Just Annual Report and Accounts 2021

JUST GROUP PLC Annual Report and Accounts 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued

18 DEFERRED TAX continued The transitional tax liability of £1.5m (2020: £4.2m) represents the adjustment arising from the change in the tax rules for life insurance companies which is amortised over ten years from 1 January 2013 and the transitional adjustments for tax purposes in adopting IFRS which is amortised over ten years from 1 January 2016.

Other provisions principally relate to temporary differences between the IFRS financial statements and tax deductions for statutory insurance liabilities.

The movement in the net deferred tax balance was as follows:

Year ended 31 December 2021 £m

Year ended 31 December 2020 £m

(11.3)

Net balance at 1 January Recognised in profit or loss

(14.8)

6.0

3.4 0.1

Recognised in other comprehensive income

Net balance at 31 December

(5.3)

(11.3)

The Group has unrecognised deferred tax assets of £6.2m (2020: £5.3m).

19 INSURANCE AND OTHER RECEIVABLES

2021 £m 20.0

2020 £m 21.0

Receivables arising from insurance and reinsurance contracts

2.3

Finance lease receivables

3.8 7.2

13.1 35.4

Other receivables

Total insurance and other receivables

32.0

Receivables arising from insurance and reinsurance contracts, and also Other receivables are accounted for at amortised cost, which approximates fair value. These balances are considered to have contractual terms which are solely payments of principal and interest (“SPPI”). There has been no change in fair value recognised in the Consolidated statement of comprehensive income in the period (2020: nil). The credit rating of these balances is disclosed in note 33. Other than finance lease receivables of £0.7m (2020: £2.2m), insurance and other receivables of £nil (2020: £nil) are expected to be recovered more than one year after the Consolidated statement of financial position date.

20 CASH AND CASH EQUIVALENTS

2021 £m

2020 £m

510.2

Cash available on demand Units in liquidity funds1

1,496.3 1,128.5 2,624.8

1,310.5 1,820.7

Cash and cash equivalents in the Consolidated statement of cash flows

1 Units in liquidity funds are presented as a financial investment in note 16.

21 SHARE CAPITAL The allotted, issued and fully paid ordinary share capital of Just Group plc at 31 December 2021 is detailed below:

Share capital £m

Share premium £m

Merger reserve £m

Number of £0.10 ordinary shares

Total £m

1,038,128,556 103.8

94.5

597.1 795.4

At 1 January 2021

408,488

0.1

0.1

0.2

Shares issued in respect of employee share schemes

At 31 December 2021

1,038,537,044 103.9

94.6 94.5

597.1 795.6

At 1 January 2020

1,035,081,664

103.5

597.1

795.1

Shares issued in respect of employee share schemes

3,046,892

0.3

0.3

At 31 December 2020

1,038,128,556

103.8

94.5

597.1

795.4

The merger reserve is the result of a placing of 94,012,782 ordinary shares in 2019 and the acquisition of 100% of the equity of Partnership Assurance Group plc in 2016. The placing in 2019 was achieved by the Company acquiring 100% of the equity of a limited company for consideration of the new ordinary shares issued. Accordingly, merger relief under Section 612 of the Companies Act 2006 applies, and share premium has not been recognised in respect of this issue of shares. The merger reserve recognised represents the premium over the nominal value of the shares issued.

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