Accounting policy

Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held in the statement of financial position at fair value.

RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS

​

Note

​

2023
GBPm

  ​ ​ ​

2024
GBPm

  ​ ​ ​

2025
GBPm

Operating profit

​

2,682

2,861

3,027

Share of results of joint ventures and associates

​

(46)

(43)

(44)

Amortisation of acquired intangible assets

​

279

258

248

Amortisation of internally developed intangible assets

​

330

364

352

Amortisation of pre-publication costs

​

​

​

76

​

77

​

89

Depreciation of property, plant and equipment

​

43

34

26

Depreciation of right-of-use assets

​

65

50

37

Share based remuneration

5

56

66

63

Total non-cash items

​

849

849

815

Increase in inventories and pre-publication costs

​

(90)

(83)

(101)

(Increase)/decrease in receivables

​

(24)

(173)

14

(Decrease)/increase in payables

​

(1)

110

24

Increase in working capital

​

(115)

(146)

(63)

Cash generated from operations

​

3,370

3,521

3,735

CASH FLOW ON ACQUISITIONS

​

Note 

​

2023
GBPm

  ​ ​ ​

2024
GBPm

  ​ ​ ​

2025
GBPm

Purchase of businesses

12

​

(108)

(165)

(242)

Deferred payments relating to prior year acquisitions

​

​

(16)

(5)

(18)

Total

​

​

(124)

(170)

(260)

RECONCILIATION OF NET DEBT

​

Cash and 
cash 
equivalents 
GBPm 

​

Debt 
GBPm 

​

Derivative financial instruments in fair value hedging relationships
GBPm 

​

Cross-currency interest rate swaps not designated as hedges
GBPm 

​

Finance 
Lease 
receivable 
GBPm 

​

Total
GBPm

At 1 January 2024

155

(6,497)

(108)

-

4

(6,446)

Decrease in cash and cash equivalents

(32)

-

-

-

-

(32)

Increase in short-term bank loans, overdrafts and commercial paper

-

(461)

-

-

-

(461)

Issuance of term debt

-

(711)

-

-

-

(711)

Repayment of term debt

-

1,017

-

-

-

1,017

Repayment of leases

-

63

-

-

(2)

61

Change in net debt resulting from cash flows

(32)

(92)

-

-

(2)

​

(126)

Borrowings in disposed businesses

​

-

​

8

​

-

​

-

​

-

​

8

Remeasurement and derecognition of leases

-

(4)

-

-

-

(4)

Inception of leases

-

(32)

-

-

-

(32)

Fair value and other adjustments to debt and related derivatives

-

19

(28)

-

-

(9)

Exchange translation differences

(4)

54

(4)

-

-

46

At 1 January 2025

119

(6,544)

(140)

-

2

(6,563)

Increase in cash and cash equivalents

15

-

-

-

-

15

Increase in short-term bank loans, overdrafts and commercial paper

-

(232)

-

-

-

(232)

Issuance of term debt

-

(1,125)

-

-

-

(1,125)

Repayment of term debt

-

621

-

-

-

621

Repayment of leases

-

40

-

-

(2)

38

Change in net debt resulting from cash flows

15

(696)

-

-

(2)

(683)

Borrowings in acquired businesses

-

(2)

-

-

-

(2)

Remeasurement and derecognition of leases

-

(1)

-

-

-

(1)

Inception of leases

-

(35)

-

-

-

(35)

Fair value and other adjustments to debt and related derivatives

-

(77)

70

(5)

-

(12)

Exchange translation differences

(3)

88

10

-

-

95

At 31 December 2025

131

(7,267)

(60)

(5)

-

(7,201)