Interim Management Statement

RNS Number : 4312D

Caledonia Investments PLC

06 July 2016

 

 

Caledonia Investments plc

Interim Management Statement for the quarter ended 30 June 2016

Caledonia is a self-managed investment trust company with net assets of £1.6bn. It aims to deliver growth in shareholder capital measured over the long term and in annual dividends. It invests in businesses and funds, both listed and private, in a range of sectors and regions.

Caledonia presents its interim management statement for the quarter ended 30 June 2016 and up to the date of publication.

Material events

o	Over the quarter, NAV increased from £1,644m to £1,645m and the NAV per share total return grew by 1.5%. Unquoted investments are revalued in March and September. Consequently, the NAV at 30 June 2016 did not include any valuation adjustments to unquoted investments in the past three months.
o	Investments during the period totalled £54.1m, including £42.0m in fund investments and commitment drawdowns.
o	Realisations during the period totalled £100.3m, including £24.0m for Bowers & Wilkins, the UK audio equipment manufacturer, £21.8m for Union Pacific Corp, the US railroad operator, and £11.1m for the remaining holding in Real Estate Investors, the Midlands focused real estate investment trust.
o	Park Holidays paid a special dividend to Caledonia of £26.7m and the carrying value of this investment was reduced accordingly.
o	A second interim dividend of 38.3p per share was paid on 1 April 2016, in lieu of the final dividend for the year ended 31 March 2016, an increase in annual dividend of 4.0% over the previous year.
o	During June the vote to leave the European Union by the United Kingdom led to considerable volatility in markets. Our portfolio is designed to give shareholders balanced exposure to the UK and overseas markets via holdings in large cap global businesses and funds specifically operating in Europe, the USA and Asia. The net effect was a positive NAV performance for the month of June and for the first quarter of this year. Our unquoted holdings will be revalued in September in accordance with our accounting policies. We remain confident that our holdings in defensive, cash generative businesses combined with our limited use of gearing will meet shareholders requirements for capital growth and income over the longer term.
o	On 6 July 2016, Caledonia announced the acquisition, subject to regulatory approval, of a 98% equity stake in The Liberation Group Ltd, the Channel Islands' market leading pub, restaurant and drinks business, for £70.6m, valuing the business at £118m.

Financial position and performance summary

		At 30 Jun 2016	At 31 Mar 2016
Net asset value		£1,645m	£1,644m
NAV per share		2934p	2890p
Discount		23.3%	20.9%
1.	NAVs per share are calculated on a diluted, cum-income basis.
2.	30 June 2016 was the latest date on which an NAV per share was prepared.
3.	The net asset value at 31 March 2016 did not include an accrual for the second interim dividend of £21.1m paid on 1 April 2016, whereas NAV per share adjusts for this dividend on the ex-dividend date.
4.	Caledonia reviews the valuation of its unquoted investments in March and September.

At 30 June 2016, the company had cash of £74.0m, compared with £22.9m of cash at 31 March 2016.

Investment portfolio

Ten largest holdings as at 30 June 2016

		30 Jun 2016	31 Mar 2016
Name	Business	£m	£m
Park Holidays	Caravan parks operator	123.7	150.4
Cobehold	Investment company	116.6	111.2
Gala Bingo	Bingo operator	92.3	92.3
Seven Investment Management	Investment Management	73.6	73.6
The Sloane Club	Residential club	58.8	58.8
Choice Care Group	Care homes provider	54.0	54.0
AG Barr	Soft drinks	45.8	50.1
British American Tobacco	Tobacco	43.3	36.6
Capital Today China	Private equity fund	43.2	59.2
Macquarie Asia New Stars	Quoted market fund	35.1	32.6
		686.4	718.8
Other investments		864.6	879.3
Cash and other items		93.8	46.2
Net assets		1,644.8	1,644.3

Pool distribution

	30 Jun 2016	31 Mar 2016
Quoted pool	24%	27%
Income & Growth pool	12%	12%
Unquoted pool	37%	39%
Funds pool	21%	19%
Cash and other	6%	3%

Enquiries

Caledonia Investments plc

Will Wyatt (Chief Executive)

Stephen King (Finance Director)

Tel: [phone]

Tulchan Communications

Peter Hewer

Jessica Reid

Tel: [phone]

6 July 2016

END

Caledonia publishes monthly fact sheets, which give further details of the investment and other activities during each month. These fact sheets and other information are available on the Company's website at www.caledonia.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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