Note | ||
2 |
Note | ||
23 |
Revenue and profit recognition Revenue represents income derived from contracts for the provision of goods and services, over time or at a point in time, by the Group to customers in exchange for consideration in the ordinary course of the Group\u2019s activities. The Group accounts for revenue in accordance with IFRS 15 Revenue from Contracts with Customers. For most of the Group\u2019s contracts, revenue and associated margin are recognised progressively over time as costs are incurred, and as risks have been mitigated or retired. The ultimate profitability of contracts is based on estimates of revenue and costs, including allowances for technical and other risks which are reliant on the knowledge and experience of the Group\u2019s project managers, engineers, and finance and commercial professionals. Revenue and cost estimates are reviewed and updated at least quarterly, or more frequently as determined by events and circumstances. The Group typically enters into the following types of contracts with customers: \u2013 to design, build or create assets uniquely available to the customer such as combat vehicles, ships, submarines, aircraft and spacecraft; \u2013 to service or maintain assets over a period of time; \u2013 to give access to software and licences; and \u2013 to offer bespoke services to customers, for example through training or the offering of cyber, intelligence and security capabilities. Revenue is recognised against each of these types of contracts in line with the following accounting policies. Performance obligations Upon approval by the parties to a contract, the contract is assessed to identify each promise to transfer either a distinct good or service or a series of distinct goods or services that are substantially the same and have the same pattern of transfer to the customer. Goods and services are distinct and accounted for as separate performance obligations in the contract if the customer can benefit from them either on their own or together with other resources that are readily available to the customer and they are separately identifiable in the contract. In some cases, the Group provides warranties to its customers to give them assurance that its products and services will function in line with agreed-upon specifications. Warranties are not provided separately and, therefore, do not represent separate performance obligations. As they are not provided separately, they are not considered to be insurance contracts in scope of IFRS 17 Insurance Contracts. A provision for warranties is recognised when the underlying products and services are sold (see note 24 for further details). Transaction price At the start of the contract, the total transaction price is estimated as the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised goods and services to the customer, excluding sales taxes. Variable consideration, such as variable price mechanisms, is included based on the expected value or most likely amount only to the extent that it is highly probable that there will not be a reversal in the amount of cumulative revenue recognised. The transaction price does not include estimates of consideration resulting from contract modifications, such as change orders, until they have been approved by the parties to the contract. The total transaction price is allocated to the performance obligations identified in the contract in proportion to their relative stand-alone selling prices. Given the bespoke nature of many of the Group\u2019s products and services, which are designed and/or manufactured under contract to the customer\u2019s individual specifications, there are typically no observable stand-alone selling prices. Instead, stand-alone selling prices are typically estimated based on expected costs plus contract margin consistent with the Group\u2019s pricing principles. While payment terms vary from contract to contract, on many of the Group\u2019s contracts, an element of the transaction price is received in advance of delivery. When cash is received in advance of goods or services being delivered a contract liability is recognised. The Group therefore has significant contract liabilities (note 14). The Group\u2019s contracts are not considered to include significant financing components on the basis that there is no difference between the consideration and the cash selling price. UK Ministry of Defence contracting rules prohibit the inclusion of financing in the sales price. Negotiations on competitive international export contracts do not make allowance for the cash payment profile. Revenue and profit recognition Revenue is recognised as performance obligations are satisfied and control of the goods and services is transferred to the customer. For each performance obligation within a contract, the Group determines whether it is satisfied over time or at a point in time. Performance obligations are satisfied over time if one of the following criteria is satisfied: \u2013 the customer simultaneously receives and consumes the benefits provided by the Group\u2019s performance as it performs; \u2013 the Group\u2019s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or \u2013 the Group\u2019s performance does not create an asset with an alternative use to the Group and it has an enforceable right to payment for performance completed to date. The Group has determined that most of its contracts satisfy the over-time criteria, either because the customer simultaneously receives and consumes the benefits provided by the Group\u2019s performance as it is performed (typically services or support contracts, for example in the case of ongoing maintenance and support of aircraft and flying capability), or the Group\u2019s performance does not create an asset with an alternative use to the Group and it has an enforceable right to payment for performance completed to date (typically development or production contracts, such as in the production of ships or aircraft to customers\u2019 unique specifications). | ||
For each performance obligation to be recognised over time the Group recognises revenue using an input method, based on costs incurred in the year. Revenue and attributable margin are calculated by reference to reliable estimates of the transaction price and total expected costs, after making suitable allowances for technical and other risks including the impact of global economic uncertainties and climate change. Revenue and associated margin are therefore recognised progressively as costs are incurred and as risks have been mitigated or retired. The Group has determined that this method appropriately depicts the Group\u2019s performance in transferring control of the goods and services to the customer. If the over-time criteria for revenue recognition are not met, revenue is recognised at the point in time that control is transferred to the customer, which is usually when legal title passes to the customer and the business has the right to payment, for example, on delivery. When it is probable that total contract costs will exceed total contract revenue the expected loss is recognised immediately as an expense. Software licences The Group sells software licences either separately or together with other goods and services, including computer hardware and implementation, hosting and support. Revenue recognition in respect of software licences sold as part of a bundle of goods and services is considered separately when the licence is determined to be a separate performance obligation. Software licences either represent a right to access the Group\u2019s intellectual property as it exists throughout the licence period or a right to use the Group\u2019s intellectual property as it exists at the point in time at which the licence is granted. Revenue in respect of a right to access licence is recognised over the licence term or, in relation to perpetual licences, over the related customer relationship. Revenue in respect of a right to use licence is recognised on delivery of the software to the customer or, if the customer chooses not to access and take delivery of the software, on expiry of the licence arrangement. A software licence is considered to be a right to access the Group\u2019s intellectual property as it exists throughout the licence period if all of the following criteria are satisfied: \u2013 the contract requires, or the customer reasonably expects, that the Group will undertake activities that significantly affect the intellectual property; \u2013 the licence directly exposes the customer to the effects of those activities; and \u2013 those activities do not result in the transfer of a good or service to the customer. Contract modifications The Group\u2019s contracts are often amended for changes in customers\u2019 requirements and specifications. A contract modification exists when the parties to the contract approve a modification that either changes existing, or creates newly enforceable, rights and obligations. The effect of a contract modification on the transaction price, and the Group\u2019s measure of progress towards the satisfaction of the performance obligation to which it relates, is recognised in one of the following ways: 1. prospectively, as an additional, separate contract; 2. prospectively, as a termination of the existing contract and creation of a new contract; or 3. as part of the original contract using a cumulative catch-up. The majority of the Group\u2019s contract modifications are treated under either 1 (for example, the requirement for additional distinct goods or services) or 3 (for example, a change in the specification of the distinct goods or services for a partially completed contract), although the facts and circumstances of any contract modification are considered individually as the types of modifications will vary and may result in different accounting outcomes. Costs to obtain a contract The Group expenses pre-contract bidding costs which are incurred regardless of whether a contract is awarded. The Group does not typically incur costs to obtain contracts that it would not have incurred had the contracts not been awarded, such as sales commission. Costs to fulfil a contract Contract fulfilment costs in respect of over-time contracts are expensed as incurred. Contract fulfilment costs in respect of point in time contracts are accounted for under IAS 2 Inventories. | ||
Research and development The Group undertakes research and development activities either on its own behalf or on behalf of customers, including research and development expenditure in relation to the Group\u2019s Sustainability Accelerator Fund. Group-funded expenditure on research, and on development activities not meeting the conditions for capitalisation, is written off as incurred and charged to the Consolidated income statement. | ||
Finance income and finance costs Finance income and finance costs are recognised in the Consolidated income statement in the year in which they are incurred. | ||
Income tax expense comprises current and deferred tax. Current and deferred tax is recognised in the Consolidated income statement, except to the extent that it relates to a business combination or items recognised directly in equity or other comprehensive income. Current tax Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Deferred tax is not recognised for temporary differences: \u2013 on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, except for transactions giving rise to equal taxable and deductible temporary differences, or to temporary differences associated with right-of-use assets and lease liabilities; \u2013 related to investments in subsidiaries and equity accounted investments to the extent that it is probable that they will not reverse in the foreseeable future; and \u2013 arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. The Group\u2019s underlying effective tax rate is sensitive to the geographic mix of profits and is impacted by the UK\u2019s enactment of the Organisation for Economic Co-operation and Development\u2019s Global Anti-Base Erosion Model Rules (Global Minimum Tax) effective from 1\u00a0January 2024. The Group has applied the temporary exception issued by the International Accounting Standards Board from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Global Minimum Tax income taxes. | ||
The number of ordinary shares outstanding at the start of the year is calculated by taking the total number of ordinary shares in issue, less treasury shares and shares held in trust which are contingently returnable (i.e. where the performance conditions attached to those shares have not been met, excluding the passage of time). The weighted average number of ordinary shares purchased, issued or released is calculated by reference to the day on which each transaction occurred. The weighted average number of ordinary shares used in calculating earnings per share is the number of ordinary shares outstanding at the start of the year, less the weighted average number of shares repurchased, plus the weighted average number of shares issued within the year (including those issued from treasury), and those shares held in trust that are no longer contingently returnable (i.e. all performance conditions attached to them are met, excluding the passage of time). The weighted average number of ordinary shares used in calculating diluted earnings per share is the weighted average number of ordinary shares outstanding, plus the number of ordinary shares which are considered potentially dilutive ordinary shares in respect of share incentive schemes, should the vesting conditions have been met as at the year end. | ||
Under the acquisition method for business combinations, goodwill is the acquisition-date fair value of the consideration transferred, less the net of the acquisition-date fair values of the identifiable assets acquired and liabilities assumed. On acquisition of joint ventures and associates, goodwill is included in the carrying value of equity accounted investments. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is not amortised, but is tested annually for impairment, and carried at cost less accumulated impairment losses. Impairment Goodwill is tested annually for impairment as required by IAS 36 Impairment of Assets. For the purposes of impairment testing, goodwill is allocated to Cash-Generating Units (CGUs), or a group of CGUs on a consistent basis. The impairment calculations require the use of estimates of the future profitability and cash-generating ability of the CGU to determine its value in use based on the Group\u2019s five-year IBP and the pre-tax discount rate used in discounting these projected cash flows. An impairment loss is recognised whenever the carrying amount of an asset or its CGU exceeds its recoverable amount, which is the greater of its value in use and its fair value less cost of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using an appropriate pre-tax discount rate. For an asset that does not generate largely independent cash flows, the recoverable amount is determined for the CGU to which the asset belongs. Impairment losses are recognised in the Consolidated income statement. An impairment loss in respect of goodwill is not reversed. | ||
