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Jelf 2014 Report and Accounts w

ww.jelfgroup.com 2014

Report and Accounts

10 years on AIM

We are an award-winning, leading UK consultancy providing insurance, employee benefits, healthcare insurance and financial planning services to corporate, SME and individual clients.

We work side-by-side with our clients to understand their needs and individual circumstances. Our commitment to clients and to delivering exceptional client service remains our principal driver.

We ASPIRE to be: recognised as the leading trusted adviser in our chosen markets, striving to exceed our clients’ expectations at every touch point.

Jelf

Jelf applies to be admitted to AIM, and becomes listed

Turnover

2004 2014

Turnover

Clients

Employees

Offices

2014

£8.5m

£82.6m

140 1,075

year of growth Jelf founded in 198925th

Tota

l

Individual

c1,500 Corporate

c4,500

Individual

c45,000 Corporate

c69,000

2004

2014

2014 332004

2004 7

114,

000

6,00

0

£8.5m

2004

01Jelf Group plc Annual Report and Financial Statements for the year-ended 30 September 2014 www.jelfgroup.com

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In your report and accounts

Company overview and strategic review 02 Chairman’s statement 04 Group Chief Executive’s report 08 Our business 12 In partnership13 Our clients

Governance16 Our Board of Directors18 Corporate governance 22 Remuneration report

Accounts 25 Directors’ report 27 Strategic report29 Independent Auditors’ report 31 Consolidated income statement 32 Consolidated balance sheet 33 Consolidated statement of

changes in equity34 Consolidatedcashflow

statement35 Notes to the consolidated financialstatements

66 Independent Auditors’ report68 Company balance sheet69 Reconciliation of movements

in shareholders’ funds 70 Notes to the Company financialstatements

75 Company information76 Our locations

Contents

“2014 has seen Jelf celebrate 25 years in business...and the 10th anniversary of our listing on AIM, and so it is particularly pleasing to report that we have delivered a record performance.”

“We have achieved another excellent set of trading results in 2014, further improving our margins. Our focus on delivering profitable growth, through organic growth initiatives and selected acquisitions, continues to produce encouraging results.”

Les Owen, Non-Executive Chairman

Alex Alway, Group Chief Executive

Les Owen Alex Alway

Page 2 Page 4

02 Jelf Group plc Annual Report and Financial Statements for the year-ended 30 September 2014 www.jelfgroup.com

£25.1m

2006

Jelf placed 11 million new shares into the market to raise funds, of which £4m were as part of the acquisition of Goss Group

Turnover 118.2%

2014 has seen Jelf celebrate 25 years in business – advising, servicing and supporting our clients – and the 10th anniversary of our listing on AIM, and so it is particularly pleasing to report that we have delivered a record performance.

Revenues up 8.4% to £82.6m (2013: £76.2m)EBITDA up 32.4% to £14.6m (2013: £11.0m)PAT up 40.4% to £6.5m (2013: £4.6m) Fully diluted EPS up 35.0% to 5.4p (2013: 4.0p)

Wecontinuetogeneratestrongcashflows,operatingcashflowwas£12.0m(2013:£7.7m)andasat30September2014netdebtwas£5.7m(2013:£13.5m).Reflectingthisstrongperformance,theBoardhasdeclaredadividendfortheyearof2.0p(2013:1.5p).

Ourclearandfocusedstrategyandstrongfinancialperformance continue to generate value for our shareholders.Oursharepriceincreased45.0%from

“Our clear and focused strategy

and strong financial performance continue to

generate value for our shareholders.”

Chairman’s statementLes Owen, Non-Executive Chairman

1October2013to4December2014,whichcomparesfavourablywithadecreaseof10.5%intheAIMAllShareIndexandanincreaseof3.7%intheFTSEAllShareIndex.

JelfInsuranceBrokershasdeliveredfurtherprofitablegrowth.Astheeconomystrengthenswehaveseensomegrowthinriskexposures(wageroll/equipment/property) intheSMEandmid-marketsegments.Thefirstfullyear ofresultsfromJelfInsurancePartnership,acquiredin June2013,hasdeliveredaheadofexpectations.We have exceeded the targeted level of synergies and are wellontracktoachievethegoalssetoutwhenweacquiredthisbusiness.

OurfocusonourcustomerswasrecognisedwhenwewonNationalBrokeroftheYearfromInsuranceTimesandInsuranceBrokeroftheYearandtheCustomerServiceawardfromUKBrokerAwards.Ournetworkfor independentbrokers,PurplePartnership,alsowonBroker NetworkoftheYearattheCommercialInsuranceAwardsinMarch.Purpledeliveredstronggrowthinprofitandrevenuein2014,exceeding£1mofturnoverforthefirst time,anddelivereditsbesteveryearformemberrecruitment.

Revenue

2010£70.4m

2011 2013

£72.1m

£76.2m

2012 2014

£73.0m

£82.6m

EBITDA

2010£8.7m

2011 2013

£10.1m£11.0m

2012 2014

£10.5m

£14.6m 32.4% increase


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£39.7m

2007

Acquisition of SPS Wellbeing

Acquisition of John Lampier and Son and Lampier Professions

Purple Partnership launched: a Jelf-owned network for independent brokers

Jelf wins the AIM ‘Best Communication Award’

Turnover 58%

It has been another successful year for Jelf Employee BenefitsandJelfFinancialPlanningandIampleasedwiththewaywehaveadaptedourbusinessmodeltothepostRDR(RetailDistributionReview)worldandtothecontinuingshiftinourrevenuesfromcommissiontofees.TheannouncementsintheBudget,andsubsequently,ofmajorchangesinthepensionsregime,createconsiderablefreedomforindividualstomaketheirownchoicesregardingtheirpensionsavings.Itisthemostradicalchangetopensionsinalmostacenturyandwillprovideasignificantopportunityforadvice-ledbusinessessuchasJelf,asindividualsandtheiremployersseekmorehelpandadviceinrelationtothisgreaterfreedom.

We continue to manage our existing clients through the autoenrolmentprocess,whilstatthesametimewinningnewclientmandatesassmallerbusinessesnowstarttoautoenroltheiremployees.

Managementhasdevelopednew,ambitiousthreeyearstrategicobjectivesandfinancialtargetsandisintheprocessofcommunicatingthemtoourpeople.Ourcorestrategyisnotchanging.Wewillcontinuetofocus on providing high quality advice to businesses on theirinsurance,healthcareandpensionsneeds,andingivingfinancialadvicetoselectedindividualclients.We continue to develop the cross selling of additional servicestoexistingclients.Ourhighqualityofservicehasbeenrecognisedthroughonceagainbeingawardedamaximum‘3Star’ratingfromInvestorinCustomers(IIC).

Jelfplacesgreatimportanceonensuringwehaveastrongandeffectiveregulatory,complianceandgovernancecultureandframework.Wehaveastrong,experiencedBoardandIwouldliketothankthemfortheirleadership.TheBoardhasbeenfurtherstrengthenedthroughtheadditionofChrisHanksasaNon-ExecutiveDirectorandChairmanoftheRiskCommittee.ChrisisalsotheChairmanofourPurplenetworkandbringsawealth ofknowledgeandexperiencefromhispreviousrole asGeneralManagerofAllianzUK.

Lookingforward,weremaincautiouslyoptimisticastheeconomycontinuestoimprove.Althoughmarketsremainintenselycompetitive,webelievethatcontinuedfocus onourcoresegments,ourstrongbalancesheetand ourreputationforclientservicewillenableustodeliverfurtherprofitableorganicgrowth.Wewillcontinuetolook atfurtheracquisitionopportunitieswherewecansee goodsynergies,aculturalfit,sensiblepricesandvalue forshareholders.

OnbehalfoftheBoardIwouldliketothanktheGroupChiefExecutiveAlexAlway,theseniorexecutiveteam, andourdedicatedandprofessionalstaffforalltheirhardworkandtheexcellentresultsthathavebeenachieved.

Les OwenNon-ExecutiveChairman

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Dividend

2012

1.3p (maidendividend)

2013

1.5p 15% increase

2014

2.0p 33.3% increase


2008

Jelf raised £45m net fundraising in January 2008, winning the AIM award for ‘Transaction of the Year’

Acquisition of Manson, Clarke Roxburgh and Argyll Insurance Group

2008

I am pleased to report that we have achieved another excellent set of trading results in 2014, further improving our margins. Our focus on delivering profitable growth, through organic growth initiatives and selected acquisitions, continues to produce encouraging results.

Financial resultsOurfinancialperformanceandstrengthhascontinued toimproveinthisfinancialyear.Intheyear-ended 30September2014,ourrevenuewas£82.6m(2013:£76.2m)andEBITDAincreasedby32.4%to£14.6m(2013:£11.0m,including£1.5mofexceptionalcosts). TheEBITDAmarginwas17.6%(2013:14.4%).Netprofitaftertaxwas£6.5m(2013:£4.6m),anincreaseof40.4%.

“Good trading during 2013–2014

has seen our EBITDA increase by 32.4% to £14.6m (2013: £11.0m).”

Group Chief Executive’s reportAlex Alway, Group Chief Executive

Theimprovementinthewidereconomicenvironmenthasseen ourclientsexpandandinvestinproperty,humanresourcesandplant,whichinturnprovideduswithopportunitiestoadviseandsecurenewandexpandedmandates.

Basicearningspersharewas6.0p(2013:4.3p)andfullydilutedearningspersharewas5.4p(2013:4.0p).

Positive cash flowWecontinuetogeneratepositivecashflow;takingintoaccount the acquisitions and investments during the yearwearenowinanetdebtpositionof£5.7m(2013:£13.5m).Weareinastrongfinancialposition,ideallypositionedtocontinueinvestinginorganicgrowthandselectedacquisitionsininsuranceandhealthcarebroking.

BackgroundThestructuralchangestothesectorsinwhichweoperatecontinueapace.Thekeyforceswhicharereshapingourindustryare: Regulatory pressures: Thisyearwehaveseenaconsiderable number of regulatory announcements particularlyaroundpensionswhich,intheshortterm, require fundamental changes to our business model but arealsopresentinguswithsomeexcitingopportunities toexpandtherangeofservicesweprovidetoclients.

EBITDA margin

201012.4%

2011 201314.0%

14.4%

2012 2014

14.3%

17.6% 22.2% increase

Earnings per share

20101.1p

2011 2013

2.6p

4.0p

2012 2014

3.2p

5.4p 35.3% increase


£63.1m

Turnover 59%

Jelf Financial Planning attains Chartered status

Customer evolution: Acrossallourbusinesssectors,customerexpectationsaregrowing.Morethanever,weseecustomerunderstanding,serviceandengagementaswaysinwhichwewilldifferentiateourservices,particularlyinthemature and highly competitive healthcare and insurance brokingsectors. Pricing pressure: Economic pressures mean that clients are morepriceconsciousthanever.Ithasthereforeneverbeenmoreimportanttokeepourfocusonqualityadvice,serviceandaddedvalue. Product commoditisation:Brokersarenowquickertoduplicatethefeaturesofcompetitorservices.Weneedtocontinuetodevelopandprovideclearlydifferentiatedservicesthatshowcasethevalueofourskillsandknowledge.

Our strategyOur strategy remains consistent but during the latter part of2014wefine-tunedthisandlaunchedaseriesofnewobjectivesinternally.Clientsandclientservicetakecentrestageaswefocusevenmorecloselyonclientservice andclientengagement;partofourvisionstatementsaysthatweare“strivingtoexceedourclients’expectationsateveryopportunity.”

AnengagedclientisonewhoisanadvocateofJelfandrecommendsustotheircontactsandprovidestestimonials.Weareworkingproactivelytoidentifythosewhoarenotyetadvocatestounderstandwhatweneedtodotoimproveourservicepropositiontothem,inordertobringaboutachangeintheirviewofus.

We believe that successfully applied client engagement is a realdifferentiatorforanadvice-ledbusinesslikeJelf,andthatastrategyfocusedonthiswillenableustostandoutfrom thecompetitioninawaythatishardtoreplicate,especiallyin the mature and highly competitive sectors of general insuranceandhealthcarebroking.

Theunderlyingprinciplesthatdriveourstrategy continuetobe: Clients:Listeningtoourclients,identifyingtheir requirementsandworkingwiththemtounderstandtheirbusinessand/orpersonalneedsandindividualcircumstances.Wewanttobecometheirtrustedadviser.

People: Our employees are one of our strongest assets andwearekeentopromotetheirskillsandexperience. We are very supportive of the drive to increase professionalismacrosstheindustry. Stakeholders:Ourrelationshipswithourstrategic partners,whoincludeinsurersaswellastheregulators andourshareholders,willalwaysremainkeytoour continuedsuccess.

Highlights of the yearAnniversaries:In2014wecelebratedour25th Anniversaryasabusinessand10yearsonAIM.

Investor in Customers – ‘3 Star’ Exceptional:InFebruary2014,weweredelightedtoagainreceiveahigherscorewithinthe‘3Star’ratingfromInvestorinCustomers(IIC).Jelf’sclientsratedourclientservicesas‘exceptional’.Furthermore,byimprovingouroverallscore forthesixthconsecutiveyear,weretainedourpositionas thetop-ratedbrokerwithintheUK.

Awards:During2014wehavewonanumberofindustryawardsincludingNationalBrokeroftheYearfromInsurance Times,InsuranceBrokeroftheYearfromUKBrokerAwards,PensionSchemeCommunicationAwardandAt-RetirementSolutionsProvideroftheYearfromPensionsAge,andBrokerNetworkoftheYearattheCommercialInsuranceAwards.

Acquisitions: We continue to pursue our strategy oftargetedacquisitions,andhaveanactivepipeline. Wewillonlyacquirewherewecanbesurethatthere isbothastrongculturalfitandthedealclearlyenhancesshareholdervalue.

DuringthisfinancialyearweboughtasmallbrokerbasedinKentandsuccessfullymovedtheteamandbookintoourlocalbranch.InadditionwealsopurchasedanicheretirementworkshopfirmcalledLaterlifewiththeintention ofinvestingadditionalresourcestogrowthisbusiness. Theprovisionofpre-retirementplanningeducationisavaluableadditiontoourEmployeeBenefitsofferingasemployersbecomemoreawareoftheneedtohelptheiremployeesplanfortheirretirement.

TheintegrationofTheInsurancePartnershipremainsontrackandthebenefitcaptureprogrammeisaheadofschedule.

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2010

Jelf receives Beacon status in recognition of being one of the South West region’s top performing businesses

Jelf refinanced and raised a net £17.7m from placing of shares, alongside welcoming Capital Z as a key investor

Core business performance

InsurancebrokingisthelargestelementofJelfGroup,accountingfor67%oftotalrevenue.

Our insurance broking business primarily provides advice onproductsandservicestotheUKSMEandcorporatesectors,andrelatedindividualclients. Revenuesincreasedby14.4%to£55.2m(2013:£48.3m),EBITDAincreasedby69.3%to£9.4m(2013:£5.6m). TheEBITDAmarginalsoincreasedfrom11.5%to17.1%yearonyear.

Insurancepremiumsremainedflatintermsofrate,butweare seeing increases in cover as our client base invests andexpandsandaswecontinuetowinnewbusiness.Wecontinuetoinvestinourtechnologyengine,providingthecapabilitytore-engineerourSMEbusinessanddeliverbenefits.Duringtheyearwebecamemembersoftwoglobalnetworks,whichwillenhanceourcapabilitytotakeadvantageofourEmployeeBenefitsclientbase.

During2014weretainedtheprestigious‘Chartered’status.

TheyearsawcontinuedgrowthofthePurplePartnership(ournetworkforindependentbrokers,whichisincludedwithintheinsurancebusinesssegment).Purpleisin itsseventhyearofoperationandcontinuestoexpand. Organicrevenuesincreasedby17.0%to£1.1m (2013:£0.94m).

EmployeeBenefitsaccountsfor25%ofJelfGroup’s totalrevenue.

OurEmployeeBenefitsbusinessachievedrevenueof£20.8m(2013:£20.8m),EBITDAwas£4.8m(2013:£5.2m),adecreaseof7.9%.EBITDAmarginsremainstrongat23.0%(2013:24.9%).EBITDAhasfallenslightlyaswe

continue to invest in people and systems to take advantage oftheadvice-ledopportunitieswebelievewillariseinthisbusinessoverthenextfewyears.

TheEmployeeBenefitsbusinesscomprisesarangeofservicesincludingCorporatePensions,GroupRiskandHealthcare.ThePensionsandGroupRiskpartofthebusiness provides advice and a range of services to small andlargebusinessesinrespectofemployeebenefitdesign(includingriskandpensionbenefits),benefitcommunicationandimplementation;alongsidenewincomestreamsfocusedonprovidinggovernanceadviceforemployers,andfinancialeducationandworkshopsforemployeesandseniormanagementinpreandpostretirementlife-stages.

We have had to reposition our client proposition in light of theregulatorychangesaroundpensionadvice,whichhasresultedinashort-termdeclineinrevenuesasweswitchfromcommissionstofees.Itispleasingtonotewehaveseencontinuedstrongnewbusinessenquiriesduring2013/14ascorporateclientshavesoughtadviceon autoenrolment(AE).Weexpectthistocontinuethrough into2015.Wearealsogeneratingaconsiderablenumber of enquiries from Insurance clients across the Group for AEadvice.

TheHealthcareelementoftheEmployeeBenefitsbusinessprovidesadviceonhealth-relatedemployeebenefitssuchasprivatemedicalinsuranceandothernon-insurance healthbasedservices.Ourclientsareowner-managedenterprisesinEnglandandWales.Wealsoprovidespecialistfee-basedadvicetolargercompanies,encompassingwiderhealthcareandemployeewellbeingissuessuchasabsencemanagementandoccupationalhealth.Wehaveateamproviding highly specialist advice in the complex area of internationalhealthcare.ThisareaisachievinggoodorganicgrowthlevelsasourcorporateandSMEclientsexpandinternationallyand/orbecomeawareofthisservice. Overall,thisbusinesshasachievedverygoodclientretentionlevelsduring2014.

Tobroadenourofferingtoourclientsweareinvestinginanewbenefitsmanagementplatformandadedicatedteamtotakeadvantageofopportunitiesforwork-basedadvice.

Group Chief Executive’s report


£70.4m

Turnover 0.1%

Jelf re-brands to encompass operations of the entire Group, bringing together all business areas

FinancialPlanningaccountsfor8%ofJelfGroup’s totalrevenue.

JelfFinancialPlanningprovidesafullrangeoffinancialplanningservicestoowner-managedbusinessesandothermedium/highnetworthindividuals.RevenuesfromFinancialPlanningdecreasedby7.1%to£6.6m(2013:£7.1m).ThiswasduetoareductioninsalesstaffposttheRetailDistributionReviewandaswecontinuetoensurewemaintainourfocusonprovidingqualityadvicetoourclients.TheaccumulationofAssetsUnderAdvice(AUA)continuestoimprovetheprofitabilityofthebusiness,andEBITDAincreasedby44.7%to£372k(2013:£257k).EBITDAmarginis5.6%(2013:3.6%).Adviserproductivityhasincreasedby8.4%to£296kperadviser.

We have a total assets under management mandate for over£1billionandofthis,£585m(2013:£547m)arewithourpreferredpartners.

Therecentannouncementsconcerning‘PensionFreedom’willcreatefurtheropportunities,asmorepeoplerealisethatgreaterflexibilityincreasestheneedforhighqualityprofessional advice on pre and post retirement planning to ensure that they take full advantage of the changes in legislation.Takingthisintoaccount,wearealigningourFinancialAdvisersalongsidetheLaterliferetirementplanningworkshopstooffermedium/highnetworthindividualspersonalwealthmanagementandplanningadvice.

Wehavealsoinvestedinanewprotectionsalesteamtodevelopthislineofbusinessforbothbusinesses(criticalillness,keymancoverandcompanywills)andindividuals.

During2014weretainedtheprestigious‘Chartered’statusforthebusiness.

High quality employees Weemployed1,075peopleattheendofthe2013–2014financialyear;aslightdecreasefrom1,077attheendof2013.Theratioofmaletofemalestaffis45:55.Weofferacomprehensiveemployeebenefitspackage,whichisactivelypromotedacrosstheGroup.

Wetakegreatprideinthecommitment,dedicationandexpertiseofourstaff.Inreturnweseektodevelopourstaffthroughawiderangeoftechnicalandmanagementcourses,andanumberofdevelopmentprogrammescoveringsalesskills,thoseaspiringtoasalescareer,salesmanagementandouroperationalmanagers.Wepursueahighlyproactivecommunicationprogrammewithstaffincludingregularroadshows,awell-usedintranetnewsservice,companyaudiosledbymyselfandan‘AskAlex’facilityforallstafftoaddressquestionstomyself.Wemeasurestaffcommitmentandsatisfactionthroughannualsurveysandthelastsurveyrecordedan82%staffsatisfactionandcommitmentscore.

Jelf in the communityWe support our employees in recognising the importance ofourcorporatesocialresponsibility.Webelievethisencouragesarealsenseofcommunityandcaringwithinthebusiness.

Thisyearouremployeeshaveraisedover£26,000forcharitiesacrosstheUK,andJelfhasbeenproudto donateafurther£18,000.

Looking forwardOurgrowthanddevelopmentoverour25yearhistoryis a result of our commitment to placing client needs attheheartofourbusiness,andouradaptabilityinthefaceofachangingregulatoryandbusinessenvironment.We continually seek to evolve and develop the range ofpropositionsweoffertoclientsascircumstancesandconditionschangearoundus.Iremainconfidentthatprovidingwecontinuetomaintainourfocusonourstrategicobjectives,ourbusinesswillcontinuetoprosperanddelivervaluetoallstakeholders.

Thank you to our employeesOnceagainIwouldliketoputonrecordourthankstoouremployeesfortheircontinuedhardwork,supportandcommitment.Theyhaveallworkedwithdedicationandenthusiasmthroughout2014.

Alex Alway Group Chief Executive

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Jelf delivers a range of services and advice through three areas of the business: Insurance–whichaccountsfor67%oftheGroup’srevenue;Employee Benefits–25%;andFinancial Planning–8%.

Wecanprovideclientswithanintegratedpackage,tailoredtosuitboththeirbusinessandindividualneeds–coveringaspectsfromprofessionalindemnity;householdinsuranceandpensions;toprivatemedicalinsurance–homeorabroad; investmentadvice;inheritancetaxandretirementplanning.

