7. LOANS ADVANCED
30 June 2021 30 June 2020 31 December 2020 GBP GBP GBP UK Hotel & Residential 49,918,080 49,918,078 49,914,595 Hospitals 25,357,713 25,355,368 25,362,367 Residential, London - 37,450,724 25,124,499 Hotel, North Berwick 13,127,256 10,522,972 10,497,593 Hotel, Scotland 37,910,554 25,841,675 26,727,408 Hotel, Oxford 16,744,853 16,727,400 16,705,485 Life Science, UK 19,594,589 - - Office, London 13,764,463 12,964,026 13,368,457 Office, Scotland 5,017,965 4,688,936 4,894,738 Logistics Portfolio 552,699 11,905,419 11,981,154 Ireland Hotel, Dublin 52,119,113 55,484,069 54,730,169 Office Portfolio, Dublin 30,233,451 32,217,021 31,753,439 Mixed use, Dublin 3,843,782 1,870,185 3,112,893 Spain Three Shopping Centres 31,273,245 34,097,509 33,367,582 Hotel 46,564,064 39,590,856 47,379,721 Office, Madrid 15,991,232 17,015,583 16,792,398 Shopping Centre 15,000,520 15,792,369 15,653,661 Office Portfolio 13,474,355 19,669,822 19,375,687 Germany Logistics Portfolio 5,078,596 5,957,035 5,909,892 Europe Mixed Portfolio 25,240,936 31,822,637 30,007,911 420,807,466 448,891,684 442,659,649
No element of loans advanced are past due or impaired. For further information and the associated risks see the Investment Manager's Report.
The table below reconciles the movement of the carrying value of loans advanced in the period / year:
30 June 2021 30 June 2020 31 December 2020 GBP GBP GBP Loans advanced at the start of the period / year 442,659,649 390,647,516 390,647,516 Loans advanced 35,964,642 84,751,266 97,794,862 Loan repayments and amortisation (45,824,727) (43,513,026) (59,619,767) Arrangement fees earned (357,009) (778,691) (780,584) Commitment fees earned (365,634) (683,762) (1,215,996) Exit fees earned (485,435) (243,680) (250,772) Origination fees paid 199,206 545,248 546,194 Effective interest earned 14,472,491 14,433,090 29,052,521 Interest payments received (13,130,109) (13,093,206) (26,789,437) Foreign exchange (losses) / gains (12,325,608) 16,826,929 13,275,112 Loans advanced at the end of the period / year 420,807,466 448,891,684 442,659,649 Loans advanced at fair value 436,334,012 462,295,383 459,549,015
For further information on the fair value of loans advanced, refer to note 13.
8. FINANCIAL ASSETS AND FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
Financial assets at fair value through profit or loss comprise currency forward contracts which represent contractual obligations to purchase domestic currency and sell foreign currency on a future date at a specified price.
The underlying instruments of currency forwards become favourable (assets) or unfavourable (liabilities) as a result of fluctuations of foreign exchange rates relative to their terms. The aggregate contractual or notional amount of derivative financial instruments, the extent to which instruments are favourable or unfavourable, and thus the aggregate fair values of derivative financial assets and liabilities, can fluctuate significantly from time to time. The foreign exchange derivatives are subject to offsetting, enforceable master netting agreements for each counterparty.
The gains and losses relating to the currency forwards are included within "Net foreign exchange (losses) / gains" in the Unaudited Condensed Consolidated Statement of Comprehensive Income.
