Property, plant and equipment

12 Months Ended

Dec. 31, 2025

16 Property, plant and equipment

Accounting policy

Property, plant and equipment are stated at cost less accumulated depreciation. No depreciation is provided on freehold land. Freehold buildings and long leaseholds are depreciated over their estimated useful lives up to a maximum of 50 years. Short leases are written off over the duration of the lease. Depreciation is provided on other assets on a straight-line basis over their estimated useful lives as follows:

■

land and buildings: land – not depreciated; leasehold improvements – shorter of life of lease and 10 years

■

fixtures and equipment: plant – 3 to 20 years; office furniture, fixtures and fittings – 5 to 10 years; computer systems, communication networks and equipment – 3 to 7 years


		2024			2025
		Land and buildings GBPm	Fixtures and equipment GBPm	Total GBPm	Land and buildings GBPm		Fixtures and equipment GBPm		Total GBPm
Cost
At start of year		134	373	507	110		288		398
Capital expenditure		1	19	20	1		20		21
Disposals		(25)	(104)	(129)	(9)		(50)		(59)
Exchange translation differences		-	-	-	(5)		(13)		(18)
At end of year		110	288	398	97		245		342

Accumulated depreciation
At start of year		92	316	408	74		242		316
Charge for the year		5	29	34	4		22		26
Disposals		(23)	(103)	(126)	(10)		(49)		(59)
Exchange translation differences		-	-	-	(4)		(9)		(13)
At end of year		74	242	316	64		206		270

Net book amount		36	46	82	33		39		72

Included in land and buildings is freehold land of £7m (2024: £7m).

Amounts relating to right-of-use assets under IFRS 16 can be found in note 22.