INVESTEC INVESTMENT TRUST PLC

Annual Report • Jul 4, 2024

INVESTEC INVESTMENT TRUST PLC - 00328206 - 2024 Company registration number 00328206 (England and Wales) INVESTEC INVESTMENT TRUST PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 COMPANY INFORMATION Directors K McKenna P Ahmed T Freeme (Appointed 21 November 2023) (Appointed 8 March 2024) Secretary D Miller Company number 00328206 Registered office 30 Gresham Street London EC2V 7QP Auditor Ernst & Young LLP 25 Churchill Place London E14 5EY INVESTEC INVESTMENT TRUST PLC CONTENTS Page Strategic report 1 - 2 Directors' report 3 - 4 Directors' responsibilities statement 5 Corporate governance statement 6 Independent auditor's report 7 - 12 Profit and loss account 13 Balance sheet 15 Statement of changes in equity 14 Notes to the financial statements 16 - 24 INVESTEC INVESTMENT TRUST PLC STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present the strategic report for the year ended 31 March 2024. Review of the business The loss for the year, after taxation is £63,000 (2023: £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 2024 the company had net assets of £25,329,000 (2023: £25,392,000). 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 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. INVESTEC INVESTMENT TRUST PLC - 1 - STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 On behalf of the board K McKenna Director 1 July 2024 INVESTEC INVESTMENT TRUST PLC - 2 - DIRECTORS' REPORT FOR THE YEAR ENDED 31 MARCH 2024 The directors present their annual report and financial statements for the year ended 31 March 2024. The Corporate Governance Statement set out on page 6 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. Results and dividends The results for the year are set out on page 13. The directors do not recommend the payment of a final ordinary dividend for the year ended 31 March 2024 (2023: Nil). Dividends paid on the preference shares in the year amounted to £63,000 (2023: £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: B Johnson (Resigned 21 August 2023) K McKenna C Dyson (Resigned 3 April 2024) P Ahmed (Appointed 21 November 2023) T Freeme (Appointed 8 March 2024) No director holding office at 31 March 2024 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 will resign as the company's statutory auditor at the conclusion of the 31 March 2024 audit and the company will resolve to appoint Deloitte LLP, subject to shareholder approval at the Investec plc Annual General meeting. 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 2026, 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. 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. INVESTEC INVESTMENT TRUST PLC - 3 - DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 On behalf of the board K McKenna Director 1 July 2024 INVESTEC INVESTMENT TRUST PLC - 4 - DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 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. INVESTEC INVESTMENT TRUST PLC - 5 - CORPORATE GOVERNANCE STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 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. INVESTEC INVESTMENT TRUST PLC - 6 - INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC Opinion We have audited the financial statements of Investec Investment Trust plc (the company) for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and related notes 1 to 13, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:  give a true and fair view of the company's affairs as at 31 March 2024 and of its loss for the year then ended;  have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and  have been prepared in accordance with the requirements of the Companies Act 2006. 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 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 verifying the net asset position of the company, assessing the recoverability of the intercompany debtors and looking through the debtor to the other group entities potentially relied upon and so determining that there is sufficient capital and resources available to repay the intercompany receivable. 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 up to 31 March 2026, which is 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. Overview of our audit approach Key audit matters - Risk of recoverability of intercompany balances. Materiality - Overall materiality of £506,583 which represents 2% of equity. INVESTEC INVESTMENT TRUST PLC - 7 - An overview of the scope of our audit Tailoring the scope Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for the company. This enables us to form an opinion on the financial statements. We take into account size, risk profile, the organisation of the company and effectiveness of controls, the potential impact of climate change and changes in the business environment when assessing the level of work to be performed. All audit work was performed directly by the audit engagement team. Climate change Stakeholders are increasingly interested in how climate change will impact Investec Investment Trust Plc. The company has determined that there is no significant future impact from climate change on its operations. This is explained on page 1 in the Strategic Report in the principal risks and uncertainties, which form part of the “Other information,” rather than the audited financial statements. Our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated. Our audit effort in considering climate change on the financial statements was focused on evaluating management’s assessment that there is no impact of climate risk, the adequacy of the disclosures in the financial statements and the conclusion that no issues were identified that would impact the financial statements or have any other impact on the financial statements as disclosed on page 1. We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and associated disclosures. Key audit matters Key audit matters are those matters that, in our professional judgment, 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 our opinion thereon, and we do not provide a separate opinion on these matters. 