
Corporate bond issuance expense
\u00a0(3)
\u00a0
\u00a0
\u00a09\u00a0
\u00a0
\u00a01\u00a0
Change in net debt in the\u00a0year
\u00a0(50)
\u00a0
\u00a0
\u00a067\u00a0
\u00a0
\u00a0(241)
Opening net debt
\u00a0(2,709)
\u00a0
\u00a0
\u00a0(2,776)\u00a0
\u00a0
\u00a0(2,535)
Closing net debt
\u00a0(2,759)
\u00a0
\u00a0
\u00a0(2,709)\u00a0
\u00a0
\u00a0(2,776)
\n
1
In 2025, this also includes gain on repurchase of bond $10m, in addition to foreign exchange movements and fair value adjustments relating to
interest swaps.
Cash and cash equivalents
For the purposes of the Group cash \ufb02ow statement, cash and cash equivalents at 31 December 2025 comprise cash at bank and other
short-term liquid investments with original maturities of three months or less and\u00a0bank overdra\ufb05s.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
$\u00a0million
$\u00a0million
$\u00a0million
Cash at bank and other short-term liquid investments with original maturities of three
months or less
\u00a0557\u00a0
\u00a0619\u00a0
\u00a0302\u00a0
Bank overdra\ufb05s
\u00a0(4)
\u00a0(2)
\u00a0(2)
Cash and cash equivalents
\u00a0553\u00a0
\u00a0617\u00a0
\u00a0300\u00a0
\n
The Group operates in over 100 countries around the world, some of which impose restrictions over cash movement. These restrictions
have only a minimal impact on the management of the Group\u2019s cash.
Cash out\ufb02ows/(in\ufb02ows) arising from \ufb01nancing activities
\n\n \u00a0 \u00a0 \u00a0\n \n
Repayment
Borrowing
Proceeds from
Repayment
Cash out\ufb02ow/
Proceeds from own
\u00a0
\u00a0
of bank
of bank
Corporate
of lease
(in\ufb02ow)
Purchase of
shares/issue of
loans
1
loans
1
Bond issue
liabilities
from other
Dividends
own shares
ordinary shares
Total
2025
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
Debt
\u00a0129\u00a0
\u00a0(43)
\u00a0\u2013\u00a0
\u00a050\u00a0
\u00a0(1)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0135\u00a0
Equity
\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0330\u00a0
\u00a0502\u00a0
\u00a0(12)
\u00a0820\u00a0
Total
\u00a0
\u00a0129\u00a0
\u00a0(43)
\u00a0\u2013\u00a0
\u00a050\u00a0
\u00a0(1)
\u00a0330\u00a0
\u00a0502\u00a0
\u00a0(12)
\u00a0955\u00a0
2024
Debt
\u00a0705\u00a0
\u00a0\u2013\u00a0
\u00a0(1,000)
\u00a055\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(240)
Equity
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0327\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a0326\u00a0
Total
\u00a0705\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1,000)\u00a0
\u00a0
\u00a055\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0327\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0(1)\u00a0
\u00a0
\u00a086\u00a0
2023
Debt
\u00a0151\u00a0
\u00a0(326)
\u00a0\u2013\u00a0
\u00a052\u00a0
\u00a0(4)
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0\u2013\u00a0
\u00a0(127)
Equity
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0327\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0327\u00a0
Total
\u00a0
\u00a0151\u00a0
\u00a0
\u00a0(326)\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a052\u00a0
\u00a0
\u00a0(4)\u00a0
\u00a0
\u00a0327\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0\u2013\u00a0
\u00a0
\u00a0200\u00a0
\n
1
This includes drawdown and repayment of the syndicated RCF and repayment of corporate bonds.", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00574": { "value": "Accounting policy
In the Group cash \ufb02ow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original
maturities of three months or less and bank overdra\ufb05s. In the Group balance sheet, cash and cash equivalents includes cash at bank,
other short-term liquid investments with original maturities of three months or less and excludes bank overdra\ufb05s.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00575": { "value": "Accounting policy
In the Group cash \ufb02ow statement, cash and cash equivalents includes cash at bank, other short-term liquid investments with original
maturities of three months or less and bank overdra\ufb05s. In the Group balance sheet, cash and cash equivalents includes cash at bank,
other short-term liquid investments with original maturities of three months or less and excludes bank overdra\ufb05s.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00501": { "value": "Cash and cash equivalents
For the purposes of the Group cash \ufb02ow statement, cash and cash equivalents at 31 December 2025 comprise cash at bank and other
short-term liquid investments with original maturities of three months or less and\u00a0bank overdra\ufb05s.
