M&G CREDIT INCOME INVESTMENT TRUST PLC Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
Other exchange differences are recognised in profit or loss in the period in which they arise.
All gains and losses on the translation of foreign currency are recognised as revenue or capital in the Income Statement depending on the underlying nature of the transactions. h) Cash and Cash Equivalents
Cash and Cash Equivalents are defined as cash and short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to insignificant risk of change in value.
They also include unfunded commitments on investments not classified under financial assets. i) Share capital and reserves
Called up ordinary share capital
Called up ordinary share capital represents the nominal value of Ordinary Shares issued.
Share premium
Share premium represents the excess over nominal value of shares issued, net of expenses of the share issue, except where amounts have been cancelled in accordance with section 610 of the Companies Act 2006 and transferred to special distributable reserve.
Special distributable reserve
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 costs of repurchasing Ordinary Shares has been funded by the special distributable reserve.
Capital reserve
Capital reserve reflects any: ? gains or losses on the disposal of investments; ? exchange differences of a capital nature; ? increases and decreases in the fair value of investments held at the year/period end;
This reserve can also be used for distributions by way of a dividend.
Revenue reserve
Revenue reserve reflects all income and expenditure which are recognised in the revenue column of the Income Statement and is distributable by way of dividends. j) Investment management fee
Investment management fees are recognised on an accruals basis and are charged to revenue. k) Accounting judgements, estimates and assumptions
The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions that affect the amounts recognised in the Financial Statements. However, uncertainty about these judgements, assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods.
Whilst estimates are based on best judgement using information and financial data available the actual outcome may differ from these estimates.
No significant judgements, estimates or assumptions have been required in the preparation of the accounts for the current period. 2. Returns and net asset value (NAV)
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
Revenue return
Revenue return attributable to Ordinary Shareholders (GBP'000) 3,984 3,126
Weighted average number of shares in issue during the year/period 138,289,698a 122,606,191b
Revenue return per Ordinary Share (basic and diluted) 2.88pa 2.55pb
Capital return
Capital return attributable to Ordinary Shareholders (GBP'000) 1,797 3,294
Weighted average number of shares in issue during the year/period 138,289,698a 122,606,191b
Capital return per Ordinary Share (basic and diluted) 1.30pa 2.69pb
Net return
Net return per Ordinary Share (basic and diluted) 4.18pa 5.24pb
NAV per Ordinary Share
Net assets attributable to Ordinary Shareholders (GBP'000) 146,628 132,232
Number of shares in issue at year/period end 144,605,771 130,000,001
NAV per Ordinary Share 101.40p 101.72p a Return figures have been calculated using weighted average shares for the period 1 January 2020 to 31 December 2020.
b Return figures have been calculated using weighted average shares for the period 14 November 2018 (date of IPO) to 31 December 2019. 3. Income
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000 GBP'000
Income from investments
Interest income from Debt Instruments 4,633 3,865
Distributions from investment funds 468 444
Management fee rebate 78 74
5,179 4,383
Other income
Interest from Cash and Cash Equivalents 16 147
5,195 4,530 4. Investment management fee
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000
GBP'000
Investment management fee 714 678 The amount outstanding at the year/period end is shown in note 10.
The basis for calculating the investment management fee is set out above. 5. Other expenses
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000 GBP'000
Revenue expenses
Directors' fees 110 128
Legal fees 7 20
Printing and postage - 23
Registrar's and secretarial fees 102 111
Administration fees 77 88
Broker fees 57 68
LSE block listing fee - 78
Other 45 111
398 627
Auditors' remuneration:
- Audit services 54 58
- Non-audit services a 12 21
464 706 a Non-audit fees (including VAT) payable to the auditor in respect of the agreed upon procedures on the interim as of 30 June 2020 are GBP12,000 (30 June 2019: GBP21,000). The agreed upon procedures did not constitute an audit engagement or a review of the Half Year Report. In addition, for the period ending 31 December 2019 non-audit service fees of GBP81,600 (including VAT) were paid to the auditor in relation to the reporting accountant role for the Company's IPO, recognised in the share premium account. 6. Finance costs
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000
GBP'000
Commitment fee 15 -
Arrangement fees 3 -
Legal fees 6 -
24 - On 19 October 2020 the Company entered into a GBP25 million revolving credit facility agreement with State Street Bank International GmbH. As at 31 December 2020 no amounts were drawn down. 7. Dividends
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000 GBP'000
Revenue
2019 first interim interest distribution of 1.07p - 1,391
2019 second interim interest distribution of 1.33p 1,729 -
2020 first interim interest distribution of 0.72p 936 -
2020 second interim interest distribution of 0.63p 912 -
2020 third interim interest distribution of 0.71p 1,028 -
4,605 1,391
Capital
2019 first interim dividend of 1.02p - 1,326
2019 second interim dividend of 0.32p 416 -
2020 first interim dividend of 0.13p 169 -
2020 second interim dividend of 0.14p 203 -
788 1,326
Set out below are the total dividends in respect of the year/period, which forms the basis on which the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 are considered.
Year ended Period from
31 December 2020 17 July 2018 to
31 December 2019
GBP'000 GBP'000
Interest distributions paid of 2.06p (2019: 1.07p) 4,605 1,391
Dividend distributions paid of 0.27p (2019: 1.02p) 788 1,326
Proposed interest distribution of 0.77p (2019: 1.33p) 1,114 1,729
Proposed dividend distribution of 1.18p (2019: 0.32p) 1,706 416
8,213 4,862
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