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Financial risk management and derivative financial instruments (Tables) | 12 Months Ended
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Dec. 31, 2022
Text Block [Abstract] |
Summary of Derivative Financial Instruments | Derivatives are recorded in the Group statement of financial position at fair value (see note 24) as follows:
De r ivatives |  |  |  |  | 2022 $m |  |  |  |  |  | 2021 $m |
Currency swaps |  |  |  |  |  |  | (4 | ) |  |  |  |  |  |  | (62 | )
Analysed as: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  |  |  |  |  |  | 7 |  |  |  |  |  |  |  | – |
Non-current liabilities |  |  |  |  |  |  | (11 | ) |  |  |  |  |  |  | (62 | )
|  |  |  |  |  |  | (4 | ) |  |  |  |  |  |  | (62 | )
Disclosure of Detailed Information About Hedging Instruments | Currency swaps have been transacted to swap the proceeds from the euro bonds to sterling as follows:
Date of designation |  |  |  |  | Pay leg |  | Interest rate |  | Receive leg |  | Interest rate |  | Maturity |  | Risk |  | Hedge type |  | Hedged item
November 2018 |  |  |  |  |  | £436m |  | 3.5% |  | € 500m |  | 2.125% |  | May 2027 |  | Foreign exchange |  | Cash flow |  | € 500m 2.125% bonds 2027
October 2020 |  |  |  |  |  | £454m |  | 2.7% |  | € 500m |  | 1.625% |  | October 2024 |  | Foreign exchange |  | Cash flow |  | € 500m 1.625% bonds 2024
Summary of Interest and Foreign Exchange Risk Sensitivities |
|  |  |  |  | 2022 $m |  |  |  |  |  | 2021 $m |  |  |  |  |  | 2020 $m |
Increase in profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sterling: US dollar exchange rate |  | $0.05 fall |  |  |  |  |  |  | (2.9 | ) |  |  |  |  |  |  | 7.0 |  |  |  |  |  |  |  | 5.9 |
Euro: US dollar exchange rate |  | $0.05 fall |  |  |  |  |  |  | (0.3 | ) |  |  |  |  |  |  | 0.2 |  |  |  |  |  |  |  | 0.3 |
US dollar interest rates |  | 1% increase |  |  |  |  |  |  | 4.2 |  |  |  |  |  |  |  | 7.1 |  |  |  |  |  |  |  | 2.2 |
Sterling interest rates |  | 1% increase |  |  |  |  |  |  | 3.6 |  |  |  |  |  |  |  | 5.2 |  |  |  |  |  |  |  | 12.9 |
Decrease in net liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sterling: US dollar exchange rate |  | $0.05 fall |  |  |  |  |  |  | 26.5 |  |  |  |  |  |  |  | 29.1 |  |  |  |  |  |  |  | 30.2 |
Euro: US dollar exchange rate |  | $0.05 fall |  |  |  |  |  |  | 49.6 |  |  |  |  |  |  |  | 49.7 |  |  |  |  |  |  |  | 50.6 |
Sterling: euro exchange rate |  | € 0.05 fall |  |  |  |  |  |  | 60.2 |  |  |  |  |  |  |  | 67.4 |  |  |  |  |  |  |  | 68.2 |
Summary of amended covenant test levels for syndicated and bilateral facilities |
|  |  |  |  | 31 December 2022 |  |  | 31 December 2020 and 2021 |
Covenant test levels for RCF |  |  |  |  |  |  |  |  |  |  |  |
Leverage |  |  |  |  |  |  | <4.0x |  |  |  | waived |
Interest cover |  |  |  |  |  |  | >3.5x |  |  |  | waived |
Liquidity |  |  |  |  |  |  | n/a |  |  |  | $400m a |
a | Defined as unrestricted cash and cash equivalents (net of bank overdrafts) plus undrawn facilities with a remaining term of at least six months.
