TIDMAG99

RNS Number : 9061G

GlaxoSmithKline Capital PLC

29 July 2021

Publication of GlaxoSmithKline Capital plc

Interim Management Report 2021

Today, 29 July 2021, GlaxoSmithKline Capital plc (the "Company") published on the GlaxoSmithKline Group ("GSK") website, www.gsk.com *, its Interim Management Report in respect of the period ended 30 June 2021.

In compliance with Listing Rule 9.6.1 of the UK Financial Conduct Authority ("FCA"), copies of the Company's Interim Management Report, have been submitted to the UK Listing Authority's NSM submission portal via the Electronic Submission System (ESS). A copy can be viewed at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .

In accordance with the FCA's Disclosure and Transparency Rules 4.2 and 6.3.5, Appendix A to this announcement contains the Company's Interim Management Report, which includes a description of the principal risks and uncertainties affecting it together with a responsibility statement.

V A Whyte

Company Secretary

29 July 2021

* https://www.gsk.com/en-gb/about-us/codes-and-standards/#tab-9343

Cautionary statement regarding forward-looking statements

Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GlaxoSmithKline plc (GSK) and the company cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Such factors include, but are not limited to, those described under Item 3.D "Risk Factors" in GSK's Annual Report on Form 20-F for 2020 and any impacts of the COVID-19 pandemic.

APPIX A

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Interim Management Report

for the half year ended 30 June 2021

Registered office address:

980 Great West Road

Brentford

Middlesex

TW8 9GS

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Interim Management Report

for the half year ended 30 June 2021

 
 Contents                             Pages 
 Interim report                         1-2 
 Income statement                         3 
 Statement of comprehensive income        4 
 Statement of financial position          5 
 Statement of changes in equity           6 
 Cash flow statement                      7 
 Notes to the financial statements     8-10 
 

GlaxoSmithKline Capital plc

(Registered number: 02258699)

Results announcement and interim management report for the half year ended 30 June 2021

Performance

GlaxoSmithKline Capital plc (the "Company") is a member of the GlaxoSmithKline Group (the "Group"). The principal activities of the Company during the financial year were the issuance of notes under the Group's European Medium Term Note programme and the provision of financial services to other companies within the Group.

The Directors do not envisage any change to the nature of the business in the foreseeable future.

Review of business

The Company made a profit for the half year ended 30 June 2021 of GBP6,685,000 (2020: GBP10,366,000), which will be transferred to reserves. The Directors are of the opinion that the current level of activity and the period end financial position are satisfactory and will remain so in the foreseeable future.

No dividend is proposed to the holders of ordinary shares in respect of the period ended 30 June 2021 (2020:GBPnil).

At 30 June 2021, the Company had in issue GBP12,336,576,000 European Medium Term Notes and GBP4,851,788,000 US Medium Term Notes (31 December 2020: GBP12,664,804,000 and GBP5,474,398,622 respectively), which mature at dates between 2022 and 2045. All notes currently in issue pay interest on a fixed rate basis, with the exception of the EUR1.5 billion (GBP1.4 billion) 2021 European Medium Term Note, which is on a floating rate basis.

Principal risks and uncertainties

The Directors of GlaxoSmithKline plc manage the risks of the Group at a group level, rather than at an individual statutory entity level. For this reason, the Company's Directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business. The principal risks and uncertainties of the Group, which include those of the Company, are discussed in the Group's 2020 annual report which does not form part of this report. Details of the Company's financial risk management is also disclosed in the Company's Annual Report for the year ended 31 December 2020.

Impact of Brexit

The UK left the EU on 31 January 2020 and the Brexit transition period ended on 31 December 2020 with a Trade and Cooperation Agreement ('a deal') in place between the UK and EU. The Group's overriding priority in preparing for the UK's exit from the EU has been to maintain continuity of supply of our products to people in the UK and EU.

The Group's post-Brexit operating model has been implemented, and we continue to work closely with Governments in both the UK and EU, as well as our third parties, on the effective implementation of the deal and to ensure that our sector continues to thrive and deliver innovation for consumers in both the UK and EU.

Over the longer term, we continue to believe that Brexit will not have a material impact on our business.

Directors' responsibility statement

The Board of Directors approved this document on 23 July 2021.

