The Company’s principal market risks are changes in interest rates and currency exchange rates. Following evaluation of these positions, the Company selectively enters into derivative financial instruments to manage its risk exposure. The fair value of derivatives held by the Company at 31 December 2025 is estimated to be a net asset of £75 million, £80 million with respect to derivative assets and £5 million for derivative liabilities (2024: a net liability of £52 million, £5 million with respect to derivative assets and £57 million for derivative liabilities). These amounts are based on market values of equivalent instruments at the balance sheet date. Interest rate and foreign currency risks The Company’s interest rate and foreign currency risks management policies are discussed in note 23 to the consolidated financial statements. The Group's derivative financial instruments and hedge accounting are discussed in note 23 to the consolidated financial statements. Analysis of fixed and floating rate debt by currency, including the effect of interest rate and cross currency swaps, as at the balance sheet date is provided in note 23 to the consolidated financial statements. Sensitivity analyses that address the effect of interest rate and currency risks on the Group’s financial instruments is provided in note 23 to the consolidated financial statements. Credit risk The Company's credit risk exposure and management policies are discussed in note 23 to the consolidated financial statements.