TIDM57MC
RNS Number : 0051J
Wellcome Trust Finance plc
15 December 2015
Wellcome Trust Finance plc
Annual Report and Financial Statements
Wellcome Trust and Wellcome Trust Finance plc. (a wholly owned
subsidiary of Wellcome Trust) announce that they have each
published their Annual Report and Financial Statements for the year
to 30 September 2015 today. A copy of each document is available on
the Wellcome Trust website at:
http://www.wellcome.ac.uk/About-us/Publications.
Wellcome Trust has today issued the following press release in
connection with the publication of its Annual Report and Financial
Statements:
The Wellcome Trust is pleased to report that our investment
portfolio recorded a total return of 6.1 per cent for the year to
30 September 2015, equating to GBP1.1 billion on an investment
portfolio value of GBP18.0 billion at the start of the year. Cash
payments in support of our mission rose to GBP756 million and the
investment base rose to GBP18.3 billion.
We have returned over GBP10 billion (92 per cent cumulative, 9.8
per cent annualised) in the seven years since the start of the
global financial crisis in September 2008, recording positive
returns in each of these years. Returns have been 127 per cent
cumulative (8.6 per cent annualised) over ten years and 453 per
cent cumulative (8.9 per cent annualised) over 20 years. Since the
inception of our investment portfolio in 1985, it has provided a
total return averaging 14 per cent a year. We maintain a AAA/Aaa
(stable) credit rating.
Depending on actual investment returns, we aim to be able to
commit up to GBP5 billion to our charitable mission over the next
five years.
This year, we enjoyed double-digit returns from private
equities, venture capital and property. Each major element of the
portfolio (public equities, private equities, venture capital,
hedge funds and property) has performed strongly over three, five
and ten years.
Baroness Manningham-Buller, Chair of the Trust, said: "I am
pleased to report that, once again, our investments have done well,
building on past investment decisions, and despite a difficult
market. We are now spending 35% more a year than we were at the
start of the global financial crisis in 2008.
We would also like to thank Sir William Castell, who retired as
Chair at the end of September, for his strong and thoughtful
leadership. During his time, the portfolio rose in value from
GBP13.1 billion to GBP18.3 billion and we have given GBP6.9 billion
to fund our charitable activities."
Danny Truell, CIO of the Trust, added: "Our internal investment
team and external investment partners have again added significant
value across the board, enabling us to perform better than global
stock markets with considerably lower volatility. Prospective
investment returns are now lower in most global markets, but with
strength in breadth and depth across our investment team and the
businesses and partnerships in which we invest, I am confident that
we can continue to reinforce the Trust's robust financial
position."
Wellcome Trust Finance plc. further announces that a copy of its
Annual Report and Financial Statements for the year ended 30
September 2015 has been submitted to the National Storage
Mechanism, and will shortly be available for inspection at
http://www.morningstar.co.uk/uk/NSM.
In accordance with the Disclosure and Transparency Rules, the
following information is taken from the Annual Report and Financial
Statements for Wellcome Trust Finance plc. for the year ended 30
September 2015.
Wellcome Trust Finance plc
Annual Report and Financial Statements
Year ended 30 September 2015
Strategic Report
The Directors of Wellcome Trust Finance plc present their
Strategic Report for the year ended 30 September 2015.
Strategy and Objectives
The principal activity of Wellcome Trust Finance plc (the
"Company") is to meet its obligations relating to the bonds that it
has previously issued on the London Stock Exchange and to continue
to lend the proceeds to other group entities.
Review of the Business and Future Developments
The Company issued two tranches of bonds: GBP550 million on 25
July 2006 of 4.625% Guaranteed Bonds due July 2036 and GBP275
million on 28 May 2009 of 4.750% Guaranteed Bonds due May 2021 (the
"Bonds"). The Bonds are listed on the London Stock Exchange. The
obligations of the Company in relation to the Bonds are governed by
Trust Deeds between the Company, The Wellcome Trust Limited, as
trustee of the Wellcome Trust, and Citicorp Trustee Company
Limited, as the trustee for the holders of the Bonds. The payment
of all amounts due in respect of the Bonds is unconditionally and
irrevocably guaranteed pursuant to the terms of a guarantee given
by The Wellcome Trust Limited, as trustee of the Wellcome Trust;
the guarantee is part of the Trust Deeds.