The Directors confirm that to the best of their knowledge this unaudited condensed financial information for the six months ended 30 June 2021 has been prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" and that the interim management report herein includes a true and fair view of the information required by Disclosure and Transparency Rules (DTR) 4.2.7.

Risks associated with COVID-19

The potential impact of the coronavirus outbreak on the Company's and its subsidiaries' access to capital and ability to lend and all its principal risks have been assessed with mitigation plans put in place. The Company has accessed capital markets in 2020, and continues to monitor the situation closely, as this continues to be a dynamic and an uncertain situation, with the ultimate severity, duration and impact unknown at this point.

The Directors of the Company are:

Mr I Mackay

Edinburgh Pharmaceutical Industries Limited

Glaxo Group Limited

By order of the Board

Mr A Walker

For and on behalf of Glaxo Group Limited

Corporate Director

23 July 2021

Internet

This Announcement and other information about the GSK Group are available on the website at: http://www.gsk.com .

GlaxoSmithKline Capital plc

Income statement

for the half year ended 30 June 2021

 
                                  Period ended 30   Period ended 30 
                                   June 2021         June 2020 
                           Note   GBP'000           GBP'000 
                          -----  ----------------  ---------------- 
 Other operating 
  income / (expense)       2      (1,197)           1,626 
                          -----  ----------------  ---------------- 
 Finance income            3      224,460           251,724 
                          -----  ----------------  ---------------- 
 Finance expense           4      (215,009)         (240,553) 
                          -----  ----------------  ---------------- 
 Operating profit                 8,254             12,797 
                          -----  ----------------  ---------------- 
 Profit before taxation           8,254             12,797 
                          -----  ----------------  ---------------- 
 Taxation on profit        5      (1,569)           (2,431) 
                          -----  ----------------  ---------------- 
 Profit for the 
  financial period                6,685             10,366 
                          -----  ----------------  ---------------- 
 

GlaxoSmithKline Capital plc

Statement of comprehensive income

for the half year ended 30 June 2021

 
                              Period ended 30   Period ended 30 
                               June 2021         June 2020 
                              GBP'000           GBP'000 
                             ----------------  ---------------- 
 Profit for the 
  financial period            6,685             10,366 
                             ----------------  ---------------- 
 Items that may 
  be subsequently 
  reclassified to 
  the income statement: 
                             ----------------  ---------------- 
 Fair value movements 
  on cash flow hedges         0                 (5,480) 
                             ----------------  ---------------- 
 Reclassification 
  of cash flow hedges 
  to the income statement     1,851             1,879 
                             ----------------  ---------------- 
 Deferred tax on 
  fair value movements 
  on cash flow hedges         46                1,078 
                             ----------------  ---------------- 
 Other comprehensive 
  income for the 
  financial period            1,897             (2,523) 
                             ----------------  ---------------- 
 Total comprehensive 
  income for the 
  financial period            8,582             7,843 
                             ----------------  ---------------- 
 

