Strategic Report Governance
Financial Statements
169
13. PROPERTY AND EQUIPMENT
Freehold land and buildings £m
Computer equipment £m
Furniture and fittings £m
Right-of-use assets £m
Total £m
Year ended 31 December 2024
Cost or valuation At 1 January 2024
10
12
9 3 – –
16
47
Acquired during the year
– –
1 – –
–
4
Disposals
(7)
(7) (4)
Revaluations
(4)
– 9
At 31 December 2024
6
13
12
40
Depreciation and impairment At 1 January 2024 Depreciation charge for the year
– – – 1 1 7
(11)
(6) (1)
(8) (1)
(25)
(1)
(3)
Disposals
– –
– –
7 –
7 1
Revaluations
At 31 December 2024
(12)
(7)
(2)
(20)
Net book value at 31 December 2024 Net book value at 1 January 2024
1 1
5 3
7 8
20 22
10
Freehold land and buildings £m
Computer equipment £m
Furniture and fittings £m
Right-of-use assets £m
Total £m
Year ended 31 December 2023
Cost or valuation At 1 January 2023
10
11
9 – – 9
15
45
Acquired during the year
– –
1 –
2
3
Disposals
(1)
(1)
At 31 December 2023
10
12
16
47
Depreciation and impairment At 1 January 2023 Depreciation charge for the year
– – –
(10)
(6)
(7) (1) (8)
(23)
(1)
–
(2)
At 31 December 2023
(11)
(6)
(25)
Net book value at 31 December 2023 Net book value at 1 January 2023
10 10
1 1
3 3
8 8
22 22
Included in freehold land and buildings is land of value £2m (2023: £2m). The Group’s freehold land and buildings are stated at their revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value measurements of freehold land and buildings as at 22 August 2024 were performed by Hurst Warne and Partners Surveyors Ltd, independent valuers not related to the Group. Hurst Warne and Partners Surveyors Ltd is registered for regulation by the Royal Institution of Chartered Surveyors (“RICS”). The valuation process relies on expert judgement which is heightened due to the macroeconomic-related uncertainty. The valuer has sufficient current local knowledge of the particular market, and the knowledge, skills and understanding to undertake the valuation competently. The fair value of the freehold land was undertaken using a residual valuation assuming a new build office to an exact equivalent size as currently exists to a modern Grade A specification, disregarding the possibility of developing any alternative uses or possible enhancements. The fair value of the buildings was determined based on open market comparable evidence of market rent in the existing condition. The fair value measurement of revalued land and buildings has been categorised as Level 3 within the fair value hierarchy based on the non-observable inputs to the valuation technique used. Revaluations during the year comprise a loss of £4m recognised in other comprehensive income (gross of tax of £1m) and the elimination of depreciation on the revaluations of £1m, reversing previously recognised gains of £4m (gross of tax of £1m). If freehold land and buildings were stated on the historical cost basis, the carrying values would be land of £4m (2023: £4m) and buildings of £4m (2023: £4m). Right-of-use assets are property assets leased by the Group.
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