102 JUST GROUP PLC Annual Report and Accounts 2019
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF JUST GROUP PLC
1. OUR OPINION IS UNMODIFIED We have audited the financial statements of Just Group plc (“the Company”) for the year ended 31 December 2019 which comprise: • the Consolidated statement of comprehensive income, Consolidated statement of changes in equity, Consolidated statement of financial position, Consolidated statement of cash flows, and the related notes, including the accounting policies in note 1; and • the statement of financial position of the Company, statement of changes in equity of the Company, statement of cash flows of the Company and related notes, including the accounting policies in note 1 of the Company financial statements. In our opinion: • the financial statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 December 2019 and of the Group’s profit for the year then ended; • the Group financial statements have been properly prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs as adopted by the EU); • the parent Company financial statements have been properly prepared in accordance with IFRSs as adopted by the EU and as applied in accordance with the provisions of the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Group financial statements, Article 4 of the IAS Regulation. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the audit committee. We were first appointed as auditor by the shareholders in 2006. The period of total uninterrupted engagement is for the 14 financial years ended 31 December 2019. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided.
OVERVIEW Materiality: Group financial statements as a whole
£6.7m (2018: £6.7m) 4.4%of normalised Group IFRS profit before tax (2018: 4.0%) 97%of Group IFRS profit before tax (2018: 94%of Group IFRS loss before tax)
Coverage
Emphasis of matter
Capital
Key audit matters
vs 2018
Event driven
Brexit uncertainties
Recurring risks of the Group
Going concern
Valuation of insurance liabilities Valuation of loans secured by residential mortgages
Recurring risks of the Parent
Recoverability of Parent Company’s investment in subsidiaries
2. EMPHASIS OF MATTER – CAPITAL We draw attention to note 34 to the financial statements which notes that the Group’s capital position can be adversely affected by a number of factors, in particular factors that erode the Group’s capital resources and/ or which impact the quantum of risk to which the Group is exposed. Note 34 notes that the Group continues to engage in discussion with the PRA around its SCR methodology. Note 34 further notes that uncertainty remains as to how the introduction of an Effective Value Test in stress will ultimately be implemented by the Group. Note 34 further notes that given that the Group continues to experience a high level of regulatory activity and intense regulatory supervision, there is also the risk of PRA intervention, not limited to the aforementioned matters, which could negatively impact on the Group’s capital position. Note 34 further notes that the Group recognises the need to continue to strengthen its capital position. Our opinion is not modified in this regard. 3. KEY AUDIT MATTERS: INCLUDING OUR ASSESSMENT OF RISKS OF MATERIAL MISSTATEMENT Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below, the key audit matters, in arriving at our audit opinion above together with our key audit procedures to address those matters and our findings from those procedures in order that the Company’s members as a body may better understand the process by which we arrived at our audit opinion. These matters were addressed, and our findings are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.
Powered by FlippingBook