The Company loaned the proceeds from the Bonds issued to
Wellcome Trust Group (the "Group") undertakings and receives
interest on these loans.
The Company will continue to receive interest on the loans to
group undertakings and pay interest on the bond liabilities for the
foreseeable future.
Results for the Year
The Company made a result of GBPnil (2014: GBPnil) during the
year ended 30 September 2015, after recognising a Gift Aid donation
of GBP2,475,895 (2014: GBP3,679,941) to the Wellcome Trust, a
charity registered in England under the UK Charities Act 2011
(registered charity number 210183). As at 30 September 2015 the
Company had net assets of GBP137,500,000 (2014:
GBP137,500,000).
Due to the nature of the Company's operations, the key
performance measures are that the Company meets all its legal
obligations to the Bond holders and that the Company achieves
sufficient return on its assets to be profitable, before any
donations to the Wellcome Trust under Gift Aid. During the year the
Company met all its legal obligations to the Bond holders and had
profits before donations to the Wellcome Trust under Gift Aid.
Principal Risks and Uncertainties
The Directors of the Company implement policies to manage the
inherent risks relating to the financial assets and liabilities of
the Company.
The Directors have assessed for each financial asset and
liability: the market risk, interest rate risk, liquidity risk, and
credit risk exposure. The Company is not exposed to significant
market risk or interest rate risk because the Company's main
financial assets have fixed redemption values, fixed interest rates
and fixed maturity dates, which match those of its financial
liabilities. The liquidity risk of the Company is mitigated by the
matching of the cash flows from the Company's financial assets and
liabilities. Credit risk exposure of the Company's loans is reduced
by the Company only advancing loans to entities within the Group.
Credit risk exposure of the Company's remaining financial assets is
reduced by stringent selection procedures for any external
counterparties with which the Company transacts.
The Company's internal control and risk management is undertaken
as part of the Wellcome Trust's processes. The key elements of this
specifically applicable to the Company are:
-- delegation: there is a clear organisational structure with
documented lines of authority and responsibility for control and
documented procedures for reporting decisions, actions and issues;
and
-- review: the Group Audit Committee reviews the effectiveness
of the Company's internal control, its financial reporting process,
the independence of its statutory auditors and its compliance with
relevant statutory and finance regulations and advises the
Directors of any relevant matters.
Corporate and Social Responsibility
Due to the nature of its activities the Company has a minimal
environmental impact. Social responsibility of the Wellcome Trust
Group is detailed in the Wellcome Trust Annual Report and Financial
Statements, which are available at www.wellcome.ac.uk.
This report was approved by the Board of Directors and signed on
its behalf on 14 December 2015 by:
Daniel Truell
Director
14 December 2015
Directors' Report
Report of the Directors
The Directors of Wellcome Trust Finance plc present their report
and the audited Financial Statements for the year ended 30
September 2015.
Future Developments
These are discussed in the Strategic Report.
Charitable Donations
The Company made charitable donations of GBP2,475,895 (2014:
GBP3,679,941) to the Wellcome Trust under Gift Aid.
Employees
There are no employees of the Company (2014 nil).
The management and administration of the Company is undertaken
by staff from the Wellcome Trust. The Wellcome Trust has not
incurred any incremental staff costs due to the management of this
Company.
Dividend
The Directors do not propose the payment of a dividend (2014:
GBPnil).
Corporate Governance
The Company is limited by shares. Its governing documents are
its articles of association. The shareholder of the company is The
Wellcome Trust Limited, as trustee of the Wellcome Trust.
The Company is considered to be a wholly owned subsidiary of The
Wellcome Trust Limited, as trustee of the Wellcome Trust. The
Company is not subject to the requirements of the UK Corporate
Governance Code because it does not have any equity shares listed
on the London Stock Exchange. A statement on governance policies of
the Group and of the Wellcome Trust is included in the Wellcome
Trust's Annual Report and Financial Statements for the year ended
30 September 2015.
The Audit Committee, the Investment Committee, the Risk
Committee and the internal audit function of the Wellcome Trust
oversee all group entities.