\n\n \u00a0 \u00a0 \u00a0\n \n
2025
2024
2023
$\u00a0million
$\u00a0million
$\u00a0million
Cash at bank and other short-term liquid investments with original maturities of three
months or less
\u00a0557\u00a0
\u00a0619\u00a0
\u00a0302\u00a0
Bank overdra\ufb05s
\u00a0(4)
\u00a0(2)
\u00a0(2)
Cash and cash equivalents
\u00a0553\u00a0
\u00a0617\u00a0
\u00a0300\u00a0
\n
The Group operates in over 100 countries around the world, some of which impose restrictions over cash movement. These restrictions
have only a minimal impact on the management of the Group\u2019s cash.", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00502": { "value": "The Group operates in over 100 countries around the world, some of which impose restrictions over cash movement. These restrictions have only a minimal impact on the management of the Group\u2019s cash.", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00504": { "value": "21
Acquisitions
Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss.
Year ended 31 December 2025
No acquisitions were completed in 2025.
Year ended 31 December 2024
On 9 January 2024, the Group completed the acquisition of 100% of the share capital of CartiHeal (2009) Ltd (CartiHeal), the
developer of CARTIHEAL
\u25ca
AGILI-C
\u25ca
, a novel Sports Medicine technology for cartilage regeneration in the knee. The acquisition of this
disruptive technology supports our strategy to invest behind our successful Sports Medicine & ENT business unit. The fair value of the
consideration amounted to $231m. This is comprised of contingent consideration of $49m, which represents the discounted value of
$150m of consideration contingent upon the achievement of a single future \ufb01nancial performance milestone in the next 10 years, and
initial cash consideration of $180m adjusted for cash acquired and other liabilities assumed, of which $18m was transferred in to escrow
to be released in equal instalments to the seller in 12 and 18 months from completion. The fair value of assets acquired and liabilities
assumed is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
CartiHeal
(2009) Ltd
$\u00a0million
Intangible assets \u2013 Product-related and trade name
\u00a084\u00a0
Inventory
\u00a01\u00a0
Cash
\u00a0
\u00a0
\u00a06\u00a0
Other liabilities
\u00a0
\u00a0
\u00a0(2)
Trade and other payables
\u00a0
\u00a0
\u00a0(1)
Net deferred tax liability
\u00a0
\u00a0
\u00a0(3)
Net assets
\u00a085\u00a0
Goodwill
\u00a0146\u00a0
Consideration
231\u00a0
\n
The product-related intangible assets and trade name were valued using a relief-from-royalty methodology with the key inputs
being revenue, pro\ufb01t and\u00a0discount rate. The cash out\ufb02ow from acquisitions in 2024 was $186m (2023: $21m) comprises payments of
consideration of $177m\u00a0net of cash acquired (2023: $nil) relating to acquisitions and payments of deferred and contingent consideration
of $9m (2023:\u00a0$21m) relating to acquisitions completed in prior years.
The goodwill represents the control premium, acquired workforce and the synergies expected from integrating CartiHeal into the
Group\u2019s existing business. The carrying value of goodwill increased from $2,992m at 31 December 2023 to $3,026m at 31 December
2024. The acquisition in the\u00a0year ended 31 December 2024 increased goodwill by $146m, this was partially o\ufb00set by goodwill
impairment of $65m and foreign exchange movements of $47m.
For the year ended 31 December 2024, the contribution from CartiHeal to the Group\u2019s revenue and pro\ufb01t was immaterial. If the business
combination had occurred at the beginning of the year the contribution to revenue and pro\ufb01t would not have been materially di\ufb00erent.
Year ended 31 December 2023
No acquisitions were completed in 2023. During 2023, management evaluated the commercial viability of Engage products and
concluded that they should be discontinued (see\u00a0Note 2.2 for further details).", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00503": { "value": "21
Acquisitions
Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss.
Year ended 31 December 2025
No acquisitions were completed in 2025.