Other intangible assets are carried at cost or valuation, less accumulated amortisation and impairment. The Group has no indefinite-life intangible assets other than goodwill. Cost or valuation Software Software includes: \u2013 Computer software licences acquired for use within the Group are capitalised as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software; and \u2013 Software development costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Group-funded expenditure associated with enhancing or maintaining computer software programmes for sale is recognised as an expense as incurred. Software as a service cloud computing arrangements Software as a Service (SaaS) solutions are service contracts which provide the Group with the right to access a cloud provider\u2019s application software over a contractual period. Typically, such arrangements involve ongoing licence fees to obtain access to the cloud provider\u2019s application software, as well as upfront costs incurred to implement the SaaS solution. Implementation services are only capitalised as intangible assets, in accordance with IAS 38, where: \u2013 The Group has both a contractual right to take possession of the software at any time without significant penalty, and the ability to run the software independently of the host vendor; or \u2013 The costs incurred meet the definition of and recognition criteria for an intangible asset. This includes the development of software code that enhances or creates additional capability to existing systems controlled by the Group. Where costs associated with the implementation do not meet the criteria above, but the implementation activities are performed by the SaaS vendor or an agent thereof, consideration is given as to whether these activities are distinct from the provision of the solution itself. This assessment considers the nature of the implementation activities and whether benefit can be obtained from any of these in isolation. Where the activity is not considered distinct, the costs are recognised as a prepayment and released over the expected useful life of the solution. Where the conditions above are not met, costs incurred in relation to implementation activities and the ongoing fees to obtain access to the SaaS solution are recognised as operating expenses when the services are received. Development costs Development costs funded by the Group on activities applied to a plan or design for the production of new or substantially improved products are capitalised as an internally generated intangible asset if certain conditions are met. The costs capitalised include materials, direct labour and related overheads. Programme and customer-related Intangible assets recognised by the Group include those relating to ongoing programmes within businesses acquired, mainly in respect of customer relationships and order backlog. These assets are initially recognised at their fair value at the acquisition date. Other Other intangible assets includes patents, trademarks and licences. Amortisation Amortisation on other intangible assets is charged to the Consolidated income statement on a straight-line basis over their estimated useful lives. For programme-related intangibles, amortisation is set on a programme-by-programme basis over the life of the individual programme. Amortisation for customer-related intangibles is also set on an individual basis. The estimated useful lives are as follows: | ||||||
Software | up to 10 years | Programme and customer-related | up to 15 years | |||
Development costs | up to 10 years | Other | up to 20 years | |||
Impairment of intangible assets, property, plant and equipment, right-of-use assets, investment property and equity accounted investments The carrying amounts of the Group\u2019s intangible assets (excluding goodwill), property, plant and equipment, right-of-use assets, investment property and equity accounted investments are reviewed at each balance sheet date to determine whether there is any indication of impairment, as required by IAS 36 Impairment of Assets. If any such indication exists, the asset\u2019s recoverable amount is estimated. For intangible assets that are not yet available for use, impairment testing is performed annually. In estimating the asset\u2019s recoverable amount, the Group takes into consideration the impact of the Group\u2019s net zero ambitions. Impairment losses are recognised in the Consolidated income statement. An impairment loss in respect of other intangible assets, property, plant and equipment, investment property and equity accounted investments is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised or if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. | ||||||
Cost Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The cost of self- constructed assets includes the cost of materials, direct labour and an appropriate proportion of production overheads. The cost of demonstration assets is written off as incurred. The reimbursement of the cost of an item of property, plant and equipment by way of a government grant is presented as deferred income and recognised in the Consolidated income statement on a basis consistent with the depreciation of the asset over its estimated useful life. Assets held for leasing out under operating leases are included in property, plant and equipment at cost less accumulated depreciation and impairment losses. | |||
Depreciation Depreciation is provided, normally on a straight-line basis, to write off the cost of items of property, plant and equipment over their estimated useful lives to any estimated residual value, using the following rates: | |||
Buildings | up to 50 years, or the lease term if shorter | ||
Plant and machinery: | |||
Computing equipment and motor vehicles | 4 to 5 years | ||
Other equipment | 10 to 20 years, or the project life if shorter | ||
No depreciation is provided on freehold land and assets in the course of construction. | |||
The assets\u2019 residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date, taking into consideration the impact on the assets\u2019 useful economic lives as a result of the Group\u2019s sustainability ambitions. | |||
Impairment The carrying amounts of the Group\u2019s property, plant and equipment are reviewed at each balance sheet date to determine whether there is any indication of impairment in accordance with the policy shown in note 10. | |||
The Group as lessee All leases in which the Group is lessee are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between repayment of the lease liability and finance cost. The finance cost is charged to the Consolidated income statement over the lease term to produce a constant periodic rate of interest on the lease liability. The right-of-use asset is depreciated over the shorter of the asset\u2019s useful life and the lease term on a straight-line basis. The lease liability is initially measured as the present value of future lease payments, discounted using the Group\u2019s incremental borrowing rate, where the interest rate implicit in the lease is not determinable. The Group\u2019s incremental borrowing rate is the interest rate the Group would have to pay to borrow the amount necessary to obtain an asset of similar value, in a similar economic environment with similar terms and conditions. The right-of-use asset is initially measured at cost, comprising the initial value of the lease liability, any lease payments made (net of any incentives received from the lessor) before the commencement of the lease, any initial direct costs and any restoration costs. The carrying amounts of the Group\u2019s right-of-use assets are reviewed at each balance sheet date to determine whether there is any indication of impairment in accordance with the policy shown in note 10. Payments in respect of short-term leases, low-value leases and leases of intangible assets are charged to the Consolidated income statement on a straight-line basis over the lease term. | ||
Equity accounted investments comprise joint ventures and associates. A joint venture is a joint arrangement whereby the parties that have joint control have rights to the net assets of the arrangement. An associate is an entity over which the Group has significant influence but not control or joint control. The Group recognises its share of the profit or loss and other comprehensive income of equity accounted investments as a separate line in the Consolidated income statement and Consolidated statement of comprehensive income, respectively. The carrying value of an equity accounted investment comprises the Group\u2019s share of net assets and purchased goodwill, and is assessed for impairment as a single asset. The carrying amounts of the Group\u2019s equity accounted investments are reviewed at each balance sheet date to determine whether there is any indication of impairment, in accordance with the policy shown in note 10. | ||
Contract receivables are measured at amortised cost under IFRS 9 Financial Instruments as they are held within a business model to collect contractual cash flows, and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Contract receivables represent amounts for which the Group has an unconditional right to consideration in respect of unbilled revenue recognised at the balance sheet date and comprise costs incurred plus attributable margin. Contract receivables include a provision for expected credit losses, which is measured at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. The Group writes off a receivable when there is objective evidence that the debtor is in significant financial difficulty and there is no realistic prospect of recovery, for example, when a debtor enters bankruptcy or financial reorganisation. Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has been received, or consideration is due, from the customer. | ||
Trade receivables are measured at amortised cost under IFRS 9 Financial Instruments as they are held within a business model to collect contractual cash flows and these cash flows consist solely of payments of principal and interest on the principal amount outstanding. Trade receivables, amounts owed by equity accounted investments and finance lease receivables include a provision for expected credit losses. The Group measures the provision at an amount equal to lifetime expected credit losses, estimated by reference to past experience and relevant forward-looking factors. The Group writes off a receivable when there is objective evidence that the debtor is in significant financial difficulty and there is no realistic prospect of recovery, for example, when a debtor enters bankruptcy or financial reorganisation. US deferred compensation plan assets are measured at fair value in accordance with IAS 19 Employee Benefits. | ||
Derivative financial instruments and hedging activities The international nature of the Group\u2019s business means it is exposed to volatility in currency exchange rates. In order to protect itself against currency fluctuations, the Group\u2019s policy is to hedge all material firm transactional exposures. The Group uses interest rate derivative instruments to manage the Group\u2019s exposure to interest rate fluctuations on its borrowings and deposits by varying the proportion of fixed-rate debt relative to floating-rate debt over the forward time horizon. The Group uses foreign exchange derivative instruments to manage the Group\u2019s exposure to currency fluctuations on its borrowings and deposits with the Group\u2019s subsidiaries and equity accounted investments. In accordance with its Treasury policy, the Group does not hold derivative financial instruments for trading purposes. The Group aims to achieve hedge accounting treatment for all derivatives that hedge material foreign currency exposures. Derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition, such instruments are stated at fair value at the balance sheet date. The fair values are estimated by discounting expected future cash flows based on reputable third-party forecast data, and then adjusting for credit risk, including the Group\u2019s own credit risk, and market risk. Fair value through profit or loss Gains and losses on derivative financial instruments that are not designated as cash flow hedges are recognised within net finance costs in the Consolidated income statement for the year. Cash flow hedges Where a derivative financial instrument is designated as a hedge of the exposure to variability in cash flows relating to a highly-probable forecast transaction (income or expense) or recognised asset or liability, the effective portion of any change in the fair value of the instrument is recognised in other comprehensive income and presented in the hedging reserve in equity. Amounts recognised in equity are removed from the hedging reserve and included in the cost of the underlying transaction or reclassified to the Consolidated income statement when the underlying transaction affects profit or loss. These amounts are presented within the same line item in the Consolidated income statement as the underlying transaction, typically revenue or operating costs. The ineffective portion of any change in the fair value of the instrument is recognised in the Consolidated income statement within net finance costs immediately. The Group treats the foreign currency basis element of the designated foreign exchange derivative hedging instruments as a cost of hedging, and as such it is excluded from the hedge designation. Any hedges entered into on behalf of equity accounted investments (note 29) are classified as cash flow hedges. | ||
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. | ||
Inventories are stated at the lower of cost, including all relevant overhead expenditure, and net realisable value. Inventory cost is valued using the most appropriate method based on the business use of inventory. In the majority of cases this is moving average unit cost, with some businesses using standard cost or first in first out (FIFO) as methods more indicative of their use of inventory. | ||
Current tax for the current and prior years is recognised as a liability to the extent that it has not yet been settled and as an asset to the extent that the amounts already paid exceed the amount due or the benefit of a tax loss can be carried back to recover current tax of a prior year. Current tax assets and liabilities are measured at the amount expected to be paid to or recovered from tax authorities, using the rates that have been enacted or substantively enacted by the balance sheet date. | ||
Cash and cash equivalents includes cash in hand, call and term deposits, investments in money market funds and other short-term liquid investments with original maturities of three months or less and which are subject to an insignificant risk of change in value. | ||
Loans are recognised initially at fair value, less attributable transaction costs. Subsequent to initial recognition, loans are stated at amortised cost. Any difference between the amount initially recognised and the redemption value is recognised in the Consolidated income statement over the period of the borrowings. | ||
Trade and other payables are stated at amortised cost. US deferred compensation plan liabilities represent the present value of expected future payments required to settle the obligation to employees in accordance with IAS 19 Employee Benefits. | ||
Pension schemes Defined contribution Obligations for contributions are recognised as an expense in the Consolidated income statement as incurred. Defined benefit The cost of providing benefits is determined periodically by independent actuaries and charged to the Consolidated income statement in the year in which those benefits are earned by the employees. Remeasurements, including actuarial gains and losses, are recognised in the Consolidated statement of comprehensive income in the year in which they occur. Past service costs resulting from a plan amendment or curtailment are recognised immediately in the Consolidated income statement. The post-employment benefit surpluses and obligations recognised in the Group\u2019s balance sheet represent the fair value of scheme assets, less the present value of the defined benefit obligations calculated using a number of actuarial assumptions as set out on page 185. The bid values of scheme assets are not intended to be realised in the short term and may be subject to significant change before they are realised. The present values of scheme liabilities are derived from cash flow projections over long periods and are, therefore, inherently uncertain. IAS 19 Employee Benefits limits the measurement of a defined benefit surplus to the lower of the surplus in the defined benefit scheme and the asset ceiling. The asset ceiling is the present value of any economic benefits available in the form of refunds from the scheme or reductions in future contributions to the scheme. IFRIC 14 \u2013 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, issued in 2007, provides an interpretation of the requirements of IAS 19, clarifying that a refund is available if the entity has an unconditional right to a refund in certain circumstances. The Group has applied IFRIC 14 and has determined that there is no limit on the recognition of the surpluses in its defined benefit pension schemes as at 31 December 2025. In the UK the surpluses have been recognised on the basis that the future economic benefits are unconditionally available to the Group, which is assumed to be via a refund. These have been recognised after deducting a 25% (2024 25%) withholding tax which would be levied prior to the future refunding of any surplus and have been presented on a net basis as this is not deemed to be an income tax. The Group operates a number of multi-employer schemes which their equity accounted investments and strategic partners participate in. Where the Group is a participating employer of a multi-employer scheme, the Group has recognised only its share of the IAS 19 pension surpluses and deficits based on liability agreements with those partners and on the relative shares of contributions paid into the schemes. While this methodology is intended to reflect a reasonable estimate of the share of the surplus or deficit, it may not accurately reflect the obligations of the participating employers. In the event that an employer who participates in the Group\u2019s pension schemes fails or cannot be compelled to fulfil its obligations as a participating employer, the remaining participating employers are obliged to collectively take on its obligations. The Group considers the likelihood of this event arising as remote. The Group\u2019s share of the IAS 19 pension surplus or deficit allocated to equity accounted investments is included in the balance sheet within equity accounted investments (see note 13). | ||