GlaxoSmithKline Capital plc

Balance sheet

as at 30 June 2021

 
                                     30 June 2021   31 December 2020 
                              Note    GBP'000        GBP'000 
 Non-current assets 
                             -----  -------------  ----------------- 
 Deferred tax assets                 3,780          4,021 
                             -----  -------------  ----------------- 
 Loans and receivables        6      12,955,837     15,776,159 
                             -----  -------------  ----------------- 
 Total non-current 
  assets                             12,959,617     15,780,180 
                             -----  -------------  ----------------- 
 Current assets 
                             -----  -------------  ----------------- 
 Loans and receivables        6      4,321,861      2,447,426 
                             -----  -------------  ----------------- 
 Prepayments and 
  accrued income              7      108,086        145,580 
                             -----  -------------  ----------------- 
 Cash and cash equivalents           4              4 
                             -----  -------------  ----------------- 
 Total current assets                4,429,951      2,593,010 
                             -----  -------------  ----------------- 
 Total assets                        17,389,568     18,373,190 
                             -----  -------------  ----------------- 
 Current liabilities 
                             -----  -------------  ----------------- 
 Other payables               8      -              -4,024 
                             -----  -------------  ----------------- 
 Corporate tax                       -5,417         -4,134 
                             -----  -------------  ----------------- 
 Accruals and deferred 
  income                      10     -98,396        -137,021 
                             -----  -------------  ----------------- 
 Short-term borrowings        9      -4,238,047     -2,350,809 
                             -----  -------------  ----------------- 
 Total current liabilities           -4,341,860     -2,495,988 
                             -----  -------------  ----------------- 
 Net current assets                  88,091         97,022 
                             -----  -------------  ----------------- 
 Total assets less 
  current liabilities                13,047,708     15,877,202 
                             -----  -------------  ----------------- 
 Non-current liabilities 
                             -----  -------------  ----------------- 
 Long-term borrowings         9      -12,950,318    -15,788,394 
                             -----  -------------  ----------------- 
 Total non-current 
  liabilities                        -12,950,318    -15,788,394 
                             -----  -------------  ----------------- 
 Total liabilities                   -17,292,178    -18,284,382 
                             -----  -------------  ----------------- 
 Net assets                          97,390         88,808 
                             -----  -------------  ----------------- 
 Equity 
                             -----  -------------  ----------------- 
 Called up share 
  capital                     13     100            100 
                             -----  -------------  ----------------- 
 Other reserves                      -15,244        -17,141 
                             -----  -------------  ----------------- 
 Retained earnings                   112,534        105,849 
                             -----  -------------  ----------------- 
 Total equity                        97,390         88,808 
                             -----  -------------  ----------------- 
 

GlaxoSmithKline Capital plc

Statement of changes in equity

for the half year ended 30 June 2021

 
                        Called up share 
                         capital          Other reserves   Retained earnings   Total equity 
                        GBP'000           GBP'000          GBP'000             GBP'000 
                       ----------------  ---------------  ------------------  ------------- 
 At 1 January 
  2020                  100               (16,323)         88,226              72,003 
                       ----------------  ---------------  ------------------  ------------- 
 Profit for the 
  financial period      -                 -                10,366              10,366 
                       ----------------  ---------------  ------------------  ------------- 
 Other comprehensive 
  income for the 
  financial period      -                 (2,523)          -                   (2,523) 
                       ----------------  ---------------  ------------------  ------------- 
 At 30 June 2020        100               (18,846)         98,592              79,846 
                       ----------------  ---------------  ------------------  ------------- 
                        Called up share 
                         capital          Other reserves   Retained earnings   Total equity 
                       ----------------  ---------------  ------------------  ------------- 
                        GBP'000           GBP'000          GBP'000             GBP'000 
                       ----------------  ---------------  ------------------  ------------- 
 At 1 January 
  2021                  100               (17,141)         105,849             88,808 
                       ----------------  ---------------  ------------------  ------------- 
 Profit for the 
  financial period      -                 -                6,685               6,685 
                       ----------------  ---------------  ------------------  ------------- 
 Other comprehensive 
  income for the 
  financial period      -                 1,897            -                   1,897 
                       ----------------  ---------------  ------------------  ------------- 
 At 30 June 2021        100               (15,244)         112,534             97,390 
                       ----------------  ---------------  ------------------  ------------- 
 

GlaxoSmithKline Capital plc

Cash flow statement

for the half year ended 30 June 2021

 
                                    Period ended    Period ended 
                                     30 June 2021    30 June 2020 
                             Note   GBP'000         GBP'000 
                            -----  --------------  -------------- 
 Cash flows from 
  operating activities 
                            -----  --------------  -------------- 
 Operating profit                   6,685           12,797 
                            -----  --------------  -------------- 
 Adjustments reconciling 
  operating profit 
  to operating cash 
  flows                      12     4,863           (166) 
                            -----  --------------  -------------- 
 Net cash (outflow) 
  / inflow from operating 
  activities                        11,548          12,631 
                            -----  --------------  -------------- 
 Cash flows from 
  financing activities 
                            -----  --------------  -------------- 
 Proceeds from borrowings           -               2,140,275 
                            -----  --------------  -------------- 
 Repayment of borrowings            (533,048)       (674,483) 
                            -----  --------------  -------------- 
 Loans provided 
  to Group undertakings             -               (2,134,797) 
                            -----  --------------  -------------- 
 Loan repayments 
  received from Group 
  undertakings                      531,715         674,483 
                            -----  --------------  -------------- 
 (Increase) / decrease 
  in current accounts 
  with Group undertakings           (10,215)        (18,109) 
                            -----  --------------  -------------- 
 Net cash inflow 
  / (outflow) from 
  financing activities              (11,548)        (12,630) 
                            -----  --------------  -------------- 
 Net movement in 
  cash in the period                -               1 
                            -----  --------------  -------------- 
 Cash at beginning 
  of period                         4               4 
                            -----  --------------  -------------- 
 Movement in cash                   -               1 
                            -----  --------------  -------------- 
 Cash at end of 
  period                            4               5 
                            -----  --------------  -------------- 
 

