Caledonia Regulatory News (CLDN)

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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.

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Investments during the period totalled £54.1m, including £42.0m in fund investments and commitment drawdowns.

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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.

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Park Holidays paid a special dividend to Caledonia of £26.7m and the carrying value of this investment was reduced accordingly.

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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.

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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.

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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.

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.

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 

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%