The Company complies with all appropriate filing and information
requirements of the Financial Conduct Authority.
Directors and their interests
The Directors of the Company who were in office during the year
and up to the date of signing the Financial Statements were:
Nicholas Moakes
Peter Pereira Gray
Daniel Truell
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None of the Directors held any beneficial interest in the shares
of the Company or any interest in its parent company, The Wellcome
Trust Limited, as trustee of the Wellcome Trust.
Each of the Directors is an employee of the Wellcome Trust and
receives remuneration from the Wellcome Trust as an employee. No
remuneration is paid to any Director for their services as a
Director.
Directors' Indemnity Policy
The company is party to a group-wide Directors' and Officers'
liability insurance policy which includes all of its current
directors. There are no qualifying indemnity provisions (as defined
in the Companies Act 2006) that benefit the Directors of the
Company.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic
Report, Directors' Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare Financial
Statements for each financial year. Under that law the Directors
have prepared the Financial Statements in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). 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 and then apply them consistently;
-- make judgements and accounting estimates that are reasonable and prudent;
-- state whether applicable UK Accounting Standards 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 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.
The Directors are responsible for the maintenance and integrity
of the company's website. Legislation in the United Kingdom
governing the preparation and dissemination of Financial Statements
may differ from legislation in other jurisdictions.
The Directors consider that the Annual Report and Financial
Statements, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to assess a
Company's performance, business model and strategy.
Each of the Directors, whose names and functions are listed in
the Director's Report confirm that, to the best of their
knowledge:
-- the Financial Statements, which have been prepared in
accordance with United Kingdom Generally Accepted Accounting
Practice (United Kingdom Accounting Standards and applicable law),
give a true and fair view of the assets, liabilities, financial
position and result of the company; and
-- the Directors' report contained in this section of the Annual
Report includes a fair review of the development and performance of
the business and the position of the company, together with a
description of the principal risks and uncertainties that it
faces.
Statement of disclosure of information to auditors
Each Director in office at the date of approving this report
confirms that so far as the Director is aware, there is no relevant
audit information of which the Company's auditors are unaware and
each Director has taken all the steps that ought to have been taken
as a Director in order to make themselves aware of any relevant
audit information and to establish that the Company's auditors are
aware of that information.
Independent Auditors
The external audit for the financial year ending September 2016
was tendered during the year. Following the recommendation of the
group Audit Committee, the Members intend to appoint Deloitte LLP.
PricewaterhouseCoopers LLP intends to resign as external auditor
following the completion of this audit.
This report was approved by the Board of Directors and signed on
its behalf on 14 December 2015 by:
Daniel Truell
Director
14 December 2015
Independent Auditors' Report to the members of Wellcome Trust
Finance plc
Report on the Financial Statements
Our opinion
In our opinion, Wellcome Trust Finance plc's Financial
Statements (the "Financial Statements"):
-- give a true and fair view of the state of the company's
affairs as at 30 September 2015 and of its result and cash flows
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.
What we have audited
Wellcome Trust Finance plc's Financial Statements comprise:
-- the Balance Sheet as at 30 September 2015;
-- the Profit and Loss Account for the year then ended;
-- the Cash Flow Statement for the year then ended; and
-- the notes to the Financial Statements, which include a
summary of significant accounting policies and other explanatory
information.
The financial reporting framework that has been applied in the
preparation of the Financial Statements is applicable law and
United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice).
In applying the financial reporting framework, the directors
have made a number of subjective judgements, for example in respect
of significant accounting estimates. In making such estimates, they
have made assumptions and considered future events.
Opinions on other matters prescribed by the Companies Act
2006
In our opinion, 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.
Other matters on which we are required to report by
exception
Adequacy of accounting records and information and explanations
received
Under the Companies Act 2006 we are required to report to you
if, in our opinion:
-- we have not received all the information and explanations we require for our audit; or
-- 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.
