Just group PLC | Annual Report and accounts 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
18 DEFERRED TAX
2022
2021
Asset £m
Liability £m
Total £m
Asset £m
Liability £m
Total £m
1.0
– – – – –
1.0
Transitional tax Intangible assets Land and buildings Tax losses and other Total deferred tax
– – – – –
(1.5)
(1.5)
(15.0)
(15.0)
(17.0) (0.8)
(17.0)
(1.0)
(1.0)
(0.8)
108.2
108.2
14.0
14.0
93.2
93.2
(5.3)
(5.3)
The transitional tax asset of £1.0m (2021: liability of £1.5m) represents the transitional adjustments for the purposes of adopting IFRS which is amortised over ten years from 1 January 2016. In the prior year, this was offset by the adjustment arising from the change to the tax rules for life companies which was amortised over ten years from 1 January 2013. Deferred tax assets have been recognised because it is probable that these assets will be recovered. The losses arising in 2022 were principally from investment and economic losses driven by rising interest rates. Previously, the Group took an active approach to hedging its interest rate exposure. In the second half of 2021 and first half of 2022, as rates rose and our solvency position strengthened, we gradually reduced the interest rate hedging to a broadly neutral position for our IFRS balance sheet during the second half of 2022. Our revised approach is to allow the solvency position to fluctuate as interest rates move, and hence minimise the economic cost should rates rise as they did in 2022 before we had neutralised the hedging. Economic losses were also realised on the third and final portfolio sale of LTMs. The movement in the net deferred tax balance was as follows: Year ended 31 December 2022 £m Year ended 31 December 2021 £m Net balance at 1 January (5.3) (11.3) Recognised in profit or loss 94.2 6.0 Recognised in equity 4.5 – Recognised in other comprehensive income (0.2) – Net balance at 31 December 93.2 (5.3)
The Group has unrecognised deferred tax assets of £6.3m, (2021: £6.2m).
19 INSURANCE AND OTHER RECEIVABLES
2022 £m
2021 £m 20.0
295.4
Receivables arising from insurance and reinsurance contracts
0.8
Finance lease receivables
2.3
26.6
Other receivables
13.1 35.4
Total insurance and other receivables
322.8
Receivables arising from insurance contracts, reinsurance contracts and also other receivables are accounted for at amortised cost, which approximates fair value. The timing of settlements for December 2022 transactions has resulted in an increase to receivables arising from Insurance contracts in the period. The credit rating of these balances is disclosed in note 33.
Insurance and other receivables expected to be recovered after more than one year are £59.7m (2021: £0.7m in respect of finance lease receivables).
20 CASH AND CASH EQUIVALENTS
2022 £m
2021 £m
482.0
Cash available on demand Units in liquidity funds
510.2
1,174.4 1,656.4
1,310.5 1,820.7
Cash and cash equivalents in the Consolidated statement of cash flows
Units in liquidity funds comprise wholly of units in funds which invest in very short dated liquid assets. However as they do not meet the definition of Cash available on demand, liquidity funds are reported within financial investments (see note 16). Liquidity funds do however meet the definition of cash equivalents for the purposes of disclosure in the Consolidated statement of cash flows.
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