The fair value of financial assets and liabilities at fair value through profit or loss are set out below:
Notional contract Fair values 30 June 2021 amount1 Assets Liabilities Total GBP GBP GBP GBP Foreign exchange derivatives Currency forwards: Lloyds Bank plc 248,024,170 12,724,121 (748,391) 11,975,731 Total 248,024,170 12,724,121 (748,391) 11,975,731 Notional contract Fair values 30 June 2020 amount1 Assets Liabilities Total GBP GBP GBP GBP Foreign exchange derivatives Currency forwards: Lloyds Bank plc 303,343,342 1,142,927 (5,679,311) (4,536,384) Total 303,343,342 1,142,927 (5,679,311) (4,536,384) Notional contract Fair values 31 December 2020 amount1 Assets Liabilities Total GBP GBP GBP GBP Foreign exchange derivatives Currency forwards: Lloyds Bank plc 273,442,149 3,897,550 (2,979,291) 918,259 Total 273,442,149 3,897,550 (2,979,291) 918,259
1 Euro amounts are translated at the period / year end exchange rate
9. TRADE AND OTHER PAYABLES
30 June 2021 30 June 2020 31 December 2020 GBP GBP GBP Investment management fees payable 785,134 795,148 799,584 Audit fees payable 188,315 182,996 98,902 Commitment fees payable 156,340 144,124 161,430 Accrued expenses 89,444 - 17,079 Administration fees payable 24,137 79,167 7,771 Legal and professional fees payable 58,087 - 5,000 Directors' fees payable 2,000 - - Broker fees payable 25,000 - 25,000 Refinancing and restructuring fees payable - 208,558 - Share buyback payable - - 85,587 Tax provision - 56,681 9,713 1,328,457 1,466,674 1,210,066
10. CREDIT FACILITIES
Under its investment policy, the Group is limited to borrowing an amount equivalent to a maximum of 30 per cent of its NAV at the time of drawdown, of which a maximum of 20 per cent can be longer term borrowings. In calculating the Group's borrowings for this purpose, any liabilities incurred under the Group's foreign exchange hedging arrangements shall be disregarded.
As at 30 June 2021 an amount of GBP11,000,000 (30 June 2020: GBP24,062,500 and 31 December 2020: GBP19,500,000) was drawn and interest of GBP17,667 (30 June 2020: GBP23,144 and 31 December 2020: GBP69,585) was payable.
The revolving credit facility capitalised costs are directly attributable costs incurred in relation to the establishment of the credit loan facilities and an amount of GBP802,032 (30 June 2020: GBP1,153,701 and 31 December 2020: GBP942,748) was netted off against the loan facilities outstanding.
The Group has maintained sufficient headroom against the measures under, and is full compliance with, all loan covenants.
The changes in liabilities arising from financing activities are shown in the table below.
30 June 2021 30 June 2020 31 December 2020 GBP GBP GBP Borrowings at the start of the period /year 18,626,837 28,359,047 28,359,047 Proceeds during the period / year 29,400,000 44,952,688 41,985,860 Repayments during the period / year (37,900,000) (50,472,045) (52,067,717) Interest expense recognised for the period / year 139,892 301,993 558,323 Interest paid during the period / year (191,809) (293,798) (492,331) Credit facility fees incurred (100,000) - - Credit facility amortisation of fees 240,715 206,201 387,448 Foreign exchange and translation difference - (122,143) (103,793) Borrowings at the end of the period/year 10,215,635 22,931,943 18,626,837
11. DIVIDENDS
Dividends will be declared by the Directors and paid in compliance with the solvency test prescribed by Guernsey law. Under Guernsey law, companies can pay dividends in excess of accounting profit provided they satisfy the solvency test prescribed by the Companies (Guernsey) Law, 2008. The solvency test considers whether a company is able to pay its debts when they fall due, and whether the value of a company's assets is greater than its liabilities. The Company passed the solvency test for each dividend paid.
Subject to market conditions, the financial position of the Company and the investment outlook, it is the Directors' intention to continue to pay quarterly dividends to Shareholders (for more information see Chairman's Statement).
The Company paid the following dividends in respect of the period to 30 June 2021:
Dividend rate per Share (pence) Net dividend Payment date paid (GBP) Period to: 31 March 2021 1.375 5,622,530 04 June 2021
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