We have no exceptions to report arising from this
responsibility.
Directors' remuneration
Under the Companies Act 2006 we are required to report to you
if, in our opinion, certain disclosures of directors' remuneration
specified by law are not made. We have no exceptions to report
arising from this responsibility.
Responsibilities for the Financial Statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Statement of Directors'
Responsibilities, the Directors are responsible for the preparation
of the Financial Statements and for being satisfied that they give
a true and fair view.
Our responsibility is to audit and express an opinion on the
Financial Statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland) ("ISAs (UK
& Ireland)"). Those standards require us to comply with the
Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and
only for the Company's members as a body in accordance with Chapter
3 of Part 16 of the Companies Act 2006 and for no other purpose. We
do not, in giving these opinions, accept or assume responsibility
for any other purpose or to any other person to whom this report is
shown or into whose hands it may come save where expressly agreed
by our prior consent in writing.
What an audit of Financial Statements involves
We conducted our audit in accordance with ISAs (UK &
Ireland). An audit involves obtaining evidence about the amounts
and disclosures in the Financial Statements sufficient to give
reasonable assurance that the Financial Statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of:
-- whether the accounting policies are appropriate to the
company's circumstances and have been consistently applied and
adequately disclosed;
-- the reasonableness of significant accounting estimates made by the directors; and
-- the overall presentation of the Financial Statements.
We primarily focus our work in these areas by assessing the
directors' judgements against available evidence, forming our own
judgements, and evaluating the disclosures in the Financial
Statements.
We test and examine information, using sampling and other
auditing techniques, to the extent we consider necessary to provide
a reasonable basis for us to draw conclusions. We obtain audit
evidence through testing the effectiveness of controls, substantive
procedures or a combination of both.
In addition, we read all the financial and non-financial
information in the Annual Report and Financial Statements to
identify material inconsistencies with the audited Financial
Statements and to identify any information that is apparently
materially incorrect based on, or materially inconsistent with, the
knowledge acquired by us in the course of performing the audit. If
we become aware of any apparent material misstatements or
inconsistencies we consider the implications for our report.
Alison Morris (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
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Chartered Accountants and Statutory Auditors
London
14 December 2015
a) The maintenance and integrity of the Wellcome Trust website
is the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and,
accordingly, the auditors accept no responsibility for any changes
that may have occurred to the Financial Statements since they were
initially presented on the website.
b) Legislation in the United Kingdom governing the preparation
and dissemination of Financial Statements may differ from
legislation in other jurisdictions.
Wellcome Trust Finance plc
Profit and Loss Account
For the year ended 30 September 2015
Note 2015 2014
GBP GBP
-------------------------------------- ----- ------------- -------------
Turnover 2 41,617,265 42,836,101
Cost of sales (39,104,315) (39,076,292)
Gross profit 2,512,950 3,759,809
Administrative expenses 3 (37,055) (79,868)
Operating profit 2,475,895 3,679,941
Gift Aid donation (2,475,895) (3,679,941)
Result on ordinary activities - -
before taxation
Tax on result on ordinary activities 6 - -
Result for the financial year - -
-------------------------------------- ----- ------------- -------------
All results are derived from continuing activities.
The Company has no other gains or losses other than the results
for the financial year as set out above and therefore no separate
statement of recognised gains and losses has been presented.
The notes form part of these Financial Statements.
There is no material difference between the result on ordinary
activities before taxation and the result for the financial year
stated above and their historical cost equivalents.
