Intangible assets (Tables)
Dec. 31, 2025
All figures in £ millions |
Goodwill |
Software |
Acquired customer lists, contracts and relationships |
Acquired trademarks and brands |
Acquired publishing rights |
Other intangibles acquired |
Total |
|||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
At 1 January 2024 |
2,434 | 1,137 | 580 | 184 | 100 | 444 | 4,879 | |||||||||||||||||||||
Exchange differences |
2 | 12 | 6 | (7 | ) | – | (20 | ) | (7 | ) | ||||||||||||||||||
Additions – internal development |
– | 91 | – | – | – | – | 91 | |||||||||||||||||||||
Additions – purchased |
– | – | – | – | – | – | – | |||||||||||||||||||||
Disposals and retirements |
– | (89 | ) | – | (1 | ) | – | (5 | ) | (95 | ) | |||||||||||||||||
Acquisition of business (note 30) |
1 | – | – | – | – | 1 | 2 | |||||||||||||||||||||
Transfers |
– | (5 | ) | – | – | – | – | (5 | ) | |||||||||||||||||||
At 31 December 2024 |
2,437 |
1,146 |
586 |
176 |
100 |
420 |
4,865 |
|||||||||||||||||||||
Exchange differences |
(114 |
) |
(56 |
) |
(33 |
) |
(6 |
) |
(3 |
) |
(13 |
) |
(225 |
) | ||||||||||||||
Additions – internal development |
– |
105 |
– |
– |
– |
– |
105 |
|||||||||||||||||||||
Additions – purchased |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||
Disposals and retirements |
– |
(15 |
) |
– |
– |
– |
– |
(15 |
) | |||||||||||||||||||
Acquisition of business (note 30) |
102 |
– |
54 |
3 |
– |
14 |
173 |
|||||||||||||||||||||
Transfers |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||
At 31 December 2025 |
2,425 |
1,180 |
607 |
173 |
97 |
421 |
4,903 |
|||||||||||||||||||||
All figures in £ millions |
Goodwill |
Software |
Acquired customer lists, contracts and relationships |
Acquired trademarks and brands |
Acquired publishing rights |
Other intangibles acquired |
Total |
|||||||||||||||||||||
Amortisation and impairment |
||||||||||||||||||||||||||||
At 1 January 2024 |
– | (765 | ) | (434 | ) | (155 | ) | (99 | ) | (335 | ) | (1,788 | ) | |||||||||||||||
Exchange differences |
– | (8 | ) | (6 | ) | 7 | – | 18 | 11 | |||||||||||||||||||
Charge for the year |
– | (117 | ) | (17 | ) | (6 | ) | – | (18 | ) | (158 | ) | ||||||||||||||||
Disposals and retirements |
– | 89 | – | 1 | – | 5 | 95 | |||||||||||||||||||||
Transfers |
– | 1 | – | – | – | – | 1 | |||||||||||||||||||||
At 31 December 2024 |
– |
(800 |
) |
(457 |
) |
(153 |
) |
(99 |
) |
(330 |
) |
(1,839 |
) | |||||||||||||||
Exchange differences |
– |
38 |
26 |
5 |
3 |
11 |
83 |
|||||||||||||||||||||
Charge for the year |
– |
(112 |
) |
(16 |
) |
(5 |
) |
– |
(20 |
) |
(153 |
) | ||||||||||||||||
Disposals and retirements |
– |
15 |
– |
– |
– |
– |
15 |
|||||||||||||||||||||
Transfers |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||
At 31 December 2025 |
– |
(859 |
) |
(447 |
) |
(153 |
) |
(96 |
) |
(339 |
) |
(1,894 |
) | |||||||||||||||
Carrying amounts |
||||||||||||||||||||||||||||
At 1 January 2024 |
2,434 |
372 |
146 |
29 |
1 |
109 |
3,091 |
|||||||||||||||||||||
At 31 December 2024 |
2,437 |
346 |
129 |
23 |
1 |
90 |
3,026 |
|||||||||||||||||||||
At 31 December 2025 |
2,425 |
321 |
160 |
20 |
1 |
82 |
3,009 |
|||||||||||||||||||||
 Key areas of estimation |
The valuation of acquired intangible assets recognised on the acquisition of a business. The valuation is based on a number of assumptions, including estimations of future business performance.
The
range of useful economic lives for each major class of intangible asset (excluding goodwill and software) is shown below: At 31 December 2025 Useful economic life | ||
Class of intangible asset |
||
Acquired customer lists, contracts and relationships |
3-20 years | |
Acquired trademarks and brands |
2-20 years | |
Acquired publishing rights |
5-20 years | |
Other intangibles acquired |
2-20 years | |
The expected amortisation profile of acquired intangible assets is shown below:
At 31 December 2025 |
||||||||||||||||||||
All figures in £ millions |
One to five years |
Six to ten years |
Eleven to fifteen years |
Sixteen to twenty years |
Total |
|||||||||||||||
Class of intangible asset |
||||||||||||||||||||
Acquired customer lists, contracts and relationships |
72 |
50 |
34 |
4 |
160 |
|||||||||||||||
Acquired trademarks and brands |
16 |
4 |
– |
– |
20 |
|||||||||||||||
Acquired publishing rights |
1 |
– |
– |
– |
1 |
|||||||||||||||
Other intangibles acquired |
69 |
9 |
4 |
– |
82 |
|||||||||||||||
All figures in £ millions |
2025 Goodwill |
2024 Goodwill |
||||||
Assessment & Qualifications |
1,288 |
1,369 |
||||||
Virtual Learning |
397 |
426 |
||||||
English Language Learning |
250 |
246 |
||||||
Enterprise Learning & Skills |
338 |
330 |
||||||
Higher Education |
152 |
66 |
||||||
Total |
2,425 |
2,437 | ||||||
The table below shows the key assumptions used by management in the value in use calculations.
2025 |
2024 |
|||||||||||||||
Discount rate |
Perpetuity growth rate |
Discount rate |
Perpetuity growth rate |
|||||||||||||
Assessment & Qualifications |
10.5 |
2.0 |
11.0% | 2.0% | ||||||||||||
Virtual Learning |
10.3 |
2.0 |
10.9% | 2.0% | ||||||||||||
English Language Learning |
12.6 |
3.5 |
13.2% | 3.5% | ||||||||||||
Enterprise Learning & Skills |
10.6 |
2.0 |
10.8% | 2.0% | ||||||||||||
Higher Education |
10.5 |
2.0 |
10.8% | 2.0% | ||||||||||||