GlaxoSmithKline Capital plc

Notes to the financial statements for the half year ended 30 June 2021

1. Accounting presentation and policies

This unaudited Results Announcement containing condensed financial information for the six months ended 30 June 2021 is prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" using the recognition and measurement requirements of Financial Reporting Standard 101 "Reduced Disclosure Framework" and in accordance with the Listing Rules of the UK Listing Authority. The same accounting policies and methods of computation are followed in the interim nancial statements as compared with the most recent annual nancial statements.

2. Operating profit

 
                               Period ended 30 June   Period ended 30 June 
                                2021                   2020 
                               GBP'000                GBP'000 
                              ---------------------  --------------------- 
 The following items have 
  been credited / (charged) 
  in operating profit: 
                              ---------------------  --------------------- 
  Exchange gains on foreign 
   currency transactions       (1,197)                1,626 
                              ---------------------  --------------------- 
 

3. Finance income

 
                            Period ended 30 June   Period ended 30 June 
                             2021                   2020 
                            GBP'000                GBP'000 
                           ---------------------  --------------------- 
 Interest income arising 
  from loans with Group 
  undertakings              224,460                251,724 
                           ---------------------  --------------------- 
 

4. Finance expense

 
                              Period ended 30 June   Period ended 30 June 
                               2021                   2020 
                              GBP'000                GBP'000 
                             ---------------------  --------------------- 
 Interest expense arising 
  on financial liabilities 
  at amortised cost           (213,158)              (238,674) 
                             ---------------------  --------------------- 
 Reclassification of cash 
  flow hedge from other 
  comprehensive income        (1,851)                (1,879) 
                             ---------------------  --------------------- 
 Total finance expense        (215,009)              (240,553) 
                             ---------------------  --------------------- 
 

5. Taxation

 
                           Period ended 30 June   Period ended 30 June 
                            2021                   2020 
 Income tax expense on     GBP'000                GBP'000 
  ordinary activities 
                          ---------------------  --------------------- 
 Current tax: 
                          ---------------------  --------------------- 
  UK corporation tax at 
   19% (2020: 19%)         (1,569)                (2,431) 
                          ---------------------  --------------------- 
 Total current tax         (1,569)                (2,431) 
                          ---------------------  --------------------- 
 
 
                              Period ended 30 June   Period ended 30 June 
                               2021                   2020 
 Total tax (expense) /        GBP'000                GBP'000 
  credit included in other 
  comprehensive income 
                             ---------------------  --------------------- 
 Deferred tax: 
                             ---------------------  --------------------- 
  Fair value movements 
   on cash flow hedges        46                     1,078 
                             ---------------------  --------------------- 
 Total tax (expense) / 
  credit included in other 
  comprehensive income        46                     1,078 
                             ---------------------  --------------------- 
 

6. Trade and other receivables

 
                           30 June 2021   31 December 2020 
                           GBP'000        GBP'000 
                          -------------  ----------------- 
 Amounts due within one 
  year 
                          -------------  ----------------- 
  Amounts owed by Group 
   undertakings            4,321,861      2,447,426 
                          -------------  ----------------- 
                           4,321,861      2,447,426 
                          -------------  ----------------- 
 Amounts due after more 
  than one year 
                          -------------  ----------------- 
  Long term deposits       244            320 
                          -------------  ----------------- 
  Amounts owed by Group 
   undertakings - loans    12,955,593     15,775,839 
                          -------------  ----------------- 
                           12,955,837     15,776,159 
                          -------------  ----------------- 
                           17,277,698     18,223,585 
                          -------------  ----------------- 
 

Amounts due within one year are deposits with Group undertakings of GBP97,699,618 (2019: GBP92,960,000) which are unsecured, repayable on demand and earn a market rate of interest (based on LIBOR minus 0.125%) that is consistent with the Group's policy.

