M&G CREDIT INCOME INVESTMENT TRUST PLC On 28 January 2021 the Board declared a fourth interim dividend of 1.95p per Ordinary Share for the year ended 31 December 2020, which was paid on 26 February 2021 to Ordinary Shareholders on the register on 5 February 2021. The ex-dividend date was 4 February 2021.
In accordance with FRS 102, Section 32, 'Events After the End of the Reporting Period', the 2020 fourth interim dividend has not been included as a liability in this set of financial statements. 8. Taxation on ordinary activities
Year ended 31 December Period from 17 July 2018 to 31 December 2019
2020
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Foreign tax - - - 1 - 1 The corporation tax rate was 19.0%. The tax charge for the year differs from the charge resulting from applying the standard rate of corporation tax in the UK for an investment trust company. The differences are explained below:
Year ended 31 December Period from 17 July 2018 to 31 December
2020 2019
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Net Return on ordinary activities before 3,986 1,797 5,723 3,127 3,294 6,421
taxation
Corporation tax at standard rate of 19.0% 757 341 1,098 594 626 1,220
Effects of:
Net gains on investments - (516) (516) - (683) (683)
Net Losses on derivatives - 260 260 - 42 42
Irrecoverable overseas tax - - - 1 - 1
Tax deductible interest distributions (757) - (757) (594) - (594)
Net foreign currencies (gains)/losses - (85) (85) - 15 15
Total tax charge - - - 1 - 1 As at 31 December 2020, the Company had unutilised management expenses of GBPnil (2019: GBPnil) carried forward. Due to the Company's status as an investment trust and the intention to continue to meet the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on capital gains and losses arising on the revaluation or disposal of investments. 9. Investments held at fair value through profit or loss (FVTPL)
As at As at
31 December 2020 31 December 2019
GBP'000 GBP'000
Opening valuation 127,316 -
Analysis of transactions made during the year/period
Purchases at cost 80,084 167,659
Sale proceeds (68,430) (43,715)
Gains on investments 1,346 3,372
Closing valuation 140,316 127,316
Closing cost 138,257 125,083
Closing investment holding gains 2,059 2,233
Closing valuation 140,316 127,316 The Company received GBP68,430,000 (2019: GBP43,715,000) from investments sold in the year. The book cost of these investments when they were purchased was GBP65,840,000 (2019: GBP41,832,000). 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
31 December 2020 31 December 2019
GBP'000 GBP'000
Gains on investments
Net gains on disposal of investments 2,714 3,593
Net losses on derivatives (1,368) (221)
Gains on investments 1,346 3,372
As at As at
31 December 2020 31 December 2019
GBP'000 GBP'000
Closing valuation
Investments at fair value through profit or loss 140,091 126,793
Derivative financial assets held at fair value through profit or loss 225 523
Closing valuation 140,316 127,316 10. Receivables, Cash and Cash Equivalents and other Payables
As at As at
31 December 2020 31 December 2019
GBP'000 GBP'000
Receivables
Accrued income 1,204 1,005
Prepaid expenses 41 13
Management fee rebate 82 74
Other receivables 18 -
Total receivables 1,345 1,092
Cash and Cash Equivalents
Cash at bank 2,269 2,411
Amounts held at futures clearing houses 1,009 60
Cash on deposit 4,000 2,406
Total cash and cash equivalents 7,278 4,877
Payables
Purchases for future settlement 1,354 -
Expenses payable and deferred income 278 308
Management fee payable 677 678
Other payables 2 67
Total payables 2,311 1,053 11 Called up share capital
As at 31 December 2020 As at 31 December 2019
Number of Nominal value Number of Nominal value
shares GBP'000 shares GBP'000
Ordinary Shares of 1p
Ordinary Shares in issue at the beginning of the year/ 130,000,001 1,300 - -
period
Ordinary shares issued during the year/period 14,745,770 147 130,000,001 1,300
Purchase of Ordinary Shares and held in treasury (140,000) (1) - -
Ordinary shares in issue at the end of the year/period 144,605,771 1,446 130,000,01 1,300
Treasury Shares (Ordinary Shares of 1p)
Treasury Shares at the beginning of the year - - - -
Purchase of Ordinary Shares and held in treasury 140,000 1 - -
Treasury Shares at the end of the year 140,000 1 - -
Total Ordinary Shares in issue and in treasury at the end 144,745,771 1,447 130,000,0001 1,300
of the year
The analysis of the capital reserve is as follows:
As at 31 December 2020 As at 31 December 2019
Realised Investment Total Realised Investment Total
capital holding capital capital holding capital
reserve gains reserve reserve gains reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Capital reserve at the beginning of the year/period (265) 2,233 1,968 - - -
Gains on realisation of investments at fair value 1,520 - 1,520 1,139 - 1,139
Realised currency gains/(losses) during the year/ 451 - 451 (78) - (78)
period
Movement in unrealised gains - (174) (174) - 2,233 2,233
Dividends paid (416) - (416) (1,326) - (1,326)
Capital reserve at the end of the year/period 1,290 2,059 3,349 (265) 2,233 1,968
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.
12 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. The ordinary dividends of 0.13p from the May 2020 XD and 0.14p from the August 2020 XD date was paid out of the special distributable reserve.
13 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 year is disclosed in the income statement, in note 4 and amounts outstanding at the year end are shown in note 10.
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