267694 EdinburghIT AR 2024 WEB - Flipbook - Page 86
84 / OTHER INFORMATION FOR SHAREHOLDERS / THE EDINBURGH INVESTMENT TRUST PLC
GLOSSARY OF TERMS AND ALTERNATIVE
PERFORMANCE MEASURES
ALTERNATIVE PERFORMANCE MEASURE (APM)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot
be directly derived from the financial statements. The calculations shown in the corresponding tables are for the financial years
ended 31 March 2024 and 31 March 2023. The APMs listed here are widely used in reporting within the investment company
sector and consequently aid comparability, providing useful additional information.
BENCHMARK (OR BENCHMARK INDEX)
A standard against which performance can be measured, usually an index that averages the performance of companies in a
stock market or a segment of the market. The benchmark most often referred to in this interim financial report is the FTSE
All-Share Index.
BENCHMARK RETURN
Total return on the benchmark is on a mid-market value basis, assuming all dividends received were reinvested, without
transaction costs, into the shares of the underlying companies at the time the shares were quoted ex-dividend.
DISCOUNT OR PREMIUM (APM)
Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the
underlying net asset value of that share. Conversely, Premium is a measure of the amount by which the mid-market price
of an investment company share is higher than the underlying net asset value of that share. In this annual financial report
the discount is expressed as a percentage of the NAV per share with debt at fair value (see reconciliation of NAV per share
with debt at fair value within the Net Asset Value (NAV) Debt at Fair Value reconciliation within the Alternative Performance
Measures on page 86) and is calculated according to the formula set out below. If the shares are trading at a premium the result
of the below calculation will be positive and if they are trading at a discount it will be negative.
Page
Share price
Net asset value per share – debt at market value (note 15)
2024
2023
2
a
690.00p
660.00p
70
b
779.97p
713.75p
c = (a-b)/b
(11.5)%
(7.5)%
2024
2023
a
27.20p
26.20p
b
690.00p
660.00p
c = a/b
3.9%
4.0%
Discount
DIVIDEND YIELD
The annual dividend payable expressed as a percentage of the year end share price.
Page
Dividends per share payable in respect of the year (note 8)
Share price
Dividend yield
67
2
GEARING
The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount
by which net assets, or shareholders’ funds, would move if the value of a company’s investments were to rise or fall. A positive
percentage indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared.
A negative percentage indicates that a company is not fully invested and is holding net cash as described below.
There are several methods of calculating gearing and the following has been used in this report:
