The cost of inventories recognised as an expense and included in the income statement in cost of goods sold amounted to £

120

m (2024: £

129

m; 2023: £

155

m) including £

m (2024: £

m; 2023: £

m) of

inventory

provisions. None of the inventory is pledged as security. Included within the inventory balance is the estimation of the right to receive goods from contracts with customers via returns. The value of the returns asset is measured at the carrying amount of the assets at the time of sale aligned to the Group’s normal inventory valuation methodology less any expected costs to recover the asset and any expected reduction in value. Impairment charges against the inventory returns asset are £

in 2025 (2024: £

nil

; 2023: £

nil

). The returns asset all relates to finished goods. The

year-on-year

reduction

in inventories is due to

the increasing shift towards print on demand