v3.25.4
Intangible Assets - Product Development
 12 Months Ended
Dec. 31, 2025
Texts Block [Abstract]  
Intangible assets – product development
20. Intangible assets – product development
 
  All figures in £ millions
   
   2025
    
   2024
  
Cost
      
At 1 January
   
 
2,514
 
  
   2,517  
Exchange differences
   
 
(135
)
  
   17  
Additions
   
 
285
 
  
   284  
Disposals and retirements
   
 
(38
)
 
  
   (309 ) 
Transfers
   
 
–
 
  
   5  
 
 
 
At 31 December
   
 
2,626
 
  
   2,514  
 
 
 
Amortisation
   
  
At 1 January
   
 
(1,567
)
  
   (1,570 ) 
Exchange differences
   
 
89
 
  
   (14 ) 
Charge for the year
   
 
(276
)
  
   (287 ) 
Impairment
   
 
(88
)
  
   (4 ) 
Disposals and retirements
   
 
38
 
  
   309  
Transfers
   
 
–
 
  
   (1 ) 
 
 
 
At 31 December
   
 
(1,804
)
  
   (1,567 ) 
 
 
 
Carrying amounts at 31 December
   
 
822
 
  
   947  
P
roduct development assets are assessed for impairment triggers on an annual basis or when triggering events occur. In 2025, of the £
88
m (2024: £
4
m; 2023: £
4
m) impairment charges, £
87
m
 (2024: £
nil
; 2023: £
nil)
have been recognised relating to the impairment of product development assets as a result of courseware platform convergence. The impairment charge is within Higher Education. The impairment assessment is based on the value in use of the cash-generating unit (CGUs) within the Higher Education aggregation of CGUs that these product development assets belong to. The value in use has been determined using the same methodology as in the assessment of the impairment tests for CGUs containing goodwill set out in note 11. The key assumption in the value in use calculation is the cash flows attributable to the relevant CGU that these product development assets belong to. The other assumptions used in the value in use calculation, including discount rates and assumptions relating to sales and profits are in line with the assumptions for Higher Education set out in note 11. The impairment charge is not sensitive to reasonably possible changes in key assumptions.