Company registration number 00328206 (England and Wales)
INVESTEC INVESTMENT TRUST PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
COMPANY INFORMATION
(Appointed 8 March 2024)
Secretary
D Miller
Company number
00328206
Registered office
30 Gresham Street
Auditor
Ernst & Young LLP
INVESTEC INVESTMENT TRUST PLC
CONTENTS
INVESTEC INVESTMENT TRUST PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The loss for the year, after taxation is £63,000 (2023: £63,000).
Principal risks and uncertainties
Investec Investment Trust plc (the company) financial risks are managed at the Investec plc group level. Surplus
liquidity is loaned by the company on an interest free basis to its immediate parent company. The loan is repayable
on demand. The loan principal is reduced by amounts paid to preference shareholders. The company's exposure
to financial risks is further discussed in the financial statements.
The directors have considered the impact of climate change risk on the company and have concluded that there is
no significant impact on the company.
Key performance indicators
Given the straight forward nature of the business the company’s directors are of the opinion that analysis using key
performance indicators is not necessary for an understanding of the development, performance or financial position
of the business.
Other information and explanations
The company's 3.5 per cent and 5 per cent cumulative preference shares are listed on the London Stock Exchange.
The company's immediate parent company, Investec Group Investments (UK) Limited, a wholly owned subsidiary of
Investec Bank plc whose ultimate parent company is Investec plc, owns all of the company's ordinary capital,
346,357 nominal of the company's 3.5 per cent cumulative preference shares and 104,768 nominal of the
company's 5 per cent cumulative preference shares. The preference shares are classified as financial liabilities and
not equity.
As discussed above the company lends the funds raised to its immediate parent company and these are then on
lent to the wider Investec group, the directors have considered this and the liquidity of the Investec Bank plc group
when assessing the liquidity and going concern of the company.
At 31 March 2024 the company had net assets of £25,329,000 (2023: £25,392,000).
Section 172 statement
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in
good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In
doing this, section 172 requires a director to have regard, among other matters, to:
•
the likely consequences of any decision in the long term;
•
the impact of the company’s operations on the community and the environment;
•
the desirability of the company maintaining a reputation for high standards of business conduct; and
•
the need to act fairly with members of the company.
The directors give careful consideration to the factors set out above in discharging their duties under section 172.
The board recognises that building strong relationships with our stakeholders will help us to deliver our strategy in
line with our long-term values, and operate the business in a sustainable way. The board is committed to effective
engagement with all of its stakeholders. Depending on the nature of the issue in question, the relevance of each
stakeholder group may differ and, as such, as part of its engagement with stakeholders, the board seeks to
understand the relative interests and priorities of each group and to have regard to these, as appropriate, in its
decision making.
INVESTEC INVESTMENT TRUST PLC
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
On behalf of the board
K McKenna
Director
1 July 2024
INVESTEC INVESTMENT TRUST PLC
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their annual report and financial statements for the year ended 31 March 2024.
The Corporate Governance Statement set out on page 6 forms part of this report.
Principal activities
The principal activity of the company is to source funds from the financial markets for Investec group activities and
it will continue to operate in this capacity for the foreseeable future.
Results and dividends
The results for the year are set out on page 13.
The directors do not recommend the payment of a final ordinary dividend for the year ended 31 March 2024 (2023:
Nil).
Dividends paid on the preference shares in the year amounted to £63,000 (2023: £63,000).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as
follows:
B Johnson(Resigned 21 August 2023)
K McKenna
C Dyson(Resigned 3 April 2024)
P Ahmed(Appointed 21 November 2023)
T Freeme(Appointed 8 March 2024)
No director holding office at 31 March 2024 had any direct beneficial interest in the shares of the company during
the year.
Directors' insurance
The company maintains a Directors' and Officers' Liability Insurance Policy. In accordance with the company's
Articles of Association, the board may also indemnify a director from the assets of the company against any costs
or liability incurred as a result of their office, to the extent permitted by law. Neither the insurance policy nor any
indemnities that may be provided by the company provide cover for fraudulent or dishonest actions by the directors.
However, costs may be advanced to directors for their defence in investigations or legal actions.