Amounts due within one year also include the net proceeds of bond issuances that have been advanced as loans to Group undertakings of GBP4,224,161,513 (2020: GBP2,714,625,000) which are unsecured with an interest rate between 0.045% and 3.2% per annum.

Amounts due after more than one year include the net proceeds of bond issuances that have been advanced as loans to Group undertakings, which are unsecured with fixed interest charged between 0.103% and 6.50% per annum and repayable at maturity dates between 2023 and 2045.

Amounts due after more than one year also include call accounts with Group undertakings of GBP81,724,873 (2020: GBP74,483,000) which are unsecured, repayable on demand and earn a market rate of interest (based on 1 week LIBOR minus 0.125%) that is consistent with the Group's policy.

7. Prepayments and accrued income

 
                           30 June 2021   31 December 2020 
                           GBP'000        GBP'000 
                          -------------  ----------------- 
 Amounts due within one 
  year                     108,086        145,580 
                          -------------  ----------------- 
 

8. Trade and other payables

 
                               30 June 2021    31 December 2020 
                               GBP'000         GBP'000 
                              --------------  ----------------- 
 Amounts falling due within 
  one year                     -               (4,024) 
                              --------------  ----------------- 
  Amounts owed to Group 
   undertakings                -               (4,024) 
                              --------------  ----------------- 
 

9. Borrowings

 
                               30 June 2021   31 December 2020 
                               GBP'000        GBP'000 
                              -------------  ----------------- 
 Amounts falling due within 
  one year 
                              -------------  ----------------- 
 Loans payable: 
                              -------------  ----------------- 
 EUR European Medium Term 
  Notes                        (1,716,270)    (1,801,490) 
                              -------------  ----------------- 
 US$ Medium Term Notes         (2,521,777)    (549,319) 
                              -------------  ----------------- 
                               (4,238,047)    (2,350,809) 
                              -------------  ----------------- 
 Amounts falling due after 
  more than one year 
                              -------------  ----------------- 
 Loans payable: 
                              -------------  ----------------- 
 EUR European Medium Term 
  Notes                        (5,085,212)    (5,330,086) 
                              -------------  ----------------- 
 GBP European Medium Term 
  Notes                        (5,535,094)    (5,533,228) 
                              -------------  ----------------- 
 US$ Medium Term Notes         (2,330,012)    (4,925,080) 
                              -------------  ----------------- 
                               (12,950,318)   (15,788,394) 
                              -------------  ----------------- 
 Total borrowings              (17,188,365)   (18,139,203) 
                              -------------  ----------------- 
 
 
                               30 June 2021   31 December 2020 
 Maturity of borrowings        GBP'000        GBP'000 
                              -------------  ----------------- 
 
 In one year or less, 
  or on demand 
                              -------------  ----------------- 
 LIBOR+0.35% US$ US Medium 
  Term Note 2021               -              (549,319) 
                              -------------  ----------------- 
 LIBOR+0.30% EUR European 
  Medium Term Note 2021        (1,287,335)    (1,351,541) 
                              -------------  ----------------- 
 0% EUR European Medium 
  Term Note 2021               (428,935)      (449,949) 
                              -------------  ----------------- 
 2.850% US$ US Medium          (1,440,942)    - 
  Term Note 2022 
                              -------------  ----------------- 
 2.875% US$ US Medium          (1,080,835)    - 
  Term Note 2022 
                              -------------  ----------------- 
 
                               (4,238,047)    (2,350,809) 
                              -------------  ----------------- 
 
 In more than one year, 
  but not more than two 
  years 
                              -------------  ----------------- 
 2.850% US$ US Medium 
  Term Note 2022               -              (1,462,747) 
                              -------------  ----------------- 
 2.875% US$ US Medium 
  Term Note 2022               -              (1,097,314) 
                              -------------  ----------------- 
 0.125% EUR European Medium    (642,169)      - 
  Term Note 2023 
                              -------------  ----------------- 
 
                               (642,169)      (2,560,061) 
                              -------------  ----------------- 
 
