Caledonia Investments has announced results for the 12 month period ended 31 March 2025. The NAV return for the year was 3.3% but, as the discount narrowed from 39% to 35%, the return to shareholders was 10.2%. The discount today is 30.2% [it could and should, in my view, continue to narrow].

The NAV return comes in more or less in line with inflation (as measured by CPIH) of 3.4%. The trust also notes a return of 10.5% on the All-Share index for the period. This is a long-term investment vehicle. The equivalent annualised 10-year figures are 9.0% for the NAV, 7.5% for the share price, 3.2% for inflation, and 6.2% for the All-Share.

The dividend has been increased from 70.4p to 73.6p (+4.5%, ahead of inflation, and marking the 58th consecutive year of dividend growth). The current year’s dividends will be better balanced between the interim and the final.

All three investment pools contributed to growth, with the investment portfolio delivering a return of 3.5% in the year, inclusive of foreign exchange headwinds of c.£42m.

• +4.7% return from Public Companies reflecting strong performance during the year impacted public equity market volatility in March.
• +3.7% return from Private Capital with good performance from AIR-serv Europe and Stonehage Fleming partially offset by the previously reported reduction in the valuation of Cooke Optics.
• +2.2% return from Funds with continued positive performance from North American funds (+8.4% in local currency) offset by a small negative contribution from Asia funds (-1.6% in local currency).
• In addition, £63m was allocated to share buybacks, with 1,729,061 shares repurchased at an average discount of 34%, resulting in a 59.2p accretion to NAV per share.

The buybacks were facilitated by last year’s vote to allow the Concert Party of connected shareholders to increase the percentage that they own of the company above 50%. The Concert Party holding is now 50.4%.

If shareholders approve, the plan is to split the shares on a 10 for one basis. [This is a good idea – it will make it easier for smaller investors to own the stock and reinvest dividends if they choose.]

Caledonia had net cash of £151m at the end of the period, plus access to a £325m revolving credit facility, which gives it significant liquidity to take advantage of opportunities as they arise.

CLDN : Caledonia to split shares and rebalance dividend to extend appeal