TIDMCLDN
RNS Number : 6113U
Caledonia Investments PLC
26 November 2019
Caledonia Investments plc
Half-year results for the six months ended 30 September 2019
Financial highlights
6 months Year
30 Sep 2019 31 Mar 2019 Change
Net asset value per share total return +4.9% +10.9%
Net asset value per share 3712p 3582p +3.6%
Net assets GBP2,077m GBP2,002m +3.7%
----------- ----------- ------
Interim dividend per share 16.6p 16.1p +3.1%
Highlights
- +4.9% NAV total return for the six months (including +2.8% of
currency gains)
- Quoted pool returned 10.3%, benefiting from the strong performance
of US holdings and strengthening of the US dollar
- Income pool returned 3.4%, benefiting from a slight rebound in
UK markets
- Caledonia Private Capital rebranded and deployed significant
amounts of new capital in the period, whilst its portfolio companies
traded in line with expectations
- Funds pool returned 10.8% with gains from US and Asian private
equity funds and strengthening of the US dollar
- Continued growth in dividends to shareholders, with the interim
increased by 3.1% to 16.6p per share
- Portfolio investments of GBP189m, included GBP89m in Stonehage
Fleming, a market leading provider of family office services,
and GBP72m in the Funds pool private equity programme
- GBP106m realised, including GBP55m in fund distributions and
redemptions
- GBP6m of net cash available plus unutilised facilities of GBP245m
at 30 September 2019
Will Wyatt, Chief Executive, commented:
"We remain focused on our mission of protecting and generating
value over the long term. Our approach continues to be one of
balancing patience with actively seeking opportunities, supported
by our strong balance sheet.
"We are pleased with the performance of our Quoted and Funds
pools and are encouraged by how the companies in the relatively
young portfolio in our Private Capital business are trading.
Markets remain volatile, but we are confident that we have invested
in resilient businesses that will continue to add value for our
shareholders."
26 November 2019
Enquiries
Caledonia Investments plc Tulchan Communications
Will Wyatt, Chief Executive Lisa Jarrett-Kerr
Tim Livett, Chief Financial Officer Tom Murray
+44 20 7802 8080 +44 20 7353 4200
Management report
Results
Caledonia performed satisfactorily over the half-year, with a
net asset value per share total return for the period of 4.9%.
Investment income of GBP23.9m was marginally ahead of the
comparable period last year and net cash at the half-year end was
GBP6.3m, down from GBP112.3m at the end of March, reflecting net
investments made during the period. The directors have declared an
interim dividend of 16.6p per share, an increase of 3.1% compared
with the previous year.
Total portfolio investments for the period were GBP189.0m.
Caledonia Private Capital, which was rebranded from the Unquoted
pool on 1 October, completed an investment of GBP89.3m for a 36.7%
shareholding in Stonehage Fleming, one of the world's leading
providers of family office services. The business operates in a
fast-growing and cash generative segment of its market and we have
been working with management and other shareholders on a new
strategic plan to build on the company's success to date, which is
now being executed. Follow-on investments during the period
included GBP9.5m in Buzz Bingo, to enable the launch of an online
bingo platform, and GBP5.5m in Liberation Group, to fund pub and
hotel refurbishments. A new position in Croda International, the
British speciality chemicals company, was established by the Quoted
pool and GBP71.9m was invested in the Funds pool's private equity
programme.
Portfolio realisations over the six months totalled GBP105.8m,
with the Funds pool contributing GBP55.2m and sales of Quoted and
Income pool holdings generating GBP46.5m, mainly from further
profit taking on companies such as Microsoft, AG Barr and Spirax
Sarco.
We retain significant unutilised bank facilities to enable us to
take advantage of investment opportunities that may arise. We are
wary of the large amounts of capital that have been raised by
private equity funds that, together with the plentiful availability
of debt, have driven prices to elevated levels. Caledonia Private
Capital is active in these markets, but seeks opportunities that
play to Caledonia's strengths, notably its permanent capital and
situations where finding the right partner, with the right
approach, is the most crucial factor.
Investment performance
Caledonia's strategic aims are to:
- Deliver returns of between RPI +3% to +6% over the medium term
and outperform the FTSE All-Share Total Return index over ten
years.
- Pay an increasing annual dividend.
- Manage risk to avoid permanent loss of capital.
Our performance track record remains within our strategic aims
and is healthy over all the periods shown below. However, we remain
particularly aware of our third strategic aim of managing risk to
avoid permanent loss of capital.
The table below shows our performance track record to 30
September 2019:
6 mths 1 year 3 years 5 years 10 years
% % % % %
----------------------------- ------ ------- ------- ------- --------
NAV total return 4.9 5.9 30.5 56.0 137.0
Total shareholder return 2.3 10.5 35.0 59.9 133.8
FTSE All-Share Total Return 4.6 2.7 21.7 38.9 121.0
----------------------------- ------ ------- ------- ------- --------
NAV total return annualised 5.9 9.3 9.3 9.0
RPI+3% to RPI+6% target 5.4-8.4 6.2-9.2 5.5-8.5 6.1-9.1
Performance vs target range Within Over Over Within
----------------------------- ------ ------- ------- ------- --------
NAV total return annualised 5.9 9.3 9.3 9.0
FTSE All-Share TR annualised 2.7 6.8 6.8 8.3
NAVTR vs FTSE All-Share TR 3.2 2.5 2.5 0.7
Performance vs FTSE Over Over Over Over
----------------------------- ------ ------- ------- ------- --------
The portfolio has a significant exposure to foreign currencies,
which provided a boost to performance of 2.8% in the six months.
Since 31 March 2015, net assets have increased by some GBP150m
through the weakness of sterling against, particularly, the US
dollar and euro. Whilst this positioning has been beneficial to
shareholders over the past four and a half years, it has come at
the expense of a certain amount of volatility. We have therefore
initiated a currency overlay through entering into forward sale
contracts to reduce our exposure to movements in the dollar and, to
a lesser extent, the euro, to protect some of the gains that we
have made and to reduce future volatility.
Asset allocation
Net assets allocation Return
Strategic Sep 2019 Mar 2019 target
% % % %
---------------- --------- -------- -------- ------
Quoted pool 25-40 23 23 10.0
Income pool 15-20 10 11 7.0
Private Capital 35-45 37 33 14.0
Funds pool 15-20 27 24 12.5
Cash and other +/-10 3 9
---------------- --------- -------- -------- ------
The portfolio is 33% invested in listed companies and 67% in
unlisted companies, funds or other assets. This partially reflects
the higher growth rates achieved by our unlisted holdings, but also
the lack of opportunity to deploy capital in quoted markets over
the past few years at what we consider to be attractive prices. The
current weighting in listed assets is around the minimum level we
would wish to hold, however we will not relax our investment
disciplines to achieve short term aims. The investment in Stonehage
Fleming has taken Caledonia Private Capital back to within its
strategic allocation range and the continued strong performance of
the Funds pool has resulted in it remaining above its allocation
range, whilst still in the net investment phase of its private
equity funds programme. We are therefore investigating whether we
should take advantage of the secondary market to sell certain fund
interests that are deemed non-core, to bring the weighting down
towards its strategic allocation.
Pool performance
31 Mar Invest- Realis- Gains/ 30 Sep
2019 ments ations losses 2019 Income Return
GBPm GBPm GBPm GBPm GBPm GBPm %
---------------- ------- ------- ------- ------ ------- ------ ------
Quoted pool 464.4 11.6 (26.6) 39.9 489.3 6.0 10.3
Income pool 224.5 - (19.9) (1.2) 203.4 8.4 3.4
Private Capital 659.5 105.5 (4.1) 1.5 765.1 9.0 1.1
Funds pool 482.7 71.9 (55.2) 53.8 553.2 0.5 10.8
---------------- ------- ------- ------- ------ ------- ------ ------
Portfolio 1,831.1 189.0 (105.8) 94.0 2,011.0 23.9 6.2
Non-portfolio 28.9 6.9 (2.1) (1.2) 32.5 -
---------------- ------- ------- ------- ------ ------- ------ ------
Investments 1,860.0 195.9 (107.9) 92.8 2,043.5 23.9 6.0
Cash and other 142.0 33.0
---------------- ------- ------- ------- ------ ------- ------ ------
Net assets 2,002.0 2,076.5 4.9
---------------- ------- ------- ------- ------ ------- ------ ------
1. Non-portfolio investments comprised legacy investments and cash
and receivables in subsidiary investment entities.
2. Returns for investments are calculated using the Modified Dietz
methodology and the overall return is Caledonia's NAVTR.
3. The Private Capital valuation at 30 September 2019 included GBP6.7m
of accrued income (31 March 2019 - GBP4.0m).
Quoted pool (GBP489m, 23% of net assets)
The Quoted pool is a concentrated global portfolio of listed
entities. Our focus is on mature, long term businesses with strong
balance sheets, significant presence in their marketplace and where
assets consistently produce strong returns on capital.
The total return for the Quoted pool was 10.3% for the six-month
period, with US holdings such as Microsoft, Watsco, Texas
Instruments and Charter Communications having shown particularly
strong share price growth. The further weakening of sterling
against the US dollar contributed 3.8% to the pool's performance.
Our holdings in the multi-national consumer groups Unilever and
Nestlé performed well and we saw further gains from our holding in
the UK engineering business, Spirax Sarco. AG Barr, the UK soft
drinks producer, was the weakest performer as, following the
announcement of a profits warning, its share price fell 28% over
the period, although we had previously sold down part of our
holding when its shares were more highly rated. The company however
remains one of our core holdings and we anticipate a return to
growth once certain one-off events have ceased to affect its
results. We instigated a new holding in Croda International, the UK
based speciality chemicals business, and added to our holding in
Watsco.
Geographic distribution Sector distribution
United Kingdom 34% Basic materials 5%
Europe 9% Industrials 22%
North America 57% Consumer goods 22%
------------------------- ---
Health care 18%
Telecommunications 7%
Financials 6%
Technology 20%
------------------- ---
Income pool (GBP203m, 10% of net assets)
The Income pool comprises a portfolio of 19 investments in
listed international businesses of global scale and market presence
with strong income characteristics.
The Income pool returned 3.4% for the half-year, benefiting from
a slight rebound in UK markets as, whilst this pool is invested in
international businesses, the majority of them are UK listed.
Following a period of sub-optimal performance, we have decided to
bring the Income pool assets under the management of the Quoted
pool. In future, the Income assets will be limited to companies
that fall within the Quoted pool universe (that is, companies that
meet our criteria for the Quoted pool), but we will look to build a
separate portfolio of Income assets that offer the prospect of a
growing dividend distribution rather than a high percentage yield,
in order better to match Caledonia's needs. There will undoubtedly
be an increase in companies that feature in both portfolios, though
we do not intend any single holding to exceed 4% of Caledonia's net
assets. During the past few months, several holdings that did not
fit the requirements outlined above have been sold. The Income
pool's asset allocation range will also be reconsidered as part of
this strategic repositioning.
Caledonia Private Capital (GBP765m, 37% of net assets)
Caledonia Private Capital invests in UK mid-market companies
with equity values in the GBP25m to GBP125m range. We partner with
profitable businesses led by sound management teams with clear
ambitions to grow.
The total return over the first half of the year was 1.1%,
including GBP9.0m of income from portfolio companies. During this
period, GBP105.5m was invested, including the purchase of a
minority stake in Stonehage Fleming and follow-on investments into
Buzz Bingo and Liberation Group. Of the portfolio of eight
investments that were valued at over GBP20m (out of a total of 11),
two were purchased in 2019 and two in 2018. With these recent new
investments and the sale last year of Choice Care Group, the
portfolio is relatively young and it takes time for growth
initiatives to reach shareholders in the form of value creation,
though we do expect to receive dividends in the meantime. Trading
across the portfolio, including our more recent investments, has
been in line with expectations. Of the more mature investments,
Cobehold's return of 7.8% was helped by the successful sale of
Staci, a French logistics business. Buzz Bingo's online platform
has shown growth ahead of plan and its clubs have performed in line
with expectations. New management teams have been appointed at
Liberation Group, Seven Investment Management and Stonehage
Fleming. Seven Investment Management has successfully integrated
the Tcam business acquired last year and Liberation Group has
improved its profitability. Sports Information Services fell in
value, reflecting reduced profitability as the company reorganises
and expands its business. Overall, we are confident that the
portfolio is in a healthy position and that shareholders will
benefit from this in due course.