Auditor
On 20 March 2023, the ultimate parent of the company, Investec plc, announced the appointment of Deloitte LLP
as its auditor for the year ending 31 March 2025. Consequently, Ernst & Young LLP will resign as the company's
statutory auditor at the conclusion of the 31 March 2024 audit and the company will resolve to appoint Deloitte LLP,
subject to shareholder approval at the Investec plc Annual General meeting.
Going concern
On the basis of current financial projections the directors have a reasonable expectation that the company has
adequate resources to continue in operational existence up to 31 March 2026, which is a period greater than twelve
months from the date of issue of the financial statements that aligns with internal budgeting processes. Accordingly,
the going concern basis is adopted in the preparation of the financial statements.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit
information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the
necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit
information and to establish that the company’s auditor is aware of that information.
INVESTEC INVESTMENT TRUST PLC
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
On behalf of the board
K McKenna
Director
1 July 2024
INVESTEC INVESTMENT TRUST PLC
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
The directors are responsible for preparing the annual report and the financial statements in accordance with
applicable United Kingdom law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting
Standard 101 Reduced Disclosure Framework (FRS 101). Under company law the directors must not approve the
financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company
and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
provide additional disclosures when compliance with the specific requirements in FRS 101 is insufficient to
enable users to understand the impact of particular transactions, other events and conditions on the financial
position and financial performance;
in respect of the financial statements, state whether applicable UK Accounting Standards, including FRS 101,
have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company
and enable them to ensure that the company financial statements comply with the Companies Act 2006. They are
also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Under applicable law and regulations, the directors are also responsible for preparing a strategic report and
directors’ report that comply with that law and those regulations.
INVESTEC INVESTMENT TRUST PLC
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CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
Corporate governance
The company has issued preference shares that are listed on the London Stock Exchange. The company is part
of the Investec plc group and is therefore subject to the group's system of risk management, internal control and
financial reporting. The corporate governance statements and disclosures, as required by section 7.2.1. of the
Disclosure and Transparency Rules are detailed in the Investec plc consolidated financial statements which are
publicly available at 30 Gresham Street, London, EC2V 7QP or on www.investec.com.
INVESTEC INVESTMENT TRUST PLC
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INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
Opinion
We have audited the financial statements of Investec Investment Trust plc (the company) for the year ended 31
March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and
related notes 1 to 13, including material accounting policy information. The financial reporting framework that has
been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101
‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the company's affairs as at 31 March 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the
financial statements section of our report. We are independent of the company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment
of the company’s ability to continue to adopt the going concern basis of accounting included verifying the net asset
position of the company, assessing the recoverability of the intercompany debtors and looking through the debtor to
the other group entities potentially relied upon and so determining that there is sufficient capital and resources
available to repay the intercompany receivable.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going
concern for a period up to 31 March 2026, which is at least twelve months from when the financial statements are
authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report. However, because not all future events or conditions can be predicted, this statement
is not a guarantee as to the company's ability to continue as a going concern.
Overview of our audit approach
Key audit matters- Risk of recoverability of intercompany balances.
Materiality- Overall materiality of £506,583 which represents 2% of equity.
INVESTEC INVESTMENT TRUST PLC
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An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our
audit scope for the company. This enables us to form an opinion on the financial statements. We take into account
size, risk profile, the organisation of the company and effectiveness of controls, the potential impact of climate change
and changes in the business environment when assessing the level of work to be performed. All audit work was
performed directly by the audit engagement team.
Climate change
Stakeholders are increasingly interested in how climate change will impact Investec Investment Trust Plc. The
company has determined that there is no significant future impact from climate change on its operations. This is
explained on page 1 in the Strategic Report in the principal risks and uncertainties, which form part of the “Other
information,” rather than the audited financial statements. Our procedures on these disclosures therefore consisted
solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained
in the course of the audit or otherwise appear to be materially misstated.
Our audit effort in considering climate change on the financial statements was focused on evaluating management’s
assessment that there is no impact of climate risk, the adequacy of the disclosures in the financial statements and the
conclusion that no issues were identified that would impact the financial statements or have any other impact on the
financial statements as disclosed on page 1. We also challenged the Directors’ considerations of climate change risks
in their assessment of going concern and associated disclosures.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion
thereon, and we do not provide a separate opinion on these matters.