Summary of covenant tests |
|  |  |  |  |  |  | 2022 |  |  |  |  |  |  |  | 2021 | a |  |  |  |  |  |  | 2020 | a
Covenant measures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Covenant EBITDA ($m) |  |  |  |  |  |  | 896 |  |  |  |  |  |  |  | 601 |  |  |  |  |  |  |  | 272 |
Covenant net debt ($m) |  |  |  |  |  |  | 1,898 |  |  |  |  |  |  |  | 1,801 |  |  |  |  |  |  |  | 2,375 |
Covenant interest payable ($m) |  |  |  |  |  |  | 109 |  |  |  |  |  |  |  | 133 |  |  |  |  |  |  |  | 111 |
Leverage |  |  |  |  |  |  | 2.12 |  |  |  |  |  |  |  | 3.00 |  |  |  |  |  |  |  | 8.73 |
Interest cover |  |  |  |  |  |  | 8.22 |  |  |  |  |  |  |  | 4.52 |  |  |  |  |  |  |  | 2.45 |
Liquidity ($m) |  |  |  |  |  |  | n/a |  |  |  |  |  |  |  | 2,655 |  |  |  |  |  |  |  | 2,925 |
a | At 31 December 2021 and 2020, the leverage and interest covenants under the previous facilities were waived and replaced with a liquidity requirement of $400m.
Summary of Undiscounted Contractual Cash Flows of Non-Derivative Financial Liabilities |
31 December 2022 |  |  |  |  | Less than 1 year $m |  |  | Between 1 and 2 years $m |  |  | Between 2 and 5 years $m |  |  | More than 5 years $m |  |  | Total $m |
Non-derivative financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bank overdrafts |  |  |  |  |  |  | 55 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 55 |
€ 500m 1.625% bonds 2024 |  |  |  |  |  |  | 9 |  |  |  | 543 |  |  |  | – |  |  |  | – |  |  |  | 552 |
£300m 3.75% bonds 2025 |  |  |  |  |  |  | 14 |  |  |  | 14 |  |  |  | 375 |  |  |  | – |  |  |  | 403 |
£350m 2.125% bonds 2026 |  |  |  |  |  |  | 9 |  |  |  | 9 |  |  |  | 439 |  |  |  | – |  |  |  | 457 |
€ 500m 2.125% bonds 2027 |  |  |  |  |  |  | 11 |  |  |  | 11 |  |  |  | 568 |  |  |  | – |  |  |  | 590 |
£400m 3.375% bonds 2028 |  |  |  |  |  |  | 16 |  |  |  | 16 |  |  |  | 49 |  |  |  | 498 |  |  |  | 579 |
Lease liabilities |  |  |  |  |  |  | 53 |  |  |  | 50 |  |  |  | 126 |  |  |  | 3,201 |  |  |  | 3,430 |
Trade and other payables (excluding deferred and contingent purchase consideration) |  |  |  |  |  |  | 660 |  |  |  | 1 |  |  |  | 1 |  |  |  | 2 |  |  |  | 664 |
Deferred and contingent purchase consideration |  |  |  |  |  |  | – |  |  |  | 13 |  |  |  | 39 |  |  |  | 42 |  |  |  | 94 |
31 December 2021 |  |  |  |  | Less than 1 year $m |  |  | Between 1 and 2 years $m |  |  | Between 2 and 5 years $m |  |  | More than 5 years $m |  |  | Total $m |
Non-derivative financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bank overdrafts |  |  |  |  |  |  | 59 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 59 |
£173m 3.875% bonds 2022 |  |  |  |  |  |  | 241 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 241 |
€ 500m 1.625% bonds 2024 |  |  |  |  |  |  | 9 |  |  |  | 9 |  |  |  | 575 |  |  |  | – |  |  |  | 593 |
£300m 3.75% bonds 2025 |  |  |  |  |  |  | 15 |  |  |  | 15 |  |  |  | 435 |  |  |  | – |  |  |  | 465 |
£350m 2.125% bonds 2026 |  |  |  |  |  |  | 10 |  |  |  | 10 |  |  |  | 502 |  |  |  | – |  |  |  | 522 |
€ 500m 2.125% bonds 2027 |  |  |  |  |  |  | 12 |  |  |  | 12 |  |  |  | 36 |  |  |  | 578 |  |  |  | 638 |
