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Derivative financial instruments and hedge accounting (Tables)
 12 Months Ended
Dec. 31, 2023
Statement [line items]  
Summary of Outstanding Derivative Financial Instruments
The Group’s approach to the management of financial risks is set out in note 19. The Group’s outstanding derivative financial instruments are as follows:
 
                     
 
2023
 
                          
2022
 
  
All figures in £ millions
 
   
 
Gross
notional
amounts
 
     
 Assets
 
     
Liabilities
 
          
 
Gross
notional
amounts
 
     
 Assets
 
     
Liabilities
 
  
Interest rate derivatives – in a fair value hedge relationship   
 
174
 
   
 
–
 
   
 
(5
) 
        177        –        (11 ) 
Interest rate derivatives – not in a hedge relationship   
 
356
 
   
 
14
 
   
 
(1
) 
        260        19        –  
Cross-currency rate derivatives – in a hedge relationship   
 
352
 
   
 
26
 
   
 
(31
) 
        83        34        (43 ) 
Cross-currency rate derivatives – not in a hedge relationship   
 
87
 
   
 
–
 
   
 
(1
) 
        –        –        –  
FX derivatives – in a hedge relationship   
 
420
 
   
 
7
 
   
 
–
 
        355        1        (9 ) 
FX derivatives – not in a hedge relationship   
 
526
 
   
 
1
 
   
 
(5
) 
  
 
      573        5        (2 ) 
Total
   
 
1,915
 
   
 
48
 
   
 
(43
) 
  
 
      1,448        59        (65 ) 
Analysed as expiring:
                    
In less than one year
   
 
1,047
 
   
 
16
 
   
 
(5
) 
        1,028        16        (11 ) 
Later than one year and not later than five years   
 
868
 
   
 
32
 
   
 
(38
) 
  
 
      420        43        (54 ) 
Total
   
 
1,915
 
   
 
48
 
   
 
(43
) 
  
 
      1,448        59        (65 ) 
Summary of Interest Rate and Cross Currency Swaps
The Group uses a combination of interest rate and cross-currency swaps to convert its
€
300m debt.
 
Receive Notional
   
Receive coupon
   
FX rate
   
Notional
   
Pay coupon  
€
100m		    1.375%    GBPEUR: 1.1295    £87m    3.51% 
€
181m		    1.375%    GBPUSD: 1.206    £157m    3.402% 
            USD Libor 
€
19m		    1.375%    GBPUSD: 1.206    £16m    +1.36% 
Summary of Instruments to Hedge Exposures to Changes in Interest Rates and Foreign Currency Risk Associated with Borrowings
The Group held the following instruments to hedge exposures to changes in interest rates and foreign currency risk associated with borrowings:
 
       
                
2023 
 
  
All figures in £ millions   
Carrying
amount of
hedging
 instruments
    
Change in fair
value of hedging
 instrument used to
determine hedge
ineffectiveness
    
Nominal 
amounts 
of hedging 
 instruments 
  
Derivative financial instruments for interest rate risk   
 
(6
) 
  
 
5
 
  
 
174 
 
Derivative financial instruments for currency risk   
 
26
 
  
 
(7
) 
  
 
174 
 
 
       
                  
2022 
 
  
All figures in £ millions   
Carrying
amount of
hedging
 instruments
    
Change in fair
value of hedging
 instrument used to
determine hedge
ineffectiveness
    
Nominal 
amounts 
of hedging 
 instruments 
  
Derivative financial instruments for interest rate risk      (11 )      (16 )      177   
Derivative financial instruments for currency risk      33       9       266   
Summary of Amounts at the Reporting Rate Relating to Items Designated as Hedge Items
The amounts at the reporting date relating to items designated as hedge items were as follows:
 
                                    
 
2023 
 
  
All figures in £ millions   
Carrying
amount of
hedged items
    
Accumulated
amount of fair
value hedge
adjustments
on the hedged
item included
in the carrying
amount
     
Change in
fair value
of hedged
item used to
determine
hedge
ineffectiveness
     
Hedge
ineffectiveness
     
Line item 
in profit or 
loss that 
includes hedge 
ineffectiveness 
  
Interest rate risk
              
Financial liabilities – borrowings   
 
(169
) 
  
 
6
 
   
 
5
 
   
 
1
 
   
 
Finance 
costs 
 
 
Currency risk
              
Financial liabilities – borrowings   
 
(169
) 
  
 
n/a
 
   
 
5
 
   
 
–
 
   
 
n/a 
 
 
                                  
 
2022 
 
  
All figures in £ millions   
Carrying
amount of
hedged items
    
Accumulated
amount of fair
value hedge
adjustments
on
the hedged
item included
in the carrying
amount
     
Change in
fair value
of hedged
item used to
determine
hedge
ineffectiveness
    
Hedge
ineffectiveness
    
Line item 
in profit or 
loss that 
includes hedge 
ineffectiveness 
  
Interest rate risk
            
Financial liabilities – borrowings      (167 )      11        15       (1 )     
Finance  costs  
 
Currency risk
            
Financial liabilities – borrowings      (167 )      n/a        (14 )      –       n/a   
Summary of Amounts Related to Items Designated as Hedging Instruments
The amounts related to items designated as hedging instruments were as follows:
 
                                    
 
2023 
 
  
All figures in £ millions   
Carrying
amount of
hedging
instruments
    
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
     
Nominal
amounts
of hedging
instruments
     
Hedging
gains/(losses)
recognised
in OCI
     
Hedge 
ineffectiveness 
recognised in 
profit or loss 
  
Derivative financial instruments   
 
(24
) 
  
 
26
 
   
 
599
 
   
 
26
 
   
 
– 
 
Financial liabilities – borrowings   
 
–
 
  
 
–
 
   
 
–
 
   
 
–
 
   
 
– 
 
 
                                 
 
2022 
 
  
All figures in £ millions   
Carrying
amount of
hedging
instruments
    
Change in
value of hedging
instrument used to
determine hedge
ineffectiveness
    
Nominal
amounts
of hedging
instruments
    
Hedging
gains/(losses)
recognised
in OCI
    
Hedge 
ineffectiveness 
recognised in 
profit or loss 
  
Derivative financial instruments      (50 )      (31 )      172       (31 )      –   
Financial liabilities – borrowings      (89 )      (5 )      (88 )      (5 )      –   
Disclosure of Derivative Financial Assets and Liabilities Subject to Offsetting Arrangements Derivative financial assets and liabilities subject to offsetting arrangements are as follows:
 
               
               
2023 
                       2022  
All figures in £ millions  
Gross
derivative
assets
    
Gross
derivative
liabilities
    
Net 
derivative 
assets/ 
liabilities 
         
Gross
derivative
assets
    
Gross
derivative
liabilities
    
 
Net
derivative
assets/
liabilities
  
Counterparties in an asset position  
 
26
 
  
 
(14
) 
  
 
12
 
       30       (17 )      13  
Counterparties in a liability position  
 
22
 
  
 
(29
) 
  
 
(7
) 
  
 
     29       (48 )      (19 ) 
Total as presented in the balance sheet
  
 
48
 
  
 
(43
) 
  
 
5
 
  
 
     59       (65 )      (6 )