 In more than two years, 
  but not more than five 
  years 
                              -------------  ----------------- 
 0% EUR European Medium 
  Term Note 2023               (428,815)      (449,632) 
                              -------------  ----------------- 
 0.125% EUR European Medium 
  Term Note 2023               -              (673,048) 
                              -------------  ----------------- 
 0.534% US$ US Medium 
  Term Note 2023               (899,955)      (913,467) 
                              -------------  ----------------- 
 1.375% EUR European Medium 
  Term Note 2024               (853,253)      (894,036) 
                              -------------  ----------------- 
 3.000% US$ US Medium 
  Term Note 2024               (717,565)      (728,293) 
                              -------------  ----------------- 
 4.000% EUR European Medium 
  Term Note 2025               (639,721)      (670,363) 
                              -------------  ----------------- 
 1.250% EUR European Medium    (854,931)      - 
  Term Note 2026 
                              -------------  ----------------- 
                               (4,394,240)    (4,328,839) 
                              -------------  ----------------- 
 
 In more than five years 
                              -------------  ----------------- 
 1.000% EUR European Medium 
  Term Note 2026               (599,036)      (627,997) 
                              -------------  ----------------- 
 1.250% EUR European Medium 
  Term Note 2026               -              (896,167) 
                              -------------  ----------------- 
 3.375% GBP European Medium 
  Term Note 2027               (595,045)      (594,710) 
                              -------------  ----------------- 
 1.25% GBP European Medium 
  Term Note 2028               (742,111)      (741,602) 
                              -------------  ----------------- 
 1.375% EUR European Medium 
  Term Note 2029               (426,306)      (446,859) 
                              -------------  ----------------- 
 3.375% US$ US Medium 
  Term Note 2029               (712,493)      (723,260) 
                              -------------  ----------------- 
 1.750% EUR European Medium 
  Term Note 2030               (640,979)      (671,985) 
                              -------------  ----------------- 
 5.250% GBP European Medium 
  Term Note 2033               (983,840)      (983,392) 
                              -------------  ----------------- 
 1.625% GBP European Medium 
  Term Note 2035               (743,490)      (743,284) 
                              -------------  ----------------- 
 6.375% GBP European Medium 
  Term Note 2039               (694,621)      (694,542) 
                              -------------  ----------------- 
 5.250% GBP European Medium 
  Term Note 2042               (986,961)      (986,794) 
                              -------------  ----------------- 
 4.250% GBP European Medium 
  Term Note 2045               (789,027)      (788,902) 
                              -------------  ----------------- 
 
                               (7,913,909)    (8,899,494) 
                              -------------  ----------------- 
 
 Total borrowings              (17,188,365)   (18,139,203) 
                              -------------  ----------------- 
 
 

10. Accruals and deferred income

 
                               30 June 2021   31 December 2020 
                               GBP'000        GBP'000 
                              -------------  ----------------- 
 Amounts falling due within 
  one year                     (98,396)       (137,021) 
                              -------------  ----------------- 
 

Accruals relates to interest payable on borrowings (see Note 9).

11. Fair value of financial assets and liabilities

The fair values of the financial assets and liabilities are included at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

 
 --   Cash and cash equivalents - approximates to the carrying amount; 
 --   Borrowings (European and US Medium Term Notes) - based on quoted 
       market prices (a level 1 fair value measurement); 
 --   Intercompany loans - approximates to the fair value of borrowings 
       (European and US Medium Term Notes); and 
 --   Receivables and payables - approximates to the carrying amount. 
 

The carrying amounts and the fair values of the Company's financial assets and liabilities at 30 June 2021 and 31 December 2020 are illustrated below

 
                                   30 June 2021                  31 December 2020 
                           Carrying value   Fair value     Carrying value   Fair value 
                          ---------------  -------------  ---------------  ------------- 
                           GBP'000          GBP'000        GBP'000          GBP'000 
                          ---------------  -------------  ---------------  ------------- 
 
 Cash and cash 
  equivalents              4                4              4                4 
                          ---------------  -------------  ---------------  ------------- 
 Loans and receivables: 
                          ---------------  -------------  ---------------  ------------- 
 Other receivables         108,086          108,086        145,580          145,580 
                          ---------------  -------------  ---------------  ------------- 
 Amounts owed 
  by Group undertakings    17,277,454       19,682,835     18,223,265       21,184,077 
                          ---------------  -------------  ---------------  ------------- 
 Total financial 
  assets                   17,385,544       19,790,925     18,368,849       21,329,661 
                          ---------------  -------------  ---------------  ------------- 
 