1. Risk of recoverability of intercompany balances (2024: £27.0m, 2023: £27.1m)
Refer to Note 7 of the financial statements (page 22).
There is a risk of material misstatement of the debtors balances in relation to the recoverability of intercompany
receivables. The risk remains consistent with the prior year.
Our Response to the Risk:
We performed the following procedures in response to the identified risk:
-
We completed a walkthrough to confirm our understanding of the intercompany lending
process and the nature of the intercompany balance with the group entity, and to assess
the design effectiveness of the controls in place;
-
We have verified intercompany positions at the year end with the group entity and
confirmed that the entity has the ability to repay the amounts owed to the company by
assessing the net asset position and net current asset position of the group entity;
-
We recalculated the interest expense owed by the company on its preference shares for
the year and confirmed payment of the interest by the group entity on behalf of the
company, thus reducing the intercompany receivable.
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
- 8 -
Key Observations communicated to Management
We did not identify any evidence of non-recoverability in the intercompany balances for the year ending 31 March
2024. We note that controls are designed effectively for the entity for the recording of intercompany transactions,
however management does not have any formal agreements in place for intercompany transactions.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to
influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining
the nature and extent of our audit procedures.
We determined materiality for the company to be £506,583 (2023: £507,838), which is 2% (2023: 2%) of equity. We
believe that total equity reflects management’s intentions and the purpose of the entity as a funding vehicle.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an
appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds
materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control environment,
our judgement was that performance materiality was 75% (2023: 75%) of our planning materiality, namely £379,937
(2023: £380,879). We have set performance materiality at this percentage based on our experience on prior year
audits.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with management that we would report to them all uncorrected audit differences in excess of £25,329
(2023: £25,392), which is set at 5% of planning materiality, as well as differences below that threshold that, in our
view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above
and in light of other relevant qualitative considerations in forming our opinion.
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
- 9 -
Other information
The other information comprises the information included in the annual report, other than the financial statements and
our auditor's report thereon. The directors are responsible for the other information contained within the annual
report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
the strategic report and directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us
to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement set out on page 5, the directors are responsible for
the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic
alternative but to do so.
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
- 10 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in
line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The
extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the company and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company
and determined that the most significant are those that relate to the reporting framework (United Kingdom
Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’), the
UK Companies Act 2006 and relevant tax compliance regulations.
We understood how the company is complying with those frameworks by making inquiries of management,
including the directors. We corroborated our understanding through our review of board meeting minutes.
We assessed the susceptibility of the company’s financial statements to material misstatement, including
how fraud might occur by meeting with management to understand where they considered there was
susceptibility to fraud. We also considered performance targets and their potential influence on efforts made
by management to manage or influence the results.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws
and regulations. Our procedures involved: inquiries of management, reviewing board minutes for evidence of
non-compliance, testing journal entries, and exercising professional scepticism in assessing the results of
our audit procedures.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor's report.
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
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Other matters which we are required to address
Following the recommendation of management we were appointed by the company on 19 June 2000 to audit
the financial statements for the year ending 31 March 2000 and subsequent financial periods. The period of
total uninterrupted engagement including previous renewals and reappointments is 24 years, covering the
years ending 31 March 2000 to 31 March 2024.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the company and we
remain independent of the company in conducting our audit.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s
members as a body, for our audit work, for this report, or for the opinions we have formed.
Chris Brouard (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
1 July 2024
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
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.........................
FOR THE YEAR ENDED 31 MARCH 2024
Interest payable and similar expenses5
Loss before taxation
(63)
(63)
Tax on loss6
-
-
Loss and total comprehensive income for the
The profit and loss account has been prepared on the basis that all operations are continuing operations.
