Update from QuotedData

Caledonia Investments PLC

11 December 2024

 

 

Caledonia Investments - Update from QuotedData

11^th December 2024

Addressing the discount

On 26 November, Caledonia Investments (CLDN) released interim results covering the six-month period ended 30 September 2024. We provide some analysis of these in this note. There was a welcome narrowing of the share price discount to net asset value (NAV) over the period. However, the market turmoil that accompanied the UK budget and the US election has since reversed this, leaving CLDN trading on an excessively wide discount of 37.9%.

The board believes that CLDN's share price undervalues the quality of its portfolio and long-term track record, and we wholeheartedly agree with this. Understandably, the board and management are keen to do what they can to tackle the discount (see page 3), and NAV-accretive share buybacks play an important part in this. The company is asking shareholders to approve measures to enable their continued use (see page 5). Large independent shareholders were consulted ahead of this and presumably are supportive of the idea. We would encourage shareholders to back the proposal.

Full Research:

https://quoteddata.com/research/caledonia-investments-addressing-the-discount-qd/

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NB: Marten & Co was paid to produce this note Caledonia Investments Plc, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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