JUST GROUP PLC Annual Report and Accounts 2020
78
Directors’ remuneration report
I am pleased to present the Remuneration Committee Report for the year ended 31 December 2020
IFRS net assets
adjusted operatinG profit before tax 1 £ 239.3 M 2019: £218.6m
£ 2,490.4 M 2019: £2,321.0m
NEW BUSINESS PROFIT 1 £ 199.2 M 2019: £182.3m
Organic capital generation 1 £ 221 M 2019: £36m
IFRS Profit Before Tax
£ 236.7 M 2019: £368.6m
IAN CORMACK Chair, Remuneration Committee
1 Alternative performance measure.
STATEMENT FROM THE CHAIR OF THE REMUNERATION COMMITTEE
Dear Shareholder
2020 has presented our business with tremendous challenges, the likes of which no one anticipated when budgets and business plans were set at the end of 2019. COVID-19 has required our business leaders, managers and colleagues to operate within a fast-changing and uncertain environment to focus on the delivery of business priorities, as set out in the Strategic Report. The short-term reduction in some business activity was limited and the majority of the business was able to continue operating remotely as effectively as they had been prior to lockdown. As shareholders will be interested in this context, it is helpful to note that: • no employees were put on furlough; • while there is continual minor restructuring, no redundancies were made as a result of COVID-19; • no government or other COVID-19 related loans have been received; and • the Company has completed its journey to become capital self- sufficient and has achieved this key milestone well ahead of its original target date of 2022. Support to our customers remained a priority and we have not seen any drop in customer experience scores as a result of COVID-19 and the requirement for all colleagues to work from home at very short notice. The government lockdown effectively closed the housing market, which meant many people were unable to buy or sell properties. To help, Just reduced Lifetime Mortgage interest rates during this period on the properties of many customers who had died, or moved into long-term care. This reduced the amount of interest due. To read more about how we helped our customers turn to page 21. The focus has been on building capital self-sufficiency and the business plan agreed by the Board in 2019 did not include the payment of dividends in 2020. The dividend policy has not been impacted by COVID-19. PROGRESS ON CAPITAL Capital has been included in the Short Term Incentive Plan (“STIP”) since 2019 and was a newmeasure in the shareholder approved Long Term Incentive Plan (“LTIP”) for 2020. The actions taken by David and his management team during the course of 2020 in pursuit of capital generation have been supported by shareholders. Organic capital generation continues to be an important strategic focus in 2021, as it provides management with additional options to accelerate innovation to grow the business to benefit our customers and generate value for shareholders.
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