1. Risk of recoverability of intercompany balances (2024: £27.0m, 2023: £27.1m) Refer to Note 7 of the financial statements (page 22). There is a risk of material misstatement of the debtors balances in relation to the recoverability of intercompany receivables. The risk remains consistent with the prior year. Our Response to the Risk: We performed the following procedures in response to the identified risk: - We completed a walkthrough to confirm our understanding of the intercompany lending process and the nature of the intercompany balance with the group entity, and to assess the design effectiveness of the controls in place; - We have verified intercompany positions at the year end with the group entity and confirmed that the entity has the ability to repay the amounts owed to the company by assessing the net asset position and net current asset position of the group entity; - We recalculated the interest expense owed by the company on its preference shares for the year and confirmed payment of the interest by the group entity on behalf of the company, thus reducing the intercompany receivable. INVESTEC INVESTMENT TRUST PLC INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC - 8 - Key Observations communicated to Management We did not identify any evidence of non-recoverability in the intercompany balances for the year ending 31 March 2024. We note that controls are designed effectively for the entity for the recording of intercompany transactions, however management does not have any formal agreements in place for intercompany transactions. Our application of materiality We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our audit opinion. Materiality The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures. We determined materiality for the company to be £506,583 (2023: £507,838), which is 2% (2023: 2%) of equity. We believe that total equity reflects management’s intentions and the purpose of the entity as a funding vehicle. Performance materiality The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessments, together with our assessment of the company’s overall control environment, our judgement was that performance materiality was 75% (2023: 75%) of our planning materiality, namely £379,937 (2023: £380,879). We have set performance materiality at this percentage based on our experience on prior year audits. Reporting threshold An amount below which identified misstatements are considered as being clearly trivial. We agreed with management that we would report to them all uncorrected audit differences in excess of £25,329 (2023: £25,392), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion. INVESTEC INVESTMENT TRUST PLC INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC - 9 - 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. 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. Matters on which we are required to report by exception 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 material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:  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; or  certain disclosures of directors' remuneration specified by law are not made; or  we have not received all the information and explanations we require for our audit. 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. INVESTEC INVESTMENT TRUST PLC INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC - 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. Explanation as to what extent 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 irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.  We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’), the UK Companies Act 2006 and relevant tax compliance regulations.  We understood how the company is complying with those frameworks by making inquiries of management, including the directors. We corroborated our understanding through our review of board meeting minutes.  We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where they considered there was susceptibility to fraud. We also considered performance targets and their potential influence on efforts made by management to manage or influence the results.  Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved: inquiries of management, reviewing board minutes for evidence of non-compliance, testing journal entries, and exercising professional scepticism in assessing the results of our audit procedures. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. INVESTEC INVESTMENT TRUST PLC INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC - 11 - Other matters which we are required to address  Following the recommendation of management we were appointed by the company on 19 June 2000 to audit the financial statements for the year ending 31 March 2000 and subsequent financial periods. The period of total uninterrupted engagement including previous renewals and reappointments is 24 years, covering the years ending 31 March 2000 to 31 March 2024.  The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the company and we remain independent of the company in conducting our audit. 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. Chris Brouard (Senior Statutory Auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor London 1 July 2024 INVESTEC INVESTMENT TRUST PLC INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF INVESTEC INVESTMENT TRUST PLC - 12 - ......................... PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes £000's £000's Interest payable and similar expenses 5 (63) (63) Loss before taxation (63) (63) Tax on loss 6 - - Loss and total comprehensive income for the financial year (63) (63) The profit and loss account has been prepared on the basis that all operations are continuing operations. INVESTEC INVESTMENT TRUST PLC - 13 - STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2024 Share capital Retained earnings Total £000's £000's £000's Balance at 1 April 2022 14,436 11,019 25,455 Year ended 31 March 2023: Loss and total comprehensive income for the year - (63) (63) Balance at 31 March 2023 14,436 10,956 25,392 Year ended 31 March 2024: Loss and total comprehensive income for the year - (63) (63) Balance at 31 March 2024 14,436 10,893 25,329 INVESTEC INVESTMENT TRUST PLC - 14 - BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 restated Notes £000's £000's Fixed assets Debtors falling due after more than one year 7 26,966 27,029 Current assets Debtors 7 63 63 Creditors: amounts falling due within one year Creditors 9 55 55 Net current assets 8 8 Total assets less current liabilities 26,974 27,037 Creditors: amounts falling due after more than one year Preference shares treated as debt 8 1,645 1,645 Net assets 25,329 25,392 Capital and reserves Called up share capital 10 14,436 14,436 Retained earnings 10,893 10,956 Total equity 25,329 25,392 The financial statements were approved by the board of directors and authorised for issue on 1 July 2024 and are signed on its behalf by: T Freeme Director Company Registration No. 00328206 INVESTEC INVESTMENT TRUST PLC - 15 - NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1 Accounting policies Company information Investec Investment Trust plc is a public limited company incorporated in England and Wales. The registered office is 30 Gresham Street, London, EC2V 7QP. 1.1 Accounting 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 2024. INVESTEC INVESTMENT TRUST PLC - 16 - 1 Accounting 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. 