v3.25.4
Property, plant and equipment and investment property
 12 Months Ended
Dec. 31, 2025
Texts Block [Abstract]  
Property, plant and equipment and investment property
10. Property, plant and equipment and investment property
 
                    
 
Owned assets
        
  All figures in £ millions
  
Investment
property
    
Right-of-
 use assets
        
Land and
buildings
    
Plant and
equipment
    
Assets in
the course of
construction
    
Total
  
Cost
 
 
 
 
 
 
 
At 1 January 2024
     214       342         165       237       9       967  
Exchange differences
     –       2         1       1       1       5  
Additions
     7       39         –       4       27       77  
Disposals and retirements
     –       (33 )        (22 )      (84 )      –       (139 ) 
Reclassifications and transfers
     –       –    
 
     7       21       (28 )      –  
At 31 December 2024
    
221
 
 
 
350
 
 
 
 
 
151
 
 
 
179
 
 
 
9
      
910
  
Exchange differences
  
 
–
 
 
 
(19
)
 
 
 
(9
)
 
 
(10
)
 
 
–
 
 
 
(38
)
Additions
  
 
11
 
 
 
41
 
 
 
 
–
 
 
 
4
 
 
 
26
 
 
 
82
 
Disposals and retirements
  
 
–
 
 
 
(38
)
 
 
 
–
 
 
 
(12
)
 
 
–
 
 
 
(50
)
Reclassifications and transfers
  
 
–
 
 
 
–
 
 
 
 
 
7
 
 
 
18
 
 
 
(25
)
 
 
–
 
At 31 December 2025
  
 
232
 
 
 
334
 
 
 
 
 
149
 
 
 
179
 
 
 
10
 
 
 
  904
 
                                  
 
Owned assets
        
 All figures in £ millions
  
Investment
property
    
Right-of-
 use assets
        
Land and
buildings
    
Plant and
equipment
    
Assets in
the course of
construction
    
Total
  
Depreciation and impairment
              
At 1 January 2024
     (135 )      (234 )        (125 )      (177 )      –       (671 ) 
Exchange differences
     –       (2 )        (2 )      (2 )      –       (6 ) 
Charge for the year
     (8 )      (35 )        (8 )      (25 )      –       (76 ) 
Disposals and retirements
     –       32         22       83       –       137  
Reclassifications and transfers
     –       –         –       –       –       –  
Reversal of impairment/
(
impairment)
     (1 )      –    
 
     –       –       –       (1 ) 
At 31 December 2024
    
(144
) 
 
 
(239
) 
 
 
 
 
(113
) 
 
 
(121
) 
 
 
–
 
 
 
(617
) 
Exchange differences
    
–
 
 
12
 
 
 
 
7
 
 
 
8
 
 
 
–
 
 
 
27
  
Charge for the year
    
(8
)
 
 
(34
)
 
 
 
(9
)
 
 
(23
)
 
 
–
 
 
 
(74
)
Disposals and retirements
    
–
 
 
32
 
 
 
 
–
 
 
 
12
 
 
 
–
 
 
 
44
  
Reclassifications and transfers
    
–
 
 
 
–
 
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
  
Reversal of impairment/(impairment)
    
11
 
 
 
6
 
 
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
17
  
At 31 December 2025
    
(141
) 
 
 
(223
)
 
 
 
 
(115
)
 
 
(124
) 
 
 
–
 
 
 
(603
) 
Carrying amounts
  
 
 
 
 
 
 
At 1 January 2024
    
79
 
 
108
 
 
 
 
40
 
 
 
60
 
 
 
9
 
 
 
296
  
At 31 December 2024
    
77
 
 
 
111
 
 
 
 
 
38
 
 
 
58
 
 
 
9
 
 
 
293
  
At 31 December 2025
    
91
 
 
111
 
 
 
 
 
34
 
 
 
55
 
 
 
10
 
 
 
  301
  
Property, plant and equipment (including investment property) assets are assessed for impairment triggers annually or when triggering events occur. In 2025, there were impairment reversals of £20m (2024
: £
1m
 charge) in respect of property assets, comprising £17m in respect of
right-of-use assets
, and £3m in relation to
owned
 
assets that were classified as held for sale, which had a carrying value of £nil at 1 January 2025 but were sold for £3m during the year
(see note 32).
Depreciation expense of
£
39
m (2024: £
42
m; 2023: £
40
m) has been included in the income statement in cost of goods sold and £
35
m (2024: £
34
m; 2023: £
39
m) in operating expenses.
The impairment reversal
 of £
20
m (2024: £
1
m
 
charge
; 2023: £
2
m
 
charge
) has been included within operating expenses within the income statement.
The recoverability of certain of the Group’s
right-of-use
assets is based on the Group’s ability to sublease vacant space. This involves the use of assumptions related to future subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. Should the future sublease outcomes be more or less favourable than the assumptions used by management, this could result in additional impairment charges or reversals of impairment charges.
In 2025
, total additions to
right-of-use-assets
are £
51
m (2024: £
46
m) including £
10
m (2024: £
7
m) in respect of investment property.
Investment property
Buildings, or portions of buildings, that are no longer occupied by the Group and are held for operating lease rental are classified as investment property. Investment property includes both
right-of-use
assets and owned assets. The Group recognised rental income of £
10
m (2024: £
9
m; 2023: £
6
m) in relation to properties classified as investment property. Investment property is measured using the cost model. As a result of the sublet agreements being entered into rece
ntly, as well as historical impairments, the fair value of investment property is deemed to be equal to the carrying value. The fair value of investment property has been determined using a discounted cash flow model. The valuation model is internally generated but uses inputs from external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The valuations require the application of judgement and involve the use of known inputs for existing contracted subleases as well as assumptions related to future potential subleases including the achievable rent, lease start dates, lease incentives such as rent free periods and the discount rate applied. The fair value measurement of investment properties has been classified as level 3 within the fair value hierarchy based on the inputs and valuation technique used. Should the future sublease outcomes be more or less favourable than the assumptions used by management, this could result in additional impairment charges or reversals of impairment charges.