INVESTEC INVESTMENT TRUST PLC
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FOR THE YEAR ENDED 31 MARCH 2024
Balance at 1 April 2022
14,436
11,019
25,455
Year ended 31 March 2023:
Balance at 31 March 2023
14,436
10,956
25,392
Year ended 31 March 2024:
Balance at 31 March 2024
14,436
10,893
25,329
INVESTEC INVESTMENT TRUST PLC
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AS AT 31 MARCH 2024
Fixed assets
Total equity
25,329
25,392
The financial statements were approved by the board of directors and authorised for issue on 1 July 2024 and are
signed on its behalf by:
T Freeme
Director
Company Registration No. 00328206
INVESTEC INVESTMENT TRUST PLC
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1 Accounting policies
Company information
Investec Investment Trust plc is a public limited company incorporated in England and Wales. The registered
office is 30 Gresham Street, London, EC2V 7QP.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary
amounts in these financial statements are rounded to the nearest £000's.
The financial statements have been prepared under the historical cost convention. The principal accounting
policies adopted are set out below.
In preparing the financial statements, the directors has considered the impact of the physical and transition
risks of climate change and identified this within the principal risks and uncertainties as set out in the Strategic
Report but have concluded that it does not have a material impact on these financial statements as at 31
March 2024.
INVESTEC INVESTMENT TRUST PLC
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1Accounting policies(Continued)
The company has taken advantage of the following disclosure exemptions under FRS 101 where applicable to
the company.
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment;
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)
(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;
the requirements of paragraph 33 (c) of IFRS 5 Non current Assets Held for Sale and Discontinued
Operations;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirements of the second sentence of paragraph 110 and paragraphs 113 (a), 114, 115, 118, 119 (a)
to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative
information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant
and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of IAS
40 Investment Property and (v) paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 40A to 40D ,111 and 134-136 of IAS 1
Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors;
the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group, provided that any subsidiary which is a party to the transaction
is wholly owned by such a member;
the requirements of paragraphs 130 (f) (ii) and 130 (f) (iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36
Impairment of Assets;
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93
of IFRS 16 Leases;
the requirements of paragraph 58 of IFRS 16, provided that the disclosure of details of indebtedness
required by paragraph 61(1) of Schedule 1 to the Regulations is presented separately for lease liabilities
and other liabilities, and in total;
(cA) The requirements of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources
to disclose the operating and investing cash flows arising from the exploration for and evaluation of
mineral resources; and
(iA) The requirements of paragraph 74A(b) of IAS 16.
Where required, equivalent disclosures are given in the group accounts of Investec plc. The group accounts of
Investec plc are available to the public and can be obtained as set out below.
Investec Investment Trust plc is a wholly owned subsidiary of Investec Group Investments (UK) Limited which
is a wholly owned subsidiary of Investec plc and the results of Investec Investment Trust plc are included in
the consolidated financial statements of Investec plc which are available from 30 Gresham Street, London,
EC2V 7QP.
1.2
Going concern
The company's financial risks are managed at the Investec plc group level. Surplus liquidity is loaned by the
company on an interest free basis to its immediate parent company and this is then on lent to the wider
Investec group. The loan is repayable on demand. The loan principal is reduced by amounts paid to
preference shareholders. The directors have considered this and the liquidity of the Investec Bank plc group
when assessing the liquidity and going concern of the company.
On the basis of current financial projections the directors have a reasonable expectation that the company has
adequate resources to continue in operational existence up to 31 March 2026, which is a period greater than
twelve months from the date of issue of the financial statements that aligns with internal budgeting processes.
Accordingly, the going concern basis is adopted in the preparation of the financial statements.
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1Accounting policies(Continued)
1.3
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the most
advantageous market to which the company has access at that date. The fair value of a liability reflects its
non-performance risk.
When available, the company measures the fair value of an instrument using the quoted price in an active
market for that instrument. A market is regarded as active if transactions for the assets or liability take place
with sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then the company uses valuation techniques that maximise the
use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation
technique incorporates all of the factors that market participants would take into account in pricing a
transaction.
If an asset or liability measured at fair value has a bid price and ask price, then the company measures assets
and long positions at a bid price and liabilities and short positions at an ask price.
The company classifies disclosed fair values according to hierarchy that reflects the significance of observable
market inputs. A transfer is made between the hierarchy when the inputs have changed or there has been a
change in the valuation method. Transfers are deemed to occur at the end of each semi-annual group
reporting period.
