Integrated Annual Report 2015

Notes to Investec plc parent company accounts

   

a.

Accounting policies

 

Basis of preparation

The parent accounts of Investec plc are prepared under the historical cost convention and in accordance with UK accounting standards, and on a going concern basis.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into Pounds Sterling at exchange rates ruling at the balance sheet date. All foreign currency transactions are translated into Pounds Sterling at the exchange rate ruling at the time of the transaction. Forward foreign exchange contracts are revalued at the market rates ruling at the date applicable to their respective maturities. Any gain or loss arising from a change in exchange rates subsequent to the date of the transaction is included as an exchange gain or loss in the income statement.

Investments

Investments are stated at cost less any impairment in value.

Income

Dividends from subsidiaries are recognised when paid. Interest is recognised on an accrual basis.

Taxation

Corporate tax is provided on taxable profits at the current rate.

Company’s own profit and loss account

The company has taken advantage of the exemption in section 408 of the Companies Act 2006 to not present its own profit and loss account.

Cash flow statement

The company has taken advantage of the exemption in Financial Reporting Standard 1 to not present its own cash flow statement. A cash flow statement, prepared under International Financial Reporting Standards, is included in the consolidated financial statements of the group.

Financial instruments

The company has taken advantage of the exemption in Financial Reporting Standard 29 to not present its own disclosures in respect of financial instruments as disclosures prepared in accordance with International Reporting Standards are included in the consolidated annual financial statements of the group.

Financial liabilities

Financial liabilities are recorded at amortised cost applying the effective interest rate method.

Related party transactions

Transactions, arrangements and agreements involving directors and others are disclosed in note 52 to the group financial statements. The company has taken advantage of the exemptions available in Financial Reporting Standard 8 group from disclosing transactions with related parties which are wholly owned members of Investec plc group.

b.

Investments in subsidiary undertakings

 
£’000 2015  2014 
At the beginning and end of the year 1 817 840  1 817 840 
   

c.

Bank loans

  The company drew down a Pounds Sterling-denominated loan of £40 million on 10 February 2014 which bears interest at a fixed margin above three-month LIBOR and was repaid on 10 February 2015. During the year ended 31 March 2014, the company launched its own European Medium Term Note programme (EMTN). The company issued two fixed-rate notes under this programme. A US Dollar-denominated note of US$15 million was issued on 14 February 2014, repaid 16 February 2015 and on the same day a Euro-denominated note of €25 million was issued which matures 29 September 2017 and pays interest semi-annually.

d.

Statement of changes in shareholders’ equity

 
£’000  Share 
capital 
Perpetual 
preference 
shares 
Share 
premium 
Capital 
reserve 
Profit 
and loss 
account 
Total 
equity 
At 1 April 2014  178  151  1 146 548  356 292  2 828  1 505 997 
Issue of ordinary shares –  24 893  –  –  24 895 
Release of capital reserve to profit and loss –  –  –  (175 809) 175 809  – 
Profit for the year –  –  –  –  161 330  161 330 
Dividends paid to preference shareholders –  –  –  –  (3 315) (3 315)
Dividends paid to ordinary shareholders –  –  –  –  (97 002) (97 002)
At 31 March 2015 180  151  1 171 441  180 483  239 650  1 591 905 
   

e.

Parent company profit and loss account

 

No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006.

The company’s profit for the year, determined in accordance with the Act, was £161 330 000 (2014: £48 309 000).

f.

Audit fees

 

Details of the company’s audit fees are set out in note 6 to the group financial statements.

g.

Dividends

 

Details of the company’s dividends are set out in note 10 to the group financial statements.

h.

Share capital

 

Details of the company’s ordinary share capital are set out in note 42 to the group financial statements. Details of the perpetual preference shares are set out in note 43 to the group financial statements.

i.

Audit opinion

 

The audit opinion on the financial statements of the Investec plc parent company is included in the combined consolidated financial statements of Investec plc and Investec Limited for the year ended 31 March 2015.

The information as detailed here for Investec plc parent company is a summary. For detailed notes refer to the Investec plc group and company annual financial statements.

 

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