Jelf’s‘Menu’ofservicesisexpansive.WeareamongtheUK’smarketleaders,withexperienceacrossindustriesandparticularspecialismsinanumberofsectors,including:electrical;finedining;haulage;recruitment;retirement;motorsports;andworkplacesavings.

Weareproudofthequalityandexperienceofourpeople.We recognise that Jelf’s continued success is linked to thecalibre,dedicationandexpertiseofouremployees.Developing the skills and specialisms of our people remainsafocus–providingthemwiththeknowledge totrulybecomeourclients’trustedadvisers.

Our business

Fine Dining

JelfisoneoftheUK’sleadingrestaurant and leisure insurance brokers,offeringaproactiveapproach and providing the skillsandexpertisetoofferclients bespoke cover for their individualneeds.

ManagingDirectorSteveCareford’s particular specialismisfinedining–

anindustryareahehasworkedinforover15years.“Thejoyofthisindustryisthatthereisn’tatypical client–fromacelebrityTVchefwithonerestaurant, toamultinationalorganisationwithoperationsincountriesacrosstheglobe,theyallreallyvalueindustryspecificadviceandknowledge,whichiswhereIcangetinvolvedandaddvalue.”

Steve Careford, Managing Director

Workplace savings – Money at Work

JoThresherisJelf’sHeadofMoneyatWork.Educatingemployeesinfinancemattersfor17years,Jo’sclientsinclude large household names through to smaller regionalbusinesses.

“Themarketforfinancialeducationandwellbeinghasexplodedinthelast12months,

withemployersrecognisingthevalueofunderstandinghowbeingfinanciallyhappyaffectstheiremployees’wellbeing,andthereforetheirhealthandabsencerates.MoneyatWorkisanexcitingproposition.Ittrulyhelpsemployeestounderstandtheirfinancesandgetaplanforthefuture.Itbringstolifeourexpertiseandhelpsemployershelptheiremployees.”

Jo Thresher, Head of Money at Work

Motorsport

MotorsportAccountExecutive,Jasmina(Jaz)Bareham,is actively involved in her specialismasbothaMotorSports Association marshal andcompetitor.

Havingworkedinthis insurance sector for over six years,Jazadvisesclientson awiderangeofaspects. “Myclientsrangefromprivate

individuals requiring annual road insurance for their rallycarorsupportvehicle,tolargemanufacturersormotorsportvenues,tohirersofworldrallycarsrequiringeventaccidentaldamagecover.FindingabrokerwhohastheproductandindustryknowledgethatcanhelpthemmakeaninformedchoiceonwheretoinsuretheirbusinessiskeyforthesportandJelfMotorsportprovidesanexcellentandefficientserviceinthisarea.”

£73.0m

2012

Jelf Insurance Brokers attains Chartered status

Turnover 1%

Jasmina (Jaz) Bareham, Motorsport Account Executive


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Renewable Energy

JelfisaleadinglightinUKbrokerageforrenewableenergyandCarlGurney,RenewableEnergyExecutive,hasbeenactive in the sector’s insurance needsforthepastsevenyears.

WithaseatonRenewableEnergy and Agriculture steeringgroupsforRBS/NatWestBank,Carlisalsoa

regular contributor and specialist speaker at national events:“Ourofferingismarketleading;wecaninsurealltechnologiesfromSolarPanelFarmsandWindTurbinestoAnaerobicDigestionandBiogasPlantsandBiomassSystems–thiscaneitherbeonastandalonebasisorportfolio,andcancoverconstructionphaserightthroughtooperational.Weofferplantinspectionandadvicewithourinsurersandcoverisarranged onaspecificbasisasonesizedoesnotfitall.”

Carl Gurney, Renewable Energy Executive

Group Risk

CarolineShepherd,Jelf’sBusiness Development Manager,has15years’experience of providing Group Risk consultancy to large corporateclientsandSMEs.

TheneedforGroupIncomeProtection,particularlyoverthepastfewyears,hasincreasedsignificantlyandwillcontinue

todosoasbenefitprovisionfromtheGovernmentdecreasesandabsenceratescontinuetoincrease,particularlyforlong-termabsence.“Thebenefitsprovided by a Group Income Protection policy are a valuabletoolinmanagingsicknessabsence.Withourexpertisewecanhelpemployersputeffectiveabsencemanagementstrategiesinplace,whichwillboostproductivityandreducecosts.”

£76.2m

2013

Jelf awarded ‘3 Star’ status for exceptional client service in an independent assessment by Investor in Customers (IIC)

Acquisition of Howell Shone Insurance Brokers, The Insurance Partnership and Laterlife

Turnover 4%

Caroline Shepherd, Jelf’s Business Development Manager

Our awardsin 2014 February Investor in Customers Jelfawarded‘3Stars’forexceptionalclientservice Pensions Age Awards EmployeeBenefitswin‘PensionSchemeCommunicationAward’and‘At-RetirementSolutionsProvideroftheYear’ March Commercial Insurance Awards PurplePartnershipnamed‘BrokerNetworkoftheYear’

September Insurance Age UK Broker Awards Insuranceannouncedwinnersof‘TheCustomer ServiceAward’category,andawarded‘InsuranceBroker oftheYear’ October Health Insurance Awards EmployeeBenefits’InternationalTeamhighlycommendedfor‘BestGroupInternationalPMIIntermediary’and‘BestIndividual International Intermediary’ Expatriate Management & Mobility Awards – APAC Awards in Singapore EmployeeBenefits’InternationalTeamwin‘EmployeeBenefitsandServicesProvideroftheYear’ November North of England Excellence Awards JelfInsurancePartnershipwins‘CustomerServiceExcellenceAward’ December Insurance Times Insurancewin‘NationalBrokeroftheYear’award


• Drive the quality agenda in respect of advice and claimsproposition.

•Continuetoeffectivelyintegrateacquisitionsand deliveridentifiedbenefits.

•Buildleadingpartnershipswiththe insurermarketplace.

•Growthepipelineofnewaffinitiesandoptimiseexistingrelationships.

•Offerourclientstheopportunityforadvicewithin theexistingcommercialinsuranceclientbase.

•Continuestrongtrackrecordofmembershipgrowth.

•Buildonestablishedbrandandreputationaswestrivetobe‘themodelNetwork’,widelyrecognisedforaddingvalueforourmembersandpartnersalike.

•Focusonrelationship-basedservicetomembers.

• Develop proposition to maintain and extend accesstomarkets,productsandachoiceofsupportservices–includingournew‘PurpleLearning’initiative.

Our focus for the next 12 months…


• SchemesandAffinities:Anumberofmandateswon–withsuccessesinbanking,memberservicesandpropertymanagementsectors.

• Corporateproposition:Membershipoftwointernationalbrokernetworkshasenabledustocompetewithmultinationalbrokers,whilerolloutofinnovative transparency fee model has proven highly attractivetocorporateswithriskmanagementbias.

• IntegrationofTheInsurancePartnership: Allanticipatedbenefitsfromthismajor acquisitionachieved.

• Clientretention:Positive improvement in client retentionrates,withinboththePersonalLinesandCommercialbusinesses,hasalsobeenachieved.

•Growth:Recordyearforgrowthinmembership,revenueandprofit.

•Enhancenameandreputation:ProudwinnersofCommercialInsuranceAwards‘BrokerNetworkoftheYear’2014.

•Relationship-basedservice:FourRegionalDevelopmentManagersandenlargedsupportteaminplace–supportingexistingmembershipandprospectingfornew.

•Developproposition:Strong backing from a select panelofpartnerinsurers.

Our business

Reviewing our objectives from the last 12 months…


Insurance

Purple Partnership

updated cover Acquisition of Riverside

Insurance Brokers and Cronin & Co Insurance Brokers

2014

For the second year Jelf is awarded ‘3 Star’ status for exceptional client service in Investor in Customers (IIC) – holding its position as the highest ranked UK broker for IIC


ww.jelfgroup.com 2014

Report and Accounts


Ongoing commitment across the Group will be given to professional accreditation – including maintaining the Group’s ‘3 Star’ Investor in Customers (IIC) award, further improving our Net Promoter® Score (NPS) throughout the business, while increasing professionalism by retaining our prestigious Chartered status.

•OfferourAEaseAutoEnrolmentsolutiontoSMEclientbaseacrosstheGroup,tobuildfurtherscaleintheSMEpensionsandemployeebenefitsmarket.

•MigrateexistingclientstonewWorkplacePlatform,‘Personify’,andgrowshareofonlineemployeebenefitsmarket.

•FurtherbuildonsalesoffinancialeducationthroughourMoneyatWorkservices,andourretirementservices,LifeafterWorkandLaterlife.

•ContinueexpansionofInternationalPMIbusiness.

•GrowshareofretirementplanningmarketthroughopportunitiesgeneratedbytheEmployeeBenefitsdivision’spropositions:LifeafterWorkandLaterlife.

• IncreaseprotectionsalesalongsidenewlyformedIndividualProtectionUnit.

•Furtherdevelopclientproposition,aimedatexecutivesofEmployeeBenefits’clients,retireesandownersoffamilybusinesses.

• Launch remote advice service to generate adviser chargesforclientswherefund-basedcommissionispotentiallyatthreatfromtheSunsetclauseinApril2016.



•AEsupport:HelpingclientsthroughAE.LaunchedourAEaseproposition–aimedattheSMEmarket.

•Providecompelling‘at-retirement’proposition:Laterlifeworkshoprevenuegrownby50%. Awarded‘At-retirementSolutionsProvideroftheYear’.

•Workplaceeducation:Suite of 12 courses developed,coveringfinancerelatedsubjects, fromhomeowninganddebttopensionplanning.

• ExpandInternationalPMI: Newtradingstyleanddefinedpropositionleadingto30%increaseinincome.AnactivememberofWorldwideBrokerNetwork,offeringaglobalreachforincreasinglymobileinternationalclients.

• Clientretention:FurtherimprovementinretentionratesinHealthcareandInternational.

•Migrationofinvestment:Majorityofclientsnowonouradvisedproposition.Wehaveatotalmandateforover£585m(2013:£547m)ofAssetsUnderAdvice(AUA)withourpreferredpartners.

•Increaseshareofgrowing‘at-retirement’market:SignificantgrowthinnewclientopportunitiesresultingfromLifeafterWorkandLaterlife.

•Executivecounselling:A number of sessions delivered,withfurtherdevelopmentofservices andmarketresearchinthecoming12months.



Financial Planning

Employee Benefits

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Jelf, founded by Chris Jelf in April 1989, celebrates its 25th Anniversary

Excep�onal


Webelievethatourkeydifferentiatorinthemarketisourdrivetodeliverrealpartnershipswithourclients:•Tounderstandtheirbusinessandindividualrequirements.•Todemonstratethevaluewecanbringtotherelationship.•Tobecometheir‘trustedbusinessadviser’overtime.

Jelf employees are a fundamental building block to the successofourASPIREstrategy.ThepeopleelementofASPIREfocusesonthreecorethemes:ofattracting,retaininganddevelopingpeople,withinanenvironmentthatmakesJelf‘agreatplacetowork.’Thisapproachwillensurethatwecontinuetoemploypeoplewhoareexpertsintheirfieldandarepassionateaboutdelivering aclient-focusedservice.

Our commitment to programmes of activity such as InvestorinCustomers(IIC)andNetPromoter®willcontinuetofeatureinourday-to-dayactivityandthefeedbackwereceivethroughthisworkwillremain afocusforourbusinessoperatingplans.

ExceptionalserviceisanongoingprocessthatwewillstrivetowardsandasaresultwewillrolloutNetPromoter®

acrossthebusinessinthecomingthreeyears.Thisactivitywillenableustodrilldowntothenextlevel,focussingclient feedback on delivering key improvements in specificareas.

Inacompetitivemarketandchallengingeconomicperiod,wehaveseenthepositiveeffectthatclientengagementcanbringtothebusiness.Wecontinuetoincrease thenumberofadditionalservicesweprovidetoourclientsandtoaddvaluetoshareholdersasthedividendrises.

Weareontherighttrack,anditisourobjectivetocontinuetodeliver.

In partnership

Our aspiration is to ensure that every time we engage with one of our clients they receive excellent client service. Our ASPIRE strategy focuses on achieving this, with the client remaining very much at the core of our offering.

Turnover

£82.6m

+8.4%

Jelf opens in Scotland for the first time with a Glasgow office, and strengthens its position in South West England, opening its doors in Exeter


Hyper Recruitment Solutions (HRS)Ricky Martin, Managing Director of HRS, has worked in partnership with Jelf’s Peter Stoll, Director at Jelf Manson, since winning series eight of BBC’s The Apprentice in 2012.

Asinsurancespecialistsintherecruitmentsectorwehave been able to help and advise Ricky as his business hasevolved,fromstart-upphasewithnoclientbaseorinfrastructure,toafullyoperationalthrivingbusiness. JelfprovidesRickywiththeGroup’spackageofcoverwithinourbespokeRecruitersChoicepolicy,includingEmployers’Liability,PublicLiability,ProfessionalIndemnityandofficecontents.Wealsoarrangelegalexpensesinsurancesforhim.

Our clientsSupporting new business

“AfterseeingRickyonTheApprenticeIdecidedtowritetoLordAlanSugartointroducemyselfand the services Jelf might be able to help Ricky with.ItprovedagreatstepandI’mdelightedthatRickygavemetheopportunitytoworkwithhimonhisexcitingnewventure.Havingoperatedintherecruitmentsectorforover30years,ithasmeant I’ve been able to bring valuable insight to thetableintermsofinsuranceadvice.Ofcoursepremiumsarealwaysgoingtobeaconsiderationforclients,butIhopethatmyapproachandguidancehighlightsthevalueofabrokerwithspecialistknowledge.”

Peter Stoll, Director

“ThefirstthingIlookforinabrokeriscredibilityandwhetherthereisatrackrecord?Whether they are interested in the business and understandhowitruns?Jelfhasdemonstratedthat they understand the recruitment sector andthechallengesthatIface.Theyhave shownthattheyareinterestedinhelpingmemakeasuccessofmycompany.It’snotjustabouthowmuchtheycangetoutofme.UltimatelyJelfcaresaboutmybusiness.”

Ricky Martin, Managing Director

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Massey Wilcox Transport LimitedRobert Wilcox, Managing Director of family-owned and run haulage company, Massey Wilcox Transport Limited, and Chairman of The Transport Association, has worked with John Marks, Jelf Lampier Sales Director, for almost 15 years.

EnsuringbusinesscontinuityiskeyforRobert,whoplacesallhiscommercialinsurancewithJelf–fromhisfleetandproperty,throughtofreightandhauliersliability,whileJelfEmployeeBenefitsalsolookafterMasseyWilcox’sPensionSchemeandGroupLifeAssurance. HavingateamonhandwhounderstandstherequirementsofthebusinessandwhoareabletosupportRobertthroughanydifficultiesorpotentialproblemsisessential totheday-to-dayrunningofthebusiness.

“Havinggrownupwithintheindustry,Ihaveareal understanding of the challenges faced by Robertandhisteam.It’sthroughhavingsuchknowledgethattheJelfteamandIareableto provide bespoke solutions tailored to the specificrequirementsofourclients–aqualitythat has seen us being appointed as insurance adviserstoTheTransportAssociationthisyear.Furthermorewehaveanetworkofindustryprofessionalswhoworkwithustohelpourclientsinallareasoftheirbusiness,whichenables us to add real value and become theirtrustedadvisers.”

John Marks, Sales Director

“TheteamatJelfhaveanin-depthknowledgeofourbusinessandthehaulageindustry.Thisenablesthemtoprovideuswithcomprehensive solutions for all our business requirements.Weregardthemasatruepartnerwithourbusiness,andvaluetheadviceandsupportprovidedovermanyyears.”

Robert Wilcox, Managing Director

Our clientsDelivering service excellence


Hoover Candy GroupGroup Director, Human Resources for Hoover Candy Group, Matthew Given, works with Jelf’s Employee Benefits division to deliver appropriate healthcare services to employees based in South East Asia.

Covering international operations is Jelf’s Business DevelopmentManagerAdamHarding,whohelpssupportMatthewtodeliverappropriatehealthcareservicestoemployeesbasedinSouthEastAsia.

“Havingmanagedourbenefitsforoverfiveyearsnow,theteamatJelfconsistentlyprovideimpartialadvice,alongwithefficientandeffectiveadministrativesupportandguidance.TheirexpertiseintheInternationalteamallowsustobetterunderstandthemarket,andensurewehavetherightoptioninplaceforouroverseasemployees,notonlyintermsofcost,butbenefitlevelsandtomeetwithrelevantlocalregulation.”

Matthew Given, Group Director, Human Resources

Our clientsProviding specialist expertise

“Ifasituationariseswhileoverseasyouwanttobeabletoaccessqualityhealthcareswiftly.It’s therefore crucial for us to have excellent relationshipswithourinsurers,backedbyspecialistknowledge,toenableustorespondto our clients’ requirements promptly and make surethattheircoverisplacedwiththemostappropriateinsurerforwheretheiremployees arebased.Asalwayscostisimportant,butnotthekeyconsiderationinthemarketswework.WehaveworkedcloselywithMatthewtoensurethepolicyinplaceisfullyfitforpurpose.”

Adam Harding, Business Development Manager

International

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Chairman

Les Owen Non-Executive Chairman

LesjoinedJelfasnon-ExecutiveChairmanon28July2010.Leshas40years’experienceinthefinancialservicessector.Hespentthebulkofhis career at Sun Life and in the AXA Groupwhere,priortohisretirement,hewasGroupChiefExecutiveOfficeratAXAAsiaPacificHoldings.PriortothathewasChiefExecutiveofAXASunLife.

Corporate responsibilities: PlcBoard/Remuneration&Nominations Committee

Deputy Chairman

Christopher Jelf Deputy Chairman ACII FPCChris established the business in 1989havingworkedintheindustryina number of positions for brokerages andproviders(includingMidlandBankandRoyalInsurance).Chrisisaqualifiedbrokerandfinancialadviser,andplaysanactiverolewithmanyof the Group’s insurance clients and businesspartners.

Corporate responsibilities: Plc Board

Executive Directors

Alex Alway Group Chief Executive FCMAAlexhasworkedinthesectorforover26years.DuringthistimeheworkedforAXAfornineyearswhereheheldanumberofdifferentroles.He joined Jelf in January 2001 as GroupChiefExecutive,withspecificresponsibilities for formulating and implementingtheGroup’sstrategy.

Corporate responsibilities: PlcBoard/ExecutiveManagement/RiskCommittee/ Compliance Committee Chair

John Harding Group Finance and Operations Director ACA BSc

Johnisanaccountantwithmorethan 25 years’ experience in the financialservicesindustry.BeforejoiningJelfin2004,hewasHeadofGroupFinanceandFinanceDirectorofBrokerSaleswithAXASunLife.

Corporate responsibilities: PlcBoard/ExecutiveManagement/RiskCommittee/CompanySecretary

Our Board of Directors

Les Owen Christopher Jelf Alex Alway John Harding Phil Barton

Phil Barton Chief Executive (Insurance) BSc MBAPhilisaninsuranceandfinancialservicesprofessionalwithmorethan30years’experience.PriortojoiningJelfin2003heworkedforAXA,wherehewastheManagingDirector(IFASales)andPrudential,wherehewasSalesDirector(NationalAccounts).Sincethenhehas performed a number of roles includingHeadofCompliance,Group Commercial Director and GroupMarketingDirector.HewasappointedCEO(Insurance)inMay2010andhassinceledthesuccessful integration of the Group’s insurancebusiness.

Corporate responsibilities: PlcBoard/ExecutiveManagement/RiskCommittee/ Compliance Committee


Corporate responsibilities: PlcBoard/AuditCommittee/Remuneration&NominationsCommittee/SolvencyCommittee

Grahame Stott Non-Executive Director FFA Cert CII

Grahame,asaqualifiedactuarywithconsiderableconsultancyexperience,bringsawealthofrelevant insight into the intermediary market.Hepreviouslyspent20years at Watson Wyatt in Hong Kong,becomingtheRegionalDirector for 12 countries across AsiaPacific.Hisbackgroundworkingwithfastgrowing,listedcompanies is of great value to theGroup.InSeptember2013,Grahame became a Director of FidelityAsianValuesPLC,anLSEmainboardlistedcompany.

Corporate responsibilities: PlcBoard/AuditCommitteeChair/Remuneration&NominationsCommittee/RiskCommittee

Chris Hanks Non-Executive Director ACII, Chartered Insurer

Chris has spent his entire career in the General Insurance market in theUK,recentlyretiringasGeneralManagerforAllianzUK.Alongside

leading the success of that business,Chrishasheldanumberof important market positions including National President for the Chartered Insurance Institute and ABInominatedChairmanofFireProtectionAssociation.ChrisalsoholdstheroleofNon-ExecutiveChairmantoJelf’snationalnetworkforindependentinsurancebrokers,thePurplePartnership.

Corporate responsibilities: PlcBoard/AuditCommittee/Remuneration&NominationsCommittee

Alex Alway Group Chief ExecutiveFCMAPhil Barton Chief Executive (Insurance)BScMBAHelen Davis Group Development DirectorBA(Hons)MBAJohn Harding GroupFinanceand Operations Director BSc ACA Tom Taylor Group Risk and ComplianceDirectorBA(FCCA)Glenn Thomas Chief Executive FinancialServicesACIIAPFSRob Worrell ManagingDirectorJelfInsurancePartnership,ACII,Chartered Insurance Broker

Alex Rowe Jonathan Kelly Grahame Stott Chris Hanks

Our Executive Board

Non-Executive Directors

Alex Rowe Non-Executive Director MA (Hons)

Alex has more than 30 years’ experience spread across a diverse range of businesses and organisations;notably15years asJointManagingDirectorofCLSGroup,amajorbusinessintheSouthWestregion,beforeitssale toamultinationalcompetitor. HejoinedtheGroupin2006.

Corporate responsibilities: PlcBoard/AuditCommittee/Remuneration&NominationsCommittee Chair

Jonathan Kelly Non-Executive Director BA

Jonathan is a Partner of Capital ZPartners(CZP),responsibleforsourcing,evaluatingandstructuringinvestmentswithinthefinancialservicesindustry.PriortojoiningCZPin1998hewasaSeniorVicePresident in the Investment Banking DivisionofDonaldson,Lufkin&Jenrette,wherehespecialisedincorporatefinance,andmergerandacquisition transactions for clients in the insurance and reinsurance industries.Hecurrentlyservesasadirectorofseveralportfoliocompanies.JonathanjoinedJelfin2010.