1.4
Financial assets and liabilities held at fair value through profit or loss
Financial assets and liabilities are designated as held at fair value through profit or loss only if:
•
they eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise
from measuring assets or liabilities or recognising the gains and losses on them on different bases; or
•
a group of financial liabilities or both financial assets and financial liabilities is managed and its performances
evaluated on a fair value basis in accordance with a documented risk management or investment strategy and
information about the group is provided internally on that basis to the group’s key management personnel; or
•
a financial liability contract contains one or more embedded derivatives (which significantly modifies the cash
flows that would be required by the contract and is not clearly prohibited from separation from the host
contract) and the group has designated the entire hybrid contract as a financial instrument at fair value
through profit or loss.
The company's intercompany debtors are classified and measured at fair value through profit or loss.
1.5
Financial liabilities (preference shares)
Financial instruments issued by the group are classified as liabilities if they contain a contractual obligation to
deliver cash or another financial asset.
Shares classified as debt are initially measured at fair value net of transaction costs and thereafter at
amortised cost until extinguished on redemption. The corresponding dividends relating to the preference
shares classified as a liability are charged as interest expense in the profit and loss account on an accrual
basis.
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
1Accounting policies(Continued)
1.6
Derecognition of financial assets and liabilities
A financial asset, or a portion thereof, is derecognised when the group’s rights to cash flows have expired or
when the group has transferred its rights to cash flows relating to the financial assets and either (a) the group
has transferred substantially all the risks and rewards associated with the financial assets or (b) the group has
neither transferred nor retained substantially all the risks and rewards associated with the financial assets but
has transferred control of the assets.
The treatment of a renegotiation or modification of the contractual cash flows of a financial asset depends
upon whether the modification is done for commercial reasons, in which case if they are significant the old
asset is derecognised and a new asset recognised, or because of financial difficulties of the borrower.
A financial liability is derecognised when it is extinguished, that is when the obligation is discharged, cancelled
or expired. When an existing financial liability is replaced or modified with substantially different terms, such a
replacement or modification is treated as a derecognition of the original liability and the recognition of a new
liability. The difference in the respective carrying amounts is recognised in the income statement.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Current tax is provided on the amount expected to be payable on taxable profit at rates that are enacted or
substantively enacted and applicable to the relevant period.
Deferred tax
Deferred taxation is provided using the balance sheet method on temporary differences between the carrying
amount of an asset or liability in the balance sheet and its tax base, except where such temporary differences
arise from:
The initial recognition of an asset or liability in a transaction which is not a business combination and
at the time of the transaction has no effect on the income statement or taxable profit.
In respect of temporary timing differences associated with the investments in subsidiaries or interests
in associated undertakings, where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets or liabilities are measured using the tax rates that have been enacted or substantively
enacted at the balance sheet date.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the deferred tax asset can be utilised.
Items recognised directly in other comprehensive income are net of related current and deferred taxation.
1.8
Restatements
A portion of the Amounts owed by parent undertaking which is not expected to be realised within twelve
months post the reporting date was restated from Current assets to Non-current assets in accordance with
guidance provided by IAS1 paragraph 66. The 31 March 2024 amount was £26.97 million (31 March 2023:
£27.03 million).
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
2
Directors' remuneration
The directors were employed and remunerated as directors of Investec plc and its subsidiaries (the group) in
respect of their services to the group as a whole and their remuneration has been paid by other group
companies. It is estimated that the remuneration for their services to the company in the year totalled £13,542
(2023: £19,167).
The company has no employees (2023: nil).
For audit services
Audit of the financial statements of the company
The auditor's remuneration in respect of the audit of the company's financial statements has been borne by
another group entity. Statutory information for other services provided by the company's auditor is given in the
consolidated financial statements of its ultimate parent company which are publicly available. There were no
non-audit services provided to the company during the year and in the prior year.
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
Interest payable
63
63
Interest payable represents the dividend paid and accrued on the cumulative preference shares classified
as financial liabilities.
