EMPLOYEE BENEFIT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2025

Disclosure Of Pension Costs [abstract]

Pension Costs

The Group’s pension costs are analysed as follows:

	2025	2024	2023
	£m	£m	£m
Defined contribution plans	190	202	198
Defined benefit plans charge to operating profit	18	13	15
Pension costs (note 5)	208	215	213
Net interest expense on pension plans (note 6)	4	4	4
	212	219	217

Fair Value of Assets and Assessed Present Value of Liabilities in Pension Plans

At 31 December, the fair value of the assets in the pension plans and the assessed present value of the liabilities in the pension plans are shown in the following table:

	2025			2024
	£m	%		£m	%
Equities	19	9	%	25	10	%
Bonds	149	67	%	175	70	%
Cash	10	4	%	8	3	%
Other	44	20	%	43	17	%
Total fair value of assets	222	100	%	251	100	%
Present value of liabilities	(334)			(365)
Deficit in the plans	(112)			(114)
Irrecoverable surplus	—			—
Net liability1	(112)			(114)
Plans in surplus2	16			18
Plans in deficit	(128)			(132)

Notes

1The related deferred tax asset is discussed in note 14

2The net asset related to plans in surplus of £16 million for 31 December 2025 (2024: £18 million) is recorded in the consolidated balance sheet within other receivables and prepayments

Surplus/(Deficit) in Plans by Region

All plan assets have quoted prices in active markets with the exception of other assets.

	2025	2024
Surplus/(deficit) in plans by region	£m	£m
UK	1	1
North America	(21)	(23)
Western Continental Europe	(57)	(56)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe	(35)	(36)
Deficit in the plans	(112)	(114)

Funded and Unfunded Pension Plans By Region

The following table shows the split of the deficit at 31 December between funded and unfunded pension plans.

	2025 Surplus/ (deficit) £m	2025 Present value of liabilities £m	2024 Surplus/ (deficit) £m	2024 Present value of liabilities £m
Funded plans by region
UK	1	(9)	1	(9)
North America	9	(147)	11	(174)
Western Continental Europe	(27)	(62)	(29)	(65)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe	(5)	(26)	(3)	(23)
Deficit/liabilities in the funded plans	(22)	(244)	(20)	(271)
Unfunded plans by region
North America	(30)	(30)	(34)	(34)
Western Continental Europe	(30)	(30)	(27)	(27)
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe	(30)	(30)	(33)	(33)
Deficit/liabilities in the unfunded plans	(90)	(90)	(94)	(94)
Deficit/liabilities in the plans	(112)	(334)	(114)	(365)

Weighted Average Assumptions Used For Actuarial Valuations

The main weighted average assumptions used for the actuarial valuations at 31 December are shown in the following table:

	2025	2024	2023
	% pa	% pa	% pa
UK
Discount rate1	4.9	5.2	4.7
Rate of increase in pensions in payment	2.5	2.6	2.5
Inflation	2.9	3.2	3.1
North America
Discount rate1	5.1	5.4	4.9
Rate of increase in salaries2	n/a	n/a	n/a
Western Continental Europe
Discount rate1	3.9	3.3	3.4
Rate of increase in salaries	2.5	2.5	2.5
Rate of increase in pensions in payment	2.0	2.0	2.0
Inflation	2.0	2.0	2.0
Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe
Discount rate1	5.9	6.4	6.5
Rate of increase in salaries	5.8	6.2	6.2
Inflation	3.0	2.9	3.4

Notes

1Discount rates are based on high-quality corporate bond yields. In countries where there is no deep market in corporate bonds, the discount rate assumption has been set with regard to the yield on long-term government bonds

2The salary assumptions are no longer applicable to the US as all plans were frozen. Active participants will not accrue additional benefits for future services under these plans

Life Expectancies For Defined Benefit Pension Plans

At 31 December 2025, the life expectancies underlying the value of the accrued liabilities for the main defined benefit pension plans operated by the Group were as follows:

Years life expectancy after age 65	All plans	North America	UK	Western Continental Europe	Other1
Current pensioners (at age 65) – male	21.9	22.1	21.6	21.3	n/a
Current pensioners (at age 65) – female	23.7	23.5	23.9	24.3	n/a
Future pensioners (current age 45) – male	23.5	23.5	23.3	23.5	n/a
Future pensioners (current age 45) – female	25.3	24.9	25.7	26.2	n/a

Note

1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

Weighted Average Duration of Defined Benefit Pension Obligations and Distribution of Timing of Benefit Payments

The following table provides information on the weighted average duration of the defined benefit pension obligations and the distribution of the timing of benefit payments for the next ten years. The duration corresponds to the weighted average length of the underlying cash flows.

	All plans	North America	UK	Western Continental Europe	Other1
Weighted average duration of the defined benefit obligation (years)	7.3	6.5	5.4	9.7	5.7
Expected benefit payments over the next ten years (£m)
within 12 months	29	17	1	6	5
in 2027	28	17	1	6	4
in 2028	27	15	1	7	5
in 2029	29	17	1	7	5
in 2030	29	16	—	7	6
in the next five years	130	68	2	32	28

Note

1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

Sensitivity Analysis of Significant Actuarial Assumptions

	(Decrease)/increase in benefit obligation
	2025	2024
Sensitivity analysis of significant actuarial assumptions	£m	£m
Discount rate
Increase by 25 basis points:
UK	—	—
North America	(3)	(3)
Western Continental Europe	(2)	(2)
Other1	(1)	(1)
Decrease by 25 basis points:
UK	—	—
North America	3	3
Western Continental Europe	2	2
Other1	1	1
Rate of increase in salaries
Increase by 25 basis points:
Western Continental Europe	1	1
Other1	—	1
Decrease by 25 basis points:
Western Continental Europe	(1)	(1)
Other1	(1)	(1)
Rate of increase in pensions in payment
Increase by 25 basis points:
UK	—	—
Western Continental Europe	1	1
Decrease by 25 basis points:
UK	—	—
Western Continental Europe	(1)	(1)
Life expectancy
Increase in longevity by one additional year:
UK	1	1
North America	3	3
Western Continental Europe	3	3

Note

1Includes Asia Pacific, Latin America, Africa & Middle East and Central & Eastern Europe

Pension Expense Charged to Operating Profit, Amounts Charged to Finance Costs and Amounts Recognised in Consolidated Statement of Comprehensive Income (OCI)

The following tables show the breakdown of the pension expense between amounts charged to operating profit and amounts charged to finance costs:

	2025	2024	2023
	£m	£m	£m
Service cost1	16	12	12
Administrative expenses	2	1	3
Charge to operating profit	18	13	15
Net interest expense on pension plans	4	4	4
Charge to profit before taxation for defined benefit plans	22	17	19

Note

1Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments

The following table shows the breakdown of amounts recognised in other comprehensive income (OCI):

	2025	2024	2023
	£m	£m	£m
Return/(loss) on plan assets (excluding interest income)	4	(4)	7
Changes in demographic assumptions underlying the present value of the plan liabilities	—	—	(1)
Changes in financial assumptions underlying the present value of the plan liabilities	1	11	(14)
Experience loss arising on the plan liabilities	(6)	(4)	(1)
Change in irrecoverable surplus	—	—	—
Actuarial (loss)/gain recognised in OCI	(1)	3	(9)

Movement in Pension Plan Assets and Liabilities

The following table shows an analysis of the movement in the pension plan liabilities for each accounting period:

	2025	2024	2023
	£m	£m	£m
Plan liabilities at beginning of year	365	381	553
Service cost1	16	12	12
Interest cost	16	16	21
Actuarial loss/(gain):
Effect of changes in demographic assumptions	—	—	1
Effect of changes in financial assumptions	(1)	(11)	14
Effect of experience adjustments	6	4	1
Benefits paid	(49)	(33)	(38)
Gain due to exchange rate movements	(14)	(2)	(17)
Settlement payments2	(3)	(1)	(163)
Other3	(2)	(1)	(3)
Plan liabilities at end of year	334	365	381

Notes

1Includes current service cost, past service costs related to plan amendments and (gain)/loss on settlements and curtailments

2During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: the Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145 million, the fair value of plan assets equalled the underlying liabilities upon settlement such that there was no impact on the 2023 income statement

3    Other includes acquisitions, disposals, plan participants’ contributions and reclassifications

The following table shows an analysis of the movement in the pension plan assets for each accounting period:

	2025	2024	2023
	£m	£m	£m
Fair value of plan assets at beginning of year	251	259	431
Interest income on plan assets	12	12	16
Gain/(loss) on plan assets (excluding interest income)	4	(4)	6
Employer contributions	21	20	20
Benefits paid	(49)	(33)	(38)
(Loss)/gain due to exchange rate movements	(13)	1	(12)
Settlement payments1	(3)	(1)	(163)
Administrative expenses	(2)	(1)	(3)
Other2	1	(2)	2
Fair value of plan assets at end of year	222	251	259
Actual return on plan assets	16	8	22

Notes

1During the year ended 31 December 2023, the Group completed the winding-up of two defined benefit pension plans: the Ogilvy & Mather Group Pension and Life Assurance Plan and the JWT Pension and Life Assurance Scheme, constituting settlements under IAS 19. The settlements led to the full elimination of associated plan assets and plan liabilities of £145 million, the fair value of plan assets equalled the underlying liabilities upon settlement such that there was no impact on the 2023 income statement

2Other includes acquisitions, disposals, plan participants’ contributions and reclassifications