STRATEGIC REPORT
GOVERNANCE
financial statements
11 EARNINGS PER SHARE continued As a result of this review, the Directors reconsidered the accounting for the loss on redemption of the Restricted Tier 1 (“RT1”) notes redeemed in 2021. Judgement is required in determining the treatment the RT1 notes in application of IAS 33, Earnings per share. The rights associated with the RT1 notes are such that the notes are deemed similar to preference shares. Therefore the requirements in IAS 33 to adjust earnings for redemption gains and losses apply to the RT1 notes in addition to the Company’s existing treatment of the coupon payments which were deducted from earnings in the 2021 Annual Report. This note has therefore been restated to correct the treatment of the loss on redemption of the 2019 Restricted Tier 1 notes identified during their review. The table showing the calculation of the numerator has been amended to include this; losses for the purposes of calculating EPS were previously reported as £(35.4)m and have been restated to £(82.4)m. Following on from this, EPS and diluted EPS have both been restated to use the restated earnings figure. Previously, Losses per share was disclosed as (3.42) pence and diluted losses per share was disclosed as (3.42) pence. Losses per share is now disclosed as (7.97) pence and diluted losses per share as (7.97) pence. There is no impact on adjusted earnings per share.
12 DIVIDENDS AND APPROPRIATIONS Dividends and appropriations paid in the year were as follows:
Year ended 31 December 2022 £m
Year ended 31 December 2021 £m
Final dividend Final dividend in respect of prior year end (1.0 pence per ordinary share, paid on 17 May 2022) Interim dividend Interim dividend in respect of current year end (0.5 pence per ordinary share, paid on 2 September 2022)
10.4
–
5.2
– – –
–
Dividends paid on the vesting of employee share schemes
Total dividends paid
15.6 16.9 32.5
Coupon payments in respect of Tier 1 notes1 Total distributions to equity holders in the period
25.2 25.2
1 Coupon payments on Tier 1 notes are treated as an appropriation of retained profits and, accordingly, are accounted for when paid.
Subsequent to 31 December 2022, the Directors proposed a final dividend for 2022 of 1.23 pence per ordinary share (2021: 1.0 pence) and together with the interim dividend of 0.5 pence per ordinary share paid in 2 September 2022 amounting to £17.9m (2021: £10.4m) in total. Subject to approval by shareholders at the Company’s 2023 AGM, the dividend will be paid on 17 May 2023 to shareholders on the register of members at the close of business on 14 April 2023, and will be accounted for as an appropriation of retained earnings in year ending 31 December 2023.
13 INTANGIBLE ASSETS
Acquired intangible assets
Present value of in-force business £m
Intellectual property £m
Distribution network £m
Software £m
Leases £m
PrognoSys™ £m
Software £m
Total £m
Brand £m
Goodwill £m
Year ended 31 December 2022
Cost At 1 January 2022
34.9 200.0
– – – – – – – – – –
– – – – – – – – – –
2.0
– – – – – – – – – –
– – – – – – – – – –
5.9 25.0 267.8
– –
– –
– –
–
4.6
4.6
Additions Disposals
0.4 (0.4)
–
At 31 December 2022
34.9 200.0
2.0
6.3 29.2 272.4
Amortisation and impairment At 1 January 2022
(0.8) (125.4)
(0.7)
(3.1)
(18.1) (148.1)
–
–
–
–
–
–
Disposals
– (17.9)
(0.1) (0.8)
(0.5) (3.6)
(2.0)
(20.5)
Charge for the year At 31 December 2022
(0.8) (143.3) 34.1 56.7 34.1 74.6
(20.1) (168.6) 9.1 103.8 6.9 119.7
Net book value at 31 December 2022 Net book value at 31 December 2021
1.2 1.3
2.7 2.8
155
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