The Edinburgh Investment Trust Plc Annual Financial Report 2022 - Flipbook - Page 85
THE EDINBURGH INVESTMENT TRUST PLC / OTHER INFORMATION FOR SHAREHOLDERS / 83
Glossary of Terms and Alternative
Performance Measures
ALTERNATIVE PERFORMANCE MEASURE (APM)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly
derived from the financial statements. The calculations shown in the corresponding tables are for the financial years ended 31 March
2022 and 31 March 2021. The APMs listed here are widely used in reporting within the investment company sector and consequently aid
comparability, providing useful additional information.
BENCHMARK (OR BENCHMARK INDEX)
A standard against which performance can be measured, usually an index that averages the performance of companies in a stock market
or a segment of the market. The benchmark most often referred to in this interim financial report is the FTSE All-Share Index.
DISCOUNT OR PREMIUM (APM)
Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the underlying net
asset value of that share. Conversely, Premium is a measure of the amount by which the mid-market price of an investment company
share is higher than the underlying net asset value of that share. In this annual financial report the discount is expressed as a percentage
of the NAV per share with debt at market value (see reconciliation of NAV per share with debt at market value in note 15 on page 68)
and is calculated according to the formula set out below. If the shares are trading at a premium the result of the below calculation will be
positive and if they are trading at a discount it will be negative.
Page
Share price
Net asset value per share – debt at market value (note 15)
2022
2021
2
a
634.00p
600.00p
68
b
686.69p
628.29p
c = (a-b)/b
(7.7)%
(4.5)%
2022
2021
Discount
DIVIDEND YIELD
The annual dividend payable expressed as a percentage of the year end share price.
Page
Dividends per share payable in respect of the year (note 8)
Share price
64
a
24.80p
28.65p
2
b
634.00p
600.00p
c = a/b
3.9%
4.8%
Dividend yield
GEARING
The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount by
which net assets, or shareholders’ funds, would move if the value of a company’s investments were to rise or fall. A positive percentage
indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared. A negative percentage
indicates that a company is not fully invested and is holding net cash as described below.
There are several methods of calculating gearing and the following has been used in this report:
GROSS GEARING (APM)
This reflects the amount of gross borrowings in use by a company and takes no account of any cash balances. It is based on gross
borrowings as a percentage of net assets.
2022
£’000
Page
2021
£’000
Unsecured Senior Loan Notes – debt at market value (note 15)
68
18,204
–
Debenture stock – debt at market value (note 15)
68
102,734
109,041
Gross borrowings
Net asset value – debt at market value (note 15)
Gross gearing
68
a
120,938
109,041
b
1,174,773
1,081,813
c = a/b
10.3%
10.1%