Last checked at 
6 Jul 2016 12:38
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: +44 20 7802 8080
Tulchan Communications
Peter Hewer
Jessica Reid
Tel: +44 20 7353 4200
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.