Funds pool (GBP553m, 27% of net assets)
The Funds pool comprises investments in both private equity and
quoted market funds. Our fund investments provide broad exposure to
areas of the world where it would prove more difficult for us to
invest directly and where we believe the risk/reward ratio is
commensurate with Caledonia's overall strategic aims. This is
predominantly in Asia and North America.
The Funds pool continued its strong run, returning 10.8% for the
six-month period. More than 95% of the pool's assets are
denominated in US dollars and favourable exchange rate movements
contributed 5.8% of the overall return. The private equity
portfolio, whilst still in a period of net investment, is maturing
and starting to make sizeable cash returns. We made three new
commitments to private equity funds in the US and Asia and received
GBP16.1m from the partial redemption of our holding in Arlington
AVM Ranger, a US quoted market fund. Whilst the strong growth
produced by the pool over the past five years has been most
welcome, we are seeking to address the resulting increase in
exposure to private equity funds. We are therefore examining the
possibility of selling certain assets in order to realise some of
these gains, as well as to reduce the pool's capital allocation
from the current 27% of net assets towards its intended range.
Fund investments
Geography Category
North America 52% Private equity 62%
Funds of private equity
Asia 44% funds 28%
United Kingdom 4% Quoted market 10%
---------------- --- ----------------------- ---
Dividend
The board has declared an interim dividend of 16.6p per share,
an increase of 3.1% on last year's interim. This will be paid to
shareholders on 9 January 2020.
Board
We were delighted to welcome Claire Fitzalan Howard to the board
as an independent non-executive director in July. Claire's
experience in financial services and her longstanding involvement
in philanthropy and the charitable sector, as well as her
understanding of family businesses, will be a valuable
addition.
We were sad to say farewell to Charles Gregson, who retired from
the board at the AGM in July. We are very grateful to him for his
wise counsel over his nine years as a non-executive director, in
particular as Senior Independent Director and Chairman of the
Remuneration Committee. He has been succeeded in these respective
roles by Guy Davison and Shonaid Jemmett-Page.
Outlook
Investors have witnessed ongoing pricing volatility over the
past year in both fixed interest and equity markets. These swings
are often instigated by the pronouncements of central bankers who,
in the US, raised interest rates and then dropped them again,
whilst the European Central Bank has continued to pump huge amounts
of liquidity into markets in an attempt to stimulate life into a
moribund economy. Prices remain at extended levels and great care
needs to be taken when purchasing assets, especially in competition
with those with seemingly bottomless pockets. When one reads
reports of fixed interest investments being purchased at a price
that guarantees a loss of capital at redemption, no further
evidence of the misallocation of capital is required.
We are focused on ensuring that our portfolio is managed with a
long term view and keeping risk in mind. Should markets fall or
face a prolonged period of weakness, we are confident that we have
invested in resilient businesses that will continue to add value
for shareholders by investing internally generated capital into
projects with high returns. In addition, our strong balance sheet
enables us to provide the support our investee companies need to
grow their businesses and to take advantage of pricing anomalies as
they present themselves. We believe that the portfolio is in a good
position to continue to produce our return objectives within
acceptable risk parameters.
