M&G CREDIT INCOME INVESTMENT TRUST PLC
2021 first interim dividend of 0.11p 159 - -
1,865 585 788
On 27 July 2021 the Board declared a second interim dividend of 0.76p per Ordinary Share for the year ended 31 December 2021, which was paid on 27 August 2021 to Ordinary Shareholders on the register on 6 August 2021. The ex-dividend date was 5 August 2021.
In accordance with FRS 102, Section 32, 'Events After the End of the Reporting Period', the 2021 second interim dividend has not been included as a liability in this set of financial statements.
7 Investments held at fair value through profit or loss (FVTPL)
As at As at As at
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Opening valuation 140,316 127,316 127,316
Analysis of transactions made during the period/year
Purchases at cost 18,769 49,011 80,084
Sale proceeds (23,023) (37,682) (68,430)
Gains/(losses) on investments 2,969 (4,362) 1,346
Closing valuation 139,031 134,283 140,316
Closing cost 138,251 135,973 138,257
Closing investment holding gains/(losses) 780 (1,690) 2,059
Closing valuation 139,031 134,283 140,316 The Company received GBP23,023,000 from investments sold in the six months period ended 30 June 2021 (30 June 2020: GBP37,682,000). The book cost of these investments when they were purchased was GBP21,836,000 (30 June 2020: GBP38,477,000. These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
As at As at As at
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Gains on investments
Net realised gains/(losses) on disposal of investments 541 (1,661) 2,714
Net gains/(losses) on derivatives 2,428 (2,701) (1,368)
Net gains/(losses) on investments 2,969 (4,362) 1,346
As at As at As at
30 June 2021 30 June 2020 31 December
2020
GBP'000 GBP'000 GBP'000
Closing valuation
Investments at fair value through profit or loss 139,439 135,227 140,091
Derivative financial (liabilities)/assets held at fair value through profit or (408) (944) 225
loss
Closing valuation 139,031 134,283 140,316 8 Receivables, Cash and Cash Equivalents and Payables
As at As at As at
30 June 2021 30 June 2020 31 December 2020
GBP'000 GBP'000 GBP'000
Receivables
Sales for future settlement 586 38 -
Accrued income 1,128 990 1,204
Prepaid expenses 33 12 41
Management fee rebate 51 40 82
Other receivables - - 18
Total receivables 1,798 1,080 1,345
Cash and cash equivalents
Cash at bank 1,302 5,809 2,269
Amounts held at futures clearing houses 1,041 962 1,009
Cash on deposit 4,601 4,591 4,000
Total cash and cash equivalents 6,944 11,362 7,278
Payables
Purchases for future settlement 684 5,280 1,354
Expenses payable and deferred income 351 343 278
Management fee payable 438 318 677
Other payables 3 51 2
Total payables 1,476 5,992 2,311 9 Called up share capital
As at 30 June 2021 As at 30 June 2020 As at 31 December 2020
Number of Nominal Number of Nominal Number of Nominal
shares value GBP'000 shares value GBP'000 shares value GBP'000
Ordinary Shares of 1p
Ordinary Shares in issue at the beginning of 144,605,771 1,446 130,000,001 1,300 130,000,001 1,300
the period/year
Ordinary Shares issued during the period/ year - - 14,745,770 147 14,745,770 147
Purchase of Ordinary Shares held in treasury (1,238,000) (12) - - (140,000) (1)
Ordinary Shares in issue at the end of the 143,367,771 1,434 144,745,771 1,447 144,605,771 1,446
period/year
Treasury Shares (Ordinary Shares of 1p)
Treasury Shares at the beginning of the period 140,000 1 - - - -
/year
Purchase of Ordinary Shares held in treasury 1,238,000 12 - - 140,000 1
Treasury Shares at the end of the period/year 1,378,000 13 - - 140,000 1
Total Ordinary Shares in issue and in treasury 144,745,771 1,447 144,745,771 1,447 144,745,771 1,447
at the end of the period/year The analysis of the capital reserve is as follows:
Six months ended 30 June 2021 Six months ended 30 June 2020 Year ended 31 December 2020
Realised Investment Total Realised Investment Total Realised Investment Total
capital holding capital capital holding capital capital holding capital
reserve gains reserve reserve gains reserve reserve gains reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Capital reserve at
the beginning of the 1,290 2,059 3,349 (265) 2,233 1,968 (265) 2,233 1,968
period/year
Gains/(losses) on
realisation of 4,248 - 4,248 (439) - (439) 1,520 - 1,520
investments at fair
value
Realised currency
gains during the (140) - (140) 141 - 141 451 - 451
period/year
Movement in - (1,279) (1,279) - (3,923) (3,923) - (174) (174)
unrealised losses
Dividends paid (1,865) - (1,865) (416) - (416) (416) - (416)
Capital reserve at
the end of the 3,533 780 4,313 (979) (1,690) (2,669) 1,290 2,059 3,349
period/year The above split in capital reserve is shown in accordance with provisions of the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts', 2019.
10 Special distributable reserve
The share premium of GBP99,000,001 was cancelled on 12 February 2019 and transferred to the special distributable reserve, in accordance with section 610 of the Companies Act 2006. The Company may, at the discretion of the Board, pay all or part of any future dividends out of this special distributable reserve, taking into account the Company's investment objective.
11 Related party transactions
M&G Alternatives Investment Management Limited, as Investment Manager is a related party to the Company. The management fee payable to the Investment Manager for the period is disclosed in the condensed income statement and in note 3, amounts outstanding at the period end are shown in note 8.
The Company holds an investment in M&G European Loan Fund which is managed by M&G Investment Management Limited. At the period end this was valued at GBP17,458,741 (30 June 2020: GBP13,163,135) and represented 12.16% (30 June 2020: 9.53%) of the Company's investment portfolio.
The Directors of the Company are related parties. For further details of the annual fees payable to the Directors, please refer to the Related party disclosure and transactions with the Investment Manager section.
12 Fair value hierarchy
Under FRS 102 an entity is required to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the levels stated below.
-- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
-- Level 2: other significant observable inputs (including quoted prices for similar investments, interestrates, prepayments, credit risk, spread premium, credit ratings etc.).
-- Level 3: significant unobservable input (including the Company's own assumptions in determining the fairvalue of investments, discounted cashflow model or single broker quote).
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