Just Annual Report and Accounts 2019

162 JUST GROUP PLC Annual Report and Accounts 2019

NOTES TO THE COMPANY FINANCIAL STATEMENTS CONTINUED

5 FINANCIAL INVESTMENTS

Fair value

Cost

2019 £m 55.8

2018 £m 34.5 66.2

2018 £m 34.5 63.5

Units in liquidity funds

–

Debt securities and other fixed income securities

0.1

Deposits with credit institutions

2.5

45.9

–

Derivative financial assets

–

Total

101.8

55.9

103.2

100.5

All financial investments are measured at fair value through the profit or loss and designated as such on initial recognition. All assets for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value measured as a whole. In the fair value hierarchy, units in liquidity funds are all classified as Level 1 and debt securities and other fixed income securities, and derivative financial assets are all classified as Level 2. There have been no transfers between Levels during the year.

6 SHARE CAPITAL The allotted and issued ordinary share capital of the Company at 31 December 2019 is detailed below:

Merger reserve £m

Share premium £m

Share capital £m

Total £m

Number of £0.10 ordinary shares 941,068,882 94,012,782

94.1

93.3 532.7 720.1

At 1 January 2019

9.4

– –

64.4

73.8

Shares issued

–

(95.9)

Provision for impairment in investment in Group undertakings (see note 2)

At 31 December 2019

1,035,081,664 103.5

93.3 501.2 698.0

At 1 January 2018

938,308,340

93.8

93.0

532.7

719.5

In respect of employee share schemes

2,760,542

0.3

–

0.6

At 31 December 2018

941,068,882

94.1

93.3

532.7

720.1

On 14 March 2019, the Company completed the placing of 94,012,782 ordinary shares of 10 pence each at a price of 80 pence per share to both existing and new ordinary equity shareholders, raising gross proceeds of £75m. The placing price represents a discount of 6.7% on the market price of 85.3 pence per share at the time of the placing. The placing was achieved by the Company acquiring 100% of the equity of a limited company for consideration of the 94,012,782 new ordinary shares issued. Accordingly, merger relief under section 612 of the Companies Act 2006 applies, and share premium has not been recognised in respect of this issue of shares. A merger reserve has been recognised representing the premium over the nominal value of the shares issued. Consideration for the acquisition of 100% of the equity shares of Partnership Assurance Group plc in 2016 consisted of a new issue of shares in the Company. Accordingly, merger relief under Section 612 of the Companies Act 2006 applies, and share premium has not been recognised in respect of this issue of shares. A merger reserve has been recognised representing the difference between the nominal value of the shares issued and the net assets of Partnership Assurance Group plc acquired.

7 SUBORDINATED DEBT Details of the Company’s subordinated debt are shown in note 24 to the Group financial statements.

8 FINANCIAL LIABILITIES The Company has a cash flow swap derivative financial liability with subsidiary undertaking, Just Retirement Limited, with a fair value of £45.9m.