£400m 3.375% bonds 2028 |  |  |  |  |  |  | 18 |  |  |  | 18 |  |  |  | 55 |  |  |  | 575 |  |  |  | 666 |
Lease liabilities |  |  |  |  |  |  | 58 |  |  |  | 49 |  |  |  | 123 |  |  |  | 3,212 |  |  |  | 3,442 |
Trade and other payables (excluding deferred and contingent purchase consideration) |  |  |  |  |  |  | 550 |  |  |  | 2 |  |  |  | 1 |  |  |  | 2 |  |  |  | 555 |
Deferred and contingent purchase consideration |  |  |  |  |  |  | – |  |  |  | – |  |  |  | 52 |  |  |  | 42 |  |  |  | 94 |
Summary of Undiscounted Contractual Cash Flows of Derivative Financial Liabilities |
Derivative financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency swaps hedging € 500m 1.625% bonds 2024 outflows |  |  |  |  |  |  | 14 |  |  |  | 561 |  |  |  | – |  |  |  | – |  |  |  | 575 |
Currency swaps hedging € 500m 1.625% bonds 2024 inflows |  |  |  |  |  |  | (9 | ) |  |  | (543 | ) |  |  | – |  |  |  | – |  |  |  | (552 | )
Currency swaps hedging € 500m 2.125% bonds 2027 outflows |  |  |  |  |  |  | 18 |  |  |  | 18 |  |  |  | 571 |  |  |  | – |  |  |  | 607 |
Currency swaps hedging € 500m 2.125% bonds 2027 inflows |  |  |  |  |  |  | (11 | ) |  |  | (11 | ) |  |  | (568 | ) |  |  | – |  |  |  | (590 | )
Derivative financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency swaps hedging € 500m 1.625% bonds 2024 outflows |  |  |  |  |  |  | 16 |  |  |  | 16 |  |  |  | 628 |  |  |  | – |  |  |  | 660 |
Currency swaps hedging € 500m 1.625% bonds 2024 inflows |  |  |  |  |  |  | (9 | ) |  |  | (9 | ) |  |  | (575 | ) |  |  | – |  |  |  | (593 | )
Currency swaps hedging € 500m 2.125% bonds 2027 outflows |  |  |  |  |  |  | 21 |  |  |  | 21 |  |  |  | 62 |  |  |  | 598 |  |  |  | 702 |
Currency swaps hedging € 500m 2.125% bonds 2027 inflows |  |  |  |  |  |  | (12 | ) |  |  | (12 | ) |  |  | (36 | ) |  |  | (578 | ) |  |  | (638 | )
Disclosure of Short-term Deposits by Counterparty Credit Rating | The table below analyses the Group’s short-term deposits, money market funds and repurchase agreement collateral classified as cash and cash equivalents by counterparty credit rating:
31 December 2022 |  |  |  |  | AAA $m |  |  | AA+ $m |  |  | AA $m |  |  | AA- $m |  |  | A+ $m |  |  | A $m |  |  | A- $m |  |  | BBB+ and below $m |  |  | Total $m |
Short-term deposits |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 66 |  |  |  | 127 |  |  |  | 141 |  |  |  | 50 |  |  |  | 37 |  |  |  | 421 |
Money market funds |  |  |  |  |  |  | 360 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 360 |
Repurchase agreement collateral |  |  |  |  |  |  | 22 |  |  |  | 2 |  |  |  | 6 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 30 |
31 December 2021 |  |  |  |  | AAA $m |  |  | AA+ $m |  |  | AA $m |  |  | AA- $m |  |  | A+ $m |  |  | A $m |  |  | A- $m |  |  | BBB+ $m |  |  | Total $m |
Short-term deposits |  |  |  |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 87 |  |  |  | 45 |  |  |  | 169 |  |  |  | – |  |  |  | – |  |  |  | 301 |
Money market funds |  |  |  |  |  |  | 1,025 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1,025 |

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