Portfolio summary
Holdings of 1% or more of net assets at 30 September 2019 were
as follows:
Net
Value assets
Name Pool Geography Business GBPm %
---------------------------- -------- ------------ -------------------------- ------- ------
Private
Deep Sea Electronics Cap UK Control systems 117.5 5.7
Private
Cobehold Cap Belgium Investment company 110.9 5.3
Private
Seven Investment Management Cap Jersey Investment management 105.8 5.1
Private
Buzz Bingo Cap UK Bingo operator 99.4 4.8
Private
Cooke Optics Cap UK Cine lens manufacturer 92.5 4.5
Private
Stonehage Fleming Cap Jersey Family office services 91.9 4.4
Aberdeen US PE funds Funds US Funds of funds 91.9 4.4
Private
Liberation Group Cap Jersey Pubs and restaurants 89.2 4.3
Axiom Asia funds Funds Asia Funds of funds 47.8 2.3
Microsoft Quoted US Infrastructure technology 45.4 2.2
Spirax Sarco Quoted UK Steam engineering 38.2 1.8
JF Lehman funds Funds US Private equity funds 38.1 1.8
Asia Alternatives funds Funds Asia Funds of funds 35.2 1.7
Charter Communications Quoted US Cable broadband 34.4 1.7
Oracle Quoted US Infrastructure technology 34.1 1.6
Scientific analysis
Thermo Fisher Scientific Quoted US support 33.2 1.6
Becton Dickinson Quoted US Medical technology 32.4 1.6
Polar Capital Quoted UK Fund manager 30.9 1.5
Nestlé Quoted Switzerland Packaged foods 29.8 1.4
Stonepeak funds Funds UK Infrastructure funds 28.7 1.4
Hill & Smith Quoted UK Infrastructure products 27.2 1.3
Quoted/
British American Tobacco Income UK Tobacco 26.2 1.3
Overlook Partners fund Funds Asia Quoted market fund 25.8 1.2
AG Barr Quoted UK Soft drinks 24.5 1.2
Private Bioanalytical testing
BioAgilytix Cap US services 24.3 1.2
Watsco Quoted US Ventilation products 24.1 1.2
PAG Asia Capital fund Funds Asia Private equity fund 23.4 1.1
Waters Quoted US Life sciences support 23.0 1.1
Unilever Quoted UK Consumer goods 20.8 1.0
Other investments 564.4 27.1
Total pool investments 2,011.0 96.8
Non-pool investments 32.5 1.6
Cash and other items 33.0 1.6
-------------------------------------------------------------------------------- ------- ------
Net assets 2,076.5 100.0
-------------------------------------------------------------------------------- ------- ------
1. Geography is based on the country of listing, country of domicile
for unlisted investments and underlying regional analysis for
funds.
Change in pool investments value Pool distribution
Sep Mar
GBPm 2019 2019
------------------------- ---------- ------------------------ ---- ----
Opening balance 1,831.1 Quoted pool 23% 23%
Investments 189.0 Income pool 10% 11%
Realisations (105.8) Private Capital 37% 33%
Gains/losses 94.0 Funds pool 27% 24%
Accrued income 2.7 Cash and other 3% 9%
------------------------- ---------- ------------------------ ---- ----
Closing balance 2,011.0
------------------------- ----------
Geographic distribution Asset class distribution
Sep Mar Sep Mar
2019 2019 2019 2019
------------------------- ---- ---- ------------------------ ---- ----
United Kingdom 33% 35% Listed equities 33% 34%
Europe 23% 19% Private companies 37% 33%
North America 29% 27% Private equity funds 24% 20%
Asia 12% 10% Quoted market funds 3% 4%
Cash and other 3% 9% Cash and other 3% 9%
------------------------- ---- ---- ------------------------ ---- ----
Currency distribution
Sep Mar
2019 2019
------------------------- ---- ----
Pound sterling 50% 54%
US dollar 40% 37%
Euro 7% 7%
Other currencies 3% 2%
------------------------- ---- ----
1. The geographic distribution is based on the country of listing,
country of domicile for unlisted investments and underlying regional
analysis for funds.
2. The asset class and currency distributions are based on the category
and denomination of the securities held. They do not look through
to the underlying exposures, which may be different.
Risks and uncertainties
Caledonia has a risk management framework that provides a
structured process for identifying, assessing and managing risks
associated with the company's business objectives and strategy.
The principal risks and uncertainties faced by the company are
set out in the strategic report section of Caledonia's annual
report 2019. External risks arise from political, legal, regulatory
and economic changes. Strategic risks arise from the conception,
design and implementation of the company's business model.
Investment risks arise from specific investment and realisation
decisions. Market risks arise from equity price volatility, foreign
exchange rate movements and interest rate volatility. Treasury and
funding risks arise from counterparties, uncertainty in market
prices and rates and liquidity availability. Operational risks
arise from potentially inadequate or failed controls, processes,
people or systems. The company is also mindful of the uncertainties
related to the effects of Brexit.
The principal risks and uncertainties identified in the annual
report 2019, including uncertainties related to the effects of
Brexit, remain unchanged and each of them has the potential to
affect the company's results during the remainder of the year
ending 31 March 2020.
