XML 52 R39.htm IDEA: XBRL DOCUMENT

Finance cost

12 Months Ended

Dec. 31, 2022

Finance cost

C8. Finance cost


				2022		2021		2020
		Note		£m		£m		£m
Hedged interest payable on medium-term notes issued¹				39		10		16
Interest payable on bank loans and overdrafts¹				5		3		3
Interest payable on RCF¹				1		1		5
Interest payable on foreign exchange swaps²				19		14		9
Interest payable on leases		B4		10		6		7
Amortisation of discount on provisions				3		—		—
Fair value loss on hedge ineffectiveness				2		—		8
Fair value adjustment on debt repayment				—		—		4
Fair value loss on other derivatives³				—		—		26
Total finance cost				79		34		78

1.	Interest expense on financial liabilities held at amortised cost.

2.	Interest payable on foreign exchange swaps including coupon interest payable for the year was £26m (2021: £17m). £8m has been reported in other comprehensive income due to hedge accounting (2021: £4m).

3.

Fair value loss on other derivatives relates to $335m SBU entered into since February 2019 ($170m in February 2019 and $165m in July 2019) which did not qualify for hedge accounting. The instrument provided an annual interest benefit of 1.9% of the outstanding principal and was closed out in August 2020 with a full-year loss of £26m excluding interest accrued.