OTHER RESERVES

12 Months Ended

Dec. 31, 2025

Disclosure of reserves within equity [abstract]

OTHER RESERVES

25. OTHER RESERVES

Other reserves comprise the following:

	Capital redemption reserve £m	Equity reserve £m	Hedging reserve £m	Translation reserve £m	Total other reserves £m
Balance at 1 January 2023	22	(263)	—	526	285
Foreign exchange differences on translation of foreign operations	—	—	—	(404)	(404)
Gain on net investment hedges	—	—	—	108	108
Cash flow hedges:
Fair value loss arising on hedging instruments	—	—	(43)	—	(43)
Amounts reclassified to profit or loss	—	—	44	—	44
Share of other comprehensive income of associate undertakings	—	—	—	(1)	(1)
Net movement of liabilities in respect of put options	—	198	—	—	198
Balance at 31 December 2023	22	(65)	1	229	187
Foreign exchange differences on translation of foreign operations	—	—	—	(70)	(70)
Loss on net investment hedges	—	—	—	(3)	(3)
Cash flow hedges:
Fair value loss arising on hedging instruments	—	—	(35)	—	(35)
Amounts reclassified to profit or loss	—	—	58	—	58
Loss on cost of hedging	—	—	(8)	—	(8)
Share cancellations	5	—	—	—	5
Net movement in own shares held by ESOP trusts	—	—	—	(8)	(8)
Net movement of liabilities in respect of put options	—	25	—	—	25
Balance at 31 December 2024	27	(40)	16	148	151
Foreign exchange differences on translation of foreign operations	—	—	—	(201)	(201)
Gain on net investment hedges	—	—	—	68	68
Cash flow hedges:
Fair value gain arising on hedging instruments	—	—	25	—	25
Amounts reclassified to profit or loss	—	—	(58)	—	(58)
Gain on cost of hedging	—	—	5	—	5
Net movement of liabilities in respect of put options	—	(2)	—	—	(2)
Balance at 31 December 2025	27	(42)	(12)	15	(12)

The capital redemption reserve relates entirely to share cancellations.

The equity reserve primarily relates to the net movement of liabilities in respect of put option agreements entered into by the Group as part of a business combination that allows non-controlling shareholders to sell their shares to the Group in the future. During 2023, the Company sold a portion of its ownership of FGS to KKR. As part of this transaction the previous put option granted to management shareholders was derecognised.

The hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedges less amounts reclassified to profit or loss.

The translation reserve contains the accumulated gains/(losses) on currency translation of foreign operations arising on consolidation.

The translation reserve comprises:

	2025 £m	2024 £m	2023 £m
Balance relating to continuing net investment hedges	(18)	(86)	(53)
Balance relating to discontinued net investment hedges	(38)	(38)	(68)
Balance relating to foreign exchange differences on translation of foreign operations	71	272	350
	15	148	229