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Jelf believes the purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can support the long-term success of the Group. Managingchangeaspartofanongoingprocessofimprovementisafundamentalpartofgoodgovernance,driven by the demands of the business environment and widersocialandpoliticalinfluences.Boardsneedtolookforwardandputtheircompaniesinthebestpositionpossible,notjustreactingtochangebutmanagingitforthebenefitofourvariousstakeholders.

AtJelf,thePlcBoardappliestheprinciplesofgoodgovernance.Infulfillingtheirresponsibilities,theDirectorsgovern the Group in the best interests of the Company anditsshareholders,whilsthavingdueregardtotheinterestsofotherstakeholdersincludingclients,employees,suppliersandourregulators.

Jelf is not bound by the London Stock Exchange Listing Rules,includingthoserelatingtocorporategovernance.TheBoardisthereforeprovidingthefollowinginformationonavoluntarybasis.

The workings of the Board and its Committees The Plc Board ThePlcBoardcomprisesLesOwen(GroupNon-ExecutiveChairman),ChristopherJelf(DeputyChairman),AlexAlway,JohnHarding,PhilBartonandfourNon-ExecutiveDirectors:AlexRowe,GrahameStott,ChrisHanksandJonathanKelly.AteachAnnualGeneralMeeting(AGM)oftheCompany,atleastonethirdoftheDirectorsretirefromofficebyrotation.

Corporate governance

OneNon-ExecutiveDirector,JonathanKelly,isnotconsidered to be independent as he is a representative ofasignificantshareholder.ThefourotherNon-ExecutiveDirectors are considered to be independent of management and free from any business or other relationshipthatcouldmateriallyinterferewiththeexerciseoftheirindependentjudgement.LesOwenistheGroupChairman.ToenablethePlcBoardtodischargeitsduties,all Directors have full and timely access to all relevant information.Theyarealsoabletotakeindependentprofessionaladviceasappropriate.

ThePlcBoardmeetsatleasteighttimeseachyear. Atthesemeetings,thePlcBoardreviewsascheduleofreservedmatters,includingtradingperformance,financialstrength,strategy(includinginvestmentandacquisitionopportunities),riskmanagement,controls,complianceandreportstoshareholders.

Delegated Authorities AllothermattersnotspecificallyreservedtothePlcBoardaredelegatedtomanagementinaccordancewithascheduleofDelegatedAuthorities.Thesedelegatedauthoritiescoverexpenditure,agreements,financialmatters,remuneration,agreementswiththirdpartiesandregulatorymatters.Managementisrequiredtoreporttothe Plc Board concerning authority exercised and matters whichcome,ormaycome,withinthescopeofthemattersreservedtothePlcBoardofDirectors. Subsidiary BoardsInadditiontothePlcBoard,eachoftheGroup’sregulatedsubsidiary companies operates a Board of Directors that comprisesaNon-ExecutiveChairman,twoExecutivePlcBoardDirectors,theManagingDirectoroftheregulatedsubsidiaryandotherstatutoryDirectorsasappropriate.

TheGroup’snonregulatedsubsidiarycompanies operate a Board of Directors that comprises at least one Plc Director and senior management of the subsidiaryasappropriate.


Board CommitteesThePlcBoardandtheSubsidiaryBoards(theBoards)haveestablishedthreeCommitteestoassistineffectiveoperation:theAuditCommittee,theRemuneration&NominationsCommitteeandtheRiskCommittee.Each Committee has responsibilities to the Plc and to the SubsidiaryBoards,whichareoutlinedinformalTermsofReferencethathavebeenapprovedbytheBoards.TheChairman of each Committee reports to the Plc Board after each Committee meeting and minutes are tabled at thenextPlcBoardmeeting. Audit CommitteeTheAuditCommitteeischairedbyGrahameStottandcomprisesAlexRoweandJonathanKelly.Representativesfromfinance,riskandcompliance,internalauditandourexternalauditorsparticipateinthemeetingsasnon-votingobservers.TheCommitteemeetsfourtimeseachyear.

TheCommittee’sprimaryactivitiesinclude:

• Monitoringtheintegrityoffinancialstatementsand interimfinancialstatements.

• Reviewingtheeffectivenessofinternalcontrolsandtheinternalauditfunction.Theinternalauditfunctionconsiders the key risks across all regulated entities and GroupCentralServicesaspartofitsplanningprocess.

• OverseeingtherelationshipwiththeGroup’s externalauditor.

• ReportingtotheBoardofDirectors.

TheCommitteeadvisesthePlcBoardontheappointment,independence and objectivity of the external auditors and ontheirremunerationforbothauditandnon-auditwork. Italsodiscussesthenature,scopeandresultsoftheauditwiththeexternalauditors.TheAuditCommitteeChairmanseparatelymeetswithourexternalauditorsandinternalauditduringthecourseoftheyear.

Remuneration & Nominations CommitteeTheRemuneration&NominationsCommitteeischairedbyAlexRoweandcomprisesLesOwen,JonathanKelly,GrahameStottandChrisHanks.TheCommitteemeets atleasttwotimeseachyear.

TheRemunerationreport,whichincludesdetailsoftheRemuneration&NominationsCommittee’srole,Directors’remuneration,pensionentitlementsandDirectors’interests,togetherwithinformationonservicecontracts, issetoutonpages22to24. Risk CommitteeRisk assessment and management is a fundamental elementofthesystemsandcontrolsframeworkoperatedbythecomplianceandriskfunctions.RiskManagementis considered to be an essential responsibility of each business unit and the purpose of the Risk Committee is tooverseetheownershipofentityriskandtoensurethatitformspartofnormalbusinessoperations.TheRiskCommittee is chaired by Chris Hanks and comprises GrahameStott,AlexAlway,JohnHarding,PhilBarton,GlennThomasandTomTaylor.TheCommitteemeets atleastfourtimeseachyear.

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Corporate governance

TheBoard’sfollowingmanagementCommitteesdeal withspecificissues:

Executive CommitteeTheExecutiveCommitteeisamanagementCommittee,chairedbyAlexAlway.TheExecutiveCommittee’sprimaryfunctionsareoutlinedinthedelegatedauthorities.ThemembersoftheExecutiveCommitteearedrawnfromthe headsofthebusinessunitsandotheroperationalareas.ItisaCommitteethatco-ordinatessomeofthemanagementactivities of the regulated entities and provides an oversight forumwheremattersthatimpactallaspectsoftheGroup(tradingentitiesandsupportservices)canberaisedanddebated.TheExecutiveCommitteegenerallymeetsonce amonthtodiscusstradingperformance,operationalmatters,riskmanagement,regulatorycomplianceanddevelopmentopportunities.

Solvency CommitteeTheSolvencyCommitteeischairedbyHuwWilliams(FinanceDirector,EmployeeBenefitsandFinancialPlanning)andalsocomprisesJonathanKelly,theHeadofGroup Compliance and at least one senior manager from theGroup’sInsurancebusiness.ThisCommitteemeetsfourtimeseachyear.TheSolvencyCommitteesupportstheBoard’sCorporateGovernanceresponsibilities, specificallyinrespectofmonitoringthefinancialsecurity ofprovidersandtheGroup’sbankingpartners. Compliance CommitteeComplianceperformanceisspecificallyoverseenatthePlc Board and is a standing agenda item on each of the RegulatedSubsidiaryBoards,theExecutiveCommitteeandeachmanagementCommittee.Jelf’sapproachtocompliance involves providing relevant independent expertise,centrallyco-ordinated.EachregulatedentityhasanembeddedcomplianceteamwithaseparateCompliancePlanrelevanttoitsoperation.

TheComplianceCommitteeoverseesthedelivery of the Group’s Compliance Plan and is chaired by Alex Alway,withTomTaylor,GlennThomasandPhilBartonasmembers.Itmeetsatleastquarterly.TheCommitteesupportstheBoard’sCorporateGovernanceandTreatingCustomersFairly(conductrisk)responsibilities, overseeinginternalcontrols,complianceperformance, riskmanagement,datasecurityandanti-money launderingcontrols.

Internal controls ThePlcBoardhasoverallresponsibilityfortheGroup’ssystemofinternalcontrols.Thecontrolsaredesignedtomanage rather than eliminate the risk of failure to achieve businessobjectives,andaimstoprovidereasonableassuranceagainstmaterialmisstatement.Inordertodischarge their responsibility in a manner that ensures compliancewithlawsandregulationsandpromoteseffectiveandefficientoperations,theDirectorshaveestablishedanorganisationalstructurewithclearoperatingprocedures,linesofresponsibilityanddelegatedauthority.ThereisanestablishedframeworkofinternalcontrolssetoutinproceduresapprovedbyExecutivemanagement.Theseproceduresarereadilyaccessibletostaff,whofollowtheirguidance.Themoreimportantelementsof thisframeworkareasfollows:

Management structureThePlcBoardhasoverallresponsibilityfortheGroup and each Executive Director has been given responsibility forspecificaspectsoftheGroup’saffairs. Corporate accounting and control proceduresResponsibility levels are communicated throughout the Groupaspartofthecorporatecommunicationprocedure.Accounting,delegationofauthority,authorisationlevels,segregationofdutiesandothercontrolprocedures,togetherwiththegeneralethosoftheGroupareincludedinthesecommunications.Managementoversightresponsibility for accounting control procedures across thewiderGroup,includingcompliancewithFCAclientmoneyrules,isheldbyJohnHarding.


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Quality and integrity of personnelTheintegrityandcompetenceofpersonnelaremanagedthroughhighrecruitmentstandardsandprocesses,acomprehensive induction programme and subsequent training.Qualitypersonnelareseenasanessentialpartof the control environment and the ethical standards expected are communicated through senior members ofstaff.Aformalprocessofassessmentoffitnessandpropriety,usingcreditreferencingandFCAguidelines, isundertakenonjoiningandthenperiodicallyafterwards.AllstaffmembersaresetperformanceobjectivesthatlinktotheGroup’sstrategy.Thesearereviewedinregularone-to-onemeetingsandtwiceyearlyformalreviews. Liquidity and covenant complianceLiquiditylevelsandcompliancewithdebtcovenantsandtheGroupgearingpolicyareprojectedforwardforfivefinancialyearsandupdatesaremonitoredonamonthlybasisbytheGroupFinanceandOperationsDirector.Variousscenariosareruntounderstandthekeysensitivitiesandstresses.TheyarereviewedandapprovedbytheAuditCommitteeonbehalfoftheBoard. Budgetary processEachyeartheBoardapprovestheannualbudget,whichincludesanassessmentofkeyriskareas.Performanceis monitored and relevant action taken throughout the year by monthly reporting to the Plc Board and Executive Committeeofupdatedforecaststogetherwithinformationonkeyriskareas. Investment appraisalCapital expenditure is regulated by the use of authorisation levels.Forallexpenditurebeyondspecifiedlevels,ExecutiveCommitteeand/orPlcBoardapprovalisrequired.

Internal monitoringTheAuditCommitteeisresponsibleforreviewingtheGroup’sinternalcontrols.TheDirectorshavereviewedtheeffectivenessofthesystemofinternalcontrolsinoperation.Asaresultofthisreview,theDirectorsbelievecurrentprocessestobeeffective. Relations with shareholders TheCompanyseekstomaintaingoodcommunicationswithshareholders.TheExecutiveDirectorsmakepresentationstoinstitutionalshareholders,coveringtheinterimandannualresults,andmaintainregulardialoguethroughouttheyear.TheyensurethattheBoardisregularlyupdatedoninstitutionalviews.

TheCompanydespatchesthenoticeofeachAGMwithanexplanatorycirculardescribingitemsofspecialbusiness,atleast21daysbeforethemeeting.Allshareholdershavetheopportunity(formallyorinformally)toputquestionsattheCompany’sAGM.AteachAGM,theBoardadvisesshareholders of the proxy voting details on each of the resolutions,whicharedealtwithbyashowofhands.


Remuneration report

This section of the Annual Report and Financial Statements describes the role and composition of the Remuneration & Nominations Committee (the ‘Committee’), the Group’s remuneration policy and the arrangements currently in place for remuneration of both Executive and Non-Executive Directors. The Remuneration & Nominations CommitteeTheCommitteeadvisestheBoardandmakesrecommendations to it about all elements of the remuneration packages of the Executive Directors and certainseniorexecutivesoftheGroup.ItrecommendsthetermsofservicecontractswithExecutiveDirectors,anycompensation arrangements resulting from the termination by the Company of an Executive Director’s service contract and makes recommendations concerning the grantofsharesandshareoptions.TheCommitteealsoensuresarobustsuccessionplanisinplace. Remuneration policyTheCommitteeandtheBoardbelievethat,inordertoattract and retain a senior management team of the calibre requiredtomakeasignificantcontributiontomaximisingshareholdervalue,itisnecessarytoprovideacompetitiveremunerationstructure.TheBoard’spolicyforexecutiveremunerationisto:

•Rewardexecutivesfairlyandresponsiblyfortheir contributiontotheGroup’sperformance. •Paybasicsalarieswhichcompetewiththosepaidbycomparablecompanies. • Give executives the opportunity to increase their earnings by achieving and exceeding key performanceobjectives. •Awardincentiveremunerationconsistingofcashandshare-basedawards. •EncourageexecutivestoholdsharesintheCompany.•EnsurefinancialincentivesacrosstheGroupreflect FCAguidelines.

Service contractsOnethirdoftheBoardissubjecttore-electionbyshareholderseveryyear.TheBoard’spolicyisthat service contracts of Executive Directors should provide forterminationbytheCompanywithnomorethan twelvemonths’notice.Theservicecontractsofeach of the current Executive Directors provide for such a periodofnotice.

TheNon-ExecutiveDirectorshavelettersofappointmentwhichmaybeterminatedbygivingatleastthree months’notice.

Executive Directors’ remunerationTheremunerationpackageoftheExecutiveDirectorsincludesthefollowingelements:

Basic salarySalariesarenormallyreviewedannuallyandanychangesareeffectivefrom1April.PayreviewstakeintoaccountGroupandpersonalperformanceaswellasmarketdata. Other benefitsBenefitsforexecutivesprincipallycompriseacarallowance(orcar),privatemedicalinsurance,lifecoveroffourtimesbasicsalary,criticalillnesscoveroftwicebasicsalary,permanenthealthcoverandGrouppensioncontribution. Performance related pay schemeTheperformancerelatedpayschemeforExecutiveDirectorsisinlinewiththeschemecoveringotherseniormembersofstaff.PaymentsundertheschemearebasedupontheachievementofbudgetedprofittargetsforaDivisionand/orfortheGroup,aswellaspersonalobjectives,asappropriate.

PensionsTheExecutiveDirectorsareentitledtoaGrouppensioncontributionattherateof10%ofpensionablepaytobepaidintotheirownpersonalpensionarrangementortheGrouppersonalpensionplan,opentoallofitspermanentemployees.Pensionablepayisdefinedasbasicsalary. Share and share option schemesTheCompanyoperatesshare-basedincentiveawardsforseniorexecutivesandmanagersacrosstheGroup,asacombinedrewardandincentiveforthosewhohavemadeamajorcontributiontothebusinessandwillcontinuetoplay a key role in helping the Group achieve its strategic objectives.Additionally,awardsaremadetokeystaffwithhighpotentialorinrecognitionofsignificantachievements. Save As You Earn schemeTheGroupoperatesaSaveAsYouEarn(SAYE)scheme,whichenablesemployeestosaveamonthlyamountforthe three year duration of the scheme and to purchase shares in the Group after the three year period at the marketpriceattheoptiongrantdate.

AllUKemployeesoftheGroupwereinvitedtojointheJelfSAYEscheme.Therearetwoopenissuesunderthescheme–oneinJuly2013andoneinJuly2014.


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Directors’ emoluments (audited) Emolumentscomprisesalaries(includingperformancerelatedpay),feesandancillarybenefits.Individualemolumentsfortheyearwereasfollows:

Fees/ Salary£’000

Performance related pay

£’000

Benefits

£’000

Total 2014 £’000

Total 2013 £’000

Pension2014 £’000

Pension2013 £’000

Executive Directors

Christopher Jelf1 210 118 35 363 489 21 19AlexAlway3 245 168 36 449 275 25 24Phil Barton3 205 60 16 281 213 19 18John Harding3 171 80 16 267 183 17 16Non-Executive Directors

LesOwen 50 - - 50 50 - -JonathanKelly 25 - - 25 25 - -AlexRowe 25 - - 25 25 - -Grahame Stott 30 - - 30 30 - -Christopher Hanks2 17 - - 17 - - -Total 978 426 103 1,507 1,290 82 771ChristopherJelf’sperformancerelatedpayincludesemolumentsfromsalesrelatedactivity. 2ChristopherHankswasappointedon29May2014. 3Aportionoftheannualbonushasbeendeferredinsharesfor3years.

Equity-settled Share Appreciation RightsTheJelfGroupplc2008LongTermIncentivePlanwasadoptedon3April2008andprovidesforawardsofequity-settledShareAppreciationRights(SARs)tocertainExecutiveDirectorsandkeyemployees.

TheSARsawardsdelivertorecipientsanetgainequal totheincreaseinsharepricebetweenthebaseprice andthepriceprevailingattheendofthevestingperiod.Thisnetgainisdeliveredinshares,withreferencetothesharepriceprevailingattheendofthevestingperiod. Thenumberofsharesissuedfollowingexercisewillbe lessthanthenumberofSARsissued.ExerciseoftheSARsissubjecttotheachievementofspecifiedperformanceconditionsoveravestingperiod.

Employee Benefit TrustInFebruary2006,theCompanyestablishedtheJelfGroupplcEmployeeBenefitTrust(EBT).TheEBTpurchasesCompanyshareswhichareheldintrustandusedtomeetshareawardsfortheGroup’semployeesincluding awardsmadeundertheEBTscheme.UndertheEBTscheme,shareswillvestunconditionallytotheemployeeprovidedthattheycompletearequiredperiodofservice,typically36months(2013:36months).FurtherdetailsoftheEBTandshareoptionsaregiveninnote26.

ThemarketpriceoftheCompany’sshareson30September2014was127ppershare.Thehighandlowsharepricesduringtheyearwere133.5pand84.8prespectively.

Cash Incentive SchemeThisSchemewasputinplacepostyear-endandappliesto Executive management and a small number of key revenueproducers.

TheSchemeisacashschemewhichwouldonlytriggerintheeventofasuccessfulofferfortheentireissuedsharecapital of the Company at a price in excess of a threshold price(the‘ThresholdPrice’).TheThresholdPricewassetatasignificantpremiumovertheclosingmid-marketpriceofaJelfshareon4December2014of124p.Ithasbeen put in place to ensure key executives and revenue producersareincentivisedtoremainwiththeCompany uptothedateofanypossibletransaction.

TheaggregatevalueofanypaymentspursuanttotheSchemewillbeequivalenttoupto25percentoftheexcessvaluepershareofanofferfortheCompanyovertheThresholdPrice,subjecttoappropriateadjustmentsintheeventofacapitalrestrictingevent,majorchangeindividendpolicyorreturnofcapitaltoshareholders.TheSchemewilllapseintheeventthatanofferfortheentire issued share capital of the Company has not been completedby30September2017. Non-Executive Directors’ remunerationThefeesfortheNon-ExecutiveDirectorsaredeterminedbytheBoard.TheNon-ExecutiveDirectorsarenotinvolved in any discussions or decisions about their ownremuneration.

TheNon-ExecutiveDirectorsdonotreceivebonusesor pension contributions but they are entitled to be reimbursed for reasonable expenses incurred by them incarryingouttheirdutiesasDirectorsoftheCompany.

ThefeesforJonathanKellywerepaidtoCapitalZPartnersIIIL.P.(‘CapZ’),asheisapartnerofCapZ.


Date of

grant

Exercise price

(pence)

At 1 Oct

2013

Granted during

the year

Exercised during

the year

At 30 Sept

2014

Exercise period

From To

Alex Alway

EBT 17/06/2009 - 25,000 - - 25,000 17/06/2015 17/06/201507/10/2010 - 35,000 - - 35,000 07/10/2014 07/10/201431/01/2011 - 66,942 - - 66,942 31/01/2015 31/01/201531/01/2012 - 37,736 - - 37,736 31/01/2015 31/01/201509/01/2013 - 81,629 - - 81,629 09/01/2016 09/01/2016

SARS 30/03/2011 36.0-60.0 4,000,000 - - 4,000,000 01/10/2015 30/09/201830/03/2011 61.5 500,000 - - 500,000 01/10/2015 30/09/2018

Options 08/07/20111 52.0 5,053 - (5,053) - 01/09/2014 28/02/201521/07/20141 116.5 - 8,250 - 8,250 01/09/2017 28/02/2018

4,751,360 8,250 (5,053) 4,754,557John Harding

EBT 31/01/2011 - 44,904 - - 44,904 31/01/2015 31/01/201531/01/2012 - 25,157 - - 25,157 31/01/2015 31/01/201509/01/2013 - 39,755 - - 39,755 09/01/2016 09/01/2016

SARS 30/03/2011 36.0-60.0 1,200,000 - - 1,200,000 01/10/2015 30/09/201830/03/2011 61.5 325,000 - - 325,000 01/10/2015 30/09/2018

Options 01/09/20052 96.0 57,813 - - 57,813 01/10/2007 30/09/20151,692,629 - - 1,692,629

Phil Barton

EBT 31/01/2011 - 39,394 - - 39,394 31/01/2015 31/01/201531/01/2012 - 25,157 - - 25,157 31/01/2015 31/01/201509/01/2013 - 43,730 - - 43,730 09/01/2016 09/01/2016

SARS 30/03/2011 36.0-60.0 800,000 - - 800,000 01/10/2015 30/09/201830/03/2011 61.5 325,000 - - 325,000 01/10/2015 30/09/201831/01/2012 79.5 250,000 - - 250,000 01/10/2016 30/09/201909/01/2013 81.5 100,000 - - 100,000 01/10/2017 30/09/202025/06/2014 116.5 - 550,000 - 550,000 01/10/2018 30/09/2021

Options 08/07/20111 52.0 5,053 - (5,053) - 01/09/2014 28/02/201505/07/20131 91.5 4,918 - - 4,918 01/09/2016 28/02/201721/07/20141 116.5 - 4,171 - 4,171 01/09/2017 28/02/2018

1,593,252 554,171 (5,053) 2,142,370Christopher Jelf

SARS 08/07/2011 36.0-65.5 550,000 - - 550,000 01/10/2015 30/09/2018

08/07/2011 65.5 200,000 - - 200,000 01/10/2015 30/09/2018Options 05/07/20131 91.5 6,963 - - 6,963 01/09/2016 28/02/2017

21/07/20141 116.5 - 5,376 - 5,376 01/09/2017 28/02/2018756,963 5,376 - 762,339

Total 8,794,204 567,797 (10,106) 9,351,895

Directors’ interest in share option related and share award schemes TheinterestsoftheDirectorsinCompanyshareoptionandshareawardschemesduringtheyearwereasfollows:

1SAYE:theoptionsexercisedduringtheyearresultedinanunrealisedgainof£3,790foreachdirector.2EMIoptions.

