Operating expenses (Tables)

12 Months Ended

Dec. 31, 2025

Texts Block [Abstract]

Summary of Operating Expenses by Function


All figures in £ millions		2025				2024				2023

By function:

Cost of goods sold			1,717				1,741				1,839

Operating expenses

Distribution costs			38				43				47

Selling, marketing and product development costs			525				510				549

Administrative and other expenses			733				754				767

Reorganisation costs			–				(2	)			–

Product development impairment			87				–				–

Other income			(32	)			(40	)			(41	)

Total net operating expenses			1,351				1,265				1,322

Other net gains and losses			3				7				16

Total			3,071				3,013				3,177

Summary of Operating Expenses by Nature


All figures in £ millions		Notes				2025				2024				2023

By nature:

Royalties expensed							162				162				164

Other product costs							354				371				393

Employee benefit expense			5				1,423				1,411				1,467

Contract labour							29				56				70

Employee-related expense							47				53				60

Promotional costs							126				113				146

Depreciation and impairment of property, plant and equipment and investment property and assets held for sale 1			10				54				77				90

Amortisation and impairment of intangible assets – product development			20				364				291				284

Amortisation and impairment of intangible assets – software			11				112				117				123

Amortisation and impairment of intangible assets – other			11				41				41				46

Property and facilities							68				70				82

Technology and communications							218				215				215

Professional and outsourced services							424				395				443

Other general and administrative costs							92				72				43

Costs capitalised 2							(414	)			(398	)			(424	)

Other net gains and losses							3				7				16

Other income							(32	)			(40	)			(41	)

Total							3,071				3,013				3,177

1.	Includes £3m (2024: £nil; 2023: £nil) of impairment reversals in respect of assets held for sale.

2.	Costs capitalised relate primarily to employee costs.

Summary of Services From the Group's Auditors

During the year the Group obtained the following services from the Group’s auditors:


All figures in £ millions		2025				2024				2023

The audit of parent company and consolidated financial statements			7				7				8

The audit of the company’s subsidiaries			2				2				2

Total audit fees			9				9				10

Audit-related and other assurance services			–				–				–

Other non-audit services			–				–				–

Total other services			–				–				–

Total non-audit services			–				–				–

Total 1			9				9				10

Summary of Reconciliation Between Audit and Non-Audit Service Fees

Reconciliation between audit and

non-audit

service fees is shown below:


All figures in £ millions		2025				2024				2023

Group audit fees including fees for attestation under section 404 of the Sarbanes-Oxley Act			9				9				10

Non-audit fees			–				–				–

Total			9				9				10

1.	Includes fees in connection with the interim review, UK-required preliminary announcement procedures and elements of the controls audit required under Section 404 of the Sarbanes Oxley Act. In total this amounted to £1m in each of the years presented.