Caledonia actively monitors key risk factors, including
portfolio concentration, liquidity and volatility, and aims to
manage risk by:
- diversifying the portfolio by sector and geography
- ensuring access to relevant information from investee companies, particularly in the case
of unquoted investments through board representation
- managing cash and borrowings to ensure that liquidity is available to meet investment and
operating needs
- reducing counterparty risk by limiting maximum aggregate exposures.
Going concern
The factors likely to affect the company's ability to continue
as a going concern were set out in the annual report 2019. As at 30
September 2019, there have been no significant changes to these
factors. Having reviewed the company's forecasts and other relevant
evidence, the directors have a reasonable expectation that the
company and the group have adequate resources to continue in
operational existence for the foreseeable future. Accordingly, they
continue to adopt the going concern basis in preparing the
half-year condensed financial statements.
Directors' responsibility statement
We confirm that to the best of our knowledge:
- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted
by the European Union;
- the interim management report includes a fair review of the
information required by:
- DTR 4.2.7R of the Disclosure Guidance and Transparency Rules,
being an indication of important events that have occurred
during the first six months of the financial year and their
impact on the condensed set of financial statements and a
description of the principal risks and uncertainties for the
remaining six months of the financial year;
- DTR 4.2.8R of the Disclosure Guidance and Transparency Rules,
being related parties transactions that have taken place in
the first six months of the current financial year and that
have materially affected the financial position or performance
of the entity during that period and any changes in the related
party transactions described in the last annual report that
could do so.
Signed on behalf of the board
Will Wyatt, Chief Executive
25 November 2019
Independent review report
to Caledonia Investments plc
Conclusion
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2019, which comprises the condensed
group statement of comprehensive income, the condensed group and
company statements of financial position, the condensed group and
company statements of changes in equity and the condensed group and
company statements of cash flows and the related explanatory
notes.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2019 is not prepared, in all material respects, in
accordance with IAS 34 Interim Financial Reporting as adopted by
the EU and the Disclosure Guidance and Transparency Rules ('the
DTR') of the UK's Financial Conduct Authority ('the UK FCA').
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. We read the other information contained in the
half-yearly financial report and consider whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
The impact of uncertainties due to the UK exiting the European
Union on our review
Uncertainties related to the effects of Brexit are relevant to
understanding our review of the condensed financial statements.
Brexit is one of the most significant economic events for the UK,
and at the date of this report its effects are subject to
unprecedented levels of uncertainty of outcomes, with the full
range of possible effects unknown. An interim review cannot be
expected to predict the unknowable factors or all possible future
implications for a company and this is particularly the case in
relation to Brexit.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FCA.
As disclosed in note 2, the annual financial statements of the
group and company are prepared in accordance with International
Financial Reporting Standards as adopted by the EU. The directors
are responsible for preparing the condensed set of financial
statements included in the half-yearly financial report in
accordance with IAS 34 as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
The purpose of our review work and to whom we owe our
responsibilities
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the DTR of the UK FCA. Our review has been
undertaken so that we might state to the company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the company for our
review work, for this report, or for the conclusions we have
reached.
Thomas Brown
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square, London E14 5GL
25 November 2019
Condensed group statement of comprehensive income
for the six months ended 30 September 2019
Six months 30 Sep Six months 30 Sep Year 31 Mar 2019
2019 2018
Revenue Capital Total Revenue Capital Total Revenue Capital Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Revenue
Investment income 23.9 - 23.9 23.6 - 23.6 52.1 - 52.1
Net gains and losses
on fair value investments - 92.8 92.8 - 175.1 175.1 - 176.7 176.7
Other income 0.1 - 0.1 0.1 - 0.1 0.1 0.9 1.0
Losses on fair
value property - - - - (2.3) (2.3) - (5.3) (5.3)
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Total revenue 24.0 92.8 116.8 23.7 172.8 196.5 52.2 172.3 224.5
Management expenses (9.5) (6.0) (15.5) (9.3) (4.7) (14.0) (17.9) (8.6) (26.5)
Profit before finance
costs 14.5 86.8 101.3 14.4 168.1 182.5 34.3 163.7 198.0
Treasury interest
receivable 0.3 - 0.3 0.3 - 0.3 0.5 - 0.5
Finance costs (