168 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
12. INTANGIBLE ASSETS
Acquired intangible assets
Intellectual property £m
Goodwill £m
PrognoSys™ £m
Software £m
Total £m
Year ended 31 December 2024
Cost
35
2 – 2
6 – 6
29
72
Disposals
–
(1)
(1)
At 31 December 2024
35
28
71
Amortisation and impairment At 1 January 2024
(1)
(1)
(4) (1)
(25)
(31)
Charge for the year
– –
– –
– 1
(1)
Disposals
–
1
At 31 December 2024
(1)
(1)
(5)
(24)
(31)
Net book value at 31 December 2024 Net book value at 1 January 2024
34 34
1 1
1 2
4 4
40 41
Acquired intangible assets
Intellectual property £m
Goodwill £m
PrognoSys™ £m
Software £m
Total £m
Year ended 31 December 2023
Cost At 1 January 2023
35 35
2 2
6 6
29 29
72 72
At 31 December 2023
Amortisation and impairment At 1 January 2023
(1)
(1)
(3)
(20)
(25)
Impairment
– –
– –
–
(3) (2)
(3) (3)
Charge for the year At 31 December 2023
(1) (4)
(1)
(1)
(25)
(31)
Net book value at 31 December 2023 Net book value at 1 January 2023
34 34
1 1
2 3
4 9
41 47
The amortisation and impairment charge is recognised in other operating expenses in profit or loss. PrognoSys™ is the Group’s proprietary underwriting engine. The Group has accumulated years of experience collected over 20 years of operations. It is enhanced by an extensive breadth of external primary and secondary healthcare data and medical literature. Accordingly, an intangible asset in relation to its development is recognised in the Consolidated statement of financial position. Impairment testing The Group’s goodwill of £34m at 31 December 2024 represents the following: • £33m on the 2009 acquisition by Just Retirement Group Holdings Limited of Just Retirement (Holdings) Limited, the Holding Company of JRL; and • £1m recognised on the 2018 acquisition of HUB Pension Consulting (Holdings) Limited. The majority of the goodwill has been allocated to the cash-generating unit of Just Retirement (Holdings) Limited and its subsidiaries. The recoverable amounts of goodwill have been determined from the value-in-use of the cash generating unit. 2024 2023 Period on which management approved forecasts are based 5 years 5 years Discount rate (pre-tax) 12.9% 11.4% The value-in-use of the cash-generating unit is considered by reference to the latest business plans over the next five years, which reflect management’s best estimate of future cash flows based on historical experience, expected growth rates and assumptions around market share, customer numbers, expense inflation and mortality rates. The discount rate was determined using a weighted average cost of capital approach, with appropriate adjustments to reflect a market participant’s view. The outcome of the impairment assessment is that the goodwill allocated to the cash-generating unit is not impaired and that the value-in-use is higher than the carrying value of goodwill. Any reasonably possible changes in assumptions will not cause the carrying value of the goodwill to exceed the recoverable amounts.
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