Investments in joint ventures and associates (Tables)

12 Months Ended

Dec. 31, 2019

Text block [abstract]

Summary of Amounts Recognized in Financial Statements

The amounts recognised in the balance sheet are as follows:

All figures in £ millions	2019		2018
Associates		7		392
Joint ventures		—		—
Associates classified as held for sale		397		—
Total		404		392

The amounts recognised in the income statement are as follows:

All figures in £ millions	2019		2018
Associates		54		43
Joint ventures		—		1
Total		54		44

Summary of Material Associates and Financial Information of Material Associate

The Group has the following material associates:

	Principal place of business	Ownership interest			Nature of relationship		Measurement method
Penguin Random House Ltd	UK/Global		25	%		See below		Equity
Penguin Random House LLC	US		25	%		See below		Equity

The summarised financial information of the material associate is detailed below:

	2019			2018
All figures in £ millions	Penguin Random House			Penguin Random House
Assets
Non-current assets		1,346			1,043
Current assets		2,273			1,929
Liabilities
Non-current liabilities		(1,357	)		(1,104	)
Current liabilities		(1,874	)		(1,546	)
Net assets		388			322
Sales		2,916			2,775
Profit for the year		205			185
Other comprehensive income/(expense)		(27	)		13
Total comprehensive income		178			198
Dividends received from associate in relation to profits		63			67
Re-capitalisation dividends received from associate		—			50

A reconciliation of the summarised financial information to the carrying value of the material associate is shown below:

	2019			2018
All figures in £ millions	Penguin Random House			Penguin Random House
Opening net assets		322			368
Adjustment on initial application of IFRS 16		(7	)		—
Exchange differences		(9	)		18
Profit for the year		205			185
Other comprehensive income/(expense)		(27	)		13
Dividends, net of tax paid		(260	)		(262	)
Capital contribution		164			—
Closing net assets		388			322
Share of net assets		97			80
Goodwill		300			307
Carrying value of associate		397			387

Summary of Individually Immaterial Associates

Information on other individually immaterial associates is detailed below:

All figures in £ millions	2019		2018
Profit/(loss) for the year		3		(3	)
Total comprehensive (expense)/income		3		(3	)

Summary of Individually Immaterial Joint Ventures

Information on joint ventures, all of which are individually immaterial, is detailed below:

All figures in £ millions	2019		2018
Profit for the year		—		1
Total comprehensive income		—		1