176 | Just Group PLC | Annual Report and Accounts 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
16. INTANGIBLE ASSETS continued
Acquired intangible assets
Goodwill £m
Intellectual property £m
PrognoSys™ £m
Software £m
Total £m
Year ended 31 December 2022 – (restated)
Cost At 1 January 2022
35
2 – 2
6 – 6
25
68
Additions
–
4
4
At 31 December 2022
35
29
72
Amortisation and impairment At 1 January 2022
(1)
(1)
(3)
(18)
(23)
Charge for the year At 31 December 2022
–
–
–
(2)
(2)
(1)
(1)
(3)
(20)
(25)
Net book value at 31 December 2022 Net book value at 31 December 2021
34 34
1 1
3 3
9 7
47 45
The amortisation and impairment charge is recognised in other operating expenses in profit or loss. Impairment testing The Group’s goodwill of £34m at 31 December 2023 represents the following: • £33m on the 2009 acquisition by Just Retirement Group Holdings Limited of Just Retirement (Holdings) Limited, the Holding Company of Just Retirement Limited (“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. 2023 2022 Period on which management approved forecasts are based 5 years 5 years Discount rate (pre-tax) 11.4% 12.7% 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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