Caledonia Investments plc
Final results for the year ended 31 March 2024
Financial highlights
| Year | Year | |
| 31 March 2024 | 31 March 2023 | |
| Net asset value per share total return1 | 7.4% | 5.5% |
| Net asset value per share | 5369p | 5068p |
| Net assets | £2,965m | £2,798m |
| Annual dividend per share | 70.4p | 67.4p |
| 1. | NAV total return, and investment and pool returns are Alternative performance measures – see note 8. |
NAV total return of 7.4%
| ● | NAV of £2,965m (5,369p per share) +7.4% NAV Total Return (‘NAVTR’) |
| ● | All three investment pools contributed to growth, with the investment portfolio delivering a return of 8.7% in the year, despite foreign exchange headwinds of c.£39m- +12.0% return from Public Companies- +12.3% return from Private Capital- +2.2% return from Funds |
57 consecutive years of progressive dividend growth
| ● | Proposed final dividend of 51.47p, taking total dividend for the year to 70.4p, a 4.5% increase compared to 2023 and extending our record of growing annual dividends to 57 consecutive years |
Robust balance sheet with significant liquidity and well positioned to take advantage of investment opportunities
| ● | Net cash of £227m combined with an undrawn revolving credit facility of £250m, providing total liquidity of £477m |
| ● | £346m invested into new and existing investments with proceeds of £371m received from the portfolio in the year |
| ● | 290,219 of shares repurchased in March and April 2024 at an average discount of 36%, resulting in a 10.1p accretion to NAV per share |
Performance to 31 March 2024
| 1 year | 3 years | 5 years | 10 years | ||
| % | % | % | % | ||
| NAV total return | 7.4 | 44.8 | 67.5 | 160.5 | |
| Annualised | |||||
| NAV total return | 7.4 | 13.1 | 10.9 | 10.0 | |
| CPIH1 | 3.8 | 6.3 | 4.2 | 2.9 | |
| FTSE All Share total return | 8.4 | 8.0 | 5.4 | 5.8 | |
| 1. Consumer Prices Index including owner occupiers’ housing costs (‘CPIH’) | |||||
Mat Masters, Chief Executive Officer, commented:
“Our long-standing philosophy of investing in high-quality, well-managed companies, with a truly long-term view, continues to serve us well. All three investment pools have contributed to our growth over the past year, despite a background of continuing macroeconomic and geopolitical uncertainty, and we are delighted to be increasing our dividend for the 57th consecutive year.
While the external environment remains uncertain, we remain focused on what we can control. Our long-term approach, diversified global portfolio and strong balance sheet position us well to take advantage of investment opportunities and continue delivering attractive long-term returns.”
21 May 2024
Enquiries
| Caledonia Investments plcMat Masters (CEO), Rob Memmott (CFO) | TeneoTom Murray, Robert Yates, Jessica Pine |
| +44 20 7802 8080 | +44 20 7260 2700 |
Chair’s statement
Results
I am pleased to report another year of growth at Caledonia, with net assets increasing to £3bn. NAVTR was 7.4%, within our long-term target of inflation plus 3% to 6%. Each of the Public Companies, Private Capital and Funds pools contributed to growth, despite foreign exchange headwinds. It is also welcoming to see our longer-term performance continuing to outperform inflation and FTSE All-Share total return, both key strategic objectives for the company.
Income and dividend
The board is recommending a final dividend of 51.47p per share which, if approved by shareholders, will be payable on 1 August 2024 to ordinary shareholders on the register on 28 June 2024. This represents a full-year dividend of 70.4p, an increase of 4.5% when compared to the previous year, and 57 consecutive years of increased annual dividends.
Investment and other income1 increased from £44m to £63m2. Total net revenue was £41m, sufficient to cover the dividend for the year. As previously reported, we expect a gradual reduction in investment income as we maintain our focus on total returns and, over time, we anticipate that net distributions from our investments will play a more material role in dividend cover.
Board
We welcomed Rob Memmott as our new Chief Financial Officer on 1 September 2023. Rob, a chartered accountant with over 20 years’ experience in senior financial leadership roles, has made an excellent start. He succeeds Tim Livett who retired last year. I would like once again to extend the board’s thanks to Tim for his contribution to Caledonia and we wish him every success as he pursues a portfolio of non-executive roles. Stuart Bridges also retired as a non-executive director at the conclusion of last year’s annual general meeting and we remain very grateful for his wise counsel over the years. As previously reported, following a period of notable change, the board has asked that I extend my tenure until the annual general meeting in 2025, subject to ongoing approval by shareholders.
Share buybacks
The board firmly believes that the company’s ability to make market purchases of its own shares is in the best interest of all shareholders. The Cayzer family concert party is a long-term shareholder and the source of Caledonia’s strong culture and long-term outlook. Given the obligation that could arise on the concert party to make a general offer for the company under Rule 9 of The City Code on Takeovers and Mergers (‘Code’), we will once again be seeking shareholder approval of the waiver of the Code’s mandatory offer provisions.
Annual general meeting
Each year I, together with my board colleagues, welcome the opportunity to meet with shareholders in person at our annual general meeting which once again takes place in London on 17 July 2024.
Outlook
Caledonia’s investment strategy takes a long-term view, with the premise being that exposure to good-quality companies over long time periods is preferable to short-term trading. Focusing on the long term necessitates a balanced approach to building a portfolio and has resulted in Caledonia’s exposure being well-diversified and having a global reach.
The economic, fiscal, geopolitical and technological environments appear to be in a state of flux and somewhat unpredictable. Our key steps to mitigate these risks continue to be with the quality and resilience of each investment being carefully considered, as well as avoiding debt to drive returns. While Caledonia is a long-term investor, an active approach to portfolio management enables us to take advantage of opportunities as they arise.
David Stewart
Chair