Wellcome Trust Finance plc Annual Financial Report (0051J)

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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December 15, 2015 02:00 ET (07:00 GMT)