Independent Auditors’ <strong>Report</strong>to the members of Jardine Lloyd Thompson Group plcWe have audited the Group financial statements of JardineLloyd Thompson Group plc for the year ended 31st December2005 which comprise the Consolidated Income Statement, theConsolidated Balance Sheet, the Consolidated Statement ofRecognised Income and Expense, the Consolidated Cash FlowStatement, and the related notes. These Group financialstatements have been prepared under the accounting policiesset out therein.We have reported separately on the parent company financialstatements of Jardine Lloyd Thompson Group plc for the yearended 31st December 2005 and on the information in theDirectors’ Remuneration <strong>Report</strong> that is described as havingbeen audited.Respective responsibilities of directors and auditorsThe directors’ responsibilities for preparing the Annual <strong>Report</strong>and the Group financial statements in accordance withapplicable law and International Financial <strong>Report</strong>ing Standards(IFRS) as adopted by the European Union are set out in theStatement of Directors’ Responsibilities.Our responsibility is to audit the Group financial statements inaccordance with relevant legal and regulatory requirements andInternational Standards on Auditing (UK and Ireland). Thisreport, including the opinion, has been prepared for and onlyfor the company’s members as a body in accordance withSection 235 of the Companies Act 1985 and for no otherpurpose. We do not, in giving this opinion, accept or assumeresponsibility for any other purpose or to any other person towhom this report is shown or into whose hands it may comesave where expressly agreed by our prior consent in writing.We report to you our opinion as to whether the Groupfinancial statements give a true and fair view and whether theGroup financial statements have been properly prepared inaccordance with the Companies Act 1985 and Article 4 of theIAS Regulation. We also report to you if, in our opinion, theDirectors’ <strong>Report</strong> is not consistent with the Group financialstatements, if we have not received all the information andexplanations we require for our audit, or if information specifiedby law regarding director’s remuneration and other transactionsis not disclosed.We review whether the Corporate Governance Statementreflects the company’s compliance with the nine provisions ofthe 2003 FRC Combined Code specified for our review by theListing Rules of the Financial Services Authority, and we reportif it does not. We are not required to consider whether theboard’s statements on internal control cover all risks andcontrols, or form an opinion on the effectiveness of theGroup’s Corporate Governance procedures or its risk andcontrol procedures.We read other information contained in the Annual <strong>Report</strong> andconsider whether it is consistent with the audited Groupfinancial statements. The other information comprises only theChairman’s Statement, Chief Executive’s Statement,Operational Review, Financial Review, Directors’ <strong>Report</strong>, andthe unaudited parts of the Directors’ Remuneration <strong>Report</strong>.We consider the implications for our report if we become awareof any apparent misstatements or material inconsistencies withthe Group financial statements. Our responsibilities do notextend to any other information.Basis of audit opinionWe conducted our audit in accordance with InternationalStandards on Auditing (UK and Ireland) issued by theAuditing Practices Board. An audit includes examination,on a test basis, of evidence relevant to the amounts anddisclosures in the Group financial statements. It also includesan assessment of the significant estimates and judgmentsmade by the directors in the preparation of the Group financialstatements, and of whether the accounting policies areappropriate to the Group’s circumstances, consistently appliedand adequately disclosed.We planned and performed our audit so as to obtain all theinformation and explanations which we considered necessaryin order to provide us with sufficient evidence to givereasonable assurance that the Group financial statements arefree from material misstatement, whether caused by fraud orother irregularity or error. In forming our opinion we alsoevaluated the overall adequacy of the presentation ofinformation in the Group financial statements.OpinionIn our opinion:• the Group financial statements give a true and fair view, inaccordance with IFRSs as adopted by the European Union,of the state of the Group’s affairs as at 31st December 2005and of its profit and cash flows for the year then ended; and• the Group financial statements have been properly preparedin accordance with the Companies Act 1985 and Article 4 ofthe IAS Regulation.PricewaterhouseCoopers LLPChartered Accountants and Registered Auditors,London21st March 2006Notes:a) The maintenance and integrity of the Jardine Lloyd Thompson Group plcwebsite is the responsibility of the directors; the work carried out by theauditors does not involve consideration of these matters and, accordingly,the auditors accept no responsibility for any changes that may haveoccurred to the financial statements since they were initially presented onthe website.b) Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in otherjurisdictions.Financial Statements Jardine Lloyd Thompson Group plc Annual <strong>Report</strong> & <strong>Accounts</strong> 200545
Financial StatementsConsolidated Income Statementfor the year ended 31st December 20052005 2004Notes £’000 £’00046Fees and commissions 3 484,370 468,092Investment income 5 15,355 13,465Salaries and associated expenses 7 (297,447) (273,437)Premises (30,007) (25,410)Other operating costs (80,104) (85,731)Depreciation, amortisation and impairment charges 4 (14,305) (10,996)Operating profit 3,4 77,862 85,983Finance costs 6 (6,561) (3,287)Share of results of associates after tax and minority interests 2,505 2,261Profit before taxation 3 73,806 84,957Income tax expense 9 (22,653) (25,915)Profit for the year 3 51,153 59,042Attributable to:Shareholders of the Company 50,573 55,657Minority interests 26 580 3,38551,153 59,042Earnings per share 10Basic 23.9p 27.7pDiluted 23.8p 27.5pNotes on pages 59 to 103 form an integral part of these financial statements.Jardine Lloyd Thompson Group plc Annual <strong>Report</strong> & <strong>Accounts</strong> 2005
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