During the current year and the prior year the payment of the dividend paid and accrued on the cumulative
preference shares classified as financial liabilities has been paid on behalf of the company by Investec
Group Investments (UK) Limited and the amount owed by parent undertaking reduced accordingly.
£000's
£000's
3.5 per cent cumulative preference shares
41
41
Dividends payable
3.5 per cent cumulative preference shares
22
22
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
2024
£000's
2023
£000's
Loss before taxation
(63)
(63)
Taxation charge for the year
-
-
A deferred tax asset has not been recognised in respect of capital losses carried forward of £137,712 (2023:
£137,712) as there is insufficient evidence that the loss will be recovered.
7Debtors
Due within one yearDue after one year
2024202320242023
£000's£000's£000's£000's
Amount owed by parent undertaking636326,96627,029
The amount receivable from the immediate parent undertaking currently bears no interest and is repayable on
demand at request of the company. The loan principal is reduced by amounts paid to preference
shareholders. The amount expected to be settled within the next twelve months are then presented as a
current asset in the balance sheet.
Receivables are carried on the balance sheet at fair value and are measured using level 2 techniques. The
fair value of the amount receivable is equal to the undiscounted cash amount payable reflecting the
company's right to demand immediate repayment.
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
Analysis of preference shares
The balance of preference shares is comprised of two classes: 1,300,000 3.5 per cent cumulative
preference shares of £1 each (1.75p each dividend); and 345,438 5.0 per cent cumulative preference
shares of £1 each (2.5p each dividend), in both cases authorised, issued, allotted and fully paid up.
Both classes of shares carry the following rights:
holders are entitled to fixed cumulative preferential dividends at the rates of 3.5 per cent and 5.0
per cent per annum respectively. Payment of such dividends is due on 1 June and 1 December
each year in the case of the 3.5 per cent preference shares and 15 May and 15 November each
year in the case of the 5.0 per cent preference shares;
holders are entitled to the amounts paid up on the preference shares together with all arrears of the
respective cumulative preferential dividends on a winding up of the company, in priority to the
ordinary shareholders; and
there is no prescribed redemption or repayment date for either class of preference shares.
The preference shares are carried on the balance sheet at amortised cost. The fair value is £1,645k (2023 -
£1,645k) and the fair value hierarchy is level 3 (2023 - level 3). The fair value is determined as being the
par value, the closest approximation of the price expected to pay to buyback the shares as there are limited
liquid trades and therefore limited observable prices.
Other creditors
55
55
10Share capital
£000's
£000's
60,000,000 Ordinary Shares of 25p each
Issued and fully paid
57,744,387 Ordinary Shares of 25p each
14,436
14,436
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
11
Events after the reporting date
The directors confirm that there were no significant events occurring after the balance sheet date to the date
of this report that would meet the criteria to be disclosed in the financial statements for the year end 31 March
2024.
12
Risk management
As a wholly-owned subsidiary of Investec plc, the company falls under Investec plc Group's Risk Management
Framework which is set out in the combined Investec plc and Investec Limited 2024 financial statements, Risk
Management and Corporate Governance report.
Credit Risk
The company has no exposure to credit risk other than on the loan advanced to the parent undertaking.
Liquidity Risk
The company's only financial obligations in the foreseeable future are payment of the dividend on the
preference shares and administrative expenses. The company is able to recall the loan to the parent
undertaking (or part thereof) at any time and provided the parent undertaking has sufficient liquid resources
available, the company will be able to meet its financial commitments.
Interest rate risk
The company has a fixed interest obligation in respect of the dividend on the preference shares and is
therefore not exposed to fluctuation in interest rates. The loan to the parent is interest free. However, the
company has the right at any time and at its sole discretion to charge interest thereon at a commercial rate.
Capital management
The company manages and monitors its capital on an ongoing basis and with consideration for the ongoing
commitments of the entity. The company is not regulated and therefore it is not subject to any capital adequacy
requirements.
13
Ultimate parent undertaking
The company's ultimate parent and controlling party is Investec plc, a company incorporated in the United
Kingdom and registered in England and Wales. The consolidated financial statements of Investec plc are
available to the public and may be obtained from Investec plc at 30 Gresham Street, London, EC2V 7QP.
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -