7. LOANS ADVANCED 


                          30 June 2021 30 June 2020 31 December 2020 
 
                          GBP            GBP            GBP 
UK 
Hotel & Residential       49,918,080   49,918,078   49,914,595 
Hospitals                 25,357,713   25,355,368   25,362,367 
Residential, London       -            37,450,724   25,124,499 
Hotel, North Berwick      13,127,256   10,522,972   10,497,593 
Hotel, Scotland           37,910,554   25,841,675   26,727,408 
Hotel, Oxford             16,744,853   16,727,400   16,705,485 
Life Science, UK          19,594,589   -            - 
Office, London            13,764,463   12,964,026   13,368,457 
Office, Scotland          5,017,965    4,688,936    4,894,738 
Logistics Portfolio       552,699      11,905,419   11,981,154 
 
Ireland 
Hotel, Dublin             52,119,113   55,484,069   54,730,169 
Office Portfolio, Dublin  30,233,451   32,217,021   31,753,439 
Mixed use, Dublin         3,843,782    1,870,185    3,112,893 
 
Spain 
Three Shopping Centres    31,273,245   34,097,509   33,367,582 
Hotel                     46,564,064   39,590,856   47,379,721 
Office, Madrid            15,991,232   17,015,583   16,792,398 
Shopping Centre           15,000,520   15,792,369   15,653,661 
Office Portfolio          13,474,355   19,669,822   19,375,687 
 
Germany 
Logistics Portfolio       5,078,596    5,957,035    5,909,892 
 
Europe 
Mixed Portfolio           25,240,936   31,822,637   30,007,911 
                          420,807,466  448,891,684  442,659,649

No element of loans advanced are past due or impaired. For further information and the associated risks see the Investment Manager's Report.

The table below reconciles the movement of the carrying value of loans advanced in the period / year: 


                                                 30 June 2021 30 June 2020 31 December 2020 
                                                 GBP            GBP            GBP 
Loans advanced at the start of the period / year 442,659,649  390,647,516  390,647,516 
Loans advanced                                   35,964,642   84,751,266   97,794,862 
Loan repayments and amortisation                 (45,824,727) (43,513,026) (59,619,767) 
Arrangement fees earned                          (357,009)    (778,691)    (780,584) 
Commitment fees earned                           (365,634)    (683,762)    (1,215,996) 
Exit fees earned                                 (485,435)    (243,680)    (250,772) 
Origination fees paid                            199,206      545,248      546,194 
Effective interest earned                        14,472,491   14,433,090   29,052,521 
Interest payments received                       (13,130,109) (13,093,206) (26,789,437) 
Foreign exchange (losses) / gains                (12,325,608) 16,826,929   13,275,112 
Loans advanced at the end of the period / year   420,807,466  448,891,684  442,659,649 
Loans advanced at fair value                     436,334,012  462,295,383  459,549,015

For further information on the fair value of loans advanced, refer to note 13.

8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss comprise currency forward contracts which represent contractual obligations to purchase domestic currency and sell foreign currency on a future date at a specified price.

The underlying instruments of currency forwards become favourable (assets) or unfavourable (liabilities) as a result of fluctuations of foreign exchange rates relative to their terms. The aggregate contractual or notional amount of derivative financial instruments, the extent to which instruments are favourable or unfavourable, and thus the aggregate fair values of derivative financial assets and liabilities, can fluctuate significantly from time to time. The foreign exchange derivatives are subject to offsetting, enforceable master netting agreements for each counterparty.

The gains and losses relating to the currency forwards are included within "Net foreign exchange (losses) / gains" in the Unaudited Condensed Consolidated Statement of Comprehensive Income.

The fair value of financial assets and liabilities at fair value through profit or loss are set out below: 


                             Notional contract Fair values 
30 June 2021                 amount1           Assets     Liabilities Total 
                                                          GBP 
                             GBP                 GBP                      GBP 
Foreign exchange derivatives 
Currency forwards: 
Lloyds Bank plc              248,024,170       12,724,121 (748,391)   11,975,731 
Total                        248,024,170       12,724,121 (748,391)   11,975,731 
                             Notional contract Fair values 
30 June 2020                 amount1           Assets    Liabilities Total 
                             GBP                 GBP         GBP           GBP 
Foreign exchange derivatives 
Currency forwards: 
Lloyds Bank plc              303,343,342       1,142,927 (5,679,311) (4,536,384) 
Total                        303,343,342       1,142,927 (5,679,311) (4,536,384) 
 
                             Notional contract Fair values 
31 December 2020             amount1           Assets    Liabilities Total 
                             GBP                 GBP         GBP           GBP 
Foreign exchange derivatives 
Currency forwards: 
Lloyds Bank plc              273,442,149       3,897,550 (2,979,291) 918,259 
Total                        273,442,149       3,897,550 (2,979,291) 918,259

1 Euro amounts are translated at the period / year end exchange rate

9. TRADE AND OTHER PAYABLES 


                                           30 June 2021 30 June 2020 31 December 2020 
                                           GBP            GBP            GBP 
Investment management fees payable         785,134      795,148      799,584 
Audit fees payable                         188,315      182,996      98,902 
Commitment fees payable                    156,340      144,124      161,430 
Accrued expenses                           89,444       -            17,079 
Administration fees payable                24,137       79,167       7,771 
Legal and professional fees payable        58,087       -            5,000 
Directors' fees payable                    2,000        -            - 
Broker fees payable                        25,000       -            25,000 
Refinancing and restructuring fees payable -            208,558      - 
Share buyback payable                      -            -            85,587 
Tax provision                              -            56,681       9,713 
                                           1,328,457    1,466,674    1,210,066

10. CREDIT FACILITIES

Under its investment policy, the Group is limited to borrowing an amount equivalent to a maximum of 30 per cent of its NAV at the time of drawdown, of which a maximum of 20 per cent can be longer term borrowings. In calculating the Group's borrowings for this purpose, any liabilities incurred under the Group's foreign exchange hedging arrangements shall be disregarded.

As at 30 June 2021 an amount of GBP11,000,000 (30 June 2020: GBP24,062,500 and 31 December 2020: GBP19,500,000) was drawn and interest of GBP17,667 (30 June 2020: GBP23,144 and 31 December 2020: GBP69,585) was payable.

The revolving credit facility capitalised costs are directly attributable costs incurred in relation to the establishment of the credit loan facilities and an amount of GBP802,032 (30 June 2020: GBP1,153,701 and 31 December 2020: GBP942,748) was netted off against the loan facilities outstanding.

The Group has maintained sufficient headroom against the measures under, and is full compliance with, all loan covenants.

The changes in liabilities arising from financing activities are shown in the table below. 


                                                  30 June 2021 30 June 2020 31 December 2020 
                                                  GBP            GBP            GBP 
Borrowings at the start of the period /year       18,626,837   28,359,047   28,359,047 
Proceeds during the period / year                 29,400,000   44,952,688   41,985,860 
Repayments during the period / year               (37,900,000) (50,472,045) (52,067,717) 
Interest expense recognised for the period / year 139,892      301,993      558,323 
Interest paid during the period / year            (191,809)    (293,798)    (492,331) 
Credit facility fees incurred                     (100,000)    -            - 
Credit facility amortisation of fees              240,715      206,201      387,448 
Foreign exchange and translation difference       -            (122,143)    (103,793) 
Borrowings at the end of the period/year          10,215,635   22,931,943   18,626,837

11. DIVIDENDS

Dividends will be declared by the Directors and paid in compliance with the solvency test prescribed by Guernsey law. Under Guernsey law, companies can pay dividends in excess of accounting profit provided they satisfy the solvency test prescribed by the Companies (Guernsey) Law, 2008. The solvency test considers whether a company is able to pay its debts when they fall due, and whether the value of a company's assets is greater than its liabilities. The Company passed the solvency test for each dividend paid.

Subject to market conditions, the financial position of the Company and the investment outlook, it is the Directors' intention to continue to pay quarterly dividends to Shareholders (for more information see Chairman's Statement).

The Company paid the following dividends in respect of the period to 30 June 2021: 


              Dividend rate per Share (pence)  Net dividend Payment date 
                                               paid (GBP) 
Period to: 
31 March 2021 1.375                            5,622,530    04 June 2021

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