Wellcome Trust Finance plc
Balance Sheet
As at 30 September 2015
Note 2015 2014
GBP GBP
--------------------------------------- ----- -------------- --------------
Fixed assets
Loans to Group undertakings 7 702,977,117 702,611,604
Current assets
Loans to Group undertakings 7 245,500,000 245,500,000
Amounts owed by Group undertakings 1,557,405 1,741,879
Accrued interest on loans 9,936,096 9,936,096
Prepayments 21,197 18,900
Cash at bank and in hand 70,242 37,098
257,084,940 257,233,973
Creditors: amounts falling due within
one year 8 (9,292,456) (9,680,291)
--------------------------------------- ----- -------------- --------------
Net current assets 247,792,484 247,553,682
---------------------------------------
Total assets less current liabilities 950,769,601 950,165,286
--------------------------------------- -----
Creditors: amounts falling due after
more than one year 8 (813,269,601) (812,665,286)
Net assets 137,500,000 137,500,000
--------------------------------------- ----- -------------- --------------
Capital reserves
Called up share capital 10 137,500,000 137,500,000
Profit and loss account - -
Total shareholders' funds 9 137,500,000 137,500,000
--------------------------------------- ----- -------------- --------------
The Financial Statements were approved by the Board of Directors
on 14 December 2015 and signed on its behalf by:
Daniel Truell
Director
14 December 2015
Wellcome Trust Finance plc
Cash Flow Statement
For the year ended 30 September 2015
Cash Flow Statement
2015 2014
GBP GBP
------------------------------------------- ------------ ------------
Net cash inflow from operating activities 2,869,496 7,851,178
Gift aid donations paid (2,836,352) (8,253,999)
Net increase/(decrease) in cash 33,144 (402,821)
-------------------------------------------- ------------ ------------
Cash at beginning of year 37,098 439,919
-------------------------------------------- ------------ ------------
Cash at end of year 70,242 37,098
-------------------------------------------- ------------ ------------
Reconciliation of operating profit to net cash inflow from
operating activities
2015 2014
GBP GBP
------------------------------------------- ---------- ------------
Operating profit 2,475,895 3,679,941
Increase in loans to Group undertakings (365,512) (348,155)
Decrease/(increase) in amounts owed
by Group undertakings 184,473 (1,217,395)
Increase in Bond liabilities 604,315 576,292
(Increase)/decrease in prepayments
and accrued income (2,297) 5,122,157
(Decrease)/increase in accruals and
deferred income (27,378) 38,338
Net cash inflow from operating activities 2,869,496 7,851,178
-------------------------------------------- ---------- ------------
Reconciliation to net debt
Non-cash
changes:
At 1 October effective At 30 September
2014 Cash flow interest 2015
GBP GBP GBP GBP
---------------------- -------------- ---------- ---------- ----------------
Cash in hand and
at bank 37,098 33,144 - 70,242
Debt due after
one year
Bond liabilities (812,665,286) - (604,315) (813,269,601)
Debt due within
one year
Bond liabilities (9,212,500) - - (9,212,500)
Net debt (821,840,688) 33,144 (604,315) (822,411,859)
----------------------- -------------- ---------- ---------- ----------------
Wellcome Trust Finance plc
Notes to the Financial Statements
For the year ended 30 September 2015
1. ACCOUNTING POLICIES
(a) Basis of preparation of the Financial Statements
The Financial Statements have been prepared on a going concern
basis under the historical cost convention in accordance with the
Companies Act 2006 and with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and
applicable law). The Company has adopted fair value accounting
rules and applies the related suite of Financial Reporting
Standards (FRS):
-- FRS 23 "The Effects of Changes in Foreign Exchange
Rates";
-- FRS 25 "Financial Instruments Presentation";
-- FRS 26 "Financial Instruments Measurement"; and
-- FRS 29 "Financial Instruments Disclosures", including the
amendment issued by the Accounting Standards Board in May 2009.
Accounting policies have been reviewed in accordance with FRS 18
"Accounting Policies". There have been no changes to accounting
policies during the year.
All income and expenditure is recognised in the Financial
Statements on an accruals basis. A summary of the more important
accounting policies, which have been consistently applied, is set
out below:
(b) Turnover
Turnover is interest derived from loans to Wellcome Trust
Investment Limited Partnership and Wellcome Trust Investments 1
Unlimited, undertakings in the Group, and the Wellcome Trust.
Turnover is calculated using the effective interest rate method and
is recognised on an accruals basis.
(c) Cost of sales
Cost of sales is the effective interest on the Bond liabilities
(as described in note 1(f)) and is recognised on an accruals
basis.
(d) Gift Aid donation
The Gift Aid donation recognised is equal to estimated taxable
profits of the Company at the time of the approval of the Financial
Statements. The Gift Aid paid within nine months of the balance
sheet date is equal to the estimated taxable profits of the Company
at time of payment. Any difference between the Gift Aid donation
accrued and the Gift Aid donation paid is recognised at the time of
payment.
(e) Loans to Group undertakings
The loans to group undertakings are to Wellcome Trust Investment
Limited Partnership, Wellcome Trust Investments 1 Unlimited and the
Wellcome Trust, with fixed redemption value and fixed interest
payments. The loans are not quoted in an active market. The loans
were recognised initially at fair value and after initial
recognition are measured at amortised cost using the effective
interest method.
(f) Bond Liabilities
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The Bond liabilities relate to the 30-year corporate bonds
issued by the Company in July 2006 and the 12-year corporate bonds
issued by the Company in May 2009, listed on the London Stock
Exchange (the "Bonds"). The initial measurement of the liability is
equal to the proceeds of issue less all transaction costs directly
attributable to the issue for each Bond. After initial recognition
the liability is measured at amortised cost using the effective
interest method. The fair value of the Bond liabilities disclosed
within the notes to the Financial Statements is the market value of
the Bonds at the year end date. The Company is not required to, and
therefore does not, recognise any adjustment to fair value in the
Balance Sheet and Profit and Loss Account.
(g) Foreign Currencies
Transactions in currencies other than Sterling are recorded at
the rate of exchange prevailing on the dates of the transactions.
At each balance sheet date, recorded monetary assets and
liabilities and balances carried at fair value that are denominated
in foreign currencies are retranslated at the rates prevailing on
the balance sheet date. All realised and unrealised profits and
losses arising on exchange are included in net profit or loss for
the period.
Wellcome Trust Finance plc
Notes to the Financial Statements (continued)
For the year ended 30 September 2015
2. TURNOVER
2015 2014
GBP GBP
Interest receivable on loans to Group
undertakings 41,617,265 42,836,101
41,617,265 42,836,101
--------------------------------------- ----------- -----------
Interest receivable on loans to Group undertakings (see note 7)
is the effective interest on:
-- Loan A to Wellcome Trust Investment Limited Partnership at a fixed rate of 4.75%;
-- Loan (new bond) to Wellcome Trust at fixed rate of 4.80%; and
-- Loan C to Wellcome Trust at fixed rate of 4.00%;
-- Loan D to Wellcome Trust Investments 1 Unlimited at fixed rate of 4.125%.
3. ADMINISTRATIVE EXPENSES
2015 2014
GBP GBP
Auditors' remuneration 9,348 9,120
Rating agency
fees 22,267 65,547
Tax compliance 610 371
Other 4,830 4,830
37,055 79,868
------------------------ ------- -------
Auditors' remuneration is solely in relation to the statutory
audit of the Financial Statements.
4. EMPLOYEE INFORMATION
The Company has no employees. Personnel from the Wellcome Trust
undertake the management and administration of the Company at no
incremental cost to the Wellcome Trust.
5. REMUNERATION OF DIRECTORS
The Directors of the Company received no remuneration from the
Company for their services. There were no Directors for whom
retirement benefits are accruing under a money purchase or defined
benefit scheme. The Company does not issue share options or offer
any long-term incentive schemes, so there were no Directors who
exercised share options during the year or became entitled to
shares under a long-term incentive scheme.
6. TAX ON RESULT ON ORDINARY ACTIVITIES
The profits of the Company for the year will be paid under Gift
Aid to the Wellcome Trust, a charity registered in England under
the UK Charities Act 2011 (registered charity number 210183). There
is no difference between accounting and taxable profits, so there
is no provision required for deferred tax.
Wellcome Trust Finance plc
Notes to the Financial Statements (continued)
For the year ended 30 September 2015
7. LOANS TO GROUP UNDERTAKINGS
Principal Interest Loan anniversary Amortised cost Amortised cost
amount rate per date 2015 2014
annum
30 September 30 September
2006 2006
GBP % GBP GBP
Current Assets
Loan
A 245,500,000 4.750 25 July 245,500,000 245,500,000
245,500,000 245,500,000 245,500,000
---------------- ------------ ---------- ----------------- --------------- ---------------
Fixed Assets
Loan (new
bond) 275,000,000 4.800 28 May 272,477,117 272,111,604
Loan
C 280,500,000 4.000 25 July 280,500,000 280,500,000
Loan
D 150,000,000 4.125 25 July 150,000,000 150,000,000
705,500,000 702,977,117 702,611,604
---------------- ------------ ---------- ----------------- --------------- ---------------
Loans to Group undertakings are loans (the "Loans") to Wellcome
Trust Investment Limited Partnership (Loan A), Wellcome Trust (Loan
C and Loan (new bond)) and Wellcome Trust Investments 1 Unlimited
(Loan D). The principal under Loan A is repayable on demand by the
Company. The principal under Loan C and Loan (new bond) is
repayable on agreement between the Company and Wellcome Trust. The
principal under Loan D is repayable on agreement between the
Company and Wellcome Trust Investments 1 Unlimited. The Loans have
an agreed repayment date in 21 years (Loan A, Loan C and Loan D)
and 6 years (Loan (new bond)). Each Loan has a fixed redemption
value equal to the principal amount and a fixed interest rate.
8. CREDITORS
2015 2014
GBP GBP
Accruals and deferred
income 79,956 107,334
Gift Aid due to the
Wellcome Trust - 360,457
Bond liabilities 9,212,500 9,212,500
Total creditors: amounts falling due
within one year 9,292,456 9,680,291
--------------------------------------------- ------------ ------------
Falling due between one and - -
five years
------------------------------------------- ------------ ------------
Bond liabilities 813,269,601 812,665,286
Falling due after five
years 813,269,601 812,665,286
------------------------------------------ ------------ ------------
Total creditors: amounts falling due
after one year 813,269,601 812,665,286
--------------------------------------------- ------------ ------------
The Bond liabilities are stated at the amortised cost using the
effective interest method for the GBP550 million 4.625% Guaranteed
Bonds due July 2036 ("GBP550 million Bonds"), issued by the Company
on 25 July 2006, and the GBP275 million 4.750% Guaranteed Bonds due
May 2021 ("GBP275 million Bonds"), issued by the Company on 28 May
2009. The Bond liabilities falling due within one year are the
unpaid coupon interest accrued for the year to 30 September 2015
for each Bond. The interest payment to the Bond holders is at a
fixed rate of 4.625% per annum (GBP550 million Bonds) and 4.750%
per annum (GBP275 million Bonds) and is paid in arrears on 25 July
or 28 May respectively each year until repayment of the Bond
principals. No amounts fall due between one and five years because
the remainder of the Bond liabilities at the balance sheet date is
the amortised cost of the amount due to be repaid upon expiry of
the 30-year term on 25 July 2036 (GBP550 million Bonds) or upon the
expiry of the 12-year term on 28 May 2021 (GBP275 million Bonds)
and therefore falls due after five years.
Wellcome Trust Finance plc
Notes to the Financial Statements (continued)
For the year ended September 2015
8. CREDITORS (continued)
The obligation of the Company on the Bonds is governed by a
Trust Deed dated 25 July 2006 (GBP550 million Bonds) or 28 May 2009
(GBP275 million Bonds) between the Company, The Wellcome Trust
Limited, as trustee of the Wellcome Trust, and Citicorp Trustee
Company Limited, as the trustee for the holders of the Bonds (the
"Trust Deed" and the "new Trust Deed" respectively). The payment of
all amounts due in respect of the Bonds is unconditionally and
irrevocably guaranteed pursuant to the terms of a guarantee given
by The Wellcome Trust Limited, as trustee of the Wellcome Trust;
the guarantee is part of the Trust Deed and the new Trust Deed.
9. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2015 2014
GBP GBP
As at 1 October 137,500,000 137,500,000
As at 30 September 137,500,000 137,500,000
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(MORE TO FOLLOW) Dow Jones Newswires
December 15, 2015 02:00 ET (07:00 GMT)
Wellcome 4.625% (LSE:57MC)
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