 Financial liabilities 
  measured at 
  amortised cost: 
                          ---------------  -------------  ---------------  ------------- 
 GBP European 
  Medium Term 
  Notes                    (5,535,094)      (7,425,663)    (5,533,228)      (8,044,821) 
                          ---------------  -------------  ---------------  ------------- 
 EUR European 
  Medium Term 
  Notes                    (6,801,482)      (7,201,869)    (7,131,576)      (7,621,068) 
                          ---------------  -------------  ---------------  ------------- 
 US$ US Medium 
  Term Notes               (4,851,789)       (5,055,303)   (5,474,399)      (5,765,875) 
                          ---------------  -------------  ---------------  ------------- 
                           (17,188,365)     (19,682,835)   (18,139,203)     (21,431,764) 
                          ---------------  -------------  ---------------  ------------- 
 
 Other payables            (98,396)         (98,396)       (141,045)        (141,045) 
                          ---------------  -------------  ---------------  ------------- 
 
 Total financial 
  liabilities              (17,286,761)     (19,781,231)   (18,280,248)     (21,572,809) 
                          ---------------  -------------  ---------------  ------------- 
 
 Net financial 
  assets                   98,783           9,694          88,601           (243,148) 
                          ---------------  -------------  ---------------  ------------- 
 

The Company has no financial assets or liabilities measured at fair value through profit or loss.

Financial liabilities measured at amortised cost for which the fair value of GBP19,781,231,000 (31 December 2020: GBP21,572,809,000) as disclosed in the table above are categorised as Level 1, where quoted prices in active markets are used. Similarly, amounts owed by Group undertakings, which include the net proceeds of bond issuances advanced as loans, also approximate to the fair value of these financial liabilities. All other assets and liabilities are approximate to the carrying amount.

12. Adjustments reconciling operating profit to operating cash flows

 
                               Period ended 30 June   Period ended 30 June 
                                2021                   2020 
                               GBP'000                GBP'000 
                              ---------------------  --------------------- 
 
 Operating profit              6,685                  12,797 
                              ---------------------  --------------------- 
 Adjustments: 
                              ---------------------  --------------------- 
 Decrease/ (increase) 
  in other receivables         37,570                 25,518 
                              ---------------------  --------------------- 
 (Decrease) / increase 
  in other payables            (41,079)               (29,800) 
                              ---------------------  --------------------- 
 Exchange adjustments          1,114                  2,608 
                              ---------------------  --------------------- 
 Amortisation of bond 
  costs                        5,407                  5,109 
                              ---------------------  --------------------- 
 Fair value movements 
  on cash flow hedges          -                      (5,480) 
                              ---------------------  --------------------- 
 Reclassification of cash 
  flow hedges to the income 
  statement                    1,851                  1,879 
                              ---------------------  --------------------- 
                               4,863                  (166) 
                              ---------------------  --------------------- 
 Net cash (outflow) / 
  inflow from operating 
  activities                   11,548                 12,631 
                              ---------------------  --------------------- 
 

13. Called up share capital

 
                      30 June 2021       31 December        30 June 2021   31 December 
                                          2020                              2020 
                      Number of shares   Number of shares   GBP'000        GBP'000 
                     -----------------  -----------------  -------------  ------------ 
 Authorised 
                     -----------------  -----------------  -------------  ------------ 
 Ordinary shares 
  of GBP1 each 
  (31 December 
  2020: GBP1 each)    100,000            100,000            100            100 
                     -----------------  -----------------  -------------  ------------ 
 Issued and fully 
  paid 
                     -----------------  -----------------  -------------  ------------ 
 Ordinary shares 
  of GBP1 each 
  (31 December 
  2020: GBP1 each)    100,000            100,000            100            100 
                     -----------------  -----------------  -------------  ------------ 
 

14. Related party transactions

As a wholly owned subsidiary of the ultimate parent company, GlaxoSmithKline plc, advantage has been taken of the exemption afforded by FRS 101 "Reduced Disclosure Framework" not to disclose any related party transactions within the Group. There are no other related party transactions.

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END

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July 29, 2021 05:23 ET (09:23 GMT)

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