XML 55 R37.htm IDEA: XBRL DOCUMENT v3.22.1
Disposals and business closures
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Disposals and business closures
31. Disposals and business closures
The Group completed two significant disposals in 2021 and one in 2020. None of the disposals met the criteria to be considered a discontinued operation on the basis that they did not represent major lines of business or geographical areas of operations.
In February 2021, the Group completed the sale of its interests in the Pearson Institute of Higher Education (PIHE) in South Africa resulting in a
pre-tax
loss of £5m.
In October 2021, the sale of the Group’s interests in K12 Sistemas in Brazil was also completed for consideration of £108 million, resulting in a gain on sale of £84m.
There were no other business disposals in 2021 and additional losses of £
14
m relate to other disposal costs including costs related to the wind-down of certain businesses under strategic review.
In April 2020, the Group completed the sale of the remaining
25
% interest in Penguin Random House resulting in a
pre-tax
profit of £
180
m.
 
There were no other material disposals in 2020. Deferred proceeds relating to the K12 sale were received in 2021 and 2020 (see note 14).
In 2019, the only material disposal was the sale of the US K-12 business.
The table below shows a summary of the assets and liabilities disposed of:
 
All figures in £ millions
   
Notes
     
2021
    
2020
    
2019
  
Disposal of subsidiaries and associates
                                  
Intangible assets
            
 
(3
) 
  
 
—  
 
     (101 ) 
Property, plant and equipment
            
 
(48
) 
     —         —    
Investments in joint ventures and associates
            
 
—  
 
     (418 )      —    
Intangible assets – product development
            
 
(6
) 
     —         (238 ) 
Inventories
            
 
(2
) 
     —         (64 ) 
Trade and other receivables
            
 
(6
) 
     —         (70 ) 
Cash and cash equivalents (excluding overdrafts)
            
 
(24
) 
     —         (104 ) 
Net deferred income tax assets
              
—  
      
—  
       (100 ) 
Provisions for other liabilities and charges
            
 
3
 
     —         —    
Trade and other liabilities
            
 
4
 
     —         520  
Financial liabilities – borrowings
            
 
67
 
     —        
—  
  
Cumulative currency translation adjustment
      29     
 
(4
) 
     70       (4 ) 
             
 
 
    
 
 
    
 
 
  
Net assets disposed
            
 
(19
) 
     (348 )      (161 ) 
Cash proceeds
  
 
 
 
  
 
108
 
 
 
 531
 
 
 
 20
 
Deferred proceeds
  
 
 
 
  
 
—  
 
 
 
—  
 
 
 
180
 
Costs of disposal
            
 
(24
) 
     1       (23 ) 
             
 
 
    
 
 
    
 
 
  
Gain on disposal
            
 
65
 
     184       16  
             
 
 
    
 
 
    
 
 
  
All figures in £ millions
   
 
     
2021
     
2020
     
2019
  
Cash flow from disposals
                                    
Proceeds – current year disposals
            
 
108
 
      531        20  
Proceeds – prior year disposals
            
 
16
 
      105        —    
Cash and cash equivalents disposed
            
 
(24
) 
      —          (104 ) 
Costs and other disposal liabilities paid
            
 
(17
) 
      (5 )       (17 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Net cash inflow
            
 
83
 
      631        (101 ) 
    
 
 
     
 
 
     
 
 
     
 
 
  
Analysed as:
                                    
Cash inflow from sale of subsidiaries
            
 
83
 
      100        (101 ) 
Cash inflow from disposal of joint ventures and associates
            
 
—  
 
      531        —