5. Exceptional items | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | $'m | | $'m | | $'m | | $'m | Start-up related and other costs | | 1 | | 3 | | 2 | | 5 | Impairment - property, plant and equipment | | — | | 10 | | — | | 10 | Exceptional items – cost of sales | | 1 | | 13 | | 2 | | 15 | Transaction-related and other costs | | 3 | | 1 | | 6 | | 2 | Exceptional items – SG&A expenses | | 3 | | 1 | | 6 | | 2 | Exceptional finance expense | | 2 | | 8 | | 5 | | 2 | Exceptional items – finance expense | | 2 | | 8 | | 5 | | 2 | Exceptional income tax credit | | (1) | | (1) | | (1) | | (1) | Total exceptional items, net of tax | | 5 | | 21 | | 12 | | 18 |
Exceptional items are those that in management’s judgment need to be disclosed by virtue of their size, nature or incidence. 2026 A net charge of $12 million has been recognized as exceptional items in the six months ended June 30, 2026, primarily comprising: | ● | $2 million start-up related and other costs, principally in Europe relating to the Group’s investment programs. |
| ● | $6 million of transaction-related and other costs, primarily comprised of legal fees incurred in respect of litigation proceedings taken against a customer in the Americas which progressed to trial during the period (note 16), and professional advisory fees and other costs incurred in respect of the Group’s transformation initiatives. |
| ● | $5 million exceptional finance expense relates to a loss on the movement in fair value of the Earnout Shares (note 12). |
| ● | Tax credits of $1 million have been recognized in relation to the above items. |
2025 A net charge of $18 million has been recognized as exceptional items in the six months ended June 30, 2025, primarily comprising: | ● | $5 million start-up related and other costs in the Americas ($3 million) and in Europe ($2 million), principally relating to the Group’s investment programs. |
| ● | $10 million impairment of property, plant and equipment relating to early-stage capital expenditure for a proposed greenfield site development in Europe. The project was deferred during the period resulting in certain of the initial costs incurred no longer being recoverable. |
| ● | $2 million of transaction-related and other costs, primarily comprised of professional advisory fees and restructuring and other costs relating to transformation initiatives. |
| ● | $2 million net exceptional finance expense relates to a loss on the movement in fair value of the Earnout Shares of $3 million, partly offset by foreign currency movements. |
| ● | Tax credits of $1 million have been recognized in relation to the above items. |
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