Net Asset Value(s)

THE LINDSELL TRAIN INVESTMENT TRUST PLC

NET ASSET VALUE

It is announced that the un-audited Net Asset Value (inclusive of accumulated income) of The Lindsell Train Investment Trust plc (“LTIT”), which is managed by Lindsell Train Limited (“LTL”), at the close of business on the below date was as follows:

31 October 2022    £1,003.10 per Ordinary share.

The above NAV figure is based on a revised valuation for LTIT’s holding of 6,450 shares in LTL.

As at 31 October 2022, LTL shares were valued at £12,902.99 per share, a decrease of 5.3% from the valuation of £13,620.89 per share as at the previous monthly valuation on 30 September 2022. LTL’s valuation is calculated with reference to a ratio of annualised notional net profits of £36.0m to Funds Under Management at LTL of £18.0 billion resulting in a percentage of funds under management of 1.90%.

The Board of the Lindsell Train Investment Trust plc (LTIT) has decided to take into account the proposed increase in Corporation Tax from 19% to 25% in respect of its monthly valuation of Lindsell Train Limited (LTL). As this increase will reduce the notional net earnings of LTL for periods after the current year to 31 March 2023, the effect will be introduced progressively. Starting at 31 October 2022 the valuation will apply a 19% tax rate for 5 months and 25% for 7 months. From 30 November the 19% rate will be used for 4 months and 25% for 8 months, and so on. For the valuation at 31 March 2023 and thereafter the full proposed Corporation Tax rate of 25% will be applied to notional LTL earnings. The Board will continue to monitor developments and consider the continuing appropriateness of these and other assumptions.

 In all other ways the valuation methodology for LTL remains as described on page 85 of the Annual Report & Accounts of LTIT for the year to 31 March 2022.

The effect of this change is to reduce the percentage of Funds Under Management used in the 31 October 2022 LTL valuation from 1.95% to 1.90%. This would have been the same if a 25% Corporation Tax rate had been applied to LTL’s notional earnings.

For and on behalf of the Board
Frostrow Capital LLP
Secretary

10 November 2022