267694 EdinburghIT AR 2024 WEB - Flipbook - Page 78
76 / FINANCIAL REVIEW / THE EDINBURGH INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS / CONTINUED
The book cost and fair value of the Unsecured Senior Loan Notes, are as follows:
2024
Unsecured Senior Loan Notes
2023
Book
Value
£’000
Fair
Value
£’000
Book
Value
£’000
Fair
Value
£’000
120,000
73,461
120,000
78,253
120,000
73,461
120,000
78,253
Incorporating the fair value of the Unsecured Senior Loan Notes, results in the increase of the net asset value per ordinary share
to 779.97p (2023: 713.75p).
18. CAPITAL MANAGEMENT
The Company’s total capital employed at 31 March 2024 was £1,255,047,000 (2023: £1,259,276,000) comprising borrowings
of £120,000,000 (2023: £120,000,000) and equity share capital and other reserves of £1,135,047,000 (2023: £1,139,344,000).
The Company’s total capital employed is managed to achieve the Company’s objective and investment policy as set out on
page 15, including that borrowings may be used to provide gearing of the equity portfolio up to the maximum authorised by
shareholders, currently 25% of net assets. Net gearing was 3.1% (2023: 4.7%) at the balance sheet date. The Company’s policies
and processes for managing capital were unchanged throughout the year and the preceding year.
The main risks to the Company’s investments are shown in the Strategic Report under the ‘Principal Risks and Uncertainties’
section on pages 19 to 22. These also explain that the Company is able to use borrowings to gear and that gearing will amplify
the effect on equity of changes in the value of the portfolio.
The Board can also manage the capital structure directly since it has taken the powers, which it is seeking to renew, to issue
and buy-back shares and it also determines dividend payments.
The Company is subject to externally imposed capital requirements with respect to the obligation and ability to pay dividends
by section 1158 Corporation Tax Act 2010 and by the Companies Act 2006, respectively, and with respect to the availability
of the bank facility by the terms imposed by the lender. The Board regularly monitors, and has complied with, the externally
imposed capital requirements. This is unchanged from the prior year. As detailed in note 11 and note 12, current borrowings
comprise the Unsecured Senior Loan Notes.
19. CONTINGENCIES, GUARANTEES AND FINANCIAL COMMITMENTS
There were no contingencies, guarantees or other financial commitments of the Company as at 31 March 2024 (2023: nil).
20. RELATED PARTY TRANSACTIONS AND TRANSACTIONS WITH MANAGER
A related party is a company or individual who has direct or indirect control or who has significant influence over the Company.
Under accounting standards, the Manager is not a related party.
Under UK GAAP, the Company has identified the Directors as related parties. The Directors’ remuneration and interests have
been disclosed in pages 46 to 49 with additional disclosure in note 4. No other related parties have been identified.
Details of the Manager’s services and fees are disclosed in the Directors’ Report on page 42, and in note 3.
21. POST BALANCE SHEET EVENTS
There are no significant events after the end of the reporting period requiring amendment to financial amounts.
