Company registration number 00328206 (England and Wales)
INVESTEC INVESTMENT TRUST PLC ANNUAL
REPORT AND FINANCIAL STATEMENTS FOR
THE YEAR ENDED 31 MARCH 2025
INVESTEC INVESTMENT TRUST PLC
COMPANY INFORMATION
Directors
K McKenna
T Freeme
S Brayshaw
(Appointed 25 November 2024)
Secretary
D Miller
Company number
00328206
Registered office
30 Gresham Street
London
EC2V 7QP
Auditor
Deloitte LLP
1 New Street Square
London
EC4A 3HQ
INVESTEC INVESTMENT TRUST PLC
CONTENTS
INVESTEC INVESTMENT TRUST PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present the strategic report for the year ended 31 March 2025.
Review of the business
The loss for the year, after taxation is £63,000 (2024: £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 2025 the company had net assets of £25,266,000 (2024: £25,329,000).
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 interests of the company's employees;
·
the need to foster the company's business relationships with suppliers, customers and others;
·
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.
- 1 -
INVESTEC INVESTMENT TRUST PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Approved by the board of directors and signed on its behalf by:
K
McKenna
Director
29 July 2025
- 2 -
INVESTEC INVESTMENT TRUST PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their annual report and financial statements for the year ended 31 March 2025.
The Corporate Governance Statement set out on pages 5 to 7 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.
Please refer to the Strategic report for information on principle risks and uncertainties.
Future developments
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.
The company will continue to operate as an investment holding company and it will, in this capacity, engage in
financial arrangements and transactions to the benefit and promotion of the Investec group.
Results and dividends
The results for the year are set out on page 15.
The directors do not recommend the payment of a final ordinary dividend for the year ended 31 March 2025 (2024:
Nil).
Dividends paid on the preference shares in the year amounted to £63,000 (2024: £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:
K McKenna
C Dyson(Resigned 3 April 2024)
P Ahmed(Resigned 27 November 2024)
T Freeme
S Brayshaw(Appointed 25 November 2024)
No director holding office at 31 March 2025 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 resigned as auditors on 19 July
2024.
Deloitte have indicated their willingness to continue in office. A resolution to re-appoint Deloitte LLP will be
proposed at the Annual General Meeting.
- 3 -
INVESTEC INVESTMENT TRUST PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Statement of directors' responsibilities
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.
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.
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 2027, 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.
Approved by the board and signed on its behalf by:
K
McKenna
Director
29 July 2025
- 4 -
INVESTEC INVESTMENT TRUST PLC
CORPORATE GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
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.
The Company falls into scope of TCFD reporting requirements. Due to the nature and operations of the
company, specific climate related disclosures have not been prepared. The Directors have assessed there to be
an immaterial impact posed by the physical or transition risks of climate change. Group-wide TCFD disclosures
have been prepared as part of the group accounts which are publicly available at 30 Gresham Street, London,
EC2V 7QP or on www.investec.com.
Corporate governance statement in compliance with the Disclosure Guidance and Transparency
Rules (DTR) 7.2
1. Introduction and Governance Framework (DTR 7.2.1R, 7.2.2R, 7.2.3R)
Investec Investment Trust plc (the Company) does not voluntarily apply a formal corporate governance code.
The Company is a member of the Investec Bank plc (IBP) group of companies (the “Group”) and accordingly it
operates within the governance and control environment established by its parent undertaking, IBP. IBP is
incorporated in the United Kingdom and applies the UK Corporate Governance Code, issued by the Financial
Reporting Council.
TheUKCorporateGovernanceCodeispubliclyavailableat:
https://www.frc.org.uk/directors/corporate-governance-and-stewardship/uk-corporate-governance-code
A summary of how IBP applies the Code can be found in its latest Annual Report, which is available at:
www.investec.com
2. Board Composition and Functioning (DTR 7.2.4R, 7.2.7R)
The board of directors of Investec Investment Trust plc comprises three directors.
Kevin McKenna is an Executive Director of IBP and his biography can be found in that company’s latest Annual
Report, which is available at www.investec.com
Samantha Brayshaw is IBP’s Finance Controller and joined the Group in 2024. Samantha holds a number of
directorships within the IBP Group
Taryn Freeme is a member of IBP’s Group Finance function and is a director of a number of companies within
the IBP Group.
Given the limited activity of the Company, the board meets on an ad hoc basis.
Day-to-day governance and controls are integrated within the broader governance structure of Investec Bank
plc, whose Audit, Board Risk and Capital, and Remuneration Committees exercise oversight at the Group level.
3. Internal Controls and Risk Management (DTR 7.2.5R, 7.2.6R, 7.2.10R)
The Company benefits from the internal control and risk management framework operated by the Group, which
applies across financial reporting, compliance, and operational risk.These systems are described in detail in the
parent company’s Governance Report, including the processes for internal audit, control reviews, and escalation
of material risks.
The company implements entity specific financial reporting controls, including review and approval of the
financial statements by a Director. The Company confirms that it has not identified any material weaknesses in
internal control during the reporting period.
- 5 -
INVESTEC INVESTMENT TRUST PLC
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
4. Diversity Policy and Outcomes (DTR 7.2.8A-R)
The Company does not have its own formal diversity policy in respect of board and senior management
appointments.. It adheres to the group-wide diversity and inclusion policy adopted by Investec Bank plc, which is
aligned with the UK Corporate Governance Code and promotes gender, ethnic, and cognitive diversity.As at 31
March 2025, 66% of the board were female, and 0% came from underrepresented ethnic backgrounds.
5. Disclosure Reference Using DTR 7.2.9R
In accordance with DTR 7.2.9R, the Company refers to the Governance Report of Investec Bank plc which
includes the information required by DTR 7.2.6R to DTR 7.2.8A-R. This report is publicly available at:
www.investec.com
6. Authorised and issued share capital
The issued share capital of IIT plc at 31 March 2025 consists of 57,744,387 ordinary shares of 25p each,
1,300,000 3.5% cumulative preference shares and 345,438 5% cumulative preference shares (each class as
defined in the Articles of Association of the Company). The cumulative preference shares are listed on the
London Stock Exchange.
i. Voting rights for 3.5% cumulative preference shares
Holders of Preference Stock shall be entitled to attend and vote in respect of such Stock only in the following
cases:
(a)
at any separate meetings of such Preference Stockholders convened and held under the provisions
of the Articles;
(b)
in respect of any proposal to sanction an increase in the amount allowed to be borrowed under
Article 31;
(c)
if, at the date of the convening of any meeting, the dividend on the Preference Stock shall be in
arrear and unpaid for six months after the same shall have accrued due, or if the meeting be convened
for the purpose of altering the regulations of the Company in any manner directly affecting the rights of
the holders of such Preference Stock as a separate class or for reducing the capital of or winding up the
Company. For the purposes of this Article the dividend on the Preference Stock shall be deemed to
accrue due on the 1st day of June and the 1st day of December in every year.
ii.
Voting rights for 5% cumulative preference shares
Holders of Preference Stock shall be entitled to attend and vote in respect of such Stock only in the following
cases:
(a)
at any separate meetings of such Preference Stockholders convened and held under the provisions
of the Articles;
(b)
in respect of any proposal to sanction an increase in the amount allowed to be borrowed under
Article 31;
(c)
if, at the date of the convening of any meeting, the dividend on the Preference Stock shall be in
arrear and unpaid for six months after the same shall have accrued due, or if the meeting be convened
for the purpose of altering the regulations of the Company in any manner directly affecting the rights of
the holders of such Preference Stock as a separate class or for reducing the capital of or winding up the
Company. For the purposes of this Article the dividend on the Preference Stock shall be deemed to
accrue due on the 1st day of June and the 1st day of December in every year.
- 6 -
INVESTEC INVESTMENT TRUST PLC
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
iii.
Voting rights for ordinary shares
(a)
Shareholders are entitled to attend, speak and vote at General Meeting or appoint a proxy to do so on
their behalf. On a show of hands a member present in person or by proxy shall have one vote.
(b)
Rights re. dividends to participate in a distribution: Subject to any rights or restrictions for the time being
attached to any particular shares, all dividends shall be declared and paid according to the amounts paid up
on the shares in respect whereof the dividend is paid, but no amount paid up on a share in advance of calls
shall be treated for the purposes of this Article (47.05) as paid up on the share.
(c)
Rights re. capital to participate in a distribution: No dividend shall be payable except out of profits of the
company. Appreciation of capital assets and realised profits resulting on sales of fixed assets and realised
profits may be treated as profits available for distribution.
(d)
No dividend shall be payable except out of profits of the company. Appreciation of capital assets and
realised profits resulting on sales of fixed assets and realised profits may be treated as profits available for
distribution.
(e)
Whenever such a capitalisation as aforesaid shall have been resolved upon the Board shall make all
appropriations and applications of the reserves or undivided profits resolved to be capitalised thereby and all
allotments and issues of fully paid up shares or debentures, if any, and generally shall do all acts and things
required to give effect thereto, with full power to the Board to make such provision by the issue of fractional
certificates or by payment in cash or otherwise as distributable in fractions and also to authorise any person
to enter on behalf of all the members entitled thereto into an agreement with the Company providing for the
allotment of them respectively, credited as fully paid up, of any shares or debentures to which they may be
entitled on such capitalisation and (as the case may require) for the payment up by the Company on their
behalf by the application thereto of their respective proportions of the reserves or profits resolved to be
capitalised, of the amounts or any part of the amounts remaining unpaid on their existing shares. Any
agreement made under such authority shall be effective and binding on all such members.
- 7 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
Report on the audit of the financial statements
1. Opinion
In our opinion the financial statements of Investec Investment Trust plc (the 'company'):
·
give a true and fair view of the company's affairs as at 31 March 2025 and of its loss for the year then
ended;
·
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,
including Financial Reporting Standard 101 “Reduced Disclosure Framework”; and
·
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
·
the profit and loss account;
·
the balance sheet;
·
the statement of changes in equity; and
·
the related notes 1 to 14
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 101 “Reduced Disclosure Framework”(United
Kingdom Generally Accepted Accounting Practice).
2. 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 Financial Reporting Council's (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 confirm that we have not provided any non-audit services prohibited by the RCS's Ethical
Standard to the company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of our audit approach
Key audit mattersThe key audit matter we identified in the current year was:
• Recoverability amounts owed by parent undertaking
This key audit matter is consistent with that identified by the predecessor
auditor.
MaterialityThe materiality that we used in the current year was £505,000 which was
determined on the basis of net assets.
ScopingAll audit work to respond to the risks of material misstatement was
performed directly by the audit team.
Significant changes in our approachThere were no significant changes in our approach.
- 8 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
4. 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:
·
Obtaining an understanding of management’s going concern review process;
·
Evaluating management’s judgement paper, identifying the assumptions applied in the going concern
assessment and testing the mechanical accuracy of management’s model;
·
Obtaining supporting evidence for key judgements and assumptions adopted by management in their
going concern assessment including the assessment of recoverability of the intercompany receivable, and;
·
Evaluating appropriateness of going concern disclosures in the financial statements
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 of 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.
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, 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 forming our
opinion thereon, and we do not provide a separate opinion on these matters.
5.1 Recovery of amounts owed by parent undertaking
Key audit matter descriptionAmounts owed by parent undertakings are stated in the balance sheet at
£26.97m (FY24: £27.02m).
There is significant level of judgement involved in determining the
recoverability of the amounts owed by parent undertakings based on the
financial position and future prospects of the parent. This takes into
consideration factors such as the trading performance of the parent
undertakings and the ultimate parent company.
Further details are included in Note 7.
How the scope of our audit responded We challenged the Directors’ judgements regarding the appropriateness
to the key audit matterof the carrying value by:
-Assessing net assets and profitability of the parent company through
reviewing the latest audited financial statements to assess its overall
financial strength and ability to support its subsidiaries;
-Assessing intercompany agreements, formalised in the year, for key
terms of the debt and conditions such as repayment terms and
interest rate
- 9 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
Key observationsBased on the work performed we concluded that amounts owed by
parent undertakings are appropriately stated at 31 March 2025.
6.
Our application of materiality
6.1 Materiality
Materiality£505,000 (2024: £506,583 as determined by the prececessor auditor)
Basis for determining materiality2% of net assets (2024: 2% of equity as determined by the predecessor
auditor)
Rationale for the benchmark appliedWe determined net assets to be the most relevant and stable benchmark
to determine materiality which reflects the nature of the entity.
6.2 Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate,
uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole.
Performance materiality was set at 70% of materiality for the 2025 audit (2024: 75% as determined by the
predecessor auditor). In determining performance materiality, we considered that this is the first year audit.
6.3 Error reporting threshold
We agreed with the Directors that we would report to the Directors all audit differences in excess of £25,000 (2024:
£25,329 determined by the predecessor auditor), as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds. We also report to the Directors on disclosure matters that we identified
when assessing the overall presentation of the financial statements.
7.
An overview of the scope of our audit
7.1 Identification and scoping
Our audit was scoped by obtaining an understanding of the entity and its environment, including internal control,
and assessing the risks of material misstatement. Audit work to respond to the risks of material misstatement
was performed directly by the audit engagement team.
Our risk assessment included considering the size, composition and qualitative factors relating to account
balances, classes of transactions and disclosures.
7.2 Our consideration of the control environment
We identified the key IT system relevant to the audit to be that used in financial reporting. With the involvement of
IT specialists, we identified and gained an understanding of the general IT controls, including the user access and
change management systems. Where deficiencies were identified in the control environments, including
deficiencies in IT controls, our risk assessment procedures included an assessment of those deficiencies and the
impact on our audit plan.
7.3 Our consideration of climate-related risks
In planning our audit, we have considered the impact of climate change on the company’s operations
and subsequent impact on its financial statements.
We held discussion with management to understand the process for identifying climate-related risks and the
impact on the company’s financial statements. Management concluded that there was no material impact to the
financial statements, please refer to page 1.
- 10 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
8. 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.
9. 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.
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.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
- 11 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
11. Extent to which 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 material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
11.1 Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-
compliance with laws and regulations, we considered the following:
·
the nature of the industry and sector, control environment and business performance , key drivers for
Directors’ remuneration, bonus levels and performance targets;
·
results of our enquiries of management and the Directors about their own identification and assessment of
the risks of irregularities, including those that are specific to the company’s sector;
·
any matters we identified having obtained and reviewed the company’s documentation of their policies and
procedures relating to:
·
identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of non-compliance
·
detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud
·
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations
·
the matters discussed among the audit engagement team regarding how and where fraud might occur in
the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific
procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing
on provisions of those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements. The key laws and regulations we considered in this context included the UK
Companies Act 2006 and relevant tax compliance regulations.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a
material penalty.
- 12 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
11.2 Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud
or non-compliance with laws and regulations.
Our procedures to respond to risks identified included the following:
·
reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with provisions of relevant laws and regulations described as having a direct effect on
the financial statements;
·
enquiring of management and the Directors concerning actual and potential litigation and claims;
·
performing analytical procedures to identify any unusual or unexpected relationships that may indicate
risks of material misstatement due to fraud;
·
reading minutes of meetings of those charged with governance, reviewing internal audit reports; and
·
in addressing the risk of fraud through management override of controls, testing the appropriateness
of journal entries and other adjustments; assessing whether the judgements made in making
accounting estimates are indicative of a potential bias; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, and remained alert to any indications of fraud or non-compliance with laws and regulations
throughout the audit.
Report on other legal and regulatory requirements
12.
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.
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 any material misstatements in the strategic report or the directors’ report.
13. Matters on which we are required to report by exception
13.1 Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
·
we have not received all the information and explanations we require for our audit; or
·
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.
We have nothing to report in respect of these matters.
- 13 -
INVESTEC INVESTMENT TRUST PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC
13.2 Directors' remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of
Directors’ remuneration have not been made.
We have nothing to report in respect of this matter.
14. Other matters which we are required to address
14.1 Auditor tenure
Following the recommendation of the Directors, we were appointed by the company on 9th September 2024 to
audit the financial statements for the year ending 31 March 2025 and subsequent financial periods. The period of
total uninterrupted engagement including previous renewals and reappointments of the firm is accordingly one year.
14.2 Consistency of the audit report with the additional report to the directors
Our audit opinion is consistent with the additional report to the directors we are required to provide in accordance
with ISAs (UK).
15. 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.
Giles Lang (Senior Statutory Auditor)
For and on behalf of Deloitte LLP, Statutory Auditor
London,
29 July 2025
- 14 -
INVESTEC INVESTMENT TRUST PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
The profit and loss account has been prepared on the basis that all operations are continuing operations.
- 15 -
INVESTEC INVESTMENT TRUST PLC
BALANCE SHEET
AS AT 31 MARCH 2025
The financial statements were approved by the board of directors and authorised for issue on 29 July 2025 and are
signed on its behalf by:
T
Freeme
Director
Company Registration No. 00328206
- 16 -
INVESTEC INVESTMENT TRUST PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
Company information
Investec Investment Trust plc is a public limited company limited by shares incorporated in England and
Wales. The registered office is 30 Gresham Street, London, EC2V 7QP.
1.1Accounting 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 2025.
- 18 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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.
Investec Investment Trust plc is a public company limited by shares incorporated in England and Wales. The
registered office is 30 Gresham Street, London, EC2V 7QP.
- 19 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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 2027, 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.
1.3Fair 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.
1.4Financial 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.
1.5Financial 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.
- 20 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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.
1.8Segmental reporting
Investec Investment Trust plc has only one operating segment, therefore segmental reporting is not required.
1.9Change in accounting policy
Receivables from the parent company are carried on the balance sheet at amortised cost which approximates
fair value. This is a change compared to the prior period where the receivable was carried at fair value. There
was no difference in the value under amortised cost versus fair value accounting in both the current and prior
period. Amortised cost more accurately reflects the nature of the receivable.
- 21 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
2
Critical accounting judgements and key sources of estimation uncertainty
The directors have not identified any key assumptions concerning the future, and other key sources of
estimation uncertainty at the reporting period that may have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year.
The directors have not made any critical judgements, apart from those involving estimations (which are
presented separately below), in the process of applying the group’s accounting policies and that have the
most significant effect on the amounts recognised in financial statements.
3
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 £15,000
(2024: £13,542).
4
Employees
The company has no employees (2024: nil).
5
Auditor's remuneration
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.
- 22 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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.
- 23 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
7
Taxation
The charge for the year can be reconciled to the loss per the profit and loss account as follows:
The UK rate of corporation tax increased to 25% from 19% from 1 April 2023.
A deferred tax asset has not been recognised in respect of capital losses carried forward of £137,712 (2024:
£137,712) as there is insufficient evidence that the loss will be recovered.
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.
Receivables are carried on the balance sheet at amortised cost which approximates fair value. This is a
change compared to the prior period where the loan was carried at fair value. Amortised cost more accurately
reflects the nature of the receivable.
Fair value is measured using level 2 techniques and is equal to the undiscounted cash amount payable
reflecting the company's right to demand immediate repayment.
- 24 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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 (2024 -
£1,645k) and the fair value hierarchy is level 3 (2024 - 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.
- 25 -
INVESTEC INVESTMENT TRUST PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
12
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
2025.
13
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 2025 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.
14
Controlling party
The company's immediate parent undertaking is Investec Group Investments (UK) Limited.
The following are the parents of the largest and smallest groups in which this company's results are
consolidated:
Largest groupInvestec plc
Smallest groupInvestec Bank plc
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 and
Investec Bank plc are available to the public and may be obtained from their registered address at 30
Gresham Street, London, EC2V 7QP.
- 26 -