1.2 Going concern The company's 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 and this is then on lent to the wider Investec group. The loan is repayable on demand. The loan principal is reduced by amounts paid to 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 2026, 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. INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 17 - 1 Accounting policies (Continued) 1.3 Fair 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. 1.4 Financial 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. The company's intercompany debtors are classified and measured at fair value through profit or loss. 1.5 Financial 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. INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 18 - 1 Accounting policies (Continued) 1.6 Derecognition of financial assets and liabilities A financial asset, or a portion thereof, is derecognised when the group’s rights to cash flows have expired or when the group has transferred its rights to cash flows relating to the financial assets and either (a) the group has transferred substantially all the risks and rewards associated with the financial assets or (b) the group has neither transferred nor retained substantially all the risks and rewards associated with the financial assets but has transferred control of the assets. The treatment of a renegotiation or modification of the contractual cash flows of a financial asset depends upon whether the modification is done for commercial reasons, in which case if they are significant the old asset is derecognised and a new asset recognised, or because of financial difficulties of the borrower. A financial liability is derecognised when it is extinguished, that is when the obligation is discharged, cancelled or expired. When an existing financial liability is replaced or modified with substantially different terms, such a replacement or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the income statement. 1.7 Taxation The tax expense represents the sum of the tax currently payable and deferred tax. 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. 1.8 Restatements A portion of the Amounts owed by parent undertaking which is not expected to be realised within twelve months post the reporting date was restated from Current assets to Non-current assets in accordance with guidance provided by IAS1 paragraph 66. The 31 March 2024 amount was £26.97 million (31 March 2023: £27.03 million). INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 19 - 2 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 £13,542 (2023: £19,167). 3 Employees The company has no employees (2023: nil). 4 Auditor's remuneration 2024 2023 Fees payable to the company's auditor and associates: £000's £000's For audit services Audit of the financial statements of the company 18 18 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. INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 20 - 5 Finance costs 2024 2023 £000's £000's Interest payable 63 63 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. 2024 £000's 2023 £000's Dividends paid 3.5 per cent cumulative preference shares 1-Jun 7 7 3.5 per cent cumulative preference shares 1-Dec 23 23 5 per cent cumulative preference shares 15-May 2 2 5 per cent cumulative preference shares 15-Nov 9 9 41 41 Dividends payable 3.5 per cent cumulative preference shares 15 15 5 per cent cumulative preference shares 7 7 22 22 INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 21 - 6 Taxation The charge for the year can be reconciled to the loss per the profit and loss account as follows: 2024 £000's 2023 £000's Loss before taxation (63) (63) Expected tax credit based on a corporation tax rate of 25.00% (2023: 19.00%) (16) (12) Effect of expenses not deductible in determining taxable profit 16 12 Free group relief (362) (51) Transfer pricing adjustment 362 51 Taxation charge for the year - - 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 (2023: £137,712) as there is insufficient evidence that the loss will be recovered. 7 Debtors Due within one year Due after one year 2024 2023 2024 2023 £000's £000's £000's £000's Amount owed by parent undertaking 63 63 26,966 27,029 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. The amount expected to be settled within the next twelve months are then presented as a current asset in the balance sheet. Receivables are carried on the balance sheet at fair value and are measured using level 2 techniques. The fair value of the amount receivable is equal to the undiscounted cash amount payable reflecting the company's right to demand immediate repayment. INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 22 - 8 Preference Shares 2024 2023 £000's £000's Secured borrowings at amortised cost Preference shares 1,645 1,645 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 (2023 - £1,645k) and the fair value hierarchy is level 3 (2023 - 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. 9 Creditors 2024 2023 £000's £000's Other creditors 55 55 10 Share capital Ordinary share capital 2024 £000's 2023 £000's Authorised 60,000,000 Ordinary Shares of 25p each 15,000 15,000 Issued and fully paid 57,744,387 Ordinary Shares of 25p each 14,436 14,436 14,436 14,436 INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 23 - 11 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 2024. 12 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 2024 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. 13 Ultimate parent undertaking 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 are available to the public and may be obtained from Investec plc at 30 Gresham Street, London, EC2V 7QP. INVESTEC INVESTMENT TRUST PLC NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 - 24 -