A provision is recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount has been reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at an appropriate pre-tax risk-free discount rate. Legal, contractual and environmental The Group holds provisions for expected legal, contractual and environmental costs that it expects to incur over an extended period. Management exercises judgement to determine the amount of these provisions. Provision is made for known issues based on past experience of similar items and other known factors. Each provision is considered separately and the amount provided reflects the best estimate of the most likely amount, being the single most likely amount in a range of possible outcomes. Warranties and after-sales services Where warranties and after-sales services are provided in the normal course of business, provisions for associated costs are made based on an assessment of future claims with reference to past experience. A provision for warranties is recognised when the underlying products and services are sold. The provision is based on historical warranty data and a weighting of possible outcomes against their associated probabilities. Reorganisations A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been announced to those affected. The costs associated with the reorganisation programmes are supported by detailed plans and based on previous experience as well as other known factors. Future operating costs are not provided for. | ||
Equity dividends on ordinary share capital are recognised as a liability on the date that the shareholder\u2019s right to receive payment is\u00a0established. | ||
The Group has granted equity-settled share options and Long-Term Incentive Plan arrangements which are measured at fair value at the date of grant using an option pricing model. The fair value is expensed on a straight-line basis over the vesting period, based on the Group\u2019s estimate of the number of shares that will actually vest. | ||
Contingent liabilities are potential future cash outflows which are either not probable or cannot be measured reliably. The Group has entered into a number of guarantee and performance bond arrangements in the normal course of business. Various Group undertakings are parties to legal actions and claims which arise in the normal course of business. Provision is made for any amounts that the directors consider may become payable (see note 24). | ||
The results and financial position of the acquired business are consolidated from the date of acquisition under the requirements of IFRS 3 Business Combinations. The Group recognises and measures the acquiree\u2019s identifiable assets acquired and liabilities assumed at their acquisition-date fair values. Where the consideration paid exceeds the fair value of the assets purchased then goodwill arises and will be disclosed in the Consolidated balance sheet. | ||
Note | ||
2 |
Note | ||
23 |
Decrease/(increase) in pension obligation1 | (Decrease)/increase in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.5 percentage point increase/decrease | 1.0/(1.0) | (1.0)/1.1 |
1.0 percentage point increase/decrease | 1.8/(2.2) | (1.9)/2.3 |
(Increase)/decrease in pension obligation1 | Increase/(decrease) in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.1 percentage point increase/decrease | (0.1)/0.1 | 0.1/(0.1) |
0.5 percentage point increase/decrease | (0.5)/0.5 | 0.7/(0.6) |
(Decrease)/increase in net surplus1 | |
\u00a3bn | |
One-year increase/decrease | (0.6)/0.6 |
Note | ||
2 |
Note | ||
23 |
Decrease/(increase) in pension obligation1 | (Decrease)/increase in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.5 percentage point increase/decrease | 1.0/(1.0) | (1.0)/1.1 |
1.0 percentage point increase/decrease | 1.8/(2.2) | (1.9)/2.3 |
(Increase)/decrease in pension obligation1 | Increase/(decrease) in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.1 percentage point increase/decrease | (0.1)/0.1 | 0.1/(0.1) |
0.5 percentage point increase/decrease | (0.5)/0.5 | 0.7/(0.6) |
(Decrease)/increase in net surplus1 | |
\u00a3bn | |
One-year increase/decrease | (0.6)/0.6 |
Revenue | Deduct: Sales to equity accounted investments | Add back: Share of sales by equity accounted investments | Sales1 | ||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||||
7,507 | 7,186 | (251) | (258) | 272 | 261 | 7,528 | 7,189 | ||||
5,021 | 4,344 | \u2014 | \u2014 | 18 | 46 | 5,039 | 4,390 | ||||
7,372 | 6,880 | (1,574) | (1,413) | 3,501 | 3,052 | 9,299 | 8,519 | ||||
6,579 | 6,002 | (5) | (6) | 223 | 191 | 6,797 | 6,187 | ||||
2,397 | 2,411 | \u2014 | \u2014 | \u2014 | \u2014 | 2,397 | 2,411 | ||||
52 | 24 | \u2014 | \u2014 | 180 | 179 | 232 | 203 | ||||
28,928 | 26,847 | (1,830) | (1,677) | 4,194 | 3,729 | 31,292 | 28,899 | ||||
(592) | (535) | (38) | (29) | \u2014 | \u2014 | (630) | (564) | ||||
28,336 | 26,312 | (1,868) | (1,706) | 4,194 | 3,729 | 30,662 | 28,335 |
Revenue from external customers | Intra-group revenue | ||||
2025 | 2024 | 2025 | 2024 | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
7,310 | 6,988 | 197 | 198 | ||
4,948 | 4,288 | 73 | 56 | ||
7,318 | 6,840 | 54 | 40 | ||
6,507 | 5,915 | 72 | 87 | ||
2,245 | 2,271 | 152 | 140 | ||
8 | 10 | 44 | 14 | ||
28,336 | 26,312 | 592 | 535 |
Revenue | Sales1 | |||||
2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
7,876 | 7,039 | 8,349 | 7,439 | |||
2,221 | 1,733 | 3,634 | 2,842 | |||
13,145 | 12,559 | 13,157 | 12,536 | |||
227 | 189 | 227 | 189 | |||
2,838 | 2,892 | 2,843 | 2,962 | |||
252 | 259 | 332 | 468 | |||
1,287 | 1,158 | 1,293 | 1,170 | |||
358 | 354 | 499 | 455 | |||
132 | 129 | 328 | 274 | |||
28,336 | 26,312 | 30,662 | 28,335 |
Restated2 | ||
2025 | 2024 | |
\u00a3m | \u00a3m | |
9,614 | 8,831 | |
7,126 | 6,481 | |
2,795 | 2,817 |
Operating profit/(loss) | Finance and tax expense/ (income) of equity accounted investments | Amortisation of programme, customer- related and other intangible assets, and impairment of equity accounted investments and intangible assets | Adjusting items | Underlying EBIT3 | ||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||
863 | 708 | \u2014 | \u2014 | 337 | 307 | (38) | 56 | 1,162 | 1,071 | |||||
576 | 456 | \u2014 | 9 | \u2014 | \u2014 | \u2014 | (17) | 576 | 448 | |||||
1,078 | 1,009 | 14 | (14) | 16 | 10 | \u2014 | 2 | 1,108 | 1,007 | |||||
431 | 465 | 4 | 4 | 22 | 5 | \u2014 | \u2014 | 457 | 474 | |||||
182 | 182 | \u2014 | \u2014 | 39 | 22 | 2 | (5) | 223 | 199 | |||||
(205) | (135) | 5 | 10 | \u2014 | \u2014 | (4) | (59) | (204) | (184) | |||||
2,925 | 2,685 | 23 | 9 | 414 | 344 | (40) | (23) | 3,322 | 3,015 | |||||
(353) | (353) | |||||||||||||
2,572 | 2,332 | |||||||||||||
(421) | (291) | |||||||||||||
2,151 | 2,041 |
Revenue | Deduct: Sales to equity accounted investments | Add back: Share of sales by equity accounted investments | Sales1 | ||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||||
7,507 | 7,186 | (251) | (258) | 272 | 261 | 7,528 | 7,189 | ||||
5,021 | 4,344 | \u2014 | \u2014 | 18 | 46 | 5,039 | 4,390 | ||||
7,372 | 6,880 | (1,574) | (1,413) | 3,501 | 3,052 | 9,299 | 8,519 | ||||
6,579 | 6,002 | (5) | (6) | 223 | 191 | 6,797 | 6,187 | ||||
2,397 | 2,411 | \u2014 | \u2014 | \u2014 | \u2014 | 2,397 | 2,411 | ||||
52 | 24 | \u2014 | \u2014 | 180 | 179 | 232 | 203 | ||||
28,928 | 26,847 | (1,830) | (1,677) | 4,194 | 3,729 | 31,292 | 28,899 | ||||
(592) | (535) | (38) | (29) | \u2014 | \u2014 | (630) | (564) | ||||
28,336 | 26,312 | (1,868) | (1,706) | 4,194 | 3,729 | 30,662 | 28,335 |
Revenue from external customers | Intra-group revenue | ||||
2025 | 2024 | 2025 | 2024 | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
7,310 | 6,988 | 197 | 198 | ||
4,948 | 4,288 | 73 | 56 | ||
7,318 | 6,840 | 54 | 40 | ||
6,507 | 5,915 | 72 | 87 | ||
2,245 | 2,271 | 152 | 140 | ||
8 | 10 | 44 | 14 | ||
28,336 | 26,312 | 592 | 535 |
Revenue | Sales1 | |||||
2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
7,876 | 7,039 | 8,349 | 7,439 | |||
2,221 | 1,733 | 3,634 | 2,842 | |||
13,145 | 12,559 | 13,157 | 12,536 | |||
227 | 189 | 227 | 189 | |||
2,838 | 2,892 | 2,843 | 2,962 | |||
252 | 259 | 332 | 468 | |||
1,287 | 1,158 | 1,293 | 1,170 | |||
358 | 354 | 499 | 455 | |||
132 | 129 | 328 | 274 | |||
28,336 | 26,312 | 30,662 | 28,335 |
Restated2 | ||
2025 | 2024 | |
\u00a3m | \u00a3m | |
9,614 | 8,831 | |
7,126 | 6,481 | |
2,795 | 2,817 |
Operating profit/(loss) | Finance and tax expense/ (income) of equity accounted investments | Amortisation of programme, customer- related and other intangible assets, and impairment of equity accounted investments and intangible assets | Adjusting items | Underlying EBIT3 | ||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||
863 | 708 | \u2014 | \u2014 | 337 | 307 | (38) | 56 | 1,162 | 1,071 | |||||
576 | 456 | \u2014 | 9 | \u2014 | \u2014 | \u2014 | (17) | 576 | 448 | |||||
1,078 | 1,009 | 14 | (14) | 16 | 10 | \u2014 | 2 | 1,108 | 1,007 | |||||
431 | 465 | 4 | 4 | 22 | 5 | \u2014 | \u2014 | 457 | 474 | |||||
182 | 182 | \u2014 | \u2014 | 39 | 22 | 2 | (5) | 223 | 199 | |||||
(205) | (135) | 5 | 10 | \u2014 | \u2014 | (4) | (59) | (204) | (184) | |||||
2,925 | 2,685 | 23 | 9 | 414 | 344 | (40) | (23) | 3,322 | 3,015 | |||||
(353) | (353) | |||||||||||||
2,572 | 2,332 | |||||||||||||
(421) | (291) | |||||||||||||
2,151 | 2,041 |
Revenue | Deduct: Sales to equity accounted investments | Add back: Share of sales by equity accounted investments | Sales1 | ||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||||
7,507 | 7,186 | (251) | (258) | 272 | 261 | 7,528 | 7,189 | ||||
5,021 | 4,344 | \u2014 | \u2014 | 18 | 46 | 5,039 | 4,390 | ||||
7,372 | 6,880 | (1,574) | (1,413) | 3,501 | 3,052 | 9,299 | 8,519 | ||||
6,579 | 6,002 | (5) | (6) | 223 | 191 | 6,797 | 6,187 | ||||
2,397 | 2,411 | \u2014 | \u2014 | \u2014 | \u2014 | 2,397 | 2,411 | ||||
52 | 24 | \u2014 | \u2014 | 180 | 179 | 232 | 203 | ||||
28,928 | 26,847 | (1,830) | (1,677) | 4,194 | 3,729 | 31,292 | 28,899 | ||||
(592) | (535) | (38) | (29) | \u2014 | \u2014 | (630) | (564) | ||||
28,336 | 26,312 | (1,868) | (1,706) | 4,194 | 3,729 | 30,662 | 28,335 |
Revenue from external customers | Intra-group revenue | ||||
2025 | 2024 | 2025 | 2024 | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
7,310 | 6,988 | 197 | 198 | ||
4,948 | 4,288 | 73 | 56 | ||
7,318 | 6,840 | 54 | 40 | ||
6,507 | 5,915 | 72 | 87 | ||
2,245 | 2,271 | 152 | 140 | ||
8 | 10 | 44 | 14 | ||
28,336 | 26,312 | 592 | 535 |
Revenue | Sales1 | |||||
2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
7,876 | 7,039 | 8,349 | 7,439 | |||
2,221 | 1,733 | 3,634 | 2,842 | |||
13,145 | 12,559 | 13,157 | 12,536 | |||
227 | 189 | 227 | 189 | |||
2,838 | 2,892 | 2,843 | 2,962 | |||
252 | 259 | 332 | 468 | |||
1,287 | 1,158 | 1,293 | 1,170 | |||
358 | 354 | 499 | 455 | |||
132 | 129 | 328 | 274 | |||
28,336 | 26,312 | 30,662 | 28,335 |
Restated2 | ||
2025 | 2024 | |
\u00a3m | \u00a3m | |
9,614 | 8,831 | |
7,126 | 6,481 | |
2,795 | 2,817 |
Operating profit/(loss) | Finance and tax expense/ (income) of equity accounted investments | Amortisation of programme, customer- related and other intangible assets, and impairment of equity accounted investments and intangible assets | Adjusting items | Underlying EBIT3 | ||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||
863 | 708 | \u2014 | \u2014 | 337 | 307 | (38) | 56 | 1,162 | 1,071 | |||||
576 | 456 | \u2014 | 9 | \u2014 | \u2014 | \u2014 | (17) | 576 | 448 | |||||
1,078 | 1,009 | 14 | (14) | 16 | 10 | \u2014 | 2 | 1,108 | 1,007 | |||||
431 | 465 | 4 | 4 | 22 | 5 | \u2014 | \u2014 | 457 | 474 | |||||
182 | 182 | \u2014 | \u2014 | 39 | 22 | 2 | (5) | 223 | 199 | |||||
(205) | (135) | 5 | 10 | \u2014 | \u2014 | (4) | (59) | (204) | (184) | |||||
2,925 | 2,685 | 23 | 9 | 414 | 344 | (40) | (23) | 3,322 | 3,015 | |||||
(353) | (353) | |||||||||||||
2,572 | 2,332 | |||||||||||||
(421) | (291) | |||||||||||||
2,151 | 2,041 |
Revenue | Sales1 | |||||
2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
7,876 | 7,039 | 8,349 | 7,439 | |||
2,221 | 1,733 | 3,634 | 2,842 | |||
13,145 | 12,559 | 13,157 | 12,536 | |||
227 | 189 | 227 | 189 | |||
2,838 | 2,892 | 2,843 | 2,962 | |||
252 | 259 | 332 | 468 | |||
1,287 | 1,158 | 1,293 | 1,170 | |||
358 | 354 | 499 | 455 | |||
132 | 129 | 328 | 274 | |||
28,336 | 26,312 | 30,662 | 28,335 |
2025 | 2024 | ||
Note | \u00a3m | \u00a3m | |
6,295 | 5,902 | ||
2,356 | 2,326 | ||
13,213 | 14,316 | ||
810 | 870 | ||
513 | 467 | ||
8 | 8 | ||
23,195 | 23,889 | ||
124 | 83 | ||
14 | 117 | 108 | |
15 | 442 | 458 | |
23 | 1,250 | 1,271 | |
16 | 232 | 265 | |
17 | 172 | 315 | |
25,532 | 26,389 |
Operating profit/(loss) | Finance and tax expense/ (income) of equity accounted investments | Amortisation of programme, customer- related and other intangible assets, and impairment of equity accounted investments and intangible assets | Adjusting items | Underlying EBIT3 | ||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||
863 | 708 | \u2014 | \u2014 | 337 | 307 | (38) | 56 | 1,162 | 1,071 | |||||
576 | 456 | \u2014 | 9 | \u2014 | \u2014 | \u2014 | (17) | 576 | 448 | |||||
1,078 | 1,009 | 14 | (14) | 16 | 10 | \u2014 | 2 | 1,108 | 1,007 | |||||
431 | 465 | 4 | 4 | 22 | 5 | \u2014 | \u2014 | 457 | 474 | |||||
182 | 182 | \u2014 | \u2014 | 39 | 22 | 2 | (5) | 223 | 199 | |||||
(205) | (135) | 5 | 10 | \u2014 | \u2014 | (4) | (59) | (204) | (184) | |||||
2,925 | 2,685 | 23 | 9 | 414 | 344 | (40) | (23) | 3,322 | 3,015 | |||||
(353) | (353) | |||||||||||||
2,572 | 2,332 | |||||||||||||
(421) | (291) | |||||||||||||
2,151 | 2,041 |
Research and development The Group undertakes research and development activities either on its own behalf or on behalf of customers, including research and development expenditure in relation to the Group\u2019s Sustainability Accelerator Fund. Group-funded expenditure on research, and on development activities not meeting the conditions for capitalisation, is written off as incurred and charged to the Consolidated income statement. | ||
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
2025 | 2024 | ||
\u00a3m | \u00a3m | ||
3,165 | 2,673 | ||
(2,758) | (2,308) | ||
407 | 365 | ||
(14) | (8) | ||
393 | 357 | ||
3 | 2 | ||
396 | 359 |
2025 | 2024 | ||||||
UK | Overseas | Total | UK | Overseas | Total | ||
\u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | ||
3,149 | \u2014 | 3,149 | 3,145 | \u2014 | 3,145 | ||
5,632 | 7,177 | 12,809 | 5,579 | 8,578 | 14,157 | ||
8,781 | 7,177 | 15,958 | 8,724 | 8,578 | 17,302 | ||
Audit-related assurance services1 | 1,389 | 102 | 1,491 | 1,405 | 4 | 1,409 | |
Other non-audit services | 1 | \u2014 | 1 | 1 | \u2014 | 1 | |
1,390 | 102 | 1,492 | 1,406 | 4 | 1,410 | ||
10,171 | 7,279 | 17,450 | 10,130 | 8,582 | 18,712 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
59 | 45 | ||
32 | 12 | 94 | |
16 | 12 | ||
29 | 3 | 3 | |
27 | 31 | ||
23 | 58 | 13 | |
58 | 68 | ||
233 | 266 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
2025 | 2024 | ||
\u00a3m | \u00a3m | ||
3,165 | 2,673 | ||
(2,758) | (2,308) | ||
407 | 365 | ||
(14) | (8) | ||
393 | 357 | ||
3 | 2 | ||
396 | 359 |
2025 | 2024 | ||||||
UK | Overseas | Total | UK | Overseas | Total | ||
\u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | ||
3,149 | \u2014 | 3,149 | 3,145 | \u2014 | 3,145 | ||
5,632 | 7,177 | 12,809 | 5,579 | 8,578 | 14,157 | ||
8,781 | 7,177 | 15,958 | 8,724 | 8,578 | 17,302 | ||
Audit-related assurance services1 | 1,389 | 102 | 1,491 | 1,405 | 4 | 1,409 | |
Other non-audit services | 1 | \u2014 | 1 | 1 | \u2014 | 1 | |
1,390 | 102 | 1,492 | 1,406 | 4 | 1,410 | ||
10,171 | 7,279 | 17,450 | 10,130 | 8,582 | 18,712 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
2025 | 2024 | ||
\u00a3m | \u00a3m | ||
3,165 | 2,673 | ||
(2,758) | (2,308) | ||
407 | 365 | ||
(14) | (8) | ||
393 | 357 | ||
3 | 2 | ||
396 | 359 |
2025 | 2024 | ||||||
UK | Overseas | Total | UK | Overseas | Total | ||
\u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | ||
3,149 | \u2014 | 3,149 | 3,145 | \u2014 | 3,145 | ||
5,632 | 7,177 | 12,809 | 5,579 | 8,578 | 14,157 | ||
8,781 | 7,177 | 15,958 | 8,724 | 8,578 | 17,302 | ||
Audit-related assurance services1 | 1,389 | 102 | 1,491 | 1,405 | 4 | 1,409 | |
Other non-audit services | 1 | \u2014 | 1 | 1 | \u2014 | 1 | |
1,390 | 102 | 1,492 | 1,406 | 4 | 1,410 | ||
10,171 | 7,279 | 17,450 | 10,130 | 8,582 | 18,712 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
2025 | 2024 | ||||||
UK | Overseas | Total | UK | Overseas | Total | ||
\u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | ||
3,149 | \u2014 | 3,149 | 3,145 | \u2014 | 3,145 | ||
5,632 | 7,177 | 12,809 | 5,579 | 8,578 | 14,157 | ||
8,781 | 7,177 | 15,958 | 8,724 | 8,578 | 17,302 | ||
Audit-related assurance services1 | 1,389 | 102 | 1,491 | 1,405 | 4 | 1,409 | |
Other non-audit services | 1 | \u2014 | 1 | 1 | \u2014 | 1 | |
1,390 | 102 | 1,492 | 1,406 | 4 | 1,410 | ||
10,171 | 7,279 | 17,450 | 10,130 | 8,582 | 18,712 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
9,862 | 9,085 | ||
4 | 9,837 | 9,252 | |
690 | 663 | ||
10 | 470 | 422 | |
10 | 12 | 6 | |
11 | 4 | 6 | |
(3) | \u2014 | ||
31 | 22 | 72 | |
16 | 18 | ||
4,928 | 4,582 | ||
25,838 | 24,106 |
Allocated goodwill | Pre-tax discount rate | Long-term growth rate | |||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3bn | \u00a3bn | % | % | % | % | ||||
4.9 | 5.1 | 10 | 9 | 2.0 | 2.0 | ||||
1.4 | 1.5 | 9 | 8 | 3.8 | 3.8 | ||||
3.4 | 3.6 | 9 | 9 | 1.0 | 1.0 | ||||
1.4 | 1.4 | 11 | 9 | 2.0 | 2.0 |
2025 | 2024 | ||
\u00a3m | \u00a3m | ||
3,165 | 2,673 | ||
(2,758) | (2,308) | ||
407 | 365 | ||
(14) | (8) | ||
393 | 357 | ||
3 | 2 | ||
396 | 359 |
2025 | 2024 | ||||||
UK | Overseas | Total | UK | Overseas | Total | ||
\u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | \u00a3'000 | ||
3,149 | \u2014 | 3,149 | 3,145 | \u2014 | 3,145 | ||
5,632 | 7,177 | 12,809 | 5,579 | 8,578 | 14,157 | ||
8,781 | 7,177 | 15,958 | 8,724 | 8,578 | 17,302 | ||
Audit-related assurance services1 | 1,389 | 102 | 1,491 | 1,405 | 4 | 1,409 | |
Other non-audit services | 1 | \u2014 | 1 | 1 | \u2014 | 1 | |
1,390 | 102 | 1,492 | 1,406 | 4 | 1,410 | ||
10,171 | 7,279 | 17,450 | 10,130 | 8,582 | 18,712 |
Average | At year end | ||||
2025 | 2024 | 2025 | 2024 | ||
Number '000 | Number '000 | Number '000 | Number '000 | ||
22 | 22 | 23 | 22 | ||
12 | 12 | 12 | 12 | ||
22 | 21 | 22 | 21 | ||
31 | 28 | 32 | 30 | ||
11 | 11 | 11 | 11 | ||
4 | 3 | 4 | 4 | ||
102 | 97 | 104 | 100 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
8,439 | 7,999 | ||
699 | 615 | ||
28 | 174 | 144 | |
23 | 380 | 334 | |
23 | 121 | 133 | |
23 | 24 | 27 | |
9,837 | 9,252 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
8,439 | 7,999 | ||
699 | 615 | ||
28 | 174 | 144 | |
23 | 380 | 334 | |
23 | 121 | 133 | |
23 | 24 | 27 | |
9,837 | 9,252 |
Main Scheme as at 31 March 2024 | |
\u00a3bn | |
19.2 | |
(18.4) | |
0.8 | |
104% |
UK | US | ||||||
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||
5.5 | 5.5 | 4.5 | 5.2 | 5.5 | 4.8 | ||
5.8 | 5.6 | 4.6 | 5.2 | 5.5 | 4.8 | ||
n/a | n/a | n/a | 5.2 | 5.5 | 4.8 | ||
2.5 | 2.9 | 2.8 | n/a | n/a | n/a | ||
2.5 | 2.9 | 2.8 | 2.8 | 2.8 | n/a | ||
2.0/2.5 | 2.3/2.9 | 2.1/2.8 | n/a | n/a | n/a | ||
1.6 \u2013 3.5 | 1.7 \u2013 3.6 | 1.6 \u2013 3.6 | n/a | n/a | n/a | ||
86 \u2013 89 | 85 \u2013 88 | 85 \u2013 89 | 88 | 88 | 88 | ||
88 \u2013 91 | 88 \u2013 91 | 88 \u2013 89 | 89 | 89 | 89 | ||
87 \u2013 90 | 86 \u2013 89 | 86 \u2013 89 | 87 | 87 | 87 | ||
89 \u2013 92 | 89 \u2013 92 | 89 \u2013 90 | 89 | 89 | 89 |
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
1,105 | (230) | 71 | (178) | 768 | |
(424) | 147 | 3 | \u2014 | (274) | |
384 | (57) | (3) | (5) | 319 | |
(118) | (1) | \u2014 | \u2014 | (119) | |
53 | (3) | 1 | (2) | 49 | |
44 | (27) | (2) | (10) | 5 | |
(7) | 58 | \u2014 | \u2014 | 51 | |
\u2014 | \u2014 | (34) | \u2014 | (34) | |
92 | (10) | 3 | (9) | 76 | |
\u2014 | 4 | (6) | 9 | 7 | |
(4) | \u2014 | \u2014 | \u2014 | (4) | |
1,125 | (119) | 33 | (195) | 844 |
2025 | |||||
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(89) | (97) | \u2014 | (195) | (381) | |
(15,738) | (2,761) | (103) | \u2014 | (18,602) | |
17,356 | 2,739 | 136 | \u2014 | 20,231 | |
1,529 | (119) | 33 | (195) | 1,248 | |
(404) | \u2014 | \u2014 | \u2014 | (404) | |
1,125 | (119) | 33 | (195) | 844 | |
Post-employment benefit surpluses | 1,214 | 3 | 33 | \u2014 | 1,250 |
Post-employment benefit obligations | (89) | (122) | \u2014 | (195) | (406) |
1,125 | (119) | 33 | (195) | 844 |
2024 | |||||
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(92) | (97) | \u2014 | (178) | (367) | |
(16,128) | (2,974) | (108) | \u2014 | (19,210) | |
17,725 | 2,841 | 179 | \u2014 | 20,745 | |
1,505 | (230) | 71 | (178) | 1,168 | |
(400) | \u2014 | \u2014 | \u2014 | (400) | |
1,105 | (230) | 71 | (178) | 768 | |
Post-employment benefit surpluses | 1,197 | 3 | 71 | \u2014 | 1,271 |
Post-employment benefit obligations | (92) | (233) | \u2014 | (178) | (503) |
1,105 | (230) | 71 | (178) | 768 |
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
19,254 | 2,629 | 180 | \u2014 | 22,063 | |
Interest income | 853 | 135 | 9 | \u2014 | 997 |
Actual return on assets excluding amounts included in interest income | (1,628) | (94) | (4) | \u2014 | (1,726) |
(775) | 41 | 5 | \u2014 | (729) | |
Contributions by employer | 229 | 156 | 1 | 13 | 399 |
Contributions by employer in respect of employee salary sacrifice arrangements | 61 | \u2014 | \u2014 | \u2014 | 61 |
290 | 156 | 1 | 13 | 460 | |
4 | \u2014 | \u2014 | \u2014 | 4 | |
\u2014 | (100) | \u2014 | \u2014 | (100) | |
(15) | (10) | (1) | \u2014 | (26) | |
\u2014 | 253 | \u2014 | \u2014 | 253 | |
\u2014 | 45 | 3 | \u2014 | 48 | |
(1,033) | (173) | (9) | (13) | (1,228) | |
17,725 | 2,841 | 179 | \u2014 | 20,745 | |
Interest income | 942 | 144 | 9 | \u2014 | 1,095 |
Actual return on assets excluding amounts included in interest income | (424) | 147 | 3 | \u2014 | (274) |
518 | 291 | 12 | \u2014 | 821 | |
Contributions by employer | 120 | 11 | \u2014 | 12 | 143 |
Contributions by employer in respect of employee salary sacrifice arrangements | 53 | \u2014 | \u2014 | \u2014 | 53 |
173 | 11 | \u2014 | 12 | 196 | |
3 | \u2014 | \u2014 | \u2014 | 3 | |
(16) | (6) | (1) | \u2014 | (23) | |
\u2014 | \u2014 | (34) | \u2014 | (34) | |
\u2014 | (196) | (12) | \u2014 | (208) | |
(1,047) | (202) | (8) | (12) | (1,269) | |
17,356 | 2,739 | 136 | \u2014 | 20,231 |
2025 | |||||||||||
UK | US and other | Total | |||||||||
Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
UK1 | 1 | \u2014 | 1 | \u2014 | \u2014 | \u2014 | 1 | \u2014 | 1 | ||
Overseas | 31 | \u2014 | 31 | \u2014 | \u2014 | \u2014 | 31 | \u2014 | 31 | ||
366 | 6,016 | 6,382 | 751 | \u2014 | 751 | 1,117 | 6,016 | 7,133 | |||
UK gilts | 2,205 | \u2014 | 2,205 | \u2014 | \u2014 | \u2014 | 2,205 | \u2014 | 2,205 | ||
UK corporates | 2,055 | 1,480 | 3,535 | \u2014 | \u2014 | \u2014 | 2,055 | 1,480 | 3,535 | ||
Overseas government | 23 | \u2014 | 23 | 205 | \u2014 | 205 | 228 | \u2014 | 228 | ||
Overseas corporates | 1,797 | \u2014 | 1,797 | 1,584 | \u2014 | 1,584 | 3,381 | \u2014 | 3,381 | ||
UK gilts | 2,855 | \u2014 | 2,855 | \u2014 | \u2014 | \u2014 | 2,855 | \u2014 | 2,855 | ||
UK corporates | 283 | \u2014 | 283 | \u2014 | \u2014 | \u2014 | 283 | \u2014 | 283 | ||
Overseas corporates | 8 | \u2014 | 8 | \u2014 | \u2014 | \u2014 | 8 | \u2014 | 8 | ||
\u2014 | 1,135 | 1,135 | \u2014 | 64 | 64 | \u2014 | 1,199 | 1,199 | |||
\u2014 | (1,523) | (1,523) | \u2014 | 11 | 11 | \u2014 | (1,512) | (1,512) | |||
Sterling | 401 | 36 | 437 | \u2014 | \u2014 | \u2014 | 401 | 36 | 437 | ||
Foreign currency | 158 | 1 | 159 | 124 | \u2014 | 124 | 282 | 1 | 283 | ||
\u2014 | 28 | 28 | \u2014 | \u2014 | \u2014 | \u2014 | 28 | 28 | |||
10,183 | 7,173 | 17,356 | 2,664 | 75 | 2,739 | 12,847 | 7,248 | 20,095 |
2024 | |||||||||||
UK | US and other | Total | |||||||||
Quoted | Unquoted | Total | Quoted | Unquoted | Total | Quoted | Unquoted | Total | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
UK1 | 1 | \u2014 | 1 | \u2014 | \u2014 | \u2014 | 1 | \u2014 | 1 | ||
Overseas | 97 | \u2014 | 97 | \u2014 | \u2014 | \u2014 | 97 | \u2014 | 97 | ||
\u2014 | 6,559 | 6,559 | 815 | \u2014 | 815 | 815 | 6,559 | 7,374 | |||
UK gilts | 2,400 | \u2014 | 2,400 | \u2014 | \u2014 | \u2014 | 2,400 | \u2014 | 2,400 | ||
UK corporates | 1,951 | 1,480 | 3,431 | \u2014 | \u2014 | \u2014 | 1,951 | 1,480 | 3,431 | ||
Overseas government | 61 | \u2014 | 61 | 477 | \u2014 | 477 | 538 | \u2014 | 538 | ||
Overseas corporates | 1,891 | \u2014 | 1,891 | 1,329 | \u2014 | 1,329 | 3,220 | \u2014 | 3,220 | ||
UK gilts | 1,959 | \u2014 | 1,959 | \u2014 | \u2014 | \u2014 | 1,959 | \u2014 | 1,959 | ||
UK corporates | 580 | \u2014 | 580 | \u2014 | \u2014 | \u2014 | 580 | \u2014 | 580 | ||
Overseas corporates | 8 | \u2014 | 8 | \u2014 | \u2014 | \u2014 | 8 | \u2014 | 8 | ||
\u2014 | 1,182 | 1,182 | \u2014 | 70 | 70 | \u2014 | 1,252 | 1,252 | |||
\u2014 | (1,497) | (1,497) | \u2014 | 11 | 11 | \u2014 | (1,486) | (1,486) | |||
Sterling | 904 | 40 | 944 | \u2014 | \u2014 | \u2014 | 904 | 40 | 944 | ||
Foreign currency | 75 | \u2014 | 75 | 139 | \u2014 | 139 | 214 | \u2014 | 214 | ||
\u2014 | 34 | 34 | \u2014 | \u2014 | \u2014 | \u2014 | 34 | 34 | |||
9,927 | 7,798 | 17,725 | 2,760 | 81 | 2,841 | 12,687 | 7,879 | 20,566 |
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(18,203) | (2,936) | (125) | (168) | (21,432) | |
Current service cost | (76) | (32) | (2) | (24) | (134) |
Contributions by employer in respect of employee salary sacrifice arrangements | (61) | \u2014 | \u2014 | \u2014 | (61) |
(137) | (32) | (2) | (24) | (195) | |
(4) | \u2014 | \u2014 | \u2014 | (4) | |
\u2014 | 113 | \u2014 | \u2014 | 113 | |
1,745 | 179 | 4 | 14 | 1,942 | |
46 | (19) | 12 | 1 | 40 | |
95 | 46 | 2 | (5) | 138 | |
(795) | (153) | (5) | (8) | (961) | |
\u2014 | (400) | \u2014 | \u2014 | (400) | |
\u2014 | (42) | (3) | (1) | (46) | |
1,033 | 173 | 9 | 13 | 1,228 | |
(16,220) | (3,071) | (108) | (178) | (19,577) | |
Current service cost | (60) | (32) | (1) | (22) | (115) |
Contributions by employer in respect of employee salary sacrifice arrangements | (53) | \u2014 | \u2014 | \u2014 | (53) |
(113) | (32) | (1) | (22) | (168) | |
(3) | \u2014 | \u2014 | \u2014 | (3) | |
(7) | 58 | \u2014 | \u2014 | 51 | |
384 | (57) | (3) | (5) | 319 | |
(118) | (1) | \u2014 | \u2014 | (119) | |
53 | (3) | 1 | (2) | 49 | |
(850) | (154) | (6) | (9) | (1,019) | |
\u2014 | 200 | 6 | 9 | 215 | |
1,047 | 202 | 8 | 12 | 1,269 | |
(15,827) | (2,858) | (103) | (195) | (18,983) |
2025 | |||||
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
Current service cost | (60) | (32) | (1) | (22) | (115) |
Past service cost \u2013 plan amendments | (7) | \u2014 | \u2014 | \u2014 | (7) |
Administrative expenses | (16) | (6) | (1) | \u2014 | (23) |
(83) | (38) | (2) | (22) | (145) | |
Past service credit \u2013 plan amendments | \u2014 | 58 | \u2014 | \u2014 | 58 |
Gross interest income/(expense) on post-employment benefit obligations | 92 | (10) | 3 | (9) | 76 |
Impact of withholding tax | (22) | \u2014 | \u2014 | \u2014 | (22) |
70 | (10) | 3 | (9) | 54 | |
Gross actuarial (loss)/gain on post-employment benefit schemes | (105) | 86 | 1 | (7) | (25) |
Impact of withholding tax | 18 | \u2014 | \u2014 | \u2014 | 18 |
(87) | 86 | 1 | (7) | (7) |
2024 | |||||
UK defined benefit pension schemes | US and other pension schemes | US healthcare schemes | Kingdom of Saudi Arabia end of service benefit | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
Current service cost | (76) | (32) | (2) | (24) | (134) |
Administrative expenses | (15) | (10) | (1) | \u2014 | (26) |
(91) | (42) | (3) | (24) | (160) | |
Pensions settlement gain | \u2014 | 13 | \u2014 | \u2014 | 13 |
Gross interest income/(expense) on post-employment benefit obligations | 58 | (18) | 4 | (8) | 36 |
Impact of withholding tax | (18) | \u2014 | \u2014 | \u2014 | (18) |
40 | (18) | 4 | (8) | 18 | |
Gross actuarial gain on post-employment benefit schemes | 258 | 112 | 14 | 10 | 394 |
Impact of withholding tax | 20 | \u2014 | \u2014 | \u2014 | 20 |
278 | 112 | 14 | 10 | 414 |
Decrease/(increase) in pension obligation1 | (Decrease)/increase in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.5 percentage point increase/decrease | 1.0/(1.0) | (1.0)/1.1 |
1.0 percentage point increase/decrease | 1.8/(2.2) | (1.9)/2.3 |
(Increase)/decrease in pension obligation1 | Increase/(decrease) in scheme assets1 | |
\u00a3bn | \u00a3bn | |
0.1 percentage point increase/decrease | (0.1)/0.1 | 0.1/(0.1) |
0.5 percentage point increase/decrease | (0.5)/0.5 | 0.7/(0.6) |
(Decrease)/increase in net surplus1 | |
\u00a3bn | |
One-year increase/decrease | (0.6)/0.6 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
59 | 45 | ||
32 | 12 | 94 | |
16 | 12 | ||
29 | 3 | 3 | |
27 | 31 | ||
23 | 58 | 13 | |
58 | 68 | ||
233 | 266 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
80 | 116 | ||
12 | 1 | 1 | |
23 | 54 | 18 | |
135 | 135 | ||
(425) | (482) | ||
(4) | (4) | ||
12 | (79) | (73) | |
(15) | (13) | ||
45 | (6) | ||
(10) | 90 | ||
(488) | (488) | ||
(353) | (353) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
Current year | (188) | (157) |
Adjustments in respect of prior years | 47 | 27 |
(141) | (130) | |
Current year | (191) | (230) |
Adjustments in respect of prior years | 37 | 292 |
(154) | 62 | |
(295) | (68) | |
Origination and reversal of temporary differences | (10) | (19) |
Adjustments in respect of prior years | (16) | 8 |
(26) | (11) | |
Origination and reversal of temporary differences | (63) | 43 |
Adjustments in respect of prior years | (37) | (255) |
(100) | (212) | |
(126) | (223) | |
(421) | (291) | |
(167) | (141) | |
(254) | (150) | |
(421) | (291) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
2,572 | 2,332 |
25.0% | 25.0% |
(643) | (583) | |
(1) | 3 | |
(16) | (12) | |
122 | 162 | |
29 | 38 | |
31 | 72 | |
52 | 55 | |
5 | (26) | |
(421) | (291) |
2025 | 2024 | ||||||
Before tax | Tax expense | Net of tax | Before tax | Tax (expense)/ benefit | Net of tax | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Consolidated: | |||||||
Remeasurements on post-employment benefit schemes | (7) | (28) | (35) | 414 | (25) | 389 | |
Remeasurement of other investments | 12 | \u2014 | 12 | \u2014 | \u2014 | \u2014 | |
Share of the other comprehensive (expense)/income of associates and joint ventures accounted for using the equity method | (2) | (1) | (3) | 16 | (1) | 15 | |
Consolidated: | |||||||
Currency translation on foreign currency net investments | (608) | \u2014 | (608) | 4 | \u2014 | 4 | |
Reclassification of cumulative currency translation reserve on divestment of interest in equity accounted investments and other business disposals | 21 | \u2014 | 21 | 3 | \u2014 | 3 | |
Fair value gain/(loss) arising on hedging instruments during the year | 44 | (5) | 39 | (36) | 8 | (28) | |
Cumulative fair value loss on hedging instruments reclassified to the income statement | 11 | (1) | 10 | 69 | (15) | 54 | |
Share of the other comprehensive (expense)/income of associates and joint ventures accounted for using the equity method | (6) | \u2014 | (6) | 4 | \u2014 | 4 | |
(535) | (35) | (570) | 474 | (33) | 441 |
2025 | 2024 | ||||||
Other reserves | Retained earnings | Total | Other reserves | Retained earnings | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Consolidated: | |||||||
Remeasurements on post-employment benefit schemes and\u00a0other\u00a0investments | \u2014 | \u2014 | \u2014 | \u2014 | 11 | 11 | |
\u2014 | \u2014 | \u2014 | \u2014 | 11 | 11 | ||
Consolidated: | |||||||
Remeasurements on post-employment benefit schemes and other investments | \u2014 | (28) | (28) | \u2014 | (36) | (36) | |
Fair value (gain)/loss arising on hedging instruments during the year | (5) | \u2014 | (5) | 8 | \u2014 | 8 | |
Cumulative fair value loss on hedging instruments reclassified to the income statement | (1) | \u2014 | (1) | (15) | \u2014 | (15) | |
Share of the other comprehensive income of associates and joint ventures accounted for using the equity method | \u2014 | (1) | (1) | \u2014 | (1) | (1) | |
(6) | (29) | (35) | (7) | (37) | (44) | ||
(6) | (29) | (35) | (7) | (26) | (33) |
Deferred tax assets | Deferred tax liabilities | Net balance at 31 December | ||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
12 | 13 | (233) | (163) | (221) | (150) | |||
78 | 66 | (48) | (56) | 30 | 10 | |||
286 | 350 | \u2014 | \u2014 | 286 | 350 | |||
252 | 256 | \u2014 | \u2014 | 252 | 256 | |||
\u2014 | \u2014 | (413) | (399) | (413) | (399) | |||
Deficits | 28 | 39 | (11) | \u2014 | 17 | 39 | ||
US deferred compensation plans | 103 | 115 | \u2014 | \u2014 | 103 | 115 | ||
107 | 86 | \u2014 | \u2014 | 107 | 86 | |||
7 | 16 | \u2014 | (3) | 7 | 13 | |||
14 | 30 | (36) | (49) | (22) | (19) | |||
887 | 971 | (741) | (670) | 146 | 301 | |||
(715) | (656) | 715 | 656 | \u2014 | \u2014 | |||
172 | 315 | (26) | (14) | 146 | 301 |
At 1 January 2025 | Foreign exchange adjustments | Acquisitions and disposals | Recognised in income | Recognised in equity | At 31 December 2025 | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(150) | 9 | \u2014 | (80) | \u2014 | (221) | |
10 | (5) | (2) | 27 | \u2014 | 30 | |
350 | (22) | \u2014 | (42) | \u2014 | 286 | |
256 | (15) | \u2014 | 11 | \u2014 | 252 | |
(399) | 28 | \u2014 | (42) | \u2014 | (413) | |
Deficits | 39 | \u2014 | \u2014 | 6 | (28) | 17 |
US deferred compensation plans | 115 | (8) | \u2014 | (4) | \u2014 | 103 |
86 | \u2014 | \u2014 | \u2014 | 21 | 107 | |
13 | \u2014 | \u2014 | \u2014 | (6) | 7 | |
(19) | (1) | \u2014 | (2) | \u2014 | (22) | |
301 | (14) | (2) | (126) | (13) | 146 |
At 1 January 2024 | Foreign exchange adjustments | Acquisitions and disposals | Recognised in income | Recognised in equity | At 31 December 2024 | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(101) | (3) | \u2014 | (46) | \u2014 | (150) | |
39 | \u2014 | (57) | 28 | \u2014 | 10 | |
458 | 6 | \u2014 | (114) | \u2014 | 350 | |
229 | 3 | \u2014 | 24 | \u2014 | 256 | |
(352) | (7) | \u2014 | (40) | \u2014 | (399) | |
Deficits | 80 | \u2014 | \u2014 | (5) | (36) | 39 |
US deferred compensation plans | 106 | 2 | \u2014 | 7 | \u2014 | 115 |
94 | \u2014 | \u2014 | 23 | (31) | 86 | |
20 | \u2014 | \u2014 | \u2014 | (7) | 13 | |
26 | (3) | 58 | (100) | \u2014 | (19) | |
599 | (2) | 1 | (223) | (74) | 301 |
2025 | 2024 | ||||
Gross amount | Unrecognised deferred tax asset | Gross amount | Unrecognised deferred tax asset | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3 | 3 | 2 | 2 | ||
693 | 119 | 502 | 114 | ||
696 | 122 | 504 | 116 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
(39) | (78) | |
170 | 85 | |
8 | 114 | |
139 | 121 | |
Current tax assets | 183 | 176 |
Current tax liabilities | (44) | (55) |
139 | 121 |
Ordinary shares | Treasury shares | Contingently returnable shares held in trust | Outstanding shares for purpose of earnings per share | Weighted average share movement in the year | ||
millions | millions | millions | millions | millions | ||
3,239 | (204) | (20) | 3,015 | |||
(44) | \u2014 | \u2014 | (44) | (20) | ||
\u2014 | 20 | 5 | 25 | 18 | ||
3,195 | (184) | (15) | 2,996 | |||
(29) | \u2014 | \u2014 | (29) | (15) | ||
\u2014 | 19 | 2 | 21 | 16 | ||
3,166 | (165) | (13) | 2,988 |
2025\u00a0 Number of shares | 2024\u00a0 Number of shares | ||
millions | millions | ||
2,996 | 3,015 | ||
(15) | (20) | ||
16 | 18 | ||
2,997 | 3,013 | ||
34 | 40 | ||
3,031 | 3,053 |
2025 | 2024 | ||
2,062 | 1,956 | ||
68.8 | 64.9 | ||
68.0 | 64.1 |
Other intangible assets are carried at cost or valuation, less accumulated amortisation and impairment. The Group has no indefinite-life intangible assets other than goodwill. Cost or valuation Software Software includes: \u2013 Computer software licences acquired for use within the Group are capitalised as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software; and \u2013 Software development costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Group-funded expenditure associated with enhancing or maintaining computer software programmes for sale is recognised as an expense as incurred. Software as a service cloud computing arrangements Software as a Service (SaaS) solutions are service contracts which provide the Group with the right to access a cloud provider\u2019s application software over a contractual period. Typically, such arrangements involve ongoing licence fees to obtain access to the cloud provider\u2019s application software, as well as upfront costs incurred to implement the SaaS solution. Implementation services are only capitalised as intangible assets, in accordance with IAS 38, where: \u2013 The Group has both a contractual right to take possession of the software at any time without significant penalty, and the ability to run the software independently of the host vendor; or \u2013 The costs incurred meet the definition of and recognition criteria for an intangible asset. This includes the development of software code that enhances or creates additional capability to existing systems controlled by the Group. Where costs associated with the implementation do not meet the criteria above, but the implementation activities are performed by the SaaS vendor or an agent thereof, consideration is given as to whether these activities are distinct from the provision of the solution itself. This assessment considers the nature of the implementation activities and whether benefit can be obtained from any of these in isolation. Where the activity is not considered distinct, the costs are recognised as a prepayment and released over the expected useful life of the solution. Where the conditions above are not met, costs incurred in relation to implementation activities and the ongoing fees to obtain access to the SaaS solution are recognised as operating expenses when the services are received. Development costs Development costs funded by the Group on activities applied to a plan or design for the production of new or substantially improved products are capitalised as an internally generated intangible asset if certain conditions are met. The costs capitalised include materials, direct labour and related overheads. Programme and customer-related Intangible assets recognised by the Group include those relating to ongoing programmes within businesses acquired, mainly in respect of customer relationships and order backlog. These assets are initially recognised at their fair value at the acquisition date. Other Other intangible assets includes patents, trademarks and licences. Amortisation Amortisation on other intangible assets is charged to the Consolidated income statement on a straight-line basis over their estimated useful lives. For programme-related intangibles, amortisation is set on a programme-by-programme basis over the life of the individual programme. Amortisation for customer-related intangibles is also set on an individual basis. The estimated useful lives are as follows: | ||||||
Software | up to 10 years | Programme and customer-related | up to 15 years | |||
Development costs | up to 10 years | Other | up to 20 years | |||
Impairment of intangible assets, property, plant and equipment, right-of-use assets, investment property and equity accounted investments The carrying amounts of the Group\u2019s intangible assets (excluding goodwill), property, plant and equipment, right-of-use assets, investment property and equity accounted investments are reviewed at each balance sheet date to determine whether there is any indication of impairment, as required by IAS 36 Impairment of Assets. If any such indication exists, the asset\u2019s recoverable amount is estimated. For intangible assets that are not yet available for use, impairment testing is performed annually. In estimating the asset\u2019s recoverable amount, the Group takes into consideration the impact of the Group\u2019s net zero ambitions. Impairment losses are recognised in the Consolidated income statement. An impairment loss in respect of other intangible assets, property, plant and equipment, investment property and equity accounted investments is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised or if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. | ||||||
Goodwill | ||
Note | \u00a3m | |
16,051 | ||
1,812 | ||
(3) | ||
128 | ||
17,988 | ||
31 | 22 | |
(740) | ||
17,270 | ||
4,665 | ||
26 | ||
4,691 | ||
(153) | ||
4,538 | ||
12,732 | ||
13,297 | ||
11,386 |
Allocated goodwill | Pre-tax discount rate | Long-term growth rate | |||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3bn | \u00a3bn | % | % | % | % | ||||
4.9 | 5.1 | 10 | 9 | 2.0 | 2.0 | ||||
1.4 | 1.5 | 9 | 8 | 3.8 | 3.8 | ||||
3.4 | 3.6 | 9 | 9 | 1.0 | 1.0 | ||||
1.4 | 1.4 | 11 | 9 | 2.0 | 2.0 |
Goodwill | ||
Note | \u00a3m | |
16,051 | ||
1,812 | ||
(3) | ||
128 | ||
17,988 | ||
31 | 22 | |
(740) | ||
17,270 | ||
4,665 | ||
26 | ||
4,691 | ||
(153) | ||
4,538 | ||
12,732 | ||
13,297 | ||
11,386 |
Allocated goodwill | Pre-tax discount rate | Long-term growth rate | |||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3bn | \u00a3bn | % | % | % | % | ||||
4.9 | 5.1 | 10 | 9 | 2.0 | 2.0 | ||||
1.4 | 1.5 | 9 | 8 | 3.8 | 3.8 | ||||
3.4 | 3.6 | 9 | 9 | 1.0 | 1.0 | ||||
1.4 | 1.4 | 11 | 9 | 2.0 | 2.0 |
Software | Development costs | Programme and customer-related | Other | Total | ||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
1,021 | 141 | 646 | 133 | 1,941 | ||
Acquired separately | 149 | \u2014 | \u2014 | \u2014 | 149 | |
Internally developed | 16 | 8 | \u2014 | \u2014 | 24 | |
48 | \u2014 | 2,317 | 136 | 2,501 | ||
(46) | (15) | (24) | (12) | (97) | ||
(2) | 2 | 17 | 1 | 18 | ||
1,186 | 136 | 2,956 | 258 | 4,536 | ||
Acquired separately | 160 | \u2014 | \u2014 | \u2014 | 160 | |
Internally developed | 12 | 14 | \u2014 | \u2014 | 26 | |
(12) | \u2014 | (11) | (6) | (29) | ||
11 | 3 | 7 | \u2014 | \u2014 | 10 | |
(11) | (7) | (194) | (8) | (220) | ||
1,338 | 150 | 2,751 | 244 | 4,483 | ||
702 | 88 | 362 | 76 | 1,228 | ||
86 | 2 | 312 | 22 | 422 | ||
6 | \u2014 | \u2014 | \u2014 | 6 | ||
(46) | (15) | (24) | (12) | (97) | ||
\u2014 | 2 | 9 | 1 | 12 | ||
748 | 77 | 659 | 87 | 1,571 | ||
88 | 3 | 347 | 32 | 470 | ||
\u2014 | \u2014 | 7 | 5 | 12 | ||
(1) | \u2014 | (11) | (6) | (18) | ||
(4) | (5) | (50) | (6) | (65) | ||
831 | 75 | 952 | 112 | 1,970 | ||
507 | 75 | 1,799 | 132 | 2,513 | ||
438 | 59 | 2,297 | 171 | 2,965 | ||
319 | 53 | 284 | 57 | 713 |
Goodwill | ||
Note | \u00a3m | |
16,051 | ||
1,812 | ||
(3) | ||
128 | ||
17,988 | ||
31 | 22 | |
(740) | ||
17,270 | ||
4,665 | ||
26 | ||
4,691 | ||
(153) | ||
4,538 | ||
12,732 | ||
13,297 | ||
11,386 |
Allocated goodwill | Pre-tax discount rate | Long-term growth rate | |||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||
\u00a3bn | \u00a3bn | % | % | % | % | ||||
4.9 | 5.1 | 10 | 9 | 2.0 | 2.0 | ||||
1.4 | 1.5 | 9 | 8 | 3.8 | 3.8 | ||||
3.4 | 3.6 | 9 | 9 | 1.0 | 1.0 | ||||
1.4 | 1.4 | 11 | 9 | 2.0 | 2.0 |
Software | Development costs | Programme and customer-related | Other | Total | ||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
1,021 | 141 | 646 | 133 | 1,941 | ||
Acquired separately | 149 | \u2014 | \u2014 | \u2014 | 149 | |
Internally developed | 16 | 8 | \u2014 | \u2014 | 24 | |
48 | \u2014 | 2,317 | 136 | 2,501 | ||
(46) | (15) | (24) | (12) | (97) | ||
(2) | 2 | 17 | 1 | 18 | ||
1,186 | 136 | 2,956 | 258 | 4,536 | ||
Acquired separately | 160 | \u2014 | \u2014 | \u2014 | 160 | |
Internally developed | 12 | 14 | \u2014 | \u2014 | 26 | |
(12) | \u2014 | (11) | (6) | (29) | ||
11 | 3 | 7 | \u2014 | \u2014 | 10 | |
(11) | (7) | (194) | (8) | (220) | ||
1,338 | 150 | 2,751 | 244 | 4,483 | ||
702 | 88 | 362 | 76 | 1,228 | ||
86 | 2 | 312 | 22 | 422 | ||
6 | \u2014 | \u2014 | \u2014 | 6 | ||
(46) | (15) | (24) | (12) | (97) | ||
\u2014 | 2 | 9 | 1 | 12 | ||
748 | 77 | 659 | 87 | 1,571 | ||
88 | 3 | 347 | 32 | 470 | ||
\u2014 | \u2014 | 7 | 5 | 12 | ||
(1) | \u2014 | (11) | (6) | (18) | ||
(4) | (5) | (50) | (6) | (65) | ||
831 | 75 | 952 | 112 | 1,970 | ||
507 | 75 | 1,799 | 132 | 2,513 | ||
438 | 59 | 2,297 | 171 | 2,965 | ||
319 | 53 | 284 | 57 | 713 |
Other intangible assets are carried at cost or valuation, less accumulated amortisation and impairment. The Group has no indefinite-life intangible assets other than goodwill. Cost or valuation Software Software includes: \u2013 Computer software licences acquired for use within the Group are capitalised as an intangible asset on the basis of the costs incurred to acquire and bring to use the specific software; and \u2013 Software development costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets. Group-funded expenditure associated with enhancing or maintaining computer software programmes for sale is recognised as an expense as incurred. Software as a service cloud computing arrangements Software as a Service (SaaS) solutions are service contracts which provide the Group with the right to access a cloud provider\u2019s application software over a contractual period. Typically, such arrangements involve ongoing licence fees to obtain access to the cloud provider\u2019s application software, as well as upfront costs incurred to implement the SaaS solution. Implementation services are only capitalised as intangible assets, in accordance with IAS 38, where: \u2013 The Group has both a contractual right to take possession of the software at any time without significant penalty, and the ability to run the software independently of the host vendor; or \u2013 The costs incurred meet the definition of and recognition criteria for an intangible asset. This includes the development of software code that enhances or creates additional capability to existing systems controlled by the Group. Where costs associated with the implementation do not meet the criteria above, but the implementation activities are performed by the SaaS vendor or an agent thereof, consideration is given as to whether these activities are distinct from the provision of the solution itself. This assessment considers the nature of the implementation activities and whether benefit can be obtained from any of these in isolation. Where the activity is not considered distinct, the costs are recognised as a prepayment and released over the expected useful life of the solution. Where the conditions above are not met, costs incurred in relation to implementation activities and the ongoing fees to obtain access to the SaaS solution are recognised as operating expenses when the services are received. Development costs Development costs funded by the Group on activities applied to a plan or design for the production of new or substantially improved products are capitalised as an internally generated intangible asset if certain conditions are met. The costs capitalised include materials, direct labour and related overheads. Programme and customer-related Intangible assets recognised by the Group include those relating to ongoing programmes within businesses acquired, mainly in respect of customer relationships and order backlog. These assets are initially recognised at their fair value at the acquisition date. Other Other intangible assets includes patents, trademarks and licences. Amortisation Amortisation on other intangible assets is charged to the Consolidated income statement on a straight-line basis over their estimated useful lives. For programme-related intangibles, amortisation is set on a programme-by-programme basis over the life of the individual programme. Amortisation for customer-related intangibles is also set on an individual basis. The estimated useful lives are as follows: | ||||||
Software | up to 10 years | Programme and customer-related | up to 15 years | |||
Development costs | up to 10 years | Other | up to 20 years | |||
Impairment of intangible assets, property, plant and equipment, right-of-use assets, investment property and equity accounted investments The carrying amounts of the Group\u2019s intangible assets (excluding goodwill), property, plant and equipment, right-of-use assets, investment property and equity accounted investments are reviewed at each balance sheet date to determine whether there is any indication of impairment, as required by IAS 36 Impairment of Assets. If any such indication exists, the asset\u2019s recoverable amount is estimated. For intangible assets that are not yet available for use, impairment testing is performed annually. In estimating the asset\u2019s recoverable amount, the Group takes into consideration the impact of the Group\u2019s net zero ambitions. Impairment losses are recognised in the Consolidated income statement. An impairment loss in respect of other intangible assets, property, plant and equipment, investment property and equity accounted investments is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised or if there has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. | ||||||
Registered company number | Registered company number | ||||
00731159 | 02775320 | ||||
03666197 | 00782930 | ||||
02606542 | 02639638 | ||||
04333003 | 04380304 | ||||
03550759 | 02536529 |
Cost Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The cost of self- constructed assets includes the cost of materials, direct labour and an appropriate proportion of production overheads. The cost of demonstration assets is written off as incurred. The reimbursement of the cost of an item of property, plant and equipment by way of a government grant is presented as deferred income and recognised in the Consolidated income statement on a basis consistent with the depreciation of the asset over its estimated useful life. Assets held for leasing out under operating leases are included in property, plant and equipment at cost less accumulated depreciation and impairment losses. | |||
Depreciation Depreciation is provided, normally on a straight-line basis, to write off the cost of items of property, plant and equipment over their estimated useful lives to any estimated residual value, using the following rates: | |||
Buildings | up to 50 years, or the lease term if shorter | ||
Plant and machinery: | |||
Computing equipment and motor vehicles | 4 to 5 years | ||
Other equipment | 10 to 20 years, or the project life if shorter | ||
No depreciation is provided on freehold land and assets in the course of construction. | |||
The assets\u2019 residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date, taking into consideration the impact on the assets\u2019 useful economic lives as a result of the Group\u2019s sustainability ambitions. | |||
Impairment The carrying amounts of the Group\u2019s property, plant and equipment are reviewed at each balance sheet date to determine whether there is any indication of impairment in accordance with the policy shown in note 10. | |||
Land and buildings | Plant and machinery | Total | ||
\u00a3m | \u00a3m | \u00a3m | ||
3,430 | 4,339 | 7,769 | ||
386 | 585 | 971 | ||
464 | 230 | 694 | ||
(32) | (99) | (131) | ||
(7) | (24) | (31) | ||
8 | 25 | 33 | ||
4,249 | 5,056 | 9,305 | ||
370 | 558 | 928 | ||
(77) | (114) | (191) | ||
\u2014 | (10) | (10) | ||
(112) | (166) | (278) | ||
4,430 | 5,324 | 9,754 | ||
1,374 | 2,760 | 4,134 | ||
158 | 286 | 444 | ||
5 | 1 | 6 | ||
(30) | (96) | (126) | ||
(3) | (16) | (19) | ||
5 | 18 | 23 | ||
1,509 | 2,953 | 4,462 | ||
171 | 290 | 461 | ||
(75) | (104) | (179) | ||
\u2014 | 4 | 4 | ||
(55) | (99) | (154) | ||
1,550 | 3,044 | 4,594 | ||
2,880 | 2,280 | 5,160 | ||
2,740 | 2,103 | 4,843 | ||
2,056 | 1,579 | 3,635 |
Land and buildings | Plant and machinery | Total | |
\u00a3m | \u00a3m | \u00a3m | |
515 | 622 | 1,137 | |
579 | 658 | 1,237 |
Land and buildings | Plant and machinery | Total | ||
\u00a3m | \u00a3m | \u00a3m | ||
3,430 | 4,339 | 7,769 | ||
386 | 585 | 971 | ||
464 | 230 | 694 | ||
(32) | (99) | (131) | ||
(7) | (24) | (31) | ||
8 | 25 | 33 | ||
4,249 | 5,056 | 9,305 | ||
370 | 558 | 928 | ||
(77) | (114) | (191) | ||
\u2014 | (10) | (10) | ||
(112) | (166) | (278) | ||
4,430 | 5,324 | 9,754 | ||
1,374 | 2,760 | 4,134 | ||
158 | 286 | 444 | ||
5 | 1 | 6 | ||
(30) | (96) | (126) | ||
(3) | (16) | (19) | ||
5 | 18 | 23 | ||
1,509 | 2,953 | 4,462 | ||
171 | 290 | 461 | ||
(75) | (104) | (179) | ||
\u2014 | 4 | 4 | ||
(55) | (99) | (154) | ||
1,550 | 3,044 | 4,594 | ||
2,880 | 2,280 | 5,160 | ||
2,740 | 2,103 | 4,843 | ||
2,056 | 1,579 | 3,635 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
2025 | 2024 | |||||||
Note | Land and buildings | Plant and machinery | Total | Land and buildings | Plant and machinery | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
1,720 | 35 | 1,755 | 1,280 | 31 | 1,311 | |||
113 | 24 | 137 | 494 | 21 | 515 | |||
31 | \u2014 | \u2014 | \u2014 | 77 | \u2014 | 77 | ||
(14) | \u2014 | (14) | \u2014 | \u2014 | \u2014 | |||
71 | 2 | 73 | 53 | 2 | 55 | |||
(208) | (20) | (228) | (203) | (16) | (219) | |||
\u2014 | \u2014 | \u2014 | (1) | \u2014 | (1) | |||
(85) | \u2014 | (85) | 20 | (3) | 17 | |||
1,597 | 41 | 1,638 | 1,720 | 35 | 1,755 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
Within one year | 265 | 260 |
Between one and five years | 868 | 891 |
Later than five years | 1,324 | 1,342 |
2,457 | 2,493 | |
(691) | (652) | |
1,766 | 1,841 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
(228) | (219) | |
(28) | (25) | |
(7) | (8) | |
(263) | (252) | |
1 | 1 | |
(79) | (73) | |
(78) | (72) |
Principal equity accounted investments | Other joint ventures | Other associates | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |
551 | 185 | 96 | 832 | |
Group\u2019s share of profit for the year | 197 | 10 | 6 | 213 |
Group\u2019s share of remeasurements on post-employment benefit schemes | 16 | \u2014 | \u2014 | 16 |
Tax on items that may be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | 4 | (1) | \u2014 | 3 |
Amounts recognised in hedging reserve | (1) | 2 | \u2014 | 1 |
215 | 11 | 6 | 232 | |
\u2014 | (56) | \u2014 | (56) | |
(135) | (22) | (1) | (158) | |
(28) | 1 | \u2014 | (27) | |
603 | 119 | 101 | 823 | |
Group\u2019s share of profit/(loss) for the year | 194 | 43 | (18) | 219 |
Impairment of equity accounted investments | \u2014 | \u2014 | (25) | (25) |
Group\u2019s share of remeasurements on post-employment benefit schemes | (2) | \u2014 | \u2014 | (2) |
Tax on items that will not be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | (4) | \u2014 | \u2014 | (4) |
Amounts recognised in hedging reserve | \u2014 | (2) | \u2014 | (2) |
187 | 41 | (43) | 185 | |
\u2014 | 1 | \u2014 | 1 | |
\u2014 | (39) | \u2014 | (39) | |
(275) | (29) | \u2014 | (304) | |
31 | (1) | 2 | 32 | |
546 | 92 | 60 | 698 |
Shareholding | Principally operates in | ||
33.3% | Germany | ||
37.5% | Europe |
2025 | 2024 | ||||
Eurofighter Jagdflugzeug | MBDA | Eurofighter Jagdflugzeug | MBDA | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
4,674 | 4,950 | 4,187 | 4,159 | ||
24 | 740 | 38 | 603 | ||
(4) | (200) | (4) | (149) | ||
12 | 176 | 10 | 229 | ||
(2) | (6) | (2) | (30) | ||
(7) | (214) | (13) | (156) | ||
23 | 496 | 29 | 497 | ||
\u2014 | (6) | \u2014 | 40 | ||
\u2014 | (2) | \u2014 | (2) | ||
\u2014 | (10) | \u2014 | 12 | ||
23 | 478 | 29 | 547 | ||
8 | 179 | 10 | 205 | ||
32 | 3,824 | 29 | 3,100 | ||
Cash and cash equivalents | 49 | 6,444 | 27 | 5,065 | |
Current assets excluding cash and cash equivalents | 11,763 | 6,569 | 9,892 | 5,486 | |
11,812 | 13,013 | 9,919 | 10,551 | ||
Non-current financial liabilities excluding trade and other payables, and provisions | \u2014 | (7) | \u2014 | (6) | |
Other non-current liabilities | (47) | (573) | (47) | (66) | |
(47) | (580) | (47) | (72) | ||
Current financial liabilities excluding trade and other payables, and provisions | (8) | \u2014 | (13) | \u2014 | |
Other current liabilities | (11,753) | (14,870) | (9,851) | (12,033) | |
(11,761) | (14,870) | (9,864) | (12,033) | ||
36 | 1,387 | 37 | 1,546 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
12 | 520 | 532 | 12 | 580 | 592 | ||
\u2014 | 14 | 14 | \u2014 | 11 | 11 | ||
12 | 534 | 546 | 12 | 591 | 603 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
9 | 266 | 275 | 6 | 129 | 135 |
Principal equity accounted investments | Other joint ventures | Other associates | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |
551 | 185 | 96 | 832 | |
Group\u2019s share of profit for the year | 197 | 10 | 6 | 213 |
Group\u2019s share of remeasurements on post-employment benefit schemes | 16 | \u2014 | \u2014 | 16 |
Tax on items that may be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | 4 | (1) | \u2014 | 3 |
Amounts recognised in hedging reserve | (1) | 2 | \u2014 | 1 |
215 | 11 | 6 | 232 | |
\u2014 | (56) | \u2014 | (56) | |
(135) | (22) | (1) | (158) | |
(28) | 1 | \u2014 | (27) | |
603 | 119 | 101 | 823 | |
Group\u2019s share of profit/(loss) for the year | 194 | 43 | (18) | 219 |
Impairment of equity accounted investments | \u2014 | \u2014 | (25) | (25) |
Group\u2019s share of remeasurements on post-employment benefit schemes | (2) | \u2014 | \u2014 | (2) |
Tax on items that will not be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | (4) | \u2014 | \u2014 | (4) |
Amounts recognised in hedging reserve | \u2014 | (2) | \u2014 | (2) |
187 | 41 | (43) | 185 | |
\u2014 | 1 | \u2014 | 1 | |
\u2014 | (39) | \u2014 | (39) | |
(275) | (29) | \u2014 | (304) | |
31 | (1) | 2 | 32 | |
546 | 92 | 60 | 698 |
Principal equity accounted investments | Other joint ventures | Other associates | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |
551 | 185 | 96 | 832 | |
Group\u2019s share of profit for the year | 197 | 10 | 6 | 213 |
Group\u2019s share of remeasurements on post-employment benefit schemes | 16 | \u2014 | \u2014 | 16 |
Tax on items that may be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | 4 | (1) | \u2014 | 3 |
Amounts recognised in hedging reserve | (1) | 2 | \u2014 | 1 |
215 | 11 | 6 | 232 | |
\u2014 | (56) | \u2014 | (56) | |
(135) | (22) | (1) | (158) | |
(28) | 1 | \u2014 | (27) | |
603 | 119 | 101 | 823 | |
Group\u2019s share of profit/(loss) for the year | 194 | 43 | (18) | 219 |
Impairment of equity accounted investments | \u2014 | \u2014 | (25) | (25) |
Group\u2019s share of remeasurements on post-employment benefit schemes | (2) | \u2014 | \u2014 | (2) |
Tax on items that will not be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | (4) | \u2014 | \u2014 | (4) |
Amounts recognised in hedging reserve | \u2014 | (2) | \u2014 | (2) |
187 | 41 | (43) | 185 | |
\u2014 | 1 | \u2014 | 1 | |
\u2014 | (39) | \u2014 | (39) | |
(275) | (29) | \u2014 | (304) | |
31 | (1) | 2 | 32 | |
546 | 92 | 60 | 698 |
Shareholding | Principally operates in | ||
33.3% | Germany | ||
37.5% | Europe |
2025 | 2024 | ||||
Eurofighter Jagdflugzeug | MBDA | Eurofighter Jagdflugzeug | MBDA | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
4,674 | 4,950 | 4,187 | 4,159 | ||
24 | 740 | 38 | 603 | ||
(4) | (200) | (4) | (149) | ||
12 | 176 | 10 | 229 | ||
(2) | (6) | (2) | (30) | ||
(7) | (214) | (13) | (156) | ||
23 | 496 | 29 | 497 | ||
\u2014 | (6) | \u2014 | 40 | ||
\u2014 | (2) | \u2014 | (2) | ||
\u2014 | (10) | \u2014 | 12 | ||
23 | 478 | 29 | 547 | ||
8 | 179 | 10 | 205 | ||
32 | 3,824 | 29 | 3,100 | ||
Cash and cash equivalents | 49 | 6,444 | 27 | 5,065 | |
Current assets excluding cash and cash equivalents | 11,763 | 6,569 | 9,892 | 5,486 | |
11,812 | 13,013 | 9,919 | 10,551 | ||
Non-current financial liabilities excluding trade and other payables, and provisions | \u2014 | (7) | \u2014 | (6) | |
Other non-current liabilities | (47) | (573) | (47) | (66) | |
(47) | (580) | (47) | (72) | ||
Current financial liabilities excluding trade and other payables, and provisions | (8) | \u2014 | (13) | \u2014 | |
Other current liabilities | (11,753) | (14,870) | (9,851) | (12,033) | |
(11,761) | (14,870) | (9,864) | (12,033) | ||
36 | 1,387 | 37 | 1,546 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
12 | 520 | 532 | 12 | 580 | 592 | ||
\u2014 | 14 | 14 | \u2014 | 11 | 11 | ||
12 | 534 | 546 | 12 | 591 | 603 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
9 | 266 | 275 | 6 | 129 | 135 |
Principal equity accounted investments | Other joint ventures | Other associates | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |
551 | 185 | 96 | 832 | |
Group\u2019s share of profit for the year | 197 | 10 | 6 | 213 |
Group\u2019s share of remeasurements on post-employment benefit schemes | 16 | \u2014 | \u2014 | 16 |
Tax on items that may be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | 4 | (1) | \u2014 | 3 |
Amounts recognised in hedging reserve | (1) | 2 | \u2014 | 1 |
215 | 11 | 6 | 232 | |
\u2014 | (56) | \u2014 | (56) | |
(135) | (22) | (1) | (158) | |
(28) | 1 | \u2014 | (27) | |
603 | 119 | 101 | 823 | |
Group\u2019s share of profit/(loss) for the year | 194 | 43 | (18) | 219 |
Impairment of equity accounted investments | \u2014 | \u2014 | (25) | (25) |
Group\u2019s share of remeasurements on post-employment benefit schemes | (2) | \u2014 | \u2014 | (2) |
Tax on items that will not be reclassified to the income statement | (1) | \u2014 | \u2014 | (1) |
Foreign exchange adjustments | (4) | \u2014 | \u2014 | (4) |
Amounts recognised in hedging reserve | \u2014 | (2) | \u2014 | (2) |
187 | 41 | (43) | 185 | |
\u2014 | 1 | \u2014 | 1 | |
\u2014 | (39) | \u2014 | (39) | |
(275) | (29) | \u2014 | (304) | |
31 | (1) | 2 | 32 | |
546 | 92 | 60 | 698 |
Shareholding | Principally operates in | ||
33.3% | Germany | ||
37.5% | Europe |
2025 | 2024 | ||||
Eurofighter Jagdflugzeug | MBDA | Eurofighter Jagdflugzeug | MBDA | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
4,674 | 4,950 | 4,187 | 4,159 | ||
24 | 740 | 38 | 603 | ||
(4) | (200) | (4) | (149) | ||
12 | 176 | 10 | 229 | ||
(2) | (6) | (2) | (30) | ||
(7) | (214) | (13) | (156) | ||
23 | 496 | 29 | 497 | ||
\u2014 | (6) | \u2014 | 40 | ||
\u2014 | (2) | \u2014 | (2) | ||
\u2014 | (10) | \u2014 | 12 | ||
23 | 478 | 29 | 547 | ||
8 | 179 | 10 | 205 | ||
32 | 3,824 | 29 | 3,100 | ||
Cash and cash equivalents | 49 | 6,444 | 27 | 5,065 | |
Current assets excluding cash and cash equivalents | 11,763 | 6,569 | 9,892 | 5,486 | |
11,812 | 13,013 | 9,919 | 10,551 | ||
Non-current financial liabilities excluding trade and other payables, and provisions | \u2014 | (7) | \u2014 | (6) | |
Other non-current liabilities | (47) | (573) | (47) | (66) | |
(47) | (580) | (47) | (72) | ||
Current financial liabilities excluding trade and other payables, and provisions | (8) | \u2014 | (13) | \u2014 | |
Other current liabilities | (11,753) | (14,870) | (9,851) | (12,033) | |
(11,761) | (14,870) | (9,864) | (12,033) | ||
36 | 1,387 | 37 | 1,546 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
12 | 520 | 532 | 12 | 580 | 592 | ||
\u2014 | 14 | 14 | \u2014 | 11 | 11 | ||
12 | 534 | 546 | 12 | 591 | 603 |
2025 | 2024 | ||||||
Eurofighter Jagdflugzeug | MBDA | Total | Eurofighter Jagdflugzeug | MBDA | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
9 | 266 | 275 | 6 | 129 | 135 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
117 | 108 | |
(1,746) | (1,720) | |
3,834 | 3,749 | |
(4,820) | (4,504) |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
417 | 168 | ||
372 | 367 | ||
16 | 18 | ||
54 | 73 | ||
859 | 626 | ||
1,563 | 1,357 | ||
29 | 95 | 52 | |
924 | 1,005 | ||
42 | 27 | ||
51 | 50 | ||
8 | 6 | ||
442 | 417 | ||
3,125 | 2,914 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
417 | 168 | ||
372 | 367 | ||
16 | 18 | ||
54 | 73 | ||
859 | 626 | ||
1,563 | 1,357 | ||
29 | 95 | 52 | |
924 | 1,005 | ||
42 | 27 | ||
51 | 50 | ||
8 | 6 | ||
442 | 417 | ||
3,125 | 2,914 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
417 | 168 | ||
372 | 367 | ||
16 | 18 | ||
54 | 73 | ||
859 | 626 | ||
1,563 | 1,357 | ||
29 | 95 | 52 | |
924 | 1,005 | ||
42 | 27 | ||
51 | 50 | ||
8 | 6 | ||
442 | 417 | ||
3,125 | 2,914 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
417 | 168 | ||
372 | 367 | ||
16 | 18 | ||
54 | 73 | ||
859 | 626 | ||
1,563 | 1,357 | ||
29 | 95 | 52 | |
924 | 1,005 | ||
42 | 27 | ||
51 | 50 | ||
8 | 6 | ||
442 | 417 | ||
3,125 | 2,914 |
2025 | 2024 | ||||
Assets | Liabilities | Assets | Liabilities | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
125 | (170) | 152 | (169) | ||
80 | (77) | 110 | (21) | ||
27 | (1) | 3 | (3) | ||
232 | (248) | 265 | (193) | ||
152 | (143) | 163 | (225) | ||
31 | (30) | 49 | (39) | ||
183 | (173) | 212 | (264) |
2025 | 2024 | ||||||
Within one year | Between one and two years | Later than two years | Within one year | Between one and two years | Later than two years | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3,438 | \u2014 | \u2014 | 3,378 | \u2014 | \u2014 | ||
(1,115) | (1,119) | (1,121) | (1,197) | (1,197) | (1,197) |
2025 | 2024 | ||||||||||
Contracted cash outflow | Contracted cash outflow | ||||||||||
Carrying amount | Within one year | Between one and five years | Later than five years | Total | Carrying amount | Within one year | Between one and five years | Later than five years | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
(1,786) | (1,761) | (25) | \u2014 | (1,786) | (1,713) | (1,684) | (29) | \u2014 | (1,713) | ||
(3,714) | (3,651) | (63) | \u2014 | (3,714) | (3,440) | (3,351) | (89) | \u2014 | (3,440) | ||
(1,766) | (265) | (868) | (1,324) | (2,457) | (1,841) | (260) | (891) | (1,342) | (2,493) | ||
(7,285) | (332) | (3,914) | (6,342) | (10,588) | (8,412) | (977) | (3,295) | (8,071) | (12,343) | ||
(14,551) | (15,406) | ||||||||||
277 | (7,119) | (4,776) | (1,226) | (13,121) | 315 | (5,199) | (4,932) | (1,465) | (11,596) | ||
(313) | (8,931) | (5,437) | (1,260) | (15,628) | (394) | (7,154) | (6,026) | (1,310) | (14,490) | ||
80 | (23) | (360) | \u2014 | (383) | 110 | (23) | (347) | (36) | (406) | ||
(77) | (35) | (1,123) | \u2014 | (1,158) | (21) | (35) | (141) | (1,018) | (1,194) | ||
58 | (2,078) | (205) | (93) | (2,376) | 52 | (2,977) | \u2014 | \u2014 | (2,977) | ||
(31) | (2,795) | (77) | \u2014 | (2,872) | (42) | (2,045) | (327) | \u2014 | (2,372) | ||
(6) | 20 | ||||||||||
(14,557) | (15,386) |
2025 | 2024 | |||||||||||
Currency purchased | Currency sold | Currency purchased | Currency sold | |||||||||
Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||||||
1.31 | (2,187) | 1.30 | 2,426 | 1.27 | (2,015) | 1.28 | 2,627 | |||||
1.28 | (800) | 1.27 | 1,038 | 1.27 | (1,304) | 1.26 | 1,728 | |||||
1.28 | (25) | 1.28 | 28 | 1.30 | (10) | 1.30 | 10 | |||||
1.13 | (3,930) | 1.13 | 3,512 | 1.15 | (2,944) | 1.15 | 2,550 | |||||
1.10 | (3,357) | 1.10 | 3,122 | 1.11 | (3,207) | 1.11 | 3,165 | |||||
1.06 | (1,224) | 1.06 | 1,282 | 1.06 | (1,455) | 1.06 | 1,449 | |||||
n/a | (4,054) | n/a | 4,049 | n/a | (2,243) | n/a | 2,222 | |||||
n/a | (2,072) | n/a | 2,018 | n/a | (1,814) | n/a | 1,815 | |||||
n/a | (28) | n/a | 27 | n/a | (27) | n/a | 25 | |||||
(17,677) | 17,502 | (15,019) | 15,591 |
2025 | 2024 | ||||||||
Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
62 | (62) | 480 | 32 | (24) | 24 | 1,036 | (28) | ||
13 | (13) | (595) | (2) | (15) | 15 | (442) | (17) | ||
(31) | 31 | (60) | (66) | 3 | (3) | (22) | (34) | ||
44 | (44) | (175) | (36) | (36) | 36 | 572 | (79) |
2025 | 2024 | |||||
Carrying amount | Fair value | Carrying amount | Fair value | |||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Non-current | ||||||
Other investments at fair value through other comprehensive income | 124 | 124 | 83 | 83 | ||
Other financial assets | 16 | 232 | 232 | 265 | 265 | |
Contingent consideration arising from business combinations | (40) | (40) | (65) | (65) | ||
Other financial liabilities | 16 | (248) | (248) | (193) | (193) | |
Current | ||||||
Other financial assets | 16 | 183 | 183 | 212 | 212 | |
Money market funds | 20 | 1,169 | 1,169 | 1,227 | 1,227 | |
Contingent consideration arising from business combinations | (18) | (18) | (6) | (6) | ||
Other financial liabilities | 16 | (173) | (173) | (264) | (264) | |
Non-current | ||||||
Loans | 21 | (7,190) | (6,991) | (7,713) | (7,261) | |
Current | ||||||
Loans | 21 | (95) | (95) | (699) | (695) |
2025 | 2024 | ||||
Assets | Liabilities | Assets | Liabilities | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
125 | (170) | 152 | (169) | ||
80 | (77) | 110 | (21) | ||
27 | (1) | 3 | (3) | ||
232 | (248) | 265 | (193) | ||
152 | (143) | 163 | (225) | ||
31 | (30) | 49 | (39) | ||
183 | (173) | 212 | (264) |
2025 | 2024 | ||||||
Within one year | Between one and two years | Later than two years | Within one year | Between one and two years | Later than two years | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3,438 | \u2014 | \u2014 | 3,378 | \u2014 | \u2014 | ||
(1,115) | (1,119) | (1,121) | (1,197) | (1,197) | (1,197) |
2025 | 2024 | ||||||||||
Contracted cash outflow | Contracted cash outflow | ||||||||||
Carrying amount | Within one year | Between one and five years | Later than five years | Total | Carrying amount | Within one year | Between one and five years | Later than five years | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
(1,786) | (1,761) | (25) | \u2014 | (1,786) | (1,713) | (1,684) | (29) | \u2014 | (1,713) | ||
(3,714) | (3,651) | (63) | \u2014 | (3,714) | (3,440) | (3,351) | (89) | \u2014 | (3,440) | ||
(1,766) | (265) | (868) | (1,324) | (2,457) | (1,841) | (260) | (891) | (1,342) | (2,493) | ||
(7,285) | (332) | (3,914) | (6,342) | (10,588) | (8,412) | (977) | (3,295) | (8,071) | (12,343) | ||
(14,551) | (15,406) | ||||||||||
277 | (7,119) | (4,776) | (1,226) | (13,121) | 315 | (5,199) | (4,932) | (1,465) | (11,596) | ||
(313) | (8,931) | (5,437) | (1,260) | (15,628) | (394) | (7,154) | (6,026) | (1,310) | (14,490) | ||
80 | (23) | (360) | \u2014 | (383) | 110 | (23) | (347) | (36) | (406) | ||
(77) | (35) | (1,123) | \u2014 | (1,158) | (21) | (35) | (141) | (1,018) | (1,194) | ||
58 | (2,078) | (205) | (93) | (2,376) | 52 | (2,977) | \u2014 | \u2014 | (2,977) | ||
(31) | (2,795) | (77) | \u2014 | (2,872) | (42) | (2,045) | (327) | \u2014 | (2,372) | ||
(6) | 20 | ||||||||||
(14,557) | (15,386) |
2025 | 2024 | |||||||||||
Currency purchased | Currency sold | Currency purchased | Currency sold | |||||||||
Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||||||
1.31 | (2,187) | 1.30 | 2,426 | 1.27 | (2,015) | 1.28 | 2,627 | |||||
1.28 | (800) | 1.27 | 1,038 | 1.27 | (1,304) | 1.26 | 1,728 | |||||
1.28 | (25) | 1.28 | 28 | 1.30 | (10) | 1.30 | 10 | |||||
1.13 | (3,930) | 1.13 | 3,512 | 1.15 | (2,944) | 1.15 | 2,550 | |||||
1.10 | (3,357) | 1.10 | 3,122 | 1.11 | (3,207) | 1.11 | 3,165 | |||||
1.06 | (1,224) | 1.06 | 1,282 | 1.06 | (1,455) | 1.06 | 1,449 | |||||
n/a | (4,054) | n/a | 4,049 | n/a | (2,243) | n/a | 2,222 | |||||
n/a | (2,072) | n/a | 2,018 | n/a | (1,814) | n/a | 1,815 | |||||
n/a | (28) | n/a | 27 | n/a | (27) | n/a | 25 | |||||
(17,677) | 17,502 | (15,019) | 15,591 |
2025 | 2024 | ||||||||
Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
62 | (62) | 480 | 32 | (24) | 24 | 1,036 | (28) | ||
13 | (13) | (595) | (2) | (15) | 15 | (442) | (17) | ||
(31) | 31 | (60) | (66) | 3 | (3) | (22) | (34) | ||
44 | (44) | (175) | (36) | (36) | 36 | 572 | (79) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
19 | 20 | |
\u2014 | 1 | |
1 | 3 | |
(3) | (5) | |
17 | 19 |
2025 | 2024 | ||||||
Gross | Provision | Net | Gross | Provision | Net | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
1,033 | \u2014 | 1,033 | 895 | \u2014 | 895 | ||
499 | (3) | 496 | 438 | (3) | 435 | ||
48 | (14) | 34 | 43 | (16) | 27 | ||
1,580 | (17) | 1,563 | 1,376 | (19) | 1,357 |
2025 | 2024 | |
64% | 62% | |
35% | 37% | |
1% | 1% |
2025 | 2024 | ||||||
Balance sheet | Amounts not offset | Net balance | Balance sheet | Amounts not offset | Net balance | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
415 | (339) | 76 | 477 | (363) | 114 | ||
(421) | 339 | (82) | (457) | 363 | (94) |
2025 | 2024 | |||||
Carrying amount | Fair value | Carrying amount | Fair value | |||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Non-current | ||||||
Other investments at fair value through other comprehensive income | 124 | 124 | 83 | 83 | ||
Other financial assets | 16 | 232 | 232 | 265 | 265 | |
Contingent consideration arising from business combinations | (40) | (40) | (65) | (65) | ||
Other financial liabilities | 16 | (248) | (248) | (193) | (193) | |
Current | ||||||
Other financial assets | 16 | 183 | 183 | 212 | 212 | |
Money market funds | 20 | 1,169 | 1,169 | 1,227 | 1,227 | |
Contingent consideration arising from business combinations | (18) | (18) | (6) | (6) | ||
Other financial liabilities | 16 | (173) | (173) | (264) | (264) | |
Non-current | ||||||
Loans | 21 | (7,190) | (6,991) | (7,713) | (7,261) | |
Current | ||||||
Loans | 21 | (95) | (95) | (699) | (695) |
2025 | 2024 | ||||
Assets | Liabilities | Assets | Liabilities | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
125 | (170) | 152 | (169) | ||
80 | (77) | 110 | (21) | ||
27 | (1) | 3 | (3) | ||
232 | (248) | 265 | (193) | ||
152 | (143) | 163 | (225) | ||
31 | (30) | 49 | (39) | ||
183 | (173) | 212 | (264) |
2025 | 2024 | ||||||
Within one year | Between one and two years | Later than two years | Within one year | Between one and two years | Later than two years | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3,438 | \u2014 | \u2014 | 3,378 | \u2014 | \u2014 | ||
(1,115) | (1,119) | (1,121) | (1,197) | (1,197) | (1,197) |
2025 | 2024 | ||||||||||
Contracted cash outflow | Contracted cash outflow | ||||||||||
Carrying amount | Within one year | Between one and five years | Later than five years | Total | Carrying amount | Within one year | Between one and five years | Later than five years | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
(1,786) | (1,761) | (25) | \u2014 | (1,786) | (1,713) | (1,684) | (29) | \u2014 | (1,713) | ||
(3,714) | (3,651) | (63) | \u2014 | (3,714) | (3,440) | (3,351) | (89) | \u2014 | (3,440) | ||
(1,766) | (265) | (868) | (1,324) | (2,457) | (1,841) | (260) | (891) | (1,342) | (2,493) | ||
(7,285) | (332) | (3,914) | (6,342) | (10,588) | (8,412) | (977) | (3,295) | (8,071) | (12,343) | ||
(14,551) | (15,406) | ||||||||||
277 | (7,119) | (4,776) | (1,226) | (13,121) | 315 | (5,199) | (4,932) | (1,465) | (11,596) | ||
(313) | (8,931) | (5,437) | (1,260) | (15,628) | (394) | (7,154) | (6,026) | (1,310) | (14,490) | ||
80 | (23) | (360) | \u2014 | (383) | 110 | (23) | (347) | (36) | (406) | ||
(77) | (35) | (1,123) | \u2014 | (1,158) | (21) | (35) | (141) | (1,018) | (1,194) | ||
58 | (2,078) | (205) | (93) | (2,376) | 52 | (2,977) | \u2014 | \u2014 | (2,977) | ||
(31) | (2,795) | (77) | \u2014 | (2,872) | (42) | (2,045) | (327) | \u2014 | (2,372) | ||
(6) | 20 | ||||||||||
(14,557) | (15,386) |
2025 | 2024 | |||||||||||
Currency purchased | Currency sold | Currency purchased | Currency sold | |||||||||
Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||||||
1.31 | (2,187) | 1.30 | 2,426 | 1.27 | (2,015) | 1.28 | 2,627 | |||||
1.28 | (800) | 1.27 | 1,038 | 1.27 | (1,304) | 1.26 | 1,728 | |||||
1.28 | (25) | 1.28 | 28 | 1.30 | (10) | 1.30 | 10 | |||||
1.13 | (3,930) | 1.13 | 3,512 | 1.15 | (2,944) | 1.15 | 2,550 | |||||
1.10 | (3,357) | 1.10 | 3,122 | 1.11 | (3,207) | 1.11 | 3,165 | |||||
1.06 | (1,224) | 1.06 | 1,282 | 1.06 | (1,455) | 1.06 | 1,449 | |||||
n/a | (4,054) | n/a | 4,049 | n/a | (2,243) | n/a | 2,222 | |||||
n/a | (2,072) | n/a | 2,018 | n/a | (1,814) | n/a | 1,815 | |||||
n/a | (28) | n/a | 27 | n/a | (27) | n/a | 25 | |||||
(17,677) | 17,502 | (15,019) | 15,591 |
2025 | 2024 | ||||||||
Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
62 | (62) | 480 | 32 | (24) | 24 | 1,036 | (28) | ||
13 | (13) | (595) | (2) | (15) | 15 | (442) | (17) | ||
(31) | 31 | (60) | (66) | 3 | (3) | (22) | (34) | ||
44 | (44) | (175) | (36) | (36) | 36 | 572 | (79) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
19 | 20 | |
\u2014 | 1 | |
1 | 3 | |
(3) | (5) | |
17 | 19 |
2025 | 2024 | ||||||
Gross | Provision | Net | Gross | Provision | Net | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
1,033 | \u2014 | 1,033 | 895 | \u2014 | 895 | ||
499 | (3) | 496 | 438 | (3) | 435 | ||
48 | (14) | 34 | 43 | (16) | 27 | ||
1,580 | (17) | 1,563 | 1,376 | (19) | 1,357 |
2025 | 2024 | |
64% | 62% | |
35% | 37% | |
1% | 1% |
2025 | 2024 | ||||
Assets | Liabilities | Assets | Liabilities | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
125 | (170) | 152 | (169) | ||
80 | (77) | 110 | (21) | ||
27 | (1) | 3 | (3) | ||
232 | (248) | 265 | (193) | ||
152 | (143) | 163 | (225) | ||
31 | (30) | 49 | (39) | ||
183 | (173) | 212 | (264) |
2025 | 2024 | ||||||
Within one year | Between one and two years | Later than two years | Within one year | Between one and two years | Later than two years | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3,438 | \u2014 | \u2014 | 3,378 | \u2014 | \u2014 | ||
(1,115) | (1,119) | (1,121) | (1,197) | (1,197) | (1,197) |
2025 | 2024 | ||||||||||
Contracted cash outflow | Contracted cash outflow | ||||||||||
Carrying amount | Within one year | Between one and five years | Later than five years | Total | Carrying amount | Within one year | Between one and five years | Later than five years | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
(1,786) | (1,761) | (25) | \u2014 | (1,786) | (1,713) | (1,684) | (29) | \u2014 | (1,713) | ||
(3,714) | (3,651) | (63) | \u2014 | (3,714) | (3,440) | (3,351) | (89) | \u2014 | (3,440) | ||
(1,766) | (265) | (868) | (1,324) | (2,457) | (1,841) | (260) | (891) | (1,342) | (2,493) | ||
(7,285) | (332) | (3,914) | (6,342) | (10,588) | (8,412) | (977) | (3,295) | (8,071) | (12,343) | ||
(14,551) | (15,406) | ||||||||||
277 | (7,119) | (4,776) | (1,226) | (13,121) | 315 | (5,199) | (4,932) | (1,465) | (11,596) | ||
(313) | (8,931) | (5,437) | (1,260) | (15,628) | (394) | (7,154) | (6,026) | (1,310) | (14,490) | ||
80 | (23) | (360) | \u2014 | (383) | 110 | (23) | (347) | (36) | (406) | ||
(77) | (35) | (1,123) | \u2014 | (1,158) | (21) | (35) | (141) | (1,018) | (1,194) | ||
58 | (2,078) | (205) | (93) | (2,376) | 52 | (2,977) | \u2014 | \u2014 | (2,977) | ||
(31) | (2,795) | (77) | \u2014 | (2,872) | (42) | (2,045) | (327) | \u2014 | (2,372) | ||
(6) | 20 | ||||||||||
(14,557) | (15,386) |
2025 | 2024 | |||||||||||
Currency purchased | Currency sold | Currency purchased | Currency sold | |||||||||
Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||||||
1.31 | (2,187) | 1.30 | 2,426 | 1.27 | (2,015) | 1.28 | 2,627 | |||||
1.28 | (800) | 1.27 | 1,038 | 1.27 | (1,304) | 1.26 | 1,728 | |||||
1.28 | (25) | 1.28 | 28 | 1.30 | (10) | 1.30 | 10 | |||||
1.13 | (3,930) | 1.13 | 3,512 | 1.15 | (2,944) | 1.15 | 2,550 | |||||
1.10 | (3,357) | 1.10 | 3,122 | 1.11 | (3,207) | 1.11 | 3,165 | |||||
1.06 | (1,224) | 1.06 | 1,282 | 1.06 | (1,455) | 1.06 | 1,449 | |||||
n/a | (4,054) | n/a | 4,049 | n/a | (2,243) | n/a | 2,222 | |||||
n/a | (2,072) | n/a | 2,018 | n/a | (1,814) | n/a | 1,815 | |||||
n/a | (28) | n/a | 27 | n/a | (27) | n/a | 25 | |||||
(17,677) | 17,502 | (15,019) | 15,591 |
2025 | 2024 | ||||||||
Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
62 | (62) | 480 | 32 | (24) | 24 | 1,036 | (28) | ||
13 | (13) | (595) | (2) | (15) | 15 | (442) | (17) | ||
(31) | 31 | (60) | (66) | 3 | (3) | (22) | (34) | ||
44 | (44) | (175) | (36) | (36) | 36 | 572 | (79) |
2025 | 2024 | ||||||
Within one year | Between one and two years | Later than two years | Within one year | Between one and two years | Later than two years | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3,438 | \u2014 | \u2014 | 3,378 | \u2014 | \u2014 | ||
(1,115) | (1,119) | (1,121) | (1,197) | (1,197) | (1,197) |
2025 | 2024 | |||||||||||
Currency purchased | Currency sold | Currency purchased | Currency sold | |||||||||
Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | Weighted average hedged rate | Notional value of currency purchased | Weighted average hedged rate | Notional value of currency sold | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||||||
1.31 | (2,187) | 1.30 | 2,426 | 1.27 | (2,015) | 1.28 | 2,627 | |||||
1.28 | (800) | 1.27 | 1,038 | 1.27 | (1,304) | 1.26 | 1,728 | |||||
1.28 | (25) | 1.28 | 28 | 1.30 | (10) | 1.30 | 10 | |||||
1.13 | (3,930) | 1.13 | 3,512 | 1.15 | (2,944) | 1.15 | 2,550 | |||||
1.10 | (3,357) | 1.10 | 3,122 | 1.11 | (3,207) | 1.11 | 3,165 | |||||
1.06 | (1,224) | 1.06 | 1,282 | 1.06 | (1,455) | 1.06 | 1,449 | |||||
n/a | (4,054) | n/a | 4,049 | n/a | (2,243) | n/a | 2,222 | |||||
n/a | (2,072) | n/a | 2,018 | n/a | (1,814) | n/a | 1,815 | |||||
n/a | (28) | n/a | 27 | n/a | (27) | n/a | 25 | |||||
(17,677) | 17,502 | (15,019) | 15,591 |
2025 | 2024 | ||||||||
Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | Change in the value of hedging instruments since 1 January | Change in the value of hedged items since 1 January | Notional amount | Carrying amount | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
62 | (62) | 480 | 32 | (24) | 24 | 1,036 | (28) | ||
13 | (13) | (595) | (2) | (15) | 15 | (442) | (17) | ||
(31) | 31 | (60) | (66) | 3 | (3) | (22) | (34) | ||
44 | (44) | (175) | (36) | (36) | 36 | 572 | (79) |
2025 | 2024 | ||||||||||
Contracted cash outflow | Contracted cash outflow | ||||||||||
Carrying amount | Within one year | Between one and five years | Later than five years | Total | Carrying amount | Within one year | Between one and five years | Later than five years | Total | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
(1,786) | (1,761) | (25) | \u2014 | (1,786) | (1,713) | (1,684) | (29) | \u2014 | (1,713) | ||
(3,714) | (3,651) | (63) | \u2014 | (3,714) | (3,440) | (3,351) | (89) | \u2014 | (3,440) | ||
(1,766) | (265) | (868) | (1,324) | (2,457) | (1,841) | (260) | (891) | (1,342) | (2,493) | ||
(7,285) | (332) | (3,914) | (6,342) | (10,588) | (8,412) | (977) | (3,295) | (8,071) | (12,343) | ||
(14,551) | (15,406) | ||||||||||
277 | (7,119) | (4,776) | (1,226) | (13,121) | 315 | (5,199) | (4,932) | (1,465) | (11,596) | ||
(313) | (8,931) | (5,437) | (1,260) | (15,628) | (394) | (7,154) | (6,026) | (1,310) | (14,490) | ||
80 | (23) | (360) | \u2014 | (383) | 110 | (23) | (347) | (36) | (406) | ||
(77) | (35) | (1,123) | \u2014 | (1,158) | (21) | (35) | (141) | (1,018) | (1,194) | ||
58 | (2,078) | (205) | (93) | (2,376) | 52 | (2,977) | \u2014 | \u2014 | (2,977) | ||
(31) | (2,795) | (77) | \u2014 | (2,872) | (42) | (2,045) | (327) | \u2014 | (2,372) | ||
(6) | 20 | ||||||||||
(14,557) | (15,386) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
19 | 20 | |
\u2014 | 1 | |
1 | 3 | |
(3) | (5) | |
17 | 19 |
2025 | 2024 | ||||||
Gross | Provision | Net | Gross | Provision | Net | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
1,033 | \u2014 | 1,033 | 895 | \u2014 | 895 | ||
499 | (3) | 496 | 438 | (3) | 435 | ||
48 | (14) | 34 | 43 | (16) | 27 | ||
1,580 | (17) | 1,563 | 1,376 | (19) | 1,357 |
2025 | 2024 | |
64% | 62% | |
35% | 37% | |
1% | 1% |
2025 | 2024 | |
\u00a3m | \u00a3m | |
19 | 20 | |
\u2014 | 1 | |
1 | 3 | |
(3) | (5) | |
17 | 19 |
2025 | 2024 | ||||||
Gross | Provision | Net | Gross | Provision | Net | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
1,033 | \u2014 | 1,033 | 895 | \u2014 | 895 | ||
499 | (3) | 496 | 438 | (3) | 435 | ||
48 | (14) | 34 | 43 | (16) | 27 | ||
1,580 | (17) | 1,563 | 1,376 | (19) | 1,357 |
2025 | 2024 | |
64% | 62% | |
35% | 37% | |
1% | 1% |
2025 | 2024 | ||||||
Balance sheet | Amounts not offset | Net balance | Balance sheet | Amounts not offset | Net balance | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
415 | (339) | 76 | 477 | (363) | 114 | ||
(421) | 339 | (82) | (457) | 363 | (94) |
Deferred tax assets | Deferred tax liabilities | Net balance at 31 December | ||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
12 | 13 | (233) | (163) | (221) | (150) | |||
78 | 66 | (48) | (56) | 30 | 10 | |||
286 | 350 | \u2014 | \u2014 | 286 | 350 | |||
252 | 256 | \u2014 | \u2014 | 252 | 256 | |||
\u2014 | \u2014 | (413) | (399) | (413) | (399) | |||
Deficits | 28 | 39 | (11) | \u2014 | 17 | 39 | ||
US deferred compensation plans | 103 | 115 | \u2014 | \u2014 | 103 | 115 | ||
107 | 86 | \u2014 | \u2014 | 107 | 86 | |||
7 | 16 | \u2014 | (3) | 7 | 13 | |||
14 | 30 | (36) | (49) | (22) | (19) | |||
887 | 971 | (741) | (670) | 146 | 301 | |||
(715) | (656) | 715 | 656 | \u2014 | \u2014 | |||
172 | 315 | (26) | (14) | 146 | 301 |
At 1 January 2025 | Foreign exchange adjustments | Acquisitions and disposals | Recognised in income | Recognised in equity | At 31 December 2025 | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(150) | 9 | \u2014 | (80) | \u2014 | (221) | |
10 | (5) | (2) | 27 | \u2014 | 30 | |
350 | (22) | \u2014 | (42) | \u2014 | 286 | |
256 | (15) | \u2014 | 11 | \u2014 | 252 | |
(399) | 28 | \u2014 | (42) | \u2014 | (413) | |
Deficits | 39 | \u2014 | \u2014 | 6 | (28) | 17 |
US deferred compensation plans | 115 | (8) | \u2014 | (4) | \u2014 | 103 |
86 | \u2014 | \u2014 | \u2014 | 21 | 107 | |
13 | \u2014 | \u2014 | \u2014 | (6) | 7 | |
(19) | (1) | \u2014 | (2) | \u2014 | (22) | |
301 | (14) | (2) | (126) | (13) | 146 |
At 1 January 2024 | Foreign exchange adjustments | Acquisitions and disposals | Recognised in income | Recognised in equity | At 31 December 2024 | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
(101) | (3) | \u2014 | (46) | \u2014 | (150) | |
39 | \u2014 | (57) | 28 | \u2014 | 10 | |
458 | 6 | \u2014 | (114) | \u2014 | 350 | |
229 | 3 | \u2014 | 24 | \u2014 | 256 | |
(352) | (7) | \u2014 | (40) | \u2014 | (399) | |
Deficits | 80 | \u2014 | \u2014 | (5) | (36) | 39 |
US deferred compensation plans | 106 | 2 | \u2014 | 7 | \u2014 | 115 |
94 | \u2014 | \u2014 | 23 | (31) | 86 | |
20 | \u2014 | \u2014 | \u2014 | (7) | 13 | |
26 | (3) | 58 | (100) | \u2014 | (19) | |
599 | (2) | 1 | (223) | (74) | 301 |
2025 | 2024 | ||||
Gross amount | Unrecognised deferred tax asset | Gross amount | Unrecognised deferred tax asset | ||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
3 | 3 | 2 | 2 | ||
693 | 119 | 502 | 114 | ||
696 | 122 | 504 | 116 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
748 | 746 | |
554 | 471 | |
82 | 107 | |
1,384 | 1,324 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
(39) | (78) | |
170 | 85 | |
8 | 114 | |
139 | 121 | |
Current tax assets | 183 | 176 |
Current tax liabilities | (44) | (55) |
139 | 121 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
410 | 604 | |
1,169 | 1,227 | |
1,859 | 1,547 | |
3,438 | 3,378 |
\u00a3m | \u00a3m | |
372 | 399 | |
593 | 636 | |
926 | 993 | |
962 | 1,032 | |
740 | 793 | |
370 | 397 | |
1,107 | 1,187 | |
295 | 317 | |
401 | 430 | |
731 | 784 | |
147 | 160 | |
546 | 585 | |
7,190 | 7,713 | |
\u2014 | 598 | |
2 | 1 | |
93 | 100 | |
95 | 699 |
\u00a3m | \u00a3m | |
372 | 399 | |
593 | 636 | |
926 | 993 | |
962 | 1,032 | |
740 | 793 | |
370 | 397 | |
1,107 | 1,187 | |
295 | 317 | |
401 | 430 | |
731 | 784 | |
147 | 160 | |
546 | 585 | |
7,190 | 7,713 | |
\u2014 | 598 | |
2 | 1 | |
93 | 100 | |
95 | 699 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
Note | 2025 | 2024 | |
\u00a3m | \u00a3m | ||
84 | 85 | ||
29 | 8 | 8 | |
1,379 | 1,287 | ||
395 | 398 | ||
55 | 81 | ||
1,921 | 1,859 | ||
1,114 | 1,084 | ||
29 | 2,234 | 1,997 | |
141 | 198 | ||
2,772 | 2,710 | ||
71 | 74 | ||
51 | 50 | ||
303 | 270 | ||
6,686 | 6,383 |
Legal, contractual and environmental | Warranties and after-sales services | Reorganisations | Other | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
260 | 67 | 4 | 32 | 363 | |
150 | 45 | 10 | 49 | 254 | |
410 | 112 | 14 | 81 | 617 | |
116 | 64 | 11 | 15 | 206 | |
(76) | (32) | (7) | (11) | (126) | |
(38) | (13) | (1) | (14) | (66) | |
8 | \u2014 | \u2014 | 1 | 9 | |
(14) | (1) | (1) | (3) | (19) | |
406 | 130 | 16 | 69 | 621 | |
Non-current | 271 | 87 | 3 | 28 | 389 |
Current | 135 | 43 | 13 | 41 | 232 |
406 | 130 | 16 | 69 | 621 |
Registered company number | Registered company number | ||||
00731159 | 02775320 | ||||
03666197 | 00782930 | ||||
02606542 | 02639638 | ||||
04333003 | 04380304 | ||||
03550759 | 02536529 |
Legal, contractual and environmental | Warranties and after-sales services | Reorganisations | Other | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
260 | 67 | 4 | 32 | 363 | |
150 | 45 | 10 | 49 | 254 | |
410 | 112 | 14 | 81 | 617 | |
116 | 64 | 11 | 15 | 206 | |
(76) | (32) | (7) | (11) | (126) | |
(38) | (13) | (1) | (14) | (66) | |
8 | \u2014 | \u2014 | 1 | 9 | |
(14) | (1) | (1) | (3) | (19) | |
406 | 130 | 16 | 69 | 621 | |
Non-current | 271 | 87 | 3 | 28 | 389 |
Current | 135 | 43 | 13 | 41 | 232 |
406 | 130 | 16 | 69 | 621 |
Equity | Non-equity | Total | |||||
Ordinary shares of 2.5p each | Special Share of \u00a31 | ||||||
Number of Shares | Nominal value | Number of Shares | Nominal value | Nominal value | |||
m | \u00a3m | \u00a3 | \u00a3m | ||||
3,239 | 81 | 1 | 1 | 81 | |||
(44) | (1) | \u2014 | \u2014 | (1) | |||
3,195 | 80 | 1 | 1 | 80 | |||
(29) | (1) | \u2014 | \u2014 | (1) | |||
3,166 | 79 | 1 | 1 | 79 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
622 | 562 | |
405 | 375 | |
1,027 | 937 |
Merger reserve | Statutory reserve | Revaluation reserve | Capital redemption reserve | Hedging reserve | Translation reserve | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
4,589 | 202 | 10 | 9 | (64) | 1,657 | 6,403 | |
Currency translation on foreign currency net investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5 | 5 |
Reclassification of cumulative currency translation reserve on divestment of interest in equity accounted investments and other business disposals | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3 | 3 |
Net amounts recognised in hedging reserve | \u2014 | \u2014 | \u2014 | \u2014 | 31 | \u2014 | 31 |
\u2014 | \u2014 | \u2014 | \u2014 | 1 | 3 | 4 | |
\u2014 | \u2014 | \u2014 | 1 | \u2014 | \u2014 | 1 | |
4,589 | 202 | 10 | 10 | (32) | 1,668 | 6,447 | |
Currency translation on foreign currency net investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (600) | (600) |
Reclassification of cumulative currency translation reserve on divestment of interest in equity accounted investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 21 | 21 |
Net amounts recognised in hedging reserve | \u2014 | \u2014 | \u2014 | \u2014 | 18 | \u2014 | 18 |
\u2014 | \u2014 | \u2014 | \u2014 | (2) | (4) | (6) | |
\u2014 | \u2014 | \u2014 | 1 | \u2014 | \u2014 | 1 | |
4,589 | 202 | 10 | 11 | (16) | 1,085 | 5,881 |
Equity | Non-equity | Total | |||||
Ordinary shares of 2.5p each | Special Share of \u00a31 | ||||||
Number of Shares | Nominal value | Number of Shares | Nominal value | Nominal value | |||
m | \u00a3m | \u00a3 | \u00a3m | ||||
3,239 | 81 | 1 | 1 | 81 | |||
(44) | (1) | \u2014 | \u2014 | (1) | |||
3,195 | 80 | 1 | 1 | 80 | |||
(29) | (1) | \u2014 | \u2014 | (1) | |||
3,166 | 79 | 1 | 1 | 79 |
2025 | 2024 | |
\u00a3m | \u00a3m | |
622 | 562 | |
405 | 375 | |
1,027 | 937 |
Merger reserve | Statutory reserve | Revaluation reserve | Capital redemption reserve | Hedging reserve | Translation reserve | Total | |
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |
4,589 | 202 | 10 | 9 | (64) | 1,657 | 6,403 | |
Currency translation on foreign currency net investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5 | 5 |
Reclassification of cumulative currency translation reserve on divestment of interest in equity accounted investments and other business disposals | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3 | 3 |
Net amounts recognised in hedging reserve | \u2014 | \u2014 | \u2014 | \u2014 | 31 | \u2014 | 31 |
\u2014 | \u2014 | \u2014 | \u2014 | 1 | 3 | 4 | |
\u2014 | \u2014 | \u2014 | 1 | \u2014 | \u2014 | 1 | |
4,589 | 202 | 10 | 10 | (32) | 1,668 | 6,447 | |
Currency translation on foreign currency net investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (600) | (600) |
Reclassification of cumulative currency translation reserve on divestment of interest in equity accounted investments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 21 | 21 |
Net amounts recognised in hedging reserve | \u2014 | \u2014 | \u2014 | \u2014 | 18 | \u2014 | 18 |
\u2014 | \u2014 | \u2014 | \u2014 | (2) | (4) | (6) | |
\u2014 | \u2014 | \u2014 | 1 | \u2014 | \u2014 | 1 | |
4,589 | 202 | 10 | 11 | (16) | 1,085 | 5,881 |
Non-cash movements | ||||||||||
As at 1 January 2025 | Cash flow1 | Foreign exchange movements | Leases | Fair value adjustments | Net finance costs | Business acquisitions | As at 31 December 2025 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
162 | (425) | \u2014 | \u2014 | 395 | 6 | \u2014 | 138 | |||
162 | (425) | \u2014 | \u2014 | 395 | 6 | \u2014 | 138 | |||
(8,412) | 919 | 567 | \u2014 | \u2014 | (359) | \u2014 | (7,285) | |||
(1,841) | 266 | 82 | (194) | \u2014 | (79) | \u2014 | (1,766) | |||
(63) | 321 | \u2014 | \u2014 | (362) | (4) | \u2014 | (108) | |||
(10,316) | 1,506 | 649 | (194) | (362) | (442) | \u2014 | (9,159) | |||
1,081 | ||||||||||
78 | ||||||||||
502 | ||||||||||
1,027 | ||||||||||
86 | ||||||||||
2,774 |
Non-cash movements | ||||||||||
As at 1 January 2024 | Cash flow1 | Foreign exchange movements | Leases | Fair value adjustments | Net finance costs | Business acquisitions | As at 31 December 2024 | |||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||
143 | (143) | \u2014 | \u2014 | 155 | 7 | \u2014 | 162 | |||
143 | (143) | \u2014 | \u2014 | 155 | 7 | \u2014 | 162 | |||
(5,111) | (2,828) | (106) | \u2014 | \u2014 | (367) | \u2014 | (8,412) | |||
(1,420) | 262 | (17) | (532) | \u2014 | (73) | (61) | (1,841) | |||
(168) | 292 | \u2014 | \u2014 | (161) | (26) | \u2014 | (63) | |||
(6,699) | (2,274) | (123) | (532) | (161) | (466) | (61) | (10,316) | |||
(2,417) | ||||||||||
141 | ||||||||||
555 | ||||||||||
937 | ||||||||||
89 | ||||||||||
(695) |
2025 | 2024 | |||||
Carrying amount | Fair value | Carrying amount | Fair value | |||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Non-current | ||||||
Other investments at fair value through other comprehensive income | 124 | 124 | 83 | 83 | ||
Other financial assets | 16 | 232 | 232 | 265 | 265 | |
Contingent consideration arising from business combinations | (40) | (40) | (65) | (65) | ||
Other financial liabilities | 16 | (248) | (248) | (193) | (193) | |
Current | ||||||
Other financial assets | 16 | 183 | 183 | 212 | 212 | |
Money market funds | 20 | 1,169 | 1,169 | 1,227 | 1,227 | |
Contingent consideration arising from business combinations | (18) | (18) | (6) | (6) | ||
Other financial liabilities | 16 | (173) | (173) | (264) | (264) | |
Non-current | ||||||
Loans | 21 | (7,190) | (6,991) | (7,713) | (7,261) | |
Current | ||||||
Loans | 21 | (95) | (95) | (699) | (695) |
2025 | 2024 | |||||
Carrying amount | Fair value | Carrying amount | Fair value | |||
Note | \u00a3m | \u00a3m | \u00a3m | \u00a3m | ||
Non-current | ||||||
Other investments at fair value through other comprehensive income | 124 | 124 | 83 | 83 | ||
Other financial assets | 16 | 232 | 232 | 265 | 265 | |
Contingent consideration arising from business combinations | (40) | (40) | (65) | (65) | ||
Other financial liabilities | 16 | (248) | (248) | (193) | (193) | |
Current | ||||||
Other financial assets | 16 | 183 | 183 | 212 | 212 | |
Money market funds | 20 | 1,169 | 1,169 | 1,227 | 1,227 | |
Contingent consideration arising from business combinations | (18) | (18) | (6) | (6) | ||
Other financial liabilities | 16 | (173) | (173) | (264) | (264) | |
Non-current | ||||||
Loans | 21 | (7,190) | (6,991) | (7,713) | (7,261) | |
Current | ||||||
Loans | 21 | (95) | (95) | (699) | (695) |
2025 | 2024 | |
\u00a3m | \u00a3m | |
1 | 4 | |
100 | 75 | |
15 | 14 | |
116 | 93 |
2025 | 2024 | ||||
Number of shares | Weighted average exercise price | Number of shares | Weighted average exercise price | ||
\u2019000 | \u00a3 | \u2019000 | \u00a3 | ||
13,438 | 6.27 | 24,422 | 5.78 | ||
(9,699) | 6.35 | (10,262) | 5.07 | ||
(84) | 6.98 | (722) | 6.81 | ||
3,655 | 6.06 | 13,438 | 6.27 | ||
3,655 | 6.06 | 6,767 | 5.18 |
2025 | 2024 | |
4.85 \u2013 7.83 | 4.38 \u2013 7.83 | |
5 | 6 |
Performance Share Plan | Restricted Share Plan | ||||
2025 | 2024 | 2025 | 2024 | ||
Number of shares | Number of shares | Number of shares | Number of shares | ||
\u2019000 | \u2019000 | \u2019000 | \u2019000 | ||
32,383 | 33,005 | 4,775 | 5,581 | ||
7,540 | 8,475 | 1,017 | 1,214 | ||
(6,882) | (7,132) | (1,892) | (1,789) | ||
(1,502) | (1,965) | (222) | (231) | ||
31,539 | 32,383 | 3,678 | 4,775 | ||
439 | 953 | 211 | 271 |
2025 | 2024 | 2025 | 2024 | ||
5 | 5 | 5 | 5 | ||
16.71 | 13.27 | 16.74 | 13.31 |
2025 | 2024 | ||
16.73 \u2013 17.78 | 9.75 \u2013 13.36 | ||
3 \u2013 7 | 3 \u2013 7 | ||
25 | 22 | ||
4 | 4 |
Sales to related parties | Purchases from related parties | Amounts owed by related parties | Amounts owed to related parties 1 | Management recharges 1 | ||||||||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||
\u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | \u00a3m | |||||
1,545 | 1,383 | 122 | 291 | 33 | 22 | 250 | 163 | \u2014 | \u2014 | |||||
142 | 131 | \u2014 | \u2014 | 29 | 19 | \u2014 | \u2014 | \u2014 | \u2014 | |||||
30 | 23 | 191 | 127 | 7 | 2 | 1,938 | 1,807 | 3 | 3 | |||||
36 | 34 | 4 | 35 | 1 | 3 | 2 | \u2014 | \u2014 | \u2014 | |||||
\u2014 | \u2014 | 79 | 18 | \u2014 | \u2014 | 172 | 187 | \u2014 | \u2014 | |||||
115 | 135 | 43 | 41 | 26 | 8 | 52 | 35 | \u2014 | \u2014 | |||||
1,868 | 1,706 | 439 | 512 | 96 | 54 | 2,414 | 2,192 | 3 | 3 |
2025 | 2024 | ||
\u00a3'000 | \u00a3'000 | ||
21,931 | 21,155 | ||
1,227 | 1,279 | ||
20,000 | 15,724 | ||
\u2014 | 596 | ||
43,158 | 38,754 |
2025 | 2024 | ||
\u00a3'000 | \u00a3'000 | ||
21,931 | 21,155 | ||
1,227 | 1,279 | ||
20,000 | 15,724 | ||
\u2014 | 596 | ||
43,158 | 38,754 |
Registered company number | Registered company number | ||||
00731159 | 02775320 | ||||
03666197 | 00782930 | ||||
02606542 | 02639638 | ||||
04333003 | 04380304 | ||||
03550759 | 02536529 |