XML 336 R62.htm IDEA: XBRL DOCUMENT v3.24.1
Intangible assets (Tables)
 12 Months Ended
Dec. 31, 2023
Intangible assets  
Summary of breakdown of intangible assets

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Customer

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Indefinite-lived

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Other

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Product

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Computer

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Goodwill1

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lists

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brands

​

intangibles

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development

​

software

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Total1

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£m

    

£m

    

£m

    

£m

    

£m

    

£m

    

£m

Cost

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​

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At 1 January 2022

 

1,888

 

876

 

—

 

67

 

46

 

163

 

3,040

Exchange differences

 

(72)

 

(5)

 

(107)

 

2

 

(1)

 

6

 

(177)

Additions

 

—

 

—

 

—

 

—

 

10

 

27

 

37

Disposals/retirements

 

—

 

(180)

 

—

 

(12)

 

—

 

(1)

 

(193)

Acquisition of companies and businesses1

 

3,336

 

779

 

1,292

 

23

 

—

 

11

 

5,441

Hyperinflationary adjustment

 

14

 

3

 

—

 

1

 

—

 

—

 

18

Disposal of companies and businesses

​

(1)

 

—

 

—

 

—

 

—

 

—

 

(1)

At 31 December 2022 (retrospectively adjusted)

 

5,165

 

1,473

 

1,185

 

81

 

55

 

206

 

8,165

At 1 January 2023

 

5,165

 

1,473

 

1,185

 

81

 

55

 

206

 

8,165

Exchange differences

 

(269)

 

(70)

 

(58)

 

(5)

 

—

 

(3)

 

(405)

Additions

 

—

 

—

 

—

 

—

 

10

 

34

 

44

Disposals/retirements

 

(2)

 

(15)

 

—

 

(12)

 

—

 

(8)

 

(37)

Acquisition of companies and businesses

 

172

 

69

 

—

 

11

 

—

 

—

 

252

Hyperinflationary adjustment

 

14

 

3

 

—

 

1

 

—

 

—

 

18

At 31 December 2023

 

5,080

 

1,460

 

1,127

 

76

 

65

 

229

 

8,037

Accumulated amortisation and impairment

 

  

 

  

 

  

 

  

 

  

 

  

 

  

At 1 January 2022

 

(44)

 

(635)

 

—

 

(48)

 

(32)

 

(117)

 

(876)

Exchange differences

 

1

 

(31)

 

—

 

(2)

 

—

 

(5)

 

(37)

Disposals/retirements

 

—

 

179

 

—

 

12

 

—

 

1

 

192

Hyperinflationary adjustment

 

—

​

(1)

​

—

​

—

​

—

​

—

​

(1)

Impairment charge

 

(22)

 

—

 

—

 

—

 

—

 

—

 

(22)

Amortisation charge

 

—

 

(85)

 

—

 

(6)

 

(5)

 

(22)

 

(118)

At 31 December 2022

 

(65)

 

(573)

 

—

 

(44)

 

(37)

 

(143)

 

(862)

At 1 January 2023

 

(65)

 

(573)

 

—

 

(44)

 

(37)

 

(143)

 

(862)

Exchange differences

 

12

 

26

 

—

 

2

 

—

 

3

 

43

Disposals/retirements

 

2

 

15

 

—

 

12

 

—

 

7

 

36

Hyperinflationary adjustment

​

(10)

​

(1)

​

—

​

—

​

—

​

—

​

(11)

Impairment charge

 

(3)

 

(1)

 

—

 

—

 

—

 

—

 

(4)

Amortisation charge

 

—

 

(155)

 

—

 

(9)

 

(7)

 

(26)

 

(197)

At 31 December 2023

 

(64)

 

(689)

 

—

 

(39)

 

(44)

 

(159)

 

(995)

Net book value

 

  

 

  

 

  

 

  

 

  

 

  

 

  

At 1 January 2022

 

1,844

 

241

 

—

 

19

 

14

 

46

 

2,164

At 31 December 2022 (retrospectively adjusted)

 

5,100

 

900

 

1,185

 

37

 

18

 

63

 

7,303

At 31 December 2023

 

5,016

 

771

 

1,127

 

37

 

21

 

70

 

7,042

1.

Goodwill has been retrospectively adjusted by a decrease of £16m in 2022, in accordance with IFRS 3, to reflect measurement period adjustments made relating to the Terminix acquisition (see Note B1).
Summary of estimated useful economic lives of intangible assets

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​

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Customer lists:

    

3 to 15 years

Other intangibles:

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2 to 15 years

Product development:

​

2 to 5 years

Computer software:

​

3 to 5 years
Summary of breakdown of goodwill by region

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Retrospectively

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​

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adjusted

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​

2023

​

20221

​

​

£m

​

£m

North America1

 

4,376

 

4,511

Europe (incl. LATAM)

 

243

 

241

UK & Sub-Saharan Africa

 

97

 

66

Asia & MENAT

 

189

 

196

Pacific

 

111

 

86

Total

 

5,016

 

5,100

1.

Includes £2,744m (2022 retrospectively adjusted: £2,863m) relating to the US Terminix CGU and £1,541m (2022: £1,555m) relating to the US Pest Control CGU.

2.

North America has been retrospectively adjusted in 2022, in accordance with IFRS 3, to reflect measurement period adjustments made relating to the Terminix acquisition.
Summary of key assumptions used by individual CGUs for value-in-use calculation

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2023 long-term

    

2023 pre-tax

    

2022 long-term

    

2022 pre-tax

 

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​

growth rate1

​

discount rate

​

growth rate1

​

discount rate

 

North America2

 

2.0 – 2.1

%  

9.8 – 12.4

%  

2.0

%  

8.4 – 10.3

%

Europe (incl. LATAM)

 

1.6 – 3.0

%  

8.9 – 17.8

%  

1.3 – 3.0

%  

6.7 – 15.4

%

UK & Sub-Saharan Africa

 

2.0

%  

10.5 – 12.0

%  

2.0 – 4.5

%  

8.0 – 12.3

%

Asia & MENAT

 

2.0 – 4.0

%  

8.9 – 15.6

%  

1.5 – 4.0

%  

9.7 – 13.9

%

Pacific

 

2.0 – 2.6

%  

11.3 – 12.1

%  

2.0 – 2.5

%  

10.2 – 11.0

%

1.

Source: imf.org.

2.

Key assumptions used by the US Terminix and US Pest Control CGUs were a long-term growth rate of 2.1% (2022: 2.0%) and a pre-tax discount rate of 10.1% (2022: 10.3%). For US Terminix CGU the recoverable amount exceeds the carrying amount by £1,212m (2022: not applicable ) and for the US Pest Control CGU the recoverable amount exceeds the carrying amount by £1,657m (2022: £1,692m).