Year ended 31 December 2024
On 9 January 2024, the Group completed the acquisition of 100% of the share capital of CartiHeal (2009) Ltd (CartiHeal), the
developer of CARTIHEAL
\u25ca
AGILI-C
\u25ca
, a novel Sports Medicine technology for cartilage regeneration in the knee. The acquisition of this
disruptive technology supports our strategy to invest behind our successful Sports Medicine & ENT business unit. The fair value of the
consideration amounted to $231m. This is comprised of contingent consideration of $49m, which represents the discounted value of
$150m of consideration contingent upon the achievement of a single future \ufb01nancial performance milestone in the next 10 years, and
initial cash consideration of $180m adjusted for cash acquired and other liabilities assumed, of which $18m was transferred in to escrow
to be released in equal instalments to the seller in 12 and 18 months from completion. The fair value of assets acquired and liabilities
assumed is set out below:
\n\n \u00a0 \u00a0 \u00a0\n \n
CartiHeal
(2009) Ltd
$\u00a0million
Intangible assets \u2013 Product-related and trade name
\u00a084\u00a0
Inventory
\u00a01\u00a0
Cash
\u00a0
\u00a0
\u00a06\u00a0
Other liabilities
\u00a0
\u00a0
\u00a0(2)
Trade and other payables
\u00a0
\u00a0
\u00a0(1)
Net deferred tax liability
\u00a0
\u00a0
\u00a0(3)
Net assets
\u00a085\u00a0
Goodwill
\u00a0146\u00a0
Consideration
231\u00a0
\n
The product-related intangible assets and trade name were valued using a relief-from-royalty methodology with the key inputs
being revenue, pro\ufb01t and\u00a0discount rate. The cash out\ufb02ow from acquisitions in 2024 was $186m (2023: $21m) comprises payments of
consideration of $177m\u00a0net of cash acquired (2023: $nil) relating to acquisitions and payments of deferred and contingent consideration
of $9m (2023:\u00a0$21m) relating to acquisitions completed in prior years.
The goodwill represents the control premium, acquired workforce and the synergies expected from integrating CartiHeal into the
Group\u2019s existing business. The carrying value of goodwill increased from $2,992m at 31 December 2023 to $3,026m at 31 December
2024. The acquisition in the\u00a0year ended 31 December 2024 increased goodwill by $146m, this was partially o\ufb00set by goodwill
impairment of $65m and foreign exchange movements of $47m.
For the year ended 31 December 2024, the contribution from CartiHeal to the Group\u2019s revenue and pro\ufb01t was immaterial. If the business
combination had occurred at the beginning of the year the contribution to revenue and pro\ufb01t would not have been materially di\ufb00erent.
Year ended 31 December 2023
No acquisitions were completed in 2023. During 2023, management evaluated the commercial viability of Engage products and
concluded that they should be discontinued (see\u00a0Note 2.2 for further details).On 21 January 2026, the Group completed the acquisition of 100% of the share capital of Integrity Orthopaedics, Inc., a US-based
early-stage commercial developer of Tendon Seam\u2122, an innovative rotator cu\ufb00 repair (RCR) system designed to signi\ufb01cantly reduce
\n
re tear rates and improve patient outcomes. The acquisition represents a meaningful step in delivering Smith+Nephew\u2019s RISE strategy
\n
to accelerate growth through strategic investment and portfolio leadership, and will be an important building block in our ambition to
\n
become the global leader in Sports Medicine. The acquisition consideration comprised of $225m paid on completion, with up to a further
\n
$225m contingent on future performance.
\n
The acquisition will be treated as a business combination under IFRS 3. The fair value assessment of the acquisition consideration,
\n
identi\ufb01able assets acquired and liabilities assumed is ongoing. Given the proximity of the acquisition to the \ufb01nancial statements being
\n
authorised for issue, it is not practicable at this stage to reasonably estimate the \ufb01nancial e\ufb00ect of the acquisition on the Group\u2019s
\n
consolidated \ufb01nancial statements. The Group expects to complete the purchase price allocation exercise under IFRS 3 in the \ufb01rst half of
\n2026, accordingly, provisional disclosures will be included in the Group\u2019s 2026 interim results.", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00576": { "value": "Accounting policy
The Group accounts for business combinations using the acquisition method when control is transferred to the Group.
The consideration transferred in the acquisition is measured at fair value, as are the identi\ufb01able net assets acquired. Any goodwill
that\u00a0arises is tested annually for\u00a0impairment. Any gain on a bargain purchase is recognised in pro\ufb01t or loss immediately.
Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classi\ufb01ed
as\u00a0equity, then it is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value
of\u00a0the\u00a0contingent consideration are recognised in pro\ufb01t or loss. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00505": { "value": "22.1
Share-based payments
\n
Accounting policy
\n
The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards,
\n
the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over
\n
the vesting period as an expense, with a corresponding increase in retained earnings.
\n
The Group operates the following equity-settled and employee shareplans: Smith & Nephew Global Share Plan 2010, Smith &
\n
Nephew Global Share Plan 2020, Smith & Nephew Share Save Plan (2012) and Smith & Nephew International Share Save Plan\u00a0(2012).
\n
At 31 December 2025, 3,259,000 options (2024: 4,587,000, 2023: 5,138,000) were outstanding with a range of exercise\u00a0prices\u00a0from
\n
843\u00a0to 1,235 pence.
\n
At 31 December 2025, the maximum number of shares that could be awarded under the Group\u2019s long-term incentive plans was
\n
7,542,000 (2024: 9,899,000, 2023: 8,452,000). These include conditional share awards granted to senior employees and equity
\n
and\u00a0performance share awards granted to senior executives under the Global Share Plan 2010 and Global Share Plan 2020.
\nThe expense charged to the income statement for share-based payments for the year is $43m (2024: $40m, 2023: $39m).", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00577": { "value": "Accounting policy
The Group operates a number of equity-settled executive and employee share plans. For all grants of share options and awards,
\n
the fair value at the grant date is calculated using appropriate option pricing models. The grant date fair value is recognised over
\nthe vesting period as an expense, with a corresponding increase in retained earnings. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00506": { "value": "22.2
Related party transactions
\n
Trading transactions
\n
In the course of normal operations, the Group traded with its associates detailed in Note 11. The aggregated transactions,
\n
which\u00a0have not been disclosed elsewhere in the \ufb01nancial statements, are $nil (2024: $nil, 2023: $nil).
\n
Key management personnel
\n
The remuneration of Executive O\ufb03cers (including Executive Directors and Non-Executive Directors) during the year is
\n
summarised below:
2025
2024
2023\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
\u00a0
Short-term employee bene\ufb01ts
\u00a023\u00a0
\u00a022\u00a0
\u00a021\u00a0
Share-based payments expense
\u00a015\u00a0
\u00a010\u00a0
\u00a09\u00a0
Pension and post-employment bene\ufb01t entitlements
\u00a02\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a040\u00a0
\u00a033\u00a0
\u00a031\u00a0
\n
Directors\u2019 remuneration disclosures are included on pages 147\u2013193.
\n
Retirement bene\ufb01t schemes
Details of the Group\u2019s retirement bene\ufb01t schemes are set out in Note 18. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00507": { "value": "Key management personnel
The remuneration of Executive O\ufb03cers (including Executive Directors and Non-Executive Directors) during the year is
\n
summarised below:
2025
2024
2023\u00a0
\u00a0
$\u00a0million
$\u00a0million
$\u00a0million
\u00a0
Short-term employee bene\ufb01ts
\u00a023\u00a0
\u00a022\u00a0
\u00a021\u00a0
Share-based payments expense
\u00a015\u00a0
\u00a010\u00a0
\u00a09\u00a0
Pension and post-employment bene\ufb01t entitlements
\u00a02\u00a0
\u00a01\u00a0
\u00a01\u00a0
\u00a040\u00a0
\u00a033\u00a0
\u00a031\u00a0
\nDirectors\u2019 remuneration disclosures are included on pages 147\u2013193. ", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800ZTMDN8S67S1H61", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00508": { "value": "23
Post balance sheet events
\n
On 21 January 2026, the Group completed the acquisition of 100% of the share capital of Integrity Orthopaedics, Inc., a US-based
\n
early-stage commercial developer of Tendon Seam\u2122, an innovative rotator cu\ufb00 repair (RCR) system designed to signi\ufb01cantly reduce
\n
re tear rates and improve patient outcomes. The acquisition represents a meaningful step in delivering Smith+Nephew\u2019s RISE strategy
\n
to accelerate growth through strategic investment and portfolio leadership, and will be an important building block in our ambition to
\n
become the global leader in Sports Medicine. The acquisition consideration comprised of $225m paid on completion, with up to a further
\n
$225m contingent on future performance.
\n
The acquisition will be treated as a business combination under IFRS 3. The fair value assessment of the acquisition consideration,
\n
identi\ufb01able assets acquired and liabilities assumed is ongoing. Given the proximity of the acquisition to the \ufb01nancial statements being
\n
authorised for issue, it is not practicable at this stage to reasonably estimate the \ufb01nancial e\ufb00ect of the acquisition on the Group\u2019s
\n
consolidated \ufb01nancial statements. The Group expects to complete the purchase price allocation exercise under IFRS 3 in the \ufb01rst half of
\n
2026, accordingly, provisional disclosures will be included in the Group\u2019s 2026 interim results.
\n
On 9 February 2026, the Group amended its $1bn revolving credit facility, increasing total commitments to $1.125bn. The facility
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