Remuneration report


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The Directors present their report and audited consolidated financial statements for the year-ended 30 September 2014. Principal activitiesTheCompanyactsasaholdingcompanyforagroup thatprovidesbusinessesandindividualswithadvicerelatingtoinsurance,employeebenefitsandfinancialplanning.Therewasnosignificantchangeinthisactivityduringtheyear.ThesubsidiaryundertakingsoftheCompanyarelistedinnote33. Results and dividendsTheprofitfortheyear,aftertaxation,amountedto£6,469,000(2013:£4,608,000).TheDirectorsdeclarethepaymentofadividendof2.0ppershare(2013:1.5p),£2.2million(2013:£1.6million).

Long term financingIn2013theGroupenteredintoanewthreeyearborrowingfacilitytotalling£22m,ofwhich£20mwasdrawndown.In2014,theGrouphasmadescheduledrepaymentsof£3.75mandearlyrepaymentsof£1.0mtoleavealoanbalanceat30September2014of£13.75m.

FollowingareviewoftheGroup’sforecastsandprojections,theDirectorsconsidertheGroupiswellplacedtomeetitsfundingrequirementsfortheforeseeablefuture.

InformationabouttheuseoffinancialinstrumentsbytheGroupisgiveninnote21ofthefinancialstatements.

Risks and uncertaintiesRisksofafinancialnatureareaddressedinFinancialrisk management on page 40 and Critical accounting estimatesandjudgementsonpage41. Directors’ indemnity provisionsTheDirectorsbenefitedfromqualifyingthirdpartyindemnityprovisionsinplaceduringthefinancialyear andtothedateofthisreport. Directors retiringThenamesoftheDirectorswhoservedduringtheyearanduptothedateofsigningthefinancialstatementsaresetoutonpage23.JohnHardingandJonathanKellyareduetoretirebyrotationattheforthcomingAGMandwillbeproposedforre-election.

Directors’ report

Political and Charitable contributionsDuringtheyear,theGroupmadecharitablecontributionstotalling£18,032(2013:£16,871).Thesecontributionsweremadetoavarietyofcausesandtobothlocalandnationalcharities.Therewerenopoliticaldonations.

Acquisition of the Company’s own sharesDuringtheyear,theCompanypurchased114,360ordinarysharesof1pandtheEmployeeBenefitTrust(EBT)purchased516,965ordinarysharesof1p. EmployeesTheBoardrecognisesthatoneofthemostsignificantissuesfortheGroupishowtoattract,motivate,developandretaintherightpeople.TheGroupoperatesshareandshareoptionschemestoincentiviseandrewardDirectorsandkeystaff.Theseschemesshouldprovideameanstoattract,retainandmotivatestaffthatworksoveraperiodofyearsandalignsemployees’motivationscloselywiththoseofourshareholders.Moregenerally,theBoardwishestoencourageashareownershipculturethroughoutallemployeesintheGroup.

Duringtheyear,theGrouphascontinueditspracticeofinformingandconsultingemployeesonmattersaffectingthem as employees and on various matters concerning Groupperformance.

TheGrouprecognisesitsobligationstogivedisabledpersonsfullandfairconsiderationforallvacancies.Whereexistingemployeesbecomedisabled,itistheGroup’spolicy,whereverpracticable,toprovidecontinuingemployment under normal terms and conditions and to provide training and career development and promotion todisabledemployeeswhereverappropriate.

Annual General MeetingTheCompany’sAGMwillbeheldon26February2015.ThenoticeconveningtheAGMandanexplanationofthe business to be put to the meeting are contained in a separatecirculartoshareholders.


Directors’ report

Independent auditorsPricewaterhouseCoopersLLPhaveexpressedtheirwillingnesstocontinueinofficeasauditorsandaresolutiontore-appointthemwillbeputtotheAGM. Directors’ responsibilitiesTheDirectorsareresponsibleforpreparingtheAnnualReportandthefinancialstatementsinaccordancewithapplicablelawandregulations.

CompanylawrequirestheDirectorstopreparefinancialstatementsforeachfinancialyear.UnderthatlawtheDirectorshavepreparedtheGroupfinancialstatementsinaccordancewithInternationalFinancialReportingStandards(IFRSs)asadoptedbytheEuropeanUnion, andtheparentCompanyfinancialstatementsinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice(UnitedKingdomAccountingStandardsandapplicablelaw).UndercompanylawtheDirectorsmustnotapprovethefinancialstatementsunlesstheyaresatisfiedthattheygiveatrueandfairviewofthestateofaffairsoftheGroupandtheCompanyandoftheprofitorlossoftheGroupforthatperiod.Inpreparingthesefinancialstatements,theDirectorsarerequiredto: • Select suitable accounting policies and then apply themconsistently. •Makejudgementsandaccountingestimatesthatarereasonableandprudent. •StatewhetherIFRSsasadoptedbytheEuropeanUnionandapplicableUKAccountingStandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosed and explained in the Group and parent Company financialstatementsrespectively. •Preparethefinancialstatementsonthegoingconcern basis unless it is inappropriate to presume that the Companywillcontinueinbusiness.

TheDirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshowand explaintheCompany’stransactionsanddisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006. Theyarealsoresponsibleforsafeguardingtheassetsof the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraudandotherirregularities.

TheDirectorsareresponsibleforthemaintenanceandintegrityoftheCompany’swebsite.LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions. Statement of disclosure of information to auditors InaccordancewithSection418,Directors’reportsshallincludeastatement,inthecaseofeachDirectorinofficeatthedatetheDirectors’reportisapproved,that:

•SofarastheDirectorisaware,thereisnorelevant auditinformationofwhichtheCompany’sauditors areunaware.

• He has taken all the steps that he ought to have taken asaDirectorinordertomakehimselfawareofanyrelevant audit information and to establish that the Company’sauditorsareawareofthatinformation.

Approved by the Board of Directors and signed on itsbehalfby; Alex Alway Group Chief Executive John HardingGroupFinanceandOperationsDirector

Hillside CourtBowlingHillChipping SodburyBristolBS37 6JX

Registered number 2975376

8 December 2014


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Strategic report

Strategic report and Key Performance Indicators TheCompanyisrequiredbytheCompaniesAct2006tosetoutinthisreportafairreviewofthebusinessoftheGroupduringthefinancialyear-ended30September2014,thepositionoftheGroupattheendoftheyearanda description of the principal risks and uncertainties facing theGroup(the‘Strategicreport’).Areviewofthebusiness,togetherwithcommentsonthefuturedevelopmentoftheGroup,arecontainedwithintheChairman’sstatementandtheGroupChiefExecutive’sreport.TheChairman’sstatement and the Group Chief Executive’s report includes the information and analysis required by section 417 of the CompaniesAct2006tobeincludedinaStrategicreport,includinginformationonKeyPerformanceIndicators(KPIs).TheriskanalysisrequiredfortheStrategicreport isshownbelow.

TheGroupmeasuresanumberofKPIsincludingrevenue,EBITDA(E)andEBITDA(E)marginbybusinesssegment,profitaftertaxandearningspershare.TheChairman’sstatement and the Group Chief Executive’s report includeananalysisoftheseKPIs.

Risks and uncertainties TheGroupisexposedtoanumberofrisksanduncertaintieswhichcouldhaveamaterialimpactonthefutureperformanceoftheGroup.Thetableonpage28summarises the key risks that the Directors consider thebusinessfacesandhowtheGroupseekstomitigatethem.Inadditiontothese,otherrisksofafinancial natureareaddressedinFinancialriskmanagementon page 40 and Critical accounting estimates and judgementsonpage41.


Risk area Potential impact Mitigation

Market Achangetothecompetitiveand/oreconomicenvironmentwouldhaveanadverseimpactonfinancialperformance.

TheGroupmonitorsthecompetitiveandeconomicenvironment on a regular basis and has reduced the potentialriskbyofferingadiversifiedrangeofproductsanddevelopingcloserelationshipswithbothclientsandproviders.TheGroup’sfocusonSMEsmeansthatnosingleclientaccountsformorethan0.5%ofturnover.Furthermore,theGrouphasafocusoncostcontrolandcloselymonitorsperformanceagainsttargets.

Operating in a regulated environment

AbreachofFCAregulationscouldleadtotheFCAlevyingfinancialorotherpenaltiesontheGroup.

TheGrouphasastrongoperatingcontrolframeworkthatincludesrobustcompliancesystems,governancedisciplinesandariskmanagementstructure. Thecompliancefunctionoperatesacomprehensivemonitoring programme to ensure that the Group’s policiesandproceduresareeffectiveandcontinuetomeetregulatorystandards.AntiMoneyLaunderingcontrolsincludingclientverificationproceduresareinplace to manage the risk that the Group might be used forfinancialcrime.

People KeyemployeesleavingtheGroupmayhaveadetrimentaleffectonclientandproviderrelationships.

TheGrouphasinplaceincentiveschemesdesignedtoattract,motivateandretainkeyemployees,whilstencouragingappropriatebehaviours.Weaimtoprovidecompetitiveremunerationpackagesforallourstaff.

Acquisitions Failuretointegratebusinessesacquiredinlinewithplanscanresultin:-Lossofprojectedreturnsoninvestment.-Lossofkeystaff.-Regulatoryrisksfrominconsistentprocedures.

TheGroupcarriesoutcomprehensiveduediligenceprocedurespriortoacquiringabusiness.Onceabusiness has been purchased a detailed integration planisfollowedthroughwithdedicatedallocatedresources.ThisismonitoredregularlybytheBoards.

Operations Risk to achievement of Group objectives as a result ofunforeseenbusinessinterruption.

TheGrouphasacomprehensivebusinessrecoveryplanthatisregularlytestedandwouldbeimplementedto protect clients and the business in the event of an incidentaffectingouroperations.Thegeographicallydistributednatureofthebusinesscombinedwithanoutsourceddatanetworkmeansthatwedonothaveanysinglecriticallocationsorpointsoffailure.

Client data protection

By the nature of its business the Group handles confidentialclientinformationthatcouldbeusedforidentitytheftifitfellintothewronghands.

TheGrouphasdevelopedandimplementeddataprotection policy and procedure that provide protection toclientdatawhichisheldinpaperformandalsoasdataonourITsystems.ThisalsogovernsthetransmissionofdatabetweentheGroupandInsurers.

Strategic report

ApprovedbytheBoardofDirectorsandsignedonitsbehalfby:

Alex Alway John HardingGroupChiefExecutive GroupFinanceandOperationsDirector


Independent Auditors’ report to the members of Jelf Group plc

Report on the Group financial statements

Our opinionInouropinion,JelfGroupplc’sGroupfinancialstatements(the‘financialstatements’): •GiveatrueandfairviewofthestateoftheGroup’saffairsasat30September2014andofitsprofitand cashflowsfortheyearthenended. •Havebeenproperlypreparedinaccordancewith InternationalFinancialReportingStandards(IFRSs) asadoptedbytheEuropeanUnion.

•Havebeenpreparedinaccordancewiththe requirementsoftheCompaniesAct2006. What we have auditedJelfGroupplc’sfinancialstatementscomprise:

•Theconsolidatedincomestatementfortheyear-ended30September2014.

•Theconsolidatedbalancesheetasat30September2014. •Theconsolidatedstatementofchangesinequityfor theyearthenended.

•Theconsolidatedcashflowstatementfortheyear thenended.

•Thenotestothefinancialstatements,whichincludeasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

ThefinancialreportingframeworkthathasbeenappliedinthepreparationofthefinancialstatementsisapplicablelawandIFRSsasadoptedbytheEuropeanUnion.

Inapplyingthefinancialreportingframework,theDirectorshavemadeanumberofsubjectivejudgements,forexampleinrespectofsignificantaccountingestimates. Inmakingsuchestimates,theyhavemadeassumptionsandconsideredfutureevents.

Opinion on other matter prescribed by the Companies Act 2006

Inouropinion,theinformationgivenintheStrategicreportandtheDirectors’reportforthefinancialyear forwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

Other matters on which we are required to report by exception

Adequacy of information and explanations receivedUndertheCompaniesAct2006wearerequiredto reporttoyouif,inouropinion,wehavenotreceived alltheinformationandexplanationswerequireforouraudit.Wehavenoexceptionstoreportarisingfrom thisresponsibility.

Directors’ remunerationUndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion,certaindisclosuresofDirectors’remunerationspecifiedbylawarenotmade.Wehave noexceptionstoreportarisingfromthisresponsibility.

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Responsibilities for the financial statements and the audit

Our responsibilities and those of the DirectorsAs explained more fully in the Directors’ responsibilities setoutonpage26,theDirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.

Our responsibility is to audit and express an opinion on thefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors. Thisreport,includingtheopinions,hasbeenpreparedfor and only for the Company’s members as a body in accordancewithChapter3ofPart16oftheCompaniesAct2006andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityforanyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting. What an audit of financial statements involvesWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK&Ireland).Anauditinvolvesobtaining evidence about the amounts and disclosures inthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof: • Whether the accounting policies are appropriate to the group’s circumstances and have been consistently appliedandadequatelydisclosed. •ThereasonablenessofsignificantaccountingestimatesmadebytheDirectors. •Theoverallpresentationofthefinancialstatements.

WeprimarilyfocusourworkintheseareasbyassessingtheDirectors’judgementsagainstavailableevidence,formingourownjudgements,andevaluatingthedisclosuresinthefinancialstatements.

Wetestandexamineinformation,usingsamplingandotherauditingtechniques,totheextentweconsidernecessarytoprovideareasonablebasisforustodrawconclusions.Weobtainauditevidencethroughtestingtheeffectivenessofcontrols,substantiveproceduresoracombinationofboth.

Inaddition,wereadallthefinancialandnon-financialinformationinthereportandfinancialstatementstoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.

Other matter

We have reported separately on the parent Company financialstatementsofJelfGroupplcfortheyear-ended30September2014.

Colin Bates(SeniorStatutoryAuditor)

forandonbehalfofPricewaterhouseCoopersLLPChartered Accountants and Statutory AuditorsBristol

8 December 2014



Consolidated income statementFor the year-ended 30 September 2014

Note

2014£’000

2013£’000

Revenue 82,588 76,186

Cost of Sales (5,670) (6,862)

Gross profit 76,918 69,324

Administrative expenses (68,985) (64,443)

Operating profit 7,933 4,881

Operatingprofitconsistsof:

Earningsbeforeinterest,taxation,depreciation, amortisationandexceptionalcosts(EBITDAE) 14,574 12,493

Exceptional costs 7 - (1,488)

Earningsbeforeinterest,taxation,depreciation andamortisation(EBITDA) 14,574 11,005

Depreciationofproperty,plantandequipment 16 (1,142) (1,039)

Amortisation of intangible assets 15 (5,499) (5,085)

Investment revenues 8 113 68

Financecosts 9 (621) (839)

Profit before income tax 7,425 4,110

Incometax(charge)/credit 10 (956) 498

Profit for the year attributabletotheownersoftheparentCompany 11 6,469 4,608

Earnings per shareattributabletotheownersoftheparentCompany

Basic(pence) 13 6.0 4.3

Diluted(pence) 13 5.4 4.0 Thereisnoothercomprehensiveincomefortheyearotherthantheprofitfortheyearnotedabove(2013:£nil)andasaresultnostatementofothercomprehensiveincomehasbeenprepared.

Allresultsarefromcontinuingoperations.

Thenotesonpages35to65formanintegralpartoftheconsolidatedfinancialstatements.St

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Consolidated balance sheetAs at 30 September 2014

Note

2014 £’000

2013£’000

Non-current assets

Goodwill 14 71,531 71,290Intangible assets 15 35,908 41,090Property,plantandequipment 16 5,178 5,360Available for sale investments 17 16 16Deferred income tax asset 23 1,904 973

114,537 118,729Current assetsTradeandotherreceivables 18 12,300 10,992Cash and cash equivalents* 19 27,440 23,948

39,740 34,940Total assets 154,277 153,669Current liabilitiesTradeandotherpayables 20 (21,249) (20,058)Deferred consideration (2,078) (413)Obligationsunderfinanceleases 25 (13) (48)Borrowings 24 (5,422) (3,672)Income tax liabilities (971) (667)Deferred income tax liabilities 23 (1,000) (949)Provisions 22 (1,224) (1,848)

(31,957) (27,655)Net current assets 7,783 7,285Non-current liabilitiesBorrowings 24 (8,218) (14,640)Deferred consideration (2,063) (4,063)Obligationsunderfinanceleases 25 (1) (14)Deferred income tax liabilities 23 (5,829) (6,947)Provisions 22 (951) (902)

(17,062) (26,566)Total liabilities (49,019) (54,221)Net assets 105,258 99,448

EquityShare capital 27 1,108 1,103Share premium 72,338 72,070Mergerreserve 28 12,333 12,333Other reserves 3,723 3,258Retained earnings 15,756 10,684Total equity attributabletotheownersoftheparentCompany 105,258 99,448

*Includedwithincashandcashequivalentsisfiduciarycashof£15,228,419(2013:£14,493,439).

Thenotesonpages35to65formanintegralpartoftheconsolidatedfinancialstatements.Thefinancialstatementsonpages31to65wereapprovedbytheBoardofDirectorson8December2014andsignedonitsbehalfby:



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Note

Share capital£’000

Share premium

£’000

Merger reserve2

£’000

Share based

payment reserve1,2

£’000

Own shares held1

£’000

Other reserves1

£’000

Retained earnings2

£’000

Total equity£’000

At 1 October 2012 1,104 72,070 9,282 4,603 (1,199) 14 10,610 96,484Share issue 34 - 3,051 - - - 3,085Dividend paid - - - - - (1,407) (1,407)Share-basedpayments - - - 842 - - 842PurchaseofownsharesbyEBT3 - - - - (1,381) - - (1,381)VestingofEmployeeBenefitsTrust shares - - - (443) 443 - - -Proceeds from vesting of shares - - - - 344 - - 344ShareBuy-Back (35) - - - - 35 (3,204) (3,204)Taxcreditrelatingtoshareschemes - - - - - - 77 77Profitfortheyearandtotal comprehensive income - - - - - - 4,608 4,608

At 30 September 2013 1,103 72,070 12,333 5,002 (1,793) 49 10,684 99,448Share issue 27 5 268 - - - - - 273Dividend paid 12 - - - - - - (1,615) (1,615)Share-basedpayments 26 - - - 1,054 - - - 1,054PurchaseofownsharesbyEBT3 - - - - (589) - - (589)VestingofEmployeeBenefitsTrustshares - - - (20) 20 - - -ShareBuy-Back 27 - - - - - - (132) (132)Taxcreditrelatingtoshareschemes - - - - - - 350 350

Profitfortheyearandtotal comprehensive income - - - - - - 6,469 6,469

At 30 September 2014 1,108 72,338 12,333 6,036 (2,362) 49 15,756 105,258

1Shownwithinotherreservesonthebalancesheet.2DistributabletotheequityholdersoftheCompany. 3TheEBTpurchased516,965(2013:1,538,423)sharesintheyear.

Consolidated statement of changes in equity For the year-ended 30 September 2014


Consolidated cash flow statementFor the year-ended 30 September 2014

Note

2014£’000

2013£’000

Cash flows from operating activities

Cash generated from operations 29 14,946 10,610

Interest paid (616) (585)

Taxationpaid (2,300) (2,318)

Net cash flow generated from operating activities 12,030 7,707

Cash flows from investing activities

Interest received 113 68

Proceedsondisposalofproperty,plantandequipment 20 22

Purchaseofproperty,plantandequipment (969) (1,865)

Purchaseofcomputersoftware (214) (952)

Acquisition of client books of business - (27)

Acquisitionofsubsidiariesandbusinesses(netofcashacquired) (150) (8,082)

Proceeds on disposal of client book and investments - 55

Deferred consideration paid (476) -

Net cash flow used in investing activities (1,676) (10,781)

Cash flows from financing activities

Repaymentsofborrowings (4,750) (7,850)

PurchaseofownsharesbyEBT (589) (1,381)

Proceeds from vesting of shares 273 344

Cancellationofownsharesthroughsharebuyback (132) (3,204)

Expenses on issue of shares - (10)

Repaymentofobligationsunderfinanceleases (49) (11)

Payment of dividend (1,615) (1,407)

Newborrowingsraised(netofexpensesof£231,000) - 19,769

Net cash flow (used)/generated in financing activities (6,862) 6,250

Net increase in cash and cash equivalents 3,492 3,176

Cash and cash equivalents at beginning of year 23,948 20,772

Cash and cash equivalents at end of year 1 19 27,440 23,948

1Includedwithincashandcashequivalentsisfiduciarycashof£15,228,419(2013:£14,493,439).


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1. General informationJelfGroupplcisanAIMlistedcompanyincorporatedanddomiciledintheUnitedKingdomundertheCompanies Act2006.Theaddressoftheregisteredofficeisgiveninnote35.ThenatureoftheGroup’soperationsanditsprincipalactivitiesaresetoutintheChairman’sstatement,theGroupChiefExecutive’sreport,Directors’reportand theStrategicreport.

TheseGroupconsolidatedfinancialstatementswereauthorised for issue by the Board of Directors on 8 December2014.

Thesefinancialstatementsarepresentedinpoundssterlingbecause that is the currency of the primary economic environmentinwhichtheGroupoperates.

2. Basis of preparationTheseGroupconsolidatedfinancialstatementshavebeenpreparedinaccordancewithIFRSsasadoptedbytheEuropeanUnion,IFRICInterpretationsandtheCompaniesAct2006applicabletocompaniesreportingunderIFRS.Theconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,asmodifiedbytherevaluationofavailable-for-salefinancialassets,andfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss.

ThepreparationoffinancialstatementsinconformitywithIFRSsrequirestheuseofcertaincriticalaccountingestimates.Italsorequiresmanagementtoexerciseitsjudgement in the process of applying the Company’s accountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinnote4b.

Theaccountingpolicieshavebeenconsistentlyappliedunlessotherwisestated.

TheseGroupconsolidatedfinancialstatementshavebeenpreparedonagoingconcernbasis.

3. Accounting policiesAdoption of new and revised StandardsInthecurrentyear,thefollowingnewandrevisedStandardshavebeenadopted:

• IAS13Fairvaluemeasurement(effectiveannualperiodsbeginningonorafter1January2013)hasbeenamendedregardingdisclosureofbothfinancialandnon-financialitemsregardlessofwhetherthoseitemsaremeasuredatfairvalue.Thelevelsofthefairvaluehierarchy(1,2and3)arenowrequiredtobedisclosednotonlyforfinancialinstruments,butalsofornon-financialassetssuchasnon-currentassetsheldforsale,property,plantandequipment,intangibleassets,investmentproperties.

Atthedateofauthorisationofthesefinancialstatements,thefollowingStandards,whichhavenotbeenapplied inthesefinancialstatements,wereinissuebutnot yeteffective:

•IFRS10Consolidatedfinancialstatements•IFRS12Disclosuresofinterestsinotherentities•IAS32Amendment–Financialinstruments:Presentation•IFRS10Amendment–Consolidatedfinancialstatements•IFRS12Amendment–Disclosureofinterestsin

other entities•IAS27Separatefinancialstatements•IAS19Amendment–EmployeeBenefits•IAS28Amendment–Investmentsinassociates

and joint ventures

TheDirectorsanticipatethattheadoptionoftheseStandardsandamendmentsinfutureperiodswillnothaveamaterialimpactonthefinancialstatementsotherthanrequiringadditionaldisclosureoralternativepresentation.

Notes to the consolidated financial statements


Basis of consolidationTheconsolidatedfinancialstatementsincorporatethefinancialstatementsoftheCompanyandallGroupundertakings.

SubsidiariesSubsidiariesareallentitiesoverwhichtheGrouphasthepowertogovernthefinancialandoperatingpolicies,generally accompanying a shareholding of more than one halfofthevotingrights.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyaredeconsolidatedfromthedatethatcontrolceases.Theresultsofsubsidiaryundertakingsacquiredordisposedof are included in the consolidated income statement from thedateofacquisitionoruptothedateofdisposal.

ThepurchasemethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbytheGroup.Thecostofanacquisition is measured as the fair value of the consideration given,equityinstrumentsissuedandliabilitiesincurredorassumedatthedateofexchange.Identifiableassetsacquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair valuesattheacquisitiondate,irrespectiveoftheextentofanyminorityinterest.TheexcessofthecostofacquisitionoverthefairvalueoftheGroup’sshareoftheidentifiablenetassetsacquiredisrecordedasgoodwill.

Thecostsofacquisitionsareexpensedintheyeartheyareincurred.Anychangestocontingentconsiderationafterinitialrecognitionwillberecognisedthroughtheincomestatement.

Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweenGroupcompaniesareeliminated.Unrealisedlossesarealsoeliminatedbutconsideredanimpairmentindicatoroftheassettransferred.AccountingpoliciesofsubsidiarieshavebeenchangedwherenecessarytoensureconsistencywiththepoliciesadoptedbytheGroup.

Revenue recognition Broking incomeIncomeisrecognisedonareceivablebasis.Revenuerepresentscommissionsandfeesduewithreferencetothe commencement date of the insurance policy or other producttakenoutbyclients.

Where there is an expectation of future servicing requirements an element of income relating to the policy is deferredtocovertheassociatedcontractualobligation.

Investment returnsInvestmentreturnsonfiduciarycashbalancesheldarecreditedtorevenueonanaccrualsbasis,subjecttothetermsofbusinessagreedwiththeclient.

Other servicesFeesandotherincomereceivable,includingprofitshareandcommissionoverriders,arerecognisedintheperiodtowhichtheyrelateandwhentheycanbemeasuredwithreasonablecertainty,andallservicingobligationshave beenmet.

Operating profitOperatingprofitisstatedbeforeinvestmentrevenuesandfinancecosts.

Exceptional costsExceptionalcostsarethoseitemswhichareseparatelydisclosedbyvirtueoftheirsizeornaturetoenableabetterunderstandingoftheGroup’sfinancialperformance.Transactionswhichmaygiverisetoexceptional costs principally relate to Group reorganisationandacquisitioncosts.

Segmental reportingTheDirectorshaveidentifiedthreebusinesssectors:Insurance,EmployeeBenefitsandFinancialPlanning.Business segment data includes an allocation of corporate coststothesegment.Therearenosalesbetween businesssegments.

GoodwillGoodwill,representingtheexcessofthefairvalueoftheconsideration given over the fair value of the separable netassetsacquired,isrecognisedasanasset.Goodwillisreviewedforimpairmentatleastannuallyandanyimpairmentwillberecognisedintheincomestatement andmaynotbesubsequentlyreversed.

Goodwillisallocatedtocash-generatingunitsforthepurposeofimpairmenttesting.Theallocationismadetothosecash-generatingunitsorgroupsofcash-generatingunitsthatareexpectedtobenefitfromthebusinesscombinationinwhichthegoodwillaroseidentifiedaccordingtoreportedoperatingsegment.



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Intangible assetsClient books of businessAcquiredbusinessesarereviewedtoidentifyassetsthatmeetthedefinitionofanintangibleassetperIAS38‘IntangibleAssets’.Examplesofsuchassetsincludecustomer relationships and expectations of business renewal.Theseassetsarevaluedonthebasisofthepresentvalueofexpectedfuturecashflowsandareamortisedtotheincomestatementonastraight-linebasisoverthelifeofthecontractortheirestimatedeconomiclife.Norevaluationsaremadetotheinitialcostoftheseassets.Thecurrentmaximumestimatedeconomiclifeoftheseassetsisapproximately13years.Clientbooksofbusinessarestatedatcostlessaccumulatedamortisation.

Computer softwareComputersoftware,whichisnotanintegralpartoftherelatedhardware,isstatedatcostlessamortisation.Costincludes the original purchase price of the asset and the costsattributabletobringingtheassettoitsworkingconditionforitsintendeduse.Amortisationisprovidedatratescalculatedtowriteoffthecost,lessestimatedresidualvalue,onastraight-linebasisovertheirusefuleconomiclife.Thecurrentmaximumestimatedeconomiclifeoftheseassetsisfiveyears.

Property, plant and equipmentAssetsarestatedatcostlessaccumulateddepreciation.Cost includes the original purchase price of the asset and thecostsattributabletobringingtheassettoitsworkingconditionforitsintendeduse.Depreciationisprovidedatratescalculatedtowriteoffthecostofassets,lesstheirestimatedresidualvalue,overtheirexpectedusefullives onthefollowingbasis: Leasehold improvements Straightline,overthelifeoftheleaseMotorvehicles Straightline,over4yearsFixturesandfittings Straightline,over10yearsComputer equipment Straightline,over5years

Residualvaluesandusefuleconomiclivesarereviewed andadjustedasnecessaryonanannualbasis.

Gains and losses on disposals are determined by comparingtheproceedswiththecarryingamountand arerecognisedwithinadministrativeexpensesinthe incomestatement.

Impairment of goodwill, property, plant and equipment, intangible assetsTheGroupreviewsthecarryingamountsofitsplant,propertyandequipment,goodwillandintangibleassetstodeterminewhetherthereisanyindicationthatthoseassetshavesufferedanimpairment,onanannualbasis.Ifanysuchindicationexists,therecoverableamountoftheasset is estimated in order to determine the extent of the impairment(ifany).Wheretheassetdoesnotgeneratecashflowsthatareindependentfromotherassets,theGroupestimatestherecoverableamountofthecash-generatingunittowhichtheassetbelongs.

Recoverable amount is the higher of fair value less costs tosellandvalueinuse.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapost-taxdiscountratethatreflectscurrentmarket assessments of the time value of money and the risksspecifictotheassetforwhichtheestimatesoffuturecashflowshavenotbeenadjusted.Iftherecoverableamountofanasset(orcash-generatingunit)isestimatedtobelessthanitscarryingamount,thecarryingamountoftheasset(cash-generatingunit)isreducedtoitsrecoverableamount.Animpairmentisrecognisedasanexpenseimmediatelyintheincomestatement.Impairmentsbookedtotheincomestatementarenotsubsequentlyreversed,otherthanthoserelatingtoproperty,plantandequipmentorintangibleassets.


Available for sale investmentsInvestmentsarestatedatfairvaluelessanyimpairment.

LeasingLeasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtotheincomestatementonastraight-linebasisovertheperiodofthelease.

TheGroupleasescertainproperty,plantandequipment.Leasesofproperty,plantandequipmentwheretheGrouphassubstantiallyalltherisksandrewardsofownershipareclassifiedasfinanceleases.Financeleasesarecapitalisedatthelease’scommencementatthelowerofthefairvalue of the leased property and the present value of the minimumleasepayments.

Eachleasepaymentisallocatedbetweentheliabilityandfinancecharges.Thecorrespondingrentalobligations,netoffinancecharges,arerecognisedasliabilitiesonthebalancesheet.Theinterestelementofthefinancecostischarged to the income statement over the lease period so as to produce a constant periodic rate of interest on theremainingbalanceoftheliabilityforeachperiod.Theproperty,plantandequipmentacquiredunderfinanceleases is depreciated over the shorter of the useful life of theassetandtheleaseterm.

Current and deferred income taxThetaxexpenserepresentsthesumofthetaxcurrentlypayableanddeferredtax.

Currenttaxisbasedontaxableprofitfortheyear.Taxableprofitdiffersfromnetprofitasreportedintheincomestatement because it excludes items of income or expense that are taxable or deductible in other years and it further excludesitemsthatarenevertaxableordeductible.TheGroup’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balancesheetdate.

Deferredincometaxisprovidedinfull,usingtheliabilitymethod,ontemporarydifferencesarisingbetweenthetaxbases of assets and liabilities and their carrying amounts in theconsolidatedfinancialstatements.

Deferredincometaxisdeterminedusingtaxrates(andlaws)thathavebeenenactedorsubstantiallyenactedbythebalancesheetdateandareexpectedtoapplywhentherelated deferred income tax asset is realised or the deferred incometaxliabilityissettled.

Deferred income tax is charged or credited to equity in respectofanyitems,whichisitselfeitherchargedorcrediteddirectlytoequity.Anysubsequentrecognitionof the deferred gain or loss in the consolidated income statement is accompanied by the corresponding deferred incometax.

Deferred income tax assets are recognised to the extent thatitisprobablethatfuturetaxableprofitwillbeavailableagainstwhichthetemporarydifferencescanbeutilised.

Insurance broking receivables and payablesInsurance brokers act as agents in placing the insurable risksoftheirclientswithinsurersand,assuch,arenot liable as principals for amounts arising from such transactions.Inrecognitionofthisrelationship,receivablesfrom insurance broking transactions are not included as anassetoftheGroup.Anadjustmentisthereforemadetoeliminateinsurancebrokingreceivables(otherthanfeesorcommissions)againstinsurancebrokingcreditors.

Other than the receivable amount for fees and commissions earnedonatransaction,whichisincludedwithintradereceivables,norecognitionoftheinsurancetransactionoccursuntiltheGroupreceivesfiduciarycashinrespectofpremiums,atwhichtimeacorrespondingliabilityisestablishedinfavouroftheinsurerortheclient.

Incertaincircumstances,theGroupadvancespremiums,refundsorclaimstoinsuranceunderwritersorclientspriortocollection.Theseadvancesarereflectedintheconsolidatedbalancesheetaspartoftradereceivables.

Trade receivablesTradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlyatamortisedcost,lessprovisionforimpairment.AprovisionforimpairmentoftradereceivablesisestablishedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.Significantfinancialdifficultiesofthedebtor,dispute,defaultordelinquencyin payments are considered indicators that the receivable isimpaired.Thecarryingamountoftheassetisreducedthroughtheuseofanallowanceaccount,andtheamountofthelossisrecognisedintheincomestatement.Whenatradereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccountfortradereceivables.



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Cash and cash equivalentsCashandcashequivalentsincludescashinhand,depositsheldatcallwithbanksandothershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless.Includedwithincashandcashequivalentsisfiduciarycashheldonbehalfofclientsorinsurersheldinaccordancewithclientmoneyrules.

Trade payablesTradepayablesareinitiallyrecognisedatfairvalueandsubsequentlymeasuredatamortisedcost.

BorrowingsBorrowingsareclassifiedascurrentliabilitiesunlesstheGroup has an unconditional right to defer settlement of the liabilityforatleast12monthsafterthebalancesheetdate.

Borrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred.Theyaresubsequentlystatedatamortisedcostusingtheeffectiveinterestratemethod.

Deferred and contingent considerationDeferred and contingent consideration is included at the Directors’bestestimateoftheamountswhichwillbepayable.Thisamountisreviewedonanannualbasis.

ProvisionsProvisionsarerecognisedwhentheGrouphasapresentobligationasaresultofapastevent,anditisprobablethattheGroupwillberequiredtosettlethatobligation.Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balancesheetdate.

Employee benefitsShare-based paymentSharesawardedthroughtheJelfGroupplcEmployeeBenefitTrust(EBT)areaccountedforinaccordancewithIFRS2‘Share-basedpayment’.Aperiodofcontinuedemployment is required before the relevant employees becomeunconditionallyentitledtothesharesawarded. Thecostoftheawardsisspreadoverthisperiod.Theamount recognised is based on the fair value of shares atthedatetheawardismade.

OwnsharesheldbytheEBTareaccountedforinaccordancewithIFRS2‘Share-basedpayment’:

• UntilsuchtimeastheCompany’sownsharesheldbytheEBTvestunconditionallytoemployees,theconsideration paid for the shares is deducted from the Group and Company income statement in arriving at shareholders’funds.

• Consideration paid or received for the purchase or sale oftheCompany’sownsharesareshownasseparateamountsinconsolidatedstatementofchangesinequity.

• Anydividendincomearisingonownsharesisexcludedinarrivingatprofitbeforetaxanddeductedfromdividendspaidandproposed.

• OtherassetsandliabilitiesoftheEBTarerecognisedastheassetsandliabilitiesoftheGroupandCompany.

FinancecostsandanyadministrationexpensesoftheEBTarechargedastheyaccrue.

Thefairvalueofshareoptionsisrecognisedasan expenseonastraightlinebasisoverthevestingperiod. Forshareoptionagreementswherethenumberof optionsisdependentonperformance,anestimateis madeofthenumberofoptionsthatwillbegrantedat theendoftheperformanceperiod.Thisestimateisreviewedeachaccountingperiod.Thefairvalueofshareoptions granted by the Company is usually measured usingtheBlack-Scholesmodel.Forcertainoptionswithmarketconditions,MonteCarlosimulationsare performedtomeasurefairvalue.Theexpectedlifeinthemodelhasbeenadjusted,basedonmanagement’sbestestimate,fortheeffectsofexerciserestrictionsandbehaviouralconsiderations.

Ateachbalancesheetdate,theentityrevisesitsestimatesofthenumberofoptionsthatareexpectedtovest.Itrecognisestheimpactoftherevisiontooriginalestimates,ifany,intheincomestatement,withacorrespondingadjustmenttoequity.Theproceedsreceivednetofanydirectly attributable transaction costs are credited to share capital(nominalvalue)andsharepremiumwhentheoptionsareexercised.AllIncomeTaxandNationalInsuranceliabilitiesrestwithemployees,andthereforenoprovisionshavebeenmadeinthefinancialstatementsinthisrespect.

TEXT OVER



PensionsTheGroupoperatesanumberofdefinedcontributionpension schemes for employees and certain of its Directors and the pension charge represents the amounts payable by theGrouptothefundinrespectoftheperiod.TheGroupalso makes contributions to the personal pension plans of Directorsandcertainemployees.Thesearechargedtotheincomestatementastheyarise.

Share capitalOrdinarysharesareclassifiedasequity.

Incremental costs directly attributable to the issue of newordinarysharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds.

Where any Group company purchases the Company’s equitysharecapital(treasuryshares),theconsiderationpaid,includinganydirectlyattributableincrementalcosts(netofincometaxes)isdeductedfromequityattributable to the Company’s equity holders until the shares are cancelledorreissued.

DividendsDividendsareonlyprovidedinthefinancialstatementswhentheybecomealiabilityoftheCompany.

4a. Financial risk managementTheGroup’sactivitiesexposeittoanumberoffinancialrisks,includingfundingandliquidityrisk,interestrateriskandcounterpartycreditrisk.TheBoardhaveputinplaceanumberofstrategiesandcontrolstomanagetheserisks,andminimisetheimpactonthefinancialperformanceandfinancialpositionoftheGroup.

Funding and liquidity riskA breach of the Group’s loan covenants might lead to fundingbeingwithdrawn.TheGroupmonitorsitsfundingrequirements and liquidity through the use of both long term and short term forecasting models to ensure it is able to meetitsobligationsastheyfalldue.Variousstresstestsareconductedtounderstandthekeysensitivities.

At30September2014thebalanceontheloanis£13.75m(2013:£18.5m)andtheGrouphascashbalances,netoffiduciarycash,of£12.2m(2013:£9.4m).

Havingreviewedtheforecastingmodelsandunderstoodthekeysensitivities,theBoardarecomfortablethattheGroup can continue to meet the loan covenants for the termoftheloan.

Interest rate riskInterest rate risk is the risk of loss through adverse movementsininterestrates.

TheGroupisexposedtointerestraterisksonitsfloatingrateborrowings.TheGroup’spolicyistocontinueto adopt a prudent approach to the management of net interest rate exposures and not to engage in speculative activity or enter into transactions unrelated to underlying commercialexposures.

Atthepresentrepaymentprofile,eachonehalfpercentincreaseinLIBORwouldresultinadditionalfinancecostsofc.£60kduring2015.However,eachonehalfpercentincrease in base rate translates to additional revenues of c.£137kin2015,inrespectofinterestoncash.

Counterparty credit riskCounterparty credit risk is the risk that counterparties fail tomeettheirobligationstotheGroup.

TheGroup’smaximumexposuretocreditriskis£34.9m(2013:£30.8m),beingcash(includingfiduciaryfundsof£15.2m(2013:£14.5m))andnettradereceivables. TheGroupmaintainsacounterpartypolicybasedonpublished rating criteria to manage the exposure to credit institutionsandinsuranceproviders.Counterpartylimits andutilisationlevelsarereviewedregularlyandreportedtotheSolvencyCommittee.

TheGroupmanagesitscashbalancesintheformofdepositswithprimebanksinaccordancewiththisinvestmentandcounterpartypolicywhichisagreedby theSolvencyCommitteeand,inrespectoffiduciaryfunds,allrelevantregulatoryguidelines.

Capital management TheGroup’sobjectiveswhenmanagingcapitalaretosafeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

Inordertomaintainoradjustthecapitalstructure,theGroup may adjust the amount of dividends paid to shareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.

Managementconsiderscapitaltobeequaltototalequity asdisclosedinthebalancesheetwhichwas£105,258k asat30September2014(2013:£99,448k).


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Regulatory capital requirementsThemajorityoftheGroup’sactivitiesareregulatedbytheFCAandthelevelofcapitalheldbycertainsubsidiarycompaniesisgovernedbyspecificsolvencyrequirements.Capitalincludessharecapital,auditedreserves,unauditedinterimlosseslessintangibleassets.AfailuretomeettheserequirementscouldleadtotheFCAlevyingfinancialorotherpenaltiesontheGroup.

TheBoardcloselymonitorsthequantityandqualityofcapital in the regulated subsidiaries and can report that all regulated subsidiaries have maintained the required levels throughouttheyear.

4b. Critical accounting estimates and judgementsIn the application of the Group’s accounting policies the Directorsarerequiredtomakejudgements,estimatesandassumptions about the carrying amounts of assets and liabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandassociatedassumptionsarebasedonhistoric experience and other factors that are considered toberelevantandarereviewedonanongoingbasis. Actualresultsmaydifferfromtheseestimates.

Key sources of estimation uncertaintyTheDirectorshaveconsideredthekeyassumptionsused to estimate the Group’s assets and liabilities as at the balancesheetdate,andbelievetheseassumptionstobeentirelyappropriate.Theestimatesandjudgementsmostlikelytohaveasignificanteffectareinthefollowingareas:

Goodwill and impairmentTheGroup’sconsolidatedbalancesheetincludessignificantlongtermassetsrelatingtogoodwillandintangibles.Asat30September2014,thetotalofgoodwillandintangibleassetsamountedto£107.4m(2013:£112.4m).TheGroupperformsannualimpairmenttests,atbothaGroupandoperatingsegmentlevel,toverifywhethergoodwill,anyotherintangibleassetsthathaveindefiniteusefullivesandproperty,plantandequipmenthavesufferedanyimpairment.Allotherassetsarereviewedforimpairmentwhenevereventsorchangesincircumstanceindicate that the carrying amount of the asset exceeds its recoverableamount.

Impairment testing requires a number of assumptions to bemadeaboutfuturecash-flows,includingestimatingapost-taxdiscountrate,detailsofwhichareprovidedin note14.

Intangible assetsWhennewentitiesareacquiredbytheGroup,theclientbooks of those acquisitions are valued using a discounted cash-flowmethodology.Therearesignificantjudgementsinvolved in estimating the assumptions underlying these calculations:mostnotablythesizeandtimingoftherelevantcash-flowsandtheapplicablediscountrate.Theseassetsare capitalised and then amortised over the expected useful economiclifeofthebook;thelifeoftheseassetsisbasedontheexpectedretentionrateoftheclients.

Provisions TheGroupexercisesjudgementinmeasuringandrecognisingprovisions(seenote22).Judgementisnecessaryinassessingthelikelihoodthataliabilitywillarise,andtoquantifythepossiblerangeofthefinancialsettlement.Becauseoftheinherentuncertaintyinthisevaluationprocess,actuallossesmaybedifferentfrom theoriginallyestimatedprovision.

Share-based paymentsVariousassumptionsarerequiredinordertocalculatethechargefortheyear;foroptionbasedawards,theseassumptionsarethenappliedtooptionpricingmodels. Thekeyassumptionsrelatetothefutureperformanceof theGroup,thenumberofemployeeslikelytoremainemployed for the duration of the scheme and the volatility oftheGroup’sshareprice.Theseassumptionsareshowninnote26.

Deferred considerationWhennewentitiesareacquiredbytheGroup,itiscommonfor part of the purchase consideration to be deferred and contingentonfutureevents.Estimatesarerequiredinrespectoftheamountofdeferredcontingentconsideration,whichisdeterminedaccordingtoformulaeagreedatthetimeofthebusinesscombination,andnormallyrelatedtotheprojectedfuturerevenuesoftheacquiredbusiness. TheDirectorsreviewtheseestimatesateachbalancesheetdate.At30September2014theGrouphas£4.1mdeferredconsiderationpayable(2013:£4.5m).


5. Segmental reporting

Operatingsegmentsarereportedinamannerconsistentwiththeinternalreportingprovidedtothechiefoperating decision-maker.Thechiefoperatingdecision-makerhasbeenidentifiedastheBoard,whichisresponsibleforallocatingresources,assessingperformanceoftheoperatingsegmentsandmakingstrategicdecisions.Furtherinformationabout eachoperatingsegmentcanbefoundintheGroupChiefExecutive’sreportonpages4to7.

AllrevenuearosewithintheUnitedKingdom.Nogeographicalsegmentinformationisthereforegiven.Segmentinformationaboutthesebusinessesispresentedbelow.

Year-ended 30 September 2014

Insurance

£’000

Employee Benefits

£’000

Financial Planning

£’000

Total£’000

Revenue 55,230 20,751 6,607 82,588Operating profit/(loss) 4,497 3,624 (188) 7,933

Operating profit/(loss) consists of:EBITDAE 9,435 4,767 372 14,574Exceptional costs - - - -EBITDA 9,435 4,767 372 14,574Depreciationofproperty,plantandequipment (771) (283) (88) (1,142)Amortisationofintangiblefixedassets (4,167) (860) (472) (5,499)

Investment revenues 113Financecosts (621)Profitbeforeincometax 7,425Income tax charge (956)Profitfortheyear 6,469


Insurance

£’000

Employee Benefits

£’000

Financial Planning

£’000

Total£’000

Revenue 48,269 20,804 7,113 76,186Operating profit/(loss) 1,052 4,114 (285) 4,881

Operating profit/(loss) consists of:EBITDAE 6,752 5,381 360 12,493Exceptional costs (1,178) (207) (103) (1,488)EBITDA 5,574 5,174 257 11,005Depreciationofproperty,plantandequipment (720) (239) (80) (1,039)Amortisationofintangiblefixedassets (3,802) (821) (462) (5,085)

Investment revenues 68Financecosts (839)Profitbeforeincometax 4,110Income tax credit 498Profitfortheyear 4,608

Itisnotpracticabletoseparatelyidentifytheinvestmentrevenues,financecostsandincometaxchargeforeachofthesegments.Accordingly,consolidatedfigureshavebeenpresented.



Balance sheet

2014£’000

2013£’000

Segment assetsInsurance 121,438 122,916EmployeeBenefits 21,555 21,360FinancialPlanning 4,190 4,495Unallocated 7,094 4,898 154,277 153,669Segment liabilitiesInsurance (38,615) (42,663)EmployeeBenefits (7,288) (7,569)FinancialPlanning (3,116) (3,989) (49,019) (54,221)Other informationCapital additionsInsurance 624 1,338EmployeeBenefits 263 394FinancialPlanning 82 133

969 1,865

TheamountsprovidedtotheBoardwithrespecttototalassetsandliabilitiesaremeasuredinamannerconsistentwiththatofthefinancialstatements.Theseassetsandliabilitiesareallocatedbasedontheoperationsofthesegment.UnallocatedsegmentassetsrelatetocashheldintheparentCompany.

6. Employee benefit expense Staffcosts,includingDirectors’remuneration,wereasfollows:

2014£’000

2013£’000

Wages and salaries 38,356 34,646Social security costs 3,980 3,539Pension costs 1,582 1,329Share-basedpayments 1,054 842Terminationpayments - 563 44,972 40,919

Keymanagement,beingthePlcBoardandExecutiveCommittee,compensationwasasfollows:

2014£’000

2013£’000

Wages and salaries 2,307 1,745Social security costs 116 111Share-basedpayments 416 483Terminationpayments - - 2,839 2,339

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Theaveragemonthlynumberofemployees,includingDirectors,duringtheyearwasasfollows:

2014No.

2013No.

Sales 387 496Administration 507 369Group 113 76 1,007 941

DetailsoftheDirectors’emoluments,shareandshareoptionawardsandpensionentitlementsaregivenintheRemunerationreportonpages22to24.

7. Exceptional costs ExceptionalcostsarethoseitemstheGroupconsiderstobeone-offormaterialinnaturethatshouldbebroughttothereader’sattentioninunderstandingtheGroup’sfinancialperformance.ThesecostsarenotassociatedwiththeongoingactivitiesoftheGroup.Exceptionalcostsareasfollows:

2014£’000

2013£’000

Acquisition costs - 698Reorganisation and rationalisation costs - 563Onerousleaseprovisionrelatingtopreviousheadoffice - 83Share buy back costs - 144

- 1,488

8. Investment revenues

2014£’000

2013£’000

Bank interest 113 67Dividends from available for sale investments - 1

113 68

9. Finance costs

2014£’000

2013£’000

Interest expenseInterestonborrowings 498 525Amortisation of loan facility costs 78 295Other 45 19 621 839



10. Income tax charge/(credit)

2014£’000

2013£’000

Current taxCurrenttaxonprofitfortheyear 2,622 2,247Adjustments in respect of prior years - (47)Totalcurrenttax 2,622 2,200

Deferred taxOriginationandreversaloftemporarydifferences (1,562) (1,386)ImpactofchangeinUKtaxrate - (1,256)Adjustments in respect of prior years (104) (56)Totaldeferredtax (1,666) (2,698)Income tax charge/(credit) 956 (498)

ThetaxontheGroup’sprofitbeforetaxdiffersfromthestandardrateofCorporationTaxintheUKof22%(2013:23.5%)forthereasonsidentifiedbelow.

2014£’000

2013£’000

Profit before income tax 7,425 4,110TaxcalculatedatUKCorporationTaxrateof22%(2013:23.5%) 1,634 966Expenses and income not deductable for tax purposes (334) (99)EffectofreductioninUKtaxrate - (1,256)Adjustments in respect of prior years (104) (102)Utilisationofunrecognisedtaxlosses (240) (7)Income tax charge/(credit) 956 (498)

TherateofUKcorporationtaxwasreducedby2%from23%to21%from1April2014.Afurtherreductionto20%from1April 2015wasenactedatthebalancesheetdateon30September2013andisreflectedinthedeferredtaxbalancesforbothyears.

Tax recognised directly in equity

TheGrouprecognisedthefollowingtaxcreditsdirectlyinequity:2014£’000

2013£’000

Taxcreditrelatingtoshareschemes 350 77

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11. Profit for the year

Profitfortheyearhasbeenarrivedatafterchargingthefollowingitems:2014£’000

2013£’000

Amortisation of intangible assets -Softwarecosts 406 307

-Otherintangibleassets 5,093 4,778

Depreciationofproperty,plantandequipment 1,142 1,039

Profitondisposalofproperty,plantandequipment 11 -Profitondisposalofclientbookofbusiness - 8

Minimumleasepaymentsunderoperatingleases 2,648 2,588

Minimumleasepaymentsunderfinanceleases 47 11

Auditors’ remuneration

FeespayabletotheCompany’sauditorsfortheauditoftheparentCompanyandtheconsolidatedfinancialstatements 45 44

FeespayabletotheCompany’sauditorsforotherservices

-TheauditoftheCompany’ssubsidiaries 120 111

-Auditrelatedassuranceservices 51 32

-Taxcomplianceservices 34 30

-Nonauditservices 16 135

12. Dividends

2014£’000

2013£’000

Dividend paid during the year:

Finaldividendfortheyear-ended30September2013of1.5p(2012:1.3p)pershare 1,615 1,407

Dividend proposed after the end of the financial year and not recognised as a liability:

Finaldividendfortheyear-ended30September2014of2.0p(2013:1.5p)pershare 2,151 1,615

Thefinaldividendinrespectoftheyear-ended30September2013of1.5ppershare,amountingtoatotaldividendof£1,614,547,waspaidon25January2014.

Thefinaldividendproposedfortheyear-ended30September2014willbepaidon30January2015toshareholderson theregisteron30December2014.

13. Earnings per share

2014 2013

Profitfortheyear(£’000) 6,469 4,608Weightedaveragesharesinissue(number) Basic 107,513,829 107,519,379

Diluted 118,779,038 115,608,027Earningspershare(pence) Basic 6.0 4.3

Diluted 5.4 4.0

BasicearningspershareiscalculatedbydividingtheprofitattributabletoequityholdersoftheCompanybytheweightedaveragenumberofordinarysharesinissueduringtheyear.

Dilutedearningspershareiscalculatedbyadjustingtheweightedaveragenumberofordinarysharesoutstandingtoassumeconversionofalldilutivepotentialordinaryshares(i.e.shareoptions).



14. Goodwill

2014£’000

2013£’000

Cost and net book valueAt 1 October 71,290 58,475Acquisitions 241 12,818Disposals - (3)At 30 September 71,531 71,290

Impairment tests for goodwillGoodwillisreviewedatleastannuallyforimpairmentbycomparingtherecoverableamountofeachcashgeneratingunit(CGU)withthegoodwill,intangibleassetsandproperty,plantandequipmentallocatedtothatCGU.

Goodwillhasbeenallocatedaccordingtothebusinesssegmentasfollows:

Insurance

£’000

Employee Benefits

£’000

FinancialPlanning

£’000

Total£’000

At 1 October 2013 60,355 10,552 383 71,290Acquisitions 205 36 - 241Disposals - - - -At 30 September 2014 60,560 10,588 383 71,531

At 1 October 2012 47,540 10,552 383 58,475Acquisitions 12,818 - - 12,818Disposals (3) - - (3)At 30 September 2013 60,355 10,552 383 71,290

TherecoverableamountofaCGUisdeterminedbasedonvalueinusecalculations.Thesecalculationsuseriskadjustedcashflowprojectionsbasedonfinancialbudgetsapprovedbymanagementandgrowthassumptionscoveringafour-yearperiod.Thekeyassumptionsusedtopreparethefinancialbudgetsarebasedonpastexperience,strategicplansandmanagement’sexpectationforthemarketsinwhichtheyoperate.ConfidenceintheassumptionscanbegainedfromtheGroup’shistoricalperformanceagainstbudgetandforecast,currenttradingandindustryknowledgeandtrends.

Cashflowsbeyondthefour-yearperiod(2013:fiveyears)areextrapolatedusingagrowthrateof2%(2013:1.5%).ThisgrowthrateisinlinewiththeexpectedaverageUKeconomylongtermgrowthrate.

Thecashflowsprojectionsarediscountedatapost-taxdiscountrateof10.3%(2013:10.3%).Thesinglediscountrate,whichisconsistentlyappliedforallCGUs,isdeterminedwithreferencetointernalmeasuresandavailableindustryinformationandreflectsspecificrisksrelevanttotheGroup.

Impairmenttestinginherentlyinvolvesanumberofjudgementalareas,includingthepreparationofcashflowforecastsforperiodsthatarebeyondthenormalrequirementsofmanagementreporting;theassessmentofthediscountrateappropriatetotheGroupandtheestimationofthefuturerevenueandexpenditureofeachCGU.Accordingly,managementundertookstresstestingtounderstandthekeysensitivitiesandconcludedasfollows:

• Insurance(wheretheheadroomabovecarryingvalueis£6.0m)isthelargestCGUandisalsothemostsensitivetochangesindiscountrateandgrowthrate.

• Thediscountratefor2014wouldneedtoincreaseto10.7%foranimpairmenttooccurinInsurance.• Acompoundaveragerevenuegrowthrateof1.0%andacompoundaverageEBITDAEgrowthrateof1.1%hasbeenassumedforthefirstfouryearsinInsurance.Ifthegrowthrateweretofallto0.7%inrevenueand(0.2)%inEBITDAE, andmanagementmadenocompensatingchangestothebudgetedlevelofadministrativeexpensesinthisperiod,animpairmentwouldoccur.

Furthertotheimpairmentreview,theDirectorsconcludedthatnoimpairmenthasarisenduringtheyear.

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15. Intangible assets

Computer software

£’000

Client books of business

£’000

Total£’000

CostAt 1 October 2013 2,680 67,474 70,154Additions 214 100 314Acquisitions and fair value adjustments 3 - 3At 30 September 2014 2,897 67,574 70,471

Accumulated amortisationAt 1 October 2013 1,153 27,911 29,064Amortisation charge 406 5,093 5,499At 30 September 2014 1,559 33,004 34,563

Net book valueAt 30 September 2014 1,338 34,570 35,908At 30 September 2013 1,527 39,563 41,090

Amortisationhasbeenchargedtoadministrativeexpenses.

16. Property, plant and equipment

Leasehold improvements

£’000

Motor vehicles

£’000

Fixtures, fittings and computer

equipment £’000

Total£’000

CostAt 1 October 2013 3,120 133 7,304 10,557Additions 271 18 680 969Disposals - (16) - (16)At 30 September 2014 3,391 135 7,984 11,510

Accumulated DepreciationAt 1 October 2013 486 17 4,694 5,197Charge for the year 292 62 788 1,142Disposals - (7) - (7)At 30 September 2014 778 72 5,482 6,332

Net book valueAt 30 September 2014 2,613 63 2,502 5,178At 30 September 2013 2,634 116 2,610 5,360

Depreciationhasbeenchargedtoadministrativeexpenses.



MotorvehiclesincludesthefollowingamountswheretheGroupisalesseeunderafinancelease:2014£’000

2013£’000

Cost–capitalisedfinanceleases 93 186Accumulated depreciation (59) (97)Net book value 34 89

17. Available for sale investments

2014£’000

2013£’000

At 1 October 16 39Disposals - (23)At 30 September 16 16

18. Trade and other receivables

2014£’000

2013£’000

Tradereceivables 7,919 7,568Less:Provisionforimpairment (475) (740)Tradereceivables–net 7,444 6,828Other receivables 107 106Prepayments and accrued income 4,749 4,058

12,300 10,992

Alltradeandotherreceivablesarecurrent. MovementsontheGroup’sprovisionforimpairmentareasfollows:

2014£’000

2013£’000

At 1 October 740 664Less:Provisionforimpairment (265) 76At 30 September 475 740

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Thefollowingtablesetsouttheagedprofileoftradereceivables.TheGroupdoesnotholdanycollateraloverthesebalances.

30 September 2014

Trade receivables – gross

£’000

Provision for impairment

£’000

Trade receivables – net£’000

Not overdue 2,320 (3) 2,317

Past due but not more than three months 4,902 (8) 4,894

Past due more than three months and not due more than six months 373 (189) 184

Past due more than six months and not due more than one year 292 (245) 47

Past due more than one year 32 (30) 2

7,919 (475) 7,444

30 September 2013

Trade receivables – gross

£’000

Provision for impairment

£’000

Trade receivables – net£’000

Not overdue 2,170 (80) 2,090Past due but not more than three months 4,845 (107) 4,738Past due more than three months and not due more than six months 393 (393) -Past due more than six months and not due more than one year 91 (91) -Past due more than one year 69 (69) -

7,568 (740) 6,828

19. Cash and cash equivalents

2014£’000

2013£’000

Cash at bank and on handFiduciary 15,228 14,493Ownfunds 12,212 9,455

27,440 23,948

Fiduciarycashcomprisesclientmoneyheldinstatutoryandnon-statutorytrustaccounts.

IncludedintheGroup’sownfundsis£3,150,000(2013:£3,150,000)ofrestrictedcashkeptintrustaccountsforpurposesofsolvencyandcapitaladequacyrequirements.PursuanttoregulatoryrequirementsestablishedbytheFCAapplicabletotheinsurancebrokingindustry,theGroupholdscashinthetrustaccountsforthepurposeofensuringfundsareavailabletopayanycostsandexpensesnecessarytoachieveanorderlywinding-upoftheGroup’sbusinessintheeventitsbrokingoperationsceasetooperateorareotherwisecloseddown.TheamountofcashrequiredtobeheldisdeterminedfromtimetotimebytheGroupinaccordancewithwhatitconsiderstobesufficientinordertopayanysuchcostsandexpenses.

Thecreditqualityofcashatbankcanbeassessedbyreferencetoexternalcreditratings,whereavailable,ortohistoricalinformationaboutcounterpartydefaultrates.

2014£’000

2013£’000

A 1 27,069 23,873

A-2 - 2

BBB 3 371 73

27,440 23,948

1 Barclays Bank plc2 Lloyds Banking Group plc 3 Royal Bank of Scotland plc



20. Trade and other payables

2014£’000

2013£’000

CurrentTradepayables 2,358 2,896Insurance broking payables 10,421 9,582Taxandsocialsecurity 1,216 1,169Other payables 541 410Accruals and deferred income 6,713 6,001

21,249 20,058

21. Financial instruments TheDirectorsconsiderthatthecarryingvalueoffinancialinstrumentsapproximatefairvalue.

30 September 2014

Loans and receivables

£’000

Available for sale

£’000

Financial liabilities measured at

amortised cost£’000

Financial liabilities at fair value through

profit and loss£’000

Total£’000

Assets per balance sheetAvailable for sale investments - 16 - - 16Tradeandotherreceivables 7,551 - - - 7,551Cash and cash equivalents 27,440 - - - 27,440

34,991 16 - - 35,007Liabilities per balance sheetBorrowings - - (13,640) - (13,640)Tradeandotherpayables - - (20,033) - (20,033)Deferred consideration - - - (4,141) (4,141)Obligationsunderfinanceleases - - (14) - (14)

- - (33,687) (4,141) (37,828)

30 September 2013

Loans and receivables

£’000

Available for sale

£’000

Financial liabilities measured at

amortised cost£’000

Financial liabilities at fair value through

profit and loss£’000

Total£’000

Assets per balance sheet

Available for sale investments - 16 - - 16

Tradeandotherreceivables 6,934 - - - 6,934

Cash and cash equivalents 23,948 - - - 23,948

30,882 16 - - 30,898

Liabilities per balance sheet

Borrowings - - (18,312) - (18,312)

Tradeandotherpayables - - (18,889) - (18,889)

Deferred consideration - - - (4,476) (4,476)

Obligationsunderfinanceleases - - (62) - (62)

- - (37,263) (4,476) (41,739)

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Thetradeandotherreceivablesareduefromanumberofsourcesandthereforetheexposuretoanyonesinglepartyisconsideredlow.

Thetablesbelowsetoutthecontractualcashflows,includinginterest,attachedtotheGroup’sfinancialliabilities.Thetableshavebeendrawnupbasedontheundiscountedcashflowsoffinancialliabilities,basedontheearliestdateonwhichtheGroupcanberequiredtopay.

30 September 2014

1 - 6 months

£’000

6 - 12 months

£’000

1 - 5 years£’000

5+ years£’000

Total£’000

Financial liabilitiesBorrowings 2,750 2,750 8,250 - 13,750Interestonborrowings 205 164 110 - 479Deferred consideration 2,078 - 2,063 - 4,141Obligationsunderfinanceleases 10 3 1 - 14Tradeandotherpayables 19,603 - - - 19,603

24,646 2,917 10,424 - 37,987

30 September 2013

1 - 6 months

£’000

6 - 12 months

£’000

1 - 5 years £’000

5+ years£’000

Total£’000

Financial liabilitiesBorrowings 1,500 2,250 14,750 - 18,500Interestonborrowings 330 245 501 - 1,076

Deferred consideration 413 - 4,063 - 4,476

Obligationsunderfinanceleases 35 13 14 - 62

Tradeandotherpayables 18,889 - - - 18,88921,167 2,508 19,328 - 43,003

TheGrouphasadoptedtheamendmenttoIFRS7requiringadditionalcategorisationoftheGroup’sfinancialassetsandliabilitiesheldatfairvaluebythefollowingvaluationmethodology:

• Level1:fairvaluederivedfromquotedpricesinactivemarketsforidenticalassetsorliabilities.• Level2:fairvaluederivedfromobservableinputsotherthanquotedpricesincludedinLevel1.• Level3:fairvaluederivedfrominputsfortheassetorliabilitythatarenotbasedonobservablemarketdata.

30 September 2014

Level 1£’000

Level 2£’000

Level 3£’000

Total£’000

Financial assets at fair valueAvailable for sale investments 16 - - 16

16 - - 16

Financial liabilities at fair valueDeferred consideration - - 4,141 4,141 - - 4,141 4,141



30 September 2013

Level 1£’000

Level 2£’000

Level 3£’000

Total£’000

Financial assets at fair valueAvailable for sale investments 16 - - 16

16 - - 16

Financial liabilities at fair valueDeferred consideration - - 4,476 4,476 - - 4,476 4,476

Thefairvalueoftheavailableforsaleinvestmentsismeasuredusingthemarketpriceat30September. Themovementindeferredconsiderationisasfollows:

£’000

As at 1 October 2013 4,476

Paid in the year (476)Set up in the year 141As at 30 September 2014 4,141

Thedeferredconsiderationrelatestorecentacquisitions,andconsistsofcontingentconsiderationarrangementsthatrequirecertainperformancerelatedfuturefinancialtargetstobeachievedandfinalpaymentsfornetassets.

Afullearnouthasbeenassumedonalldeferredconsideration.Iftargetsarenotmettheminimumamountpayableis£563,000andthebalanceofthedeferredconsiderationwillbecreditedtoincome.Therewerenogainsorlossesrecognisedintheincomestatementorinothercomprehensiveincomeduringtheyear(2013:£nil).

22. Provisions

Short-term

employee benefits

provision£’000

Clawback provision

£’000

Group reorganisation

and rationalisation

provision£’000

Dilapidations£’000

Complaints provision

£’000

Otherprovisions

£’000

Total£’000

At 1 October 2013 314 187 463 757 352 677 2,750Charged in the income statement 314 168 - 5 723 32 1,242

Recognisedinproperty,plant and equipment - - - 100 - - 100

Utilisedintheyear (314) (139) (463) (94) (295) (612) (1,917)At 30 September 2014 314 216 - 768 780 97 2,175

At 1 October 2012 264 155 - 800 238 - 1,457Acquisitions 89 - - - - 766 855Charged in the income statement 264 137 563 172 322 82 1,540

Recognisedinproperty,plant and equipment - - - 215 - - 215

Utilisedintheyear (303) (105) (100) (430) (208) (171) (1,317)At 30 September 2013 314 187 463 757 352 677 2,750

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Thesecanbeanalysedasfollows:

2014£’000

2013£’000

Current 1,224 1,848Non-current 951 902

2,175 2,750

Non-currentprovisionsrelatetocertainclawbackandotherprovisions.

Theshort-termemployeebenefitsprovisionrelatestothecostofholidaysduetostaffbutnottaken.

Clawbackprovisionsareinrespectofpotentialrepaymentofcommissionreceivedonindemnityterms.

TheGroupreorganisationandrationalisationprovisionrelatestocostsexpectedtobeincurredasaresultofrestructuringoperations.ThesecostsarenotassociatedwiththeongoingactivitiesoftheGroup.

Dilapidationsprovisionsrelatetotheestimatedcostofremedialworkonexitingvariousleaseholdproperty.

Onerousleaseprovisionrelatestoleasecommitmentsonformerheadoffice.

Otherprovisionsrelatetoonerousleaseprovisionof£82,000(2013:£82,000)andclaimsmanagementhandlingof £15,000(2013:£595,000);theGroupnolongerhasasignificantobligationforthisitem.

23. Deferred income tax assets and liabilities Deferredincometaxassetsandliabilitiesareoffsetwhenthereisalegallyenforceablerighttosetoffcurrenttaxassetsagainstcurrenttaxliabilities.Deferredtaxassetshavebeenrecognisedinrespectofshare-basedpaymentsandothertimingdifferencesgivingrisetodeferredtaxassetsbecauseitisprobablethattheseassetswillberecovered.Theoffsetamountsareasfollows:

2014£’000

2013£’000

Deferred tax assets:Deferred tax asset to be recovered after more than 12 months 1,904 973Deferredtaxassettoberecoveredwithin12months - -

1,904 973Offsetagainstliabilities - -

1,904 973Deferred tax liabilities:Deferred tax liability to be utilised after more than 12 months (5,829) (6,947)Offsetagainstliabilities - -

(5,829) (6,947)Deferredtaxliabilitytobeutilisedwithin12months (1,000) (949)

(6,829) (7,896)Net tax liabilities (4,925) (6,923)



Themovementinthenetdeferredincometaxassetsandliabilitiesisasfollows:


At

1 October 2013 £’000

Adjustment

in respect of prior year

£’000

Credit /

(charge) to income

£’000

Charge to equity£’000

Change in tax rate

£’000

Acquisition of subsidiaries

£’000

At 30

September 2014£’000

Acceleratedcapitalallowances (97) 104 (12) - - - (5)Intangibles (7,540) - 993 - - (18) (6,565)Share-basedpayments 601 - 578 350 - - 1,529Othertimingdifferences 113 - 3 - - - 116Net tax (liabilities)/assets (6,923) 104 1,562 350 - (18) (4,925)


At

1 October 2012 £’000

Adjustment

in respect of prior year

£’000

Credit /

(charge) to income

£’000

Charge to equity£’000

Change in tax rate

£’000

Acquisition of subsidiaries

£’000

At 30

September 2013£’000

Acceleratedcapitalallowances (147) - 38 - 12 - (97)Intangibles (8,360) - 944 - 1,273 (1,397) (7,540)Share-basedpayments 101 - 436 77 (13) - 601Othertimingdifferences 105 - 24 - (16) - 113Net tax (liabilities)/assets (8,301) - 1,442 77 1,256 (1,397) (6,923)

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24. Borrowings


Loan facility

£’000

Unamortised loan costs

£’000

Net borrowings

£’000

Current 5,500 (78) 5,422Non-current 8,250 (32) 8,218

13,750 (110) 13,640

Year-ended 30 September 2013Current 3,750 (78) 3,672Non-current 14,750 (110) 14,640

18,500 (188) 18,312

Themainfacilityof£12millioncomprisesaloanof£9millionrepayablebyFebruary2016insixbiannualinstalmentsandarevolvingloanof£3millionfullyrepayableinFebruary2016.Scheduledrepaymentsof£3.0mandearlyrepaymentsof£1.0mweremadeduringtheyear.Atthebalancesheetdate£6.5m(2013:£10.5m)wasavailableandfullydrawn.

Thesecondcommittedborrowingfacilityof£10millionisavailableforacquisitionsandisrepayablebyFebruary2016insixbiannualinstalments.Themaximumfacilityavailablereducesonabiannualbasisoverthelifeofthefacility.Repaymentsof£0.75mweremadeduringtheyear.Atthebalancesheetdate£7.25m(2013:£8.0m)wasavailableandfullydrawn.

Theunamortisedloancostsarechargedtofinancecostsoverthelifeoftheloanonastraight-linebasis.

Theloanfacilityinterestfloatsatarateof2.35%aboveLIBOR.TheloanissecuredbyanunlimitedintercompanycompositeagreementguaranteeoverallassetsinthetradingcompanieswithintheGroupexcludingringfencedregulatorycashas agreedwiththeFCA.Thefacilitytermsandconditionsincludecashflowcover,interestcoverandleveragecovenants.

TheexposureoftheborrowingsoftheGrouptointerestratechangesandtheperiodsinwhichthecostofborrowings re-priceareasfollows:

6 months or less

£’000

6 - 12 months

£’000

1 - 5 years£’000

Over 5 years£’000

Total£’000

At 30 September 2014 13,640 - - - 13,640At 30 September 2013 18,312 - - - 18,312

Theinterestrateonborrowingsatthebalancesheetdatewasasfollows:2014 2013

Borrowings 2.9% 2.9%

Theeffectiveinterestrateincludinginitialloanfeesatthebalancesheetdatewasasfollows:2014 2013

Borrowings 3.2% 3.2% TheDirectorsconsiderthatthecarryingamountofborrowingsapproximatetotheirfairvalue.



25. Obligations under finance leases

2014 £’000

2013 £’000

MinimumleasepaymentsWithin one year 17 52Laterthanoneyearandnolaterthanfiveyears 1 16Laterthanfiveyears - -

18 68Futurefinancechargesonfinanceleases (4) (6)Presentvalueoffinanceleaseliabilities 14 62Present value of minimum lease paymentsWithin one year 13 48Laterthanoneyearandnolaterthanfiveyears 1 14Laterthanfiveyears - -

14 62Analysedas:Current 13 48Non-current 1 14

14 62

26. Share-based payment

Equity-settled share option schemesTheGrouphasanumberofshareoptionplansthatareavailabletoBoardmembersandemployeesasdescribedintheRemunerationreportonpages22to24.

Optionsaresettledeitherbytheissueofordinarysharesof1peachorreleaseofsharesfromtheEBTuponreceiptoftherelevantexercisefundsfromtheoptionholder.OptionsareforfeitediftheemployeeleavestheGroupbeforetheoptionsvest.

TheCompanyalsorecognisestheperformanceofanumberofself-employedadvisorsaspartoftheshareoptionschemes. Detailsofthemovementsinshareoptionsduringtheyearareasfollows:

2014 2013

Number of share options

Weighted average

exercise price (pence)

Number of share options

Weighted average


Outstanding at beginning of year 1,541,539 80.4 1,708,455 55.1Granted during the year 753,818 116.5 753,668 91.5Forfeitedduringtheyear (140,642) 79.2 (74,207) 51.8Lapsed during the year - - - -Exercised during the year (535,024) 52.4 (846,377) 42.7Outstanding at the end of the year 1,619,691 106.5 1,541,539 80.4Exercisable at the end of the year 212,195 118.3 215,082 117.8

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Theweightedaverageremainingcontractuallifeoftheoptionsoutstandingat30September2014was3years(2013:3years).Theexercisepricesfortheoptionsrangefrom11.9pto265p(2013:11.9pto265p).

Valuation KeyassumptionsusedinthevaluationofshareoptionsusingtheBlackScholesmodelaredeterminedasfollows:

Share price MarketvalueattheawarddateExercise price Asstatedintheoptionagreement.Therearenooptionswithavariableexerciseprice

Expected volatility BasedonthehistoricalvolatilityoftheCompany’sshareprice,whichtheDirectorsbelieveisthemostobjectivebasisforestimatingfuturevolatility(between23%and38%)

Expected option life Assumingaholderexercisestheiroptionhalf-waythroughtheexerciseperiodExpected dividends NilLapse probability Based on annualised historic lapsesPerformance criteria No options have performance criteriaRisk-freeinterestrate BasedonUKGiltswithsimilarissuedatesandtermsastheoption(between2.5%and4.5%)

Grant date

Exercisable

Aggregate fair value at issuance

£

5 July 2013 1 September 2016 178,90521 July 2014 1 September 2017 267,863

Equity-settled Share Appreciation RightsTheJelfGroupplc2008LongTermIncentivePlanwasadoptedon3April2008andprovidesforawardsofequity-settledShareAppreciationRights(SARs)tocertainDirectorsandkeyemployees.TheSARsawardsdelivertorecipientsanetgainequaltotheincreaseinsharepricebetweenthebasepriceandthepriceprevailingattheendofthevestingperiod.Thisnetgainisdeliveredinshares,withreferencetothesharepriceprevailingattheendofthevestingperiod.ThenumberofsharesissuedfollowingexercisewillbelessthanthenumberofSARsissued.

ExerciseoftheSARsissubjecttotheachievementofspecifiedperformanceconditionsoverthevestingperiod.

DetailsoftheSARsinissueduringtheyearareasfollows:2014 2013

Numberof SARs

Weighted average


Number of SARs

Weighted average


Outstanding at beginning of year 10,907,480 46.9 10,457,480 45.1

Granted during the year 1,300,000 116.5 600,000 79.9Forfeitedduringtheyear (385,000) 60.1 (150,000) 52.5Lapsed during the year - - - -Outstanding at the end of the year 11,822,480 54.2 10,907,480 46.9

TheweightedaverageremainingcontractuallifeoftheSARsoutstandingat30September2014was6years(2013:6years).TheexercisepricefortheSARsrangefrom36.0pto116.5p(2013:36.0pto81.5p).



ThekeyassumptionsusedinthevaluationoftheSARs,usingaMonteCarlomodellingtechniquetocalculatearangeofprobableoutcomes,wereasfollows: Share price MarketvalueattheawarddateExercise price As stated in the option agreement

Expected volatility BasedonthehistoricalvolatilityoftheCompany’sshareprice,whichtheDirectorsbelieveisthemostobjectivebasisforestimatingfuturevolatility(between36%and38%)

Expected option life TheSARisexercisableonvestingExpected dividends NilLapse probability Based on annualised historic lapses for senior management Performance criteria TheSARshavemarketperformancecriteriabasedontheCompany’ssharepriceRisk-freeinterestrate BasedonUKGiltswithsimilarissuedatesandtermsastheoption(between2.4%and3.0%)

Grant date

Exercisable


£

24March2011 1Oct2015,1Oct2016and1Oct2017 48,96730March2011 1Oct2015,1Oct2016and1Oct2017 2,614,94927 June 2011 1Oct2015,1Oct2016and1Oct2017 34,9598 July 2011 1Oct2015,1Oct2016and1Oct2017 238,73031 January 2012 1Oct2016,1Oct2017and1Oct2018 156,3179 January 2013 1Oct2017,1Oct2018and1Oct2019 163,90625 January 2014 1Oct2018,1Oct2019and1Oct2020 467,993

Employee Benefit TrustTheCompanyandGroupresultsincludethoseoftheJelfGroupplcEmployeeBenefitTrust(EBT),detailsofwhichareshown intheRemunerationreport.ThesharepurchasesarefundedbytheCompany.

FinanceandadministrativecostsarebornebytheEBT.Allcostsareaccountedforastheyaccrue.At30September2014, theEBTheld3,147,464(2013:2,667,659)1pordinaryshares.

ThenominalvalueofownsharesheldbytheGroupandCompanyat30September2014was£31,475(2013:£26,667).OwnsharesareheldintheEBTandarelistedinvestments.Theirmarketvalueat30September2014was£3,997,279(2013:£2,280,848).RightstodividendshavebeenwaivedbytheEBT.

Employee Benefit Trust AwardsAt30September2014,sharesallocatedtoindividualsthroughtheEBTamountedto2,448,570(2013:2,129,020).Duringtheyearatotalof10,500sharesvestedtoindividuals(2013:2,000).DetailsoftheshareawardsmadebytheEBTareasfollows:

2014 2013

Number of share awards

Weighted average


Number of share awards

Weighted average


Outstanding at beginning of year 2,129,020 - 1,337,736 -Granted during the year 591,000 - 889,126 -Forfeitedduringtheyear (260,950) - (95,842) -Exercised during the year (10,500) - (2,000) -Outstanding at the end of the year 2,448,570 - 2,129,020 -

Theweightedaverageremainingcontractuallifeoftheoptionsoutstandingat30September2014was1year(2013:2years).

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ValuationKeyassumptionsusedinthevaluationofshareawardsusingtheBlackScholesmodelaredeterminedasfollows:

Share price MarketvalueattheawarddateExercise price ForawardsmadebytheEBT,thereisnoexerciseprice

Expected volatility BasedonthehistoricalvolatilityoftheCompany’sshareprice,whichtheDirectorsbelieve isthemostobjectivebasisforestimatingfuturevolatility(between30%and38%)

Expected option life Thesharesvesttotheemployeeattheendofthevestingperiod.Thisisusuallybetween twotofouryears

Expected dividends NilLapse probability Based on annualised historic lapsesPerformance criteria No options have performance criteriaRisk-freeinterestrate BasedonUKGiltswithsimilarissuedatesandtermsastheaward(between1.9%and4.2%)

Grant date

Exercisable


£

6 October 2011 6 October 2015 12,25913 October 2011 13 October 2014 3,01831 January 2012 31 January 2015 266,8097February2012 7February2015 3,6462 April 2012 2 April 2015 5,89823 April 2012 23 April 2015 2,87930May2012 30May2015 12,8715 July 2012 5 July 2015 10,95625 July 2012 25 July 2015 23,2159 August 2012 9 August 2015 26,6974 September 2012 4 September 2015 5,4325 December 2012 5 December 2015 194,5629 January 2013 9 January 2016 340,02422 January 2013 22 January 2016 92,66818February2013 18February2016 15,97913March2013 13March2016 7,89622May2013 22May2016 4,27429 June 2013 29 June 2016 8411 August 2013 1 August 2016 3,8551 October 2013 1 October 2016 31,77113 December 2013 13 December 2016 363,2341 April 2014 1 April 2017 5,45919 June 2014 19 June 2017 55,0931 August 2014 1 August 2017 5,69218 September 2014 18 September 2017 34,570



27. Called up share capital

Group and Company

2014£’000

2013£’000

Authorised100,000,000Ordinarysharesof1peach 1,000 1,00025,063,838Non-votingsharesof1peach 251 251

1,251 1,251

2014No. of shares

2013 No. of shares

At 1 October - -Sharebuyback–purchaseoftreasuryshares 100,000 -At 30 September 100,000 -

Ordinary shares Non-voting shares TotalNo. of

shares

£’000No. of

shares

£’000No. of

shares

£’000

Allotted, called up and fully paidAt 30 September 2012 85,333,525 853 25,063,838 251 110,397,363 1,104Share issue 3,364,112 34 - - 3,364,112 34Share buybacks (3,455,520) (35) - - (3,455,520) (35)At 30 September 2013 85,242,117 852 25,063,838 251 110,305,955 1,103Share issue 525,383 5 - - 525,383 5Share buybacks (14,360) - - - (14,360) -At 30 September 2014 85,753,140 857 25,063,838 251 110,816,978 1,108

Duringtheyear14,360Ordinarysharesof1p(2013:3.5mOrdinarysharesof1p)werepurchasedatmarketpriceof86p (2013:between80pand92p).Thesewerethencancelled.

Duringtheyear525,383Ordinarysharesof1pwereissuedat52pinrelationtothematurityofthe2011sharesave(SAYE)scheme(2013:3.4mOrdinarysharesof1pwereissuedat92pinrelationtotheacquisitionofTheInsurancePartnershipHoldingsLimited.)

Thenon-votingsharesentitletheholdersthereoftoreceivenoticeof,attend,butnotvoteatgeneralmeetingsandannualgeneralmeetingsoftheCompany.Conversiontoordinaryvotingsharesisattheoptionoftheholderandispermittedatanytimeprovideditwillnotresultintheholderhavinganinterestin30%ormoreoftheordinarysharesoftheCompany,whichwouldrequirethemakingofamandatoryofferfortheremainingordinarysharespursuanttoRule9oftheTakeoverCodeexceptwhereawaiverisinplace.ConversioninfullispermittedontheunconditionaldeclarationofanofferfortheCompany.Inallotherrespectsthenon-votingsharesshallrankparipassuwiththeordinarysharesincludingtheentitlementtoreceivedividends. Treasury sharesDuring2013theCompanycommencedasharebuybackprogramme.Sharesunderthebuybackprogrammeareeithercancelledorretainedinissueastreasurysharesandrepresentadeductionfromshareholders’funds.DuringtheyeartheCompanypurchased114,360sharesundertheprogramme(2013:3,455,520)atacostof£132,000(2013:£3.2million) ofwhich100,000sharesareheldintreasury(2013:nil).

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28. Merger reserve WheretheGrouphasissuedsharesaspartoftheconsiderationforacquisitions,theexcessoffairvalueoverthenominal valueofthesharesissuedhasbeenrecognisedinamergerreserve.Thisfollowsthemergerreliefaccountingrulesunder s612oftheCompaniesAct2006.

In2013theCompanyissued3.4mOrdinarysharesof1patapriceof92pinrelationtotheacquisitionofTheInsurancePartnershipHoldingsLimited.Thisresultedinanincreaseof£33,641tosharecapitaland£3,061,342tomergerreserve, lesscostsof£10,000.

29. Cash generated from operations

2014£’000

2013£’000

Profit before tax 7,425 4,110Adjustmentsfor:Investment revenues (113) (68)Financecosts 621 839Depreciationofproperty,plantandequipment 1,142 1,039Amortisation of intangible assets 5,499 5,085Share-basedpaymentexpense 1,054 842(Decrease)/increaseinprovisions (576) 438(Profit)/lossondisposalofintangibleassets/investments - (40)(Profit)/lossondisposalofproperty,plantandequipment (11) -Operating cash flows before movement in working capital 15,041 12,245Increase in receivables (1,141) (1,652)Increase in payables 1,046 17Cash generated from operations 14,946 10,610

30. Net debt

2014£’000

2013£’000

Cash 27,440 23,948Fiduciarycash (15,228) (14,493)Ownfunds 12,212 9,455Borrowings1 (13,750) (18,500)Deferred consideration (4,141) (4,476)Net (debt)/cash (5,679) (13,521)1 Borrowingsareshowngrossofamortisedloancostsof£110,000(2013:£188,000).Seenote24fordetails.


31. Acquisitions

Duringtheyear,theGrouphasmadethefollowingacquisitions:

Business acquired

Percentage of ordinary sharecapital acquired

Date ofacquisition

Type of business

Riverside Insurance Brokers Limited 100% 28February2014 Insurance brokers

Laterlife.comLimited 51% 4 October 2013 Later life and retirementworkshops

As a result of the acquisition of Riverside Insurance Brokers Limited the Group has increased its presence in the South East of England.Thegoodwillandintangibleassetsarisingontheacquisitionisattributabletotheacquiredcustomerbase,improvedcommercialtermsandeconomiesofscaleexpectedfromcombiningtheoperationsoftheacquiredbusiness.Noneofthegoodwillrecognisedisexpectedtobedeductibleforincometaxpurposes.

TheGroupinvestedinLaterlife.comLimited,abusinessthatprovidesworkshopsfocusingonlaterlifeandretirementplanning.Theinitialconsiderationwas£50,000.

Riverside Insurance Brokers Limited Thefollowingtablesummarisestheconsiderationpaid,thefairvalueofassetsacquiredandliabilitiesassumedattheacquisitiondate.

Fair value acquired

£’000

Consideration at 28 February 2014Cash 167Contingent consideration 141Total consideration 308Recognised amounts of identifiable assets acquired and liabilities assumed

Intangibleassets–clientbookofbusiness 92Property,plantandequipment -Currentassets–cash(includes£17,000fiduciarycash) 42Currentassets–other 144Current liabilities (157)Deferred tax arising on client book (18)Total identifiable net assets 103Goodwill 205Total 308

Acquisitionrelatedcostsforallacquisitionsof£34,000havebeenchargedtoadministrativeexpenses.

Thecontingentconsiderationarrangementsrequirecertainperformancerelatedfuturefinancialtargetstobeachieved.ThepotentialundiscountedamountofallfuturepaymentsthattheGroupcouldberequiredtomakeunderthecontingentconsiderationarrangementis£141,000.

RiversideInsuranceBrokersLimited(Riverside)contributed£0.1mtorevenuefortheperiodbetweenthedateofacquisitionandthebalancesheetdate.ItisnotpossibletoseparatelyidentifytheprofitbeforeincometaxrelatedtoRiversideasithasbeenintegratedfromdayoneintoJelfInsuranceBrokersLimited.

HadRiversidebeenincludedwithintheGroupfrom1October2013,theadditionalrevenuewouldhavebeen£0.2m.ItisnotpossibletoseparatelyidentifytheprofitbeforeincometaxrelatedtoRiversideasithasbeenintegratedfromdayoneintoJelfInsuranceBrokersLimited.

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33. Subsidiary companies

ThefollowingisalistofalltheGroupsubsidiarycompaniesat30September2014.Unlessotherwiseshown,thecapital ofeachcompanyiswhollyowned,isinordinarysharesandisregisteredandoperatesinEnglandandWales.

Name of company Nature of business

Subsidiary undertakingsJelf Insurance Brokers Limited1,2 Insurance BrokersJelf Wellbeing Limited 1,2 HealthcareandEmployeeBenefitsJelfFinancialPlanningLtd1,2 FinancialPlanningThePurplePartnershipLimited 1 InsuranceBrokernetworkJelfCommercialFinanceLtd1 CommercialFinanceLaterlife.comLimited3 LaterlifeandretirementworkshopsHowellShoneInsuranceBrokersLimited1 Non tradingRiverside Insurance Brokers Limited 1,2 Insurance BrokersTheInsurancePartnershipHoldingsLimited1 Non tradingTheInsurancePartnershipServicesLimited2,4 Insurance BrokersTheInsurancePartnershipCommercialFinanceLtd4 Non tradingHealth Insurance Brokers Ltd 4 Non tradingTheInsurancePartnershipInspectionServicesLtd4 Non tradingHAE Insurance Services Ltd 4 Non tradingArgyll Insurance Services Limited 1 Non tradingAWills&CoLtd4 Non tradingBartlett Davies Bicks Limited 1 Non tradingClarke Roxburgh Insurance Brokers Limited 1 Non tradingJohnLampier&SonLtd1 Non tradingMansonInsuranceBrokersLimited1 Non tradingMansonWarnerHealthcareLimited1 Non trading

1 SubsidiaryofJelfGroupplc. 2 RegulatedbytheFinancialConductAuthority(FCA). 3 TheGroupowns51%(2013:nil)oftheordinarysharecapitalofthecompany.4 Indirectinterest.


32. Commitments

Operating lease commitmentsThefutureaggregateminimumleasepaymentsundernon-cancellableoperatingleasesareasfollows: 2014

£’0002013£’000

Within one year 2,550 2,525Inthesecondtofifthyearsinclusive 6,959 6,917Afterfiveyears 3,670 3,855

13,179 13,297


34. Related party transactions

TheGroup’srelatedpartiesincludeitssubsidiaries,Directorsandkeymanagement.DetailsofcompensationpaidtoDirectorsandkeymanagementaredisclosedintheRemunerationreportonpage23andinnote6respectively.TransactionsbetweentheCompanyanditssubsidiarieshavebeeneliminatedonconsolidationandarenotdisclosedinthisnote.Otherrelatedpartytransactionsaredisclosedbelow.

Duringtheyear,theGrouppaidatotalof£134,000(2013:£31,773)forpremisesoccupiedbytheGroupinHull.ThisbuildingisownedbyOutwoodInvestmentsLimited(formerlyknownasSandco1301Limited).RobWorrellisaDirectorofOutwoodInvestmentsLimitedandisaDirectorofTheInsurancePartnershipHoldingsLimited.Attheyear-end,anamountof£nil (2013:£65,273)wasowedtoOutwoodInvestmentsLimited.

Duringtheyear,theGrouppaidatotalof£52,000(2013:£13,000)forpremisesoccupiedbytheGroupinYork.A37%share ofthisbuildingisownedbytheSIPPofRobWorrell,whoisaDirectorofTheInsurancePartnershipHoldingsLimited.Attheyear-end,anamountof£nil(2013:£nil)wasowedtotheSIPP. 35. Copies of the financial statements

CopiesoftheseconsolidatedfinancialstatementsareavailableontheGroup’swebsite(www.jelfgroup.com)orfromtheCompanySecretaryattheCompany’sregisteredoffice:HillsideCourt,BowlingHill,ChippingSodbury,Bristol,BS376JX. 36. Events after the balance sheet date

TheGroupannouncedtheacquisitionofCroninInsuranceBrokersLimitedon2October2014foramaximumtotalconsiderationof£796,000.

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Report on the parent Company financial statements Our opinionInouropinion,JelfGroupplc’sparentCompanyfinancialstatements(thefinancialstatements):• Giveatrueandfairviewofthestateoftheparent

Company’saffairsasat30September2014.• HavebeenproperlypreparedinaccordancewithUnited

KingdomGenerallyAcceptedAccountingPractice.• Havebeenpreparedinaccordancewiththe

requirementsoftheCompaniesAct2006. What we have auditedThefinancialstatementscomprise:• TheCompanybalancesheetasat30September2014.• Thereconciliationofmovementsinshareholders’funds

fortheyearthenended.• Thenotestothefinancialstatements,whichincludea

summaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

ThefinancialreportingframeworkthathasbeenappliedinthepreparationofthefinancialstatementsisapplicablelawandUnitedKingdomAccountingStandards(UnitedKingdomGenerallyAcceptedAccountingPractice).

Inapplyingthefinancialreportingframework,theDirectorshavemadeanumberofsubjectivejudgements,for exampleinrespectofsignificantaccountingestimates. Inmakingsuchestimates,theyhavemadeassumptionsandconsideredfutureevents.

Opinion on other matter prescribed by the Companies Act 2006

Inouropinion,theinformationgivenintheStrategicreportandtheDirectors’reportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations receivedUndertheCompaniesAct2006wearerequiredtoreport toyouif,inouropinion:• We have not received all the information and

explanationswerequireforouraudit.• Adequate accounting records have not been kept by the

parentCompany,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus.

• Thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns.

Wehavenoexceptionstoreportarisingfromthisresponsibility.

Directors’ remunerationUndertheCompaniesAct2006wearerequiredtoreporttoyouif,inouropinion,certaindisclosuresofDirectors’remunerationspecifiedbylawarenotmade.Wehavenoexceptionstoreportarisingfromthisresponsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the DirectorsAs explained more fully in the Directors’ responsibilities setoutonpage26,theDirectorsareresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.

Our responsibility is to audit and express an opinion on thefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

Thisreport,includingtheopinions,hasbeenpreparedfor and only for the Company’s members as a body in accordancewithChapter3ofPart16oftheCompaniesAct2006andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityforanyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.



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What an audit of financial statements involvesWeconductedourauditinaccordancewithInternationalStandardsonAuditing(UKandIreland).Anauditinvolvesobtaining evidence about the amounts and disclosures inthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:• Whether the accounting policies are appropriate to

the parent Company’s circumstances and have been consistentlyappliedandadequatelydisclosed.

• ThereasonablenessofsignificantaccountingestimatesmadebytheDirectors.

• Theoverallpresentationofthefinancialstatements.

WeprimarilyfocusourworkintheseareasbyassessingtheDirectors’judgementsagainstavailableevidence,formingourownjudgements,andevaluatingthedisclosuresinthefinancialstatements.

Wetestandexamineinformation,usingsamplingandotherauditingtechniques,totheextentweconsidernecessarytoprovideareasonablebasisforustodrawconclusions.Weobtainauditevidencethroughtestingtheeffectivenessofcontrols,substantiveproceduresoracombinationofboth. Inaddition,wereadallthefinancialandnon-financialinformationinthereportandfinancialstatementstoidentifymaterialinconsistencieswiththeauditedfinancialstatements and to identify any information that is apparently materiallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsiderthe implicationsforourreport.

Other matter

WehavereportedseparatelyontheGroupfinancialstatementsofJelfGroupplcfortheyear-ended 30September2014.

Colin Bates (SeniorStatutoryAuditor)

forandonbehalfofPricewaterhouseCoopersLLPChartered Accountants and Statutory Auditors Bristol

8 December 2014


Note 2014

£’0002013£’000

Fixed assetsIntangible assets b 1,281 1,845Tangibleassets c 6,328 6,609Investments d 116,453 116,094

124,062 124,548Current assets

Debtors e 10,174 7,486

Cash at bank and in hand 7,094 4,89817,268 12,384

Creditors: amounts falling due within one year f (21,872) (14,221)Net current liabilities (4,604) (1,837)Total assets less current liabilities 119,458 122,711

Creditors: amounts falling due after more than one year g (10,314) (18,808)Provisions for liabilities h (846) (1,175)Net assets 108,298 102,728

Capital and reservesCalled up share capital m 1,108 1,103Share premium account 72,338 72,070Mergerreserve n 12,333 12,333Other reserves 36 36Share-basedpaymentreserve 6,036 5,437Ownsharesheld (2,362) (2,228)Profitandlossaccount 18,809 13,977Total shareholders’ funds 108,298 102,728

Thefinancialstatementsonpages68to74wereapprovedbytheBoardofDirectorson8December2014andsignedonitsbehalfby:


Thenotesonpages69to74formanintegralpartofthesefinancialstatements.

Company balance sheetAs at 30 September 2014


2014£’000

2013£’000

Profit for the financial year 6,652 6,241Issueofnewshares(netofissuecosts) 273 3,085Share-basedpayments 1,054 842PurchaseofownsharesbyEBT (589) (1,037)Dividend paid (1,615) (1,407)Share buyback (132) (3,204)Taxcreditrelatingtoshareschemes (73) 77Net addition to shareholders’ funds 5,570 4,597Opening shareholders’ funds 102,728 98,131Closing shareholders’ funds 108,298 102,728

TheCompanyreceiveddividendstotalling£8,550,000duringtheyear(2013:£9,800,000)fromsubsidiaryundertakings.

Reconciliation of movements in shareholders’ funds For the year-ended 30 September 2014

Notes to the Company financial statements a. Significant accounting policiesTheseparatefinancialstatementsoftheCompanyarepresentedasrequiredbytheCompaniesAct2006.AspermittedbythatAct,theseparatefinancialstatementshavebeenpreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPrinciples(UKGAAP). Thefinancialstatementshavebeenpreparedonagoingconcernbasis,inaccordancewithapplicableaccountingstandardsandunderthehistoricalcostconvention.ThefollowingaccountingpolicieshavebeenappliedconsistentlyindealingwithitemswhichareconsideredmaterialinrelationtotheCompany’sfinancialstatements.Undersection 408 of the Companies Act 2006 the Company isexemptfromtherequirementtopresentitsownprofitandlossaccount.TheprofitdealtwithinthefinancialstatementsoftheparentCompanywas£6,652,000 (2013:£6,241,000).

TheCompanyhasnotpresentedacashflowstatementasa consolidated one is presented in the consolidated Group financialstatements.

Intangible fixed assets Goodwill Goodwill,representingtheexcessofthefairvalueoftheconsideration given and the associated costs over the fair valueoftheseparablenetassetsacquired,iscapitalised.Itis amortised in equal instalments over its estimated useful life.TheestimatedusefullifeistheperiodoverwhichtheDirectors estimate that the value of the underlying business acquired is expected to exceed the value of the underlying assets.Goodwillisamortisedover10years.

Client books of business AcquiredbusinessesarereviewedtoidentifyassetsthatmeetthedefinitionofanintangibleassetperIAS38‘IntangibleAssets’.Examplesofsuchassetsincludecustomer relationships and expectations of business renewal.Theseassetsarevaluedonthebasisofthepresentvalueofexpectedfuturecashflowsandareamortisedtotheincomestatementonastraight-linebasisoverthelifeofthecontractortheirestimatedeconomiclife.Norevaluationsaremadetotheinitialcostoftheseassets.Thecurrentmaximumestimatedeconomiclifeoftheseassetsisapproximately13years.Clientbooksofbusinessarestatedatcostlessaccumulatedamortisation.

Tangible fixed assets Assetsarestatedatcostlessdepreciation.Costincludesthe original purchase price of the asset and the costs attributabletobringingtheassettoitsworkingconditionforitsintendeduse.Depreciationisprovidedatratescalculatedtowriteoffthecostofassets,lesstheirestimatedresidualvalue,overtheirexpectedusefullivesonthefollowingbasis: Leasehold improvements Straightline,overthelifeoftheleaseMotorvehicles Straightline,over4yearsFixturesandfittings Straightline,over10yearsComputer equipment Straightline,over5years

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Investments Investmentsareshownatcostlessanyimpairment balanceattributable.

Where the consideration for an acquisition of a subsidiary undertakingincludessharesintheCompanytowhichtheprovisionsofsection611CompaniesAct2006apply,costrepresents the nominal value of the shares issued together withthefairvalueofanyadditionalconsiderationgivenandtransactioncosts. TheDirectorsoftheCompanyperformdetailedimpairmentreviewswhenthereareanyeventsorchangesincircumstances(suchasoperatinglossesincurredorforecastorsignificantadversechangesaffectingthebusiness)whichindicatethatcarryingvaluesmaynotberecoverable.Iftheinvestmentisconsideredtobeimpaired,the carrying amount of the asset is reduced and the amount ofthelossisimmediatelyrecognisedintheprofitandlossaccountfortheperiod.

Leasing Operatingleaserentalsarechargedtotheprofitandlossaccountonastraight-linebasisovertheperiodofthelease.

Pensions TheCompanyoperatesadefinedcontributionpensionscheme for certain Directors and the pension charge represents the amounts payable by the Company to the fundinrespectoftheyear.TheCompanyalsomakescontributions to the personal pension plans of permanent employees.Thesearechargedtotheprofitandlossaccountastheyarise.

Taxation including deferred tax Thechargefortaxisbasedontheprofitfortheyearandtakes into account taxation deferred because of timing differencesbetweenthetreatmentofcertainitemsfortaxationandaccountingpurposes. Deferredtaxisrecognisedinrespectofalltimingdifferencesthat have originated but not reversed at the balance sheetdate,wheretransactionsoreventsthatresultinanobligation to pay more tax in the future or a right to pay less taxinthefuturehaveoccurredatthebalancesheetdate. A net deferred tax asset is recognised as recoverable and thereforerecognisedonlywhen,onthebasisofallavailableevidence,itcanberegardedasmorelikelythannotthattherewillbesuitabletaxableprofitsagainstwhichtorecovercarriedforwardtaxlossesandfromwhichthefuturereversalofunderlyingtimingdifferencescanbededucted.

Deferred tax is measured at the average tax rates that areexpectedtoapplyintheperiodsinwhichthetimingdifferencesareexpectedtoreverse,basedontaxratesandlawsthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.Deferredtaxismeasuredonanundiscountedbasis.

Share-based payments/own shares held TheCompanyhasappliedtherequirementsofFinancialReportingStandard20‘Share-basedpayment’.Inaccordancewiththetransitionalprovisions,FinancialReporting Standard 20 has been applied to all the grants ofequityinstrumentsafter7November2002,thatwereunvestedat1January2006.Thefairvalueofshareoptionsisrecognisedasanexpenseonastraight-linebasisoverthevestingperiod.Wheretheoptionsaregrantedaspartoftheconsiderationforanacquisition,thefairvalueiscapitalised. Theexpectedlifeinthemodelhasbeenadjusted,basedonmanagement’sbestestimate,fortheeffectsofexerciserestrictionsandbehaviouralconsiderations.Ateachbalancesheetdate,theentityrevisesitsestimatesofthenumberofoptionsthatareexpectedtovest.Itrecognisestheimpactoftherevisiontooriginalestimates,ifany,intheincomestatement,withacorrespondingadjustmenttoequity.Theproceeds received net of any directly attributable transaction costsarecreditedtosharecapital(nominalvalue)andsharepremiumwhentheoptionsareexercised.

Dividends receivable Dividends receivable by the Company’s shareholders fromsubsidiaryundertakingsarerecognisedasanasset/incomeinthefinancialstatementsintheperiodinwhichthedividendsareapproved/paid.

Share capital Ordinarysharesareclassifiedasequity. Incremental costs directly attributable to the issue of newordinarysharesoroptionsareshowninequityasadeduction,netoftax,fromtheproceeds. Where the Company purchases the Company’s equity share capital(treasuryshares),theconsiderationpaid,includinganydirectlyattributableincrementalcosts(netofincometaxes)is deducted from equity attributable to the Company’s equity holdersuntilthesharesarecancelledorreissued.

Notes to the Company financial statements


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b. Intangible assets

Client books of business

£’000Goodwill

£’000Total£’000

CostAt 1 October 2013 730 11,762 12,492Additions 8 - 8At 30 September 2014 738 11,762 12,500Accumulated amortisationAt 1 October 2013 93 10,554 10,647Amortisation 55 517 572At 30 September 2014 148 11,071 11,219Net book valueAt 30 September 2014 590 691 1,281At 30 September 2013 637 1,208 1,845

TheDirectorshaveundertakenanimpairmentreviewandconcludedthatthecarryingvalueofgoodwillissupportedbythediscountedfuturecashflowsoftheunderlyingbusinesses.Discountedfuturecashflowsarebasedonmanagement’sfouryearfinancialforecastsdiscountedatarateof10.3%(2013:10.3%).Accordingly,noimpairmenthasbeenrecognisedintheyear.

c. Tangible assets

Leasehold improvements

£’000

Fixtures and fittings

£’000

Computer equipment

£’000Total£’000

CostAt 1 October 2013 3,120 2,629 7,181 12,930Additions 271 63 833 1,167At 30 September 2014 3,391 2,692 8,014 14,097Accumulated DepreciationAt 1 October 2013 486 1,946 3,889 6,321Charge 292 173 983 1,448At 30 September 2014 778 2,119 4,872 7,769Net book valueAt 30 September 2014 2,613 573 3,142 6,328At 30 September 2013 2,634 683 3,292 6,609


d. Investments

Investments in subsidiary undertakings

£’000

CostAt 1 October 2013 123,284Additions 359Disposals -At 30 September 2014 123,643Accumulated impairmentAt 1 October 2013 7,190Charge -At 30 September 2014 7,190Net book valueAt 30 September 2014 116,453At 30 September 2013 116,094

TheDirectorsbelievethatthecarryingvalueoftheinvestmentsissupportedbytheirunderlyingnetassetsandtradingperformanceofthecompanies.

TheDirectorshaveundertakenanimpairmentreviewandthecarryingvalueofinvestmentsinsubsidiaryundertakingshasbeenadjustedtoreflectthenetassetsanddiscountedfuturecashflowsoftheunderlyingbusinesses.Discountedfuturecashflowsarebasedonmanagement’sfouryearfinancialforecastsdiscountedatarateof10.3%(2013:10.3%).TheDirectorsconsiderthatthereisnoimpairmentintheyear(2013:£nil).

DetailsoftheCompany’ssubsidiaryundertakingsaregiveninnote33onpage64.

e. Debtors

2014£’000

2013£’000

AmountsowedbyGroupundertakings 5,014 3,740Other debtors 253 156Prepayments and accrued income 3,395 2,608Corporation tax recoverable 122 101Deferredtaxasset(notei) 1,390 881

10,174 7,486



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f. Creditors: amounts falling due within one year

2014£’000

2013£’000

Borrowings 5,422 3,672Tradecreditors 2,259 2,514AmountsowedtoGroupundertakings 7,801 5,296Taxationandsocialsecurity 1,203 1,036Other creditors 335 378Accruals and deferred income 2,774 989Deferred tax - 13Deferred consideration 2,078 323

21,872 14,221

g. Creditors: amounts falling due after more than one year

2014£’000

2013£’000

Borrowings 8,218 14,640Deferred tax 33 105Deferred consideration 2,063 4,063

10,314 18,808

Detailsoftheborrowingscanbefoundinnote24onpage56.Allborrowingsareduewithin2years.

h. Provisions for liabilities

Dilapidations £’000

Onerous lease£’000

Group reorganisation and

rationalisation£’000

Total£’000

At 1 October 2013 757 82 336 1,175Charged in the income statement 1 17 - 18Recognised in tangible assets 100 - - 100Utilisedintheyear (94) (17) (336) (447)At 30 September 2014 764 82 - 846

Dilapidationsprovisionrelatestothecostofremedialworkonexitingleasedproperties.

Onerousleaseprovisionrelatestoleasecommitmentsonformerheadoffice.

TheGroupreorganisationandrationalisationprovisionrelatestocostsexpectedtobeincurredasaresultofrestructuringoperations.ThesecostsarenotassociatedwiththeongoingactivitiesoftheGroup.

Thesecanbeanalysedasfollows:

2014£’000

2013£’000

Current 32 377Non-current 814 798

846 1,175


i. Deferred tax

2014£’000

2013£’000

Deferred taxAt 1 October 763 207Charge for the year 563 458Adjustments in respect of prior year 104 55EffectofreductioninUKtaxrate - (34)Charged to equity (73) 77At 30 September 1,357 763

Thedeferredtaxbalanceismadeupasfollows: 2014

£’0002013£’000

Deferred tax assetIntangible assets 230 230Other 1,160 651Deferred tax liabilitiesAcceleratedcapitalallowances (33) (118)Net deferred tax asset 1,357 763

j. Change in corporation tax ratesTherateofUKcorporationtaxwasreducedby2%from23%to21%from1April2014.Afurtherreductionto20%from 1April2015wasenactedatthebalancesheetdateandisreflectedinthedeferredtaxbalances. k. DividendsDetailsofthedividendpaidbytheCompanyisgiveninnote12onpage46.

l. Share-based paymentsDetailsoftheCompany’sshare-basedpaymentarrangementsaregiveninnote26onpage57. m. Called up share capitalDetailsoftheCompany’ssharecapitalisgiveninnote27onpage61.

n. Merger reserveDetailsoftheCompany’smergerreserveisgiveninnote28onpage62.

o. Operating lease commitmentsDetailsoftheCompany’soperatingleasecommitmentsaregiveninnote32onpage64.Commitmentsincludelandandbuildings£2,270,716(2013:£2,283,767)andother£279,669(2013:£241,008).

p. Related party transactionsAspartofJelfGroupplc,theCompanyisexemptfromdisclosingtransactionswithotherGroupentities,inaccordancewiththerequirementsofFinancialReportingStandard8,paragraph3(c).DetailsofrelatedpartytransactionscanbefoundintheconsolidatedGroupfinancialstatements.



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Registered Company name Jelf Group plc

Directors LesOwen Non-ExecutiveChairman Christopher Jelf Deputy Chairman AlexAlway GroupChiefExecutive PhilBarton ChiefExecutive(Insurance) JohnHarding GroupFinanceandOperationsDirector AlexRowe Non-Executive JonathanKelly Non-Executive GrahameStott Non-Executive ChristopherHanks Non-Executive

Company secretary John Harding

Registered number 2975376

Registered office Hillside Court BowlingHill Chipping Sodbury Bristol BS37 6JX

Nominated adviser finnCap 60NewBroadStreet London EC2M1JJ

Brokers finnCap 60NewBroadStreet London EC2M1JJ

Independent auditors PricewaterhouseCoopersLLP Chartered Accountants and Statutory Auditors 31 Great George Street Bristol BS15QD

Solicitors HowardKennedyLLP BPESolicitors No.1LondonBridge StJames’Square London Cheltenham SE1 9BG GL50 3PR Registrars Capita Registrars Ltd Northern House Woodsome Park FenayBridge Huddersfield HD8 0LA

Principal bankers Barclays Bank plc 4thFloor BridgewaterHouse Counterslip FinzelsReach Bristol BS1 6BX

Company information


37 offices over 34 locations (December2014)

BathBradford Bristol CardiffCheltenham Doncaster Evesham Exeter Gillingham GlasgowGuildford Hereford Herne Bay Kingston-upon-HullLeeds London MalvernManchesterNewcastle-under-LymeOxford Plymouth Reading Redditch RingwoodRoss-on-WyeShrewsburyStratford-upon-AvonSwanseaSwindonTauntonWolverhampton Worcester Worthing York

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Anniversary

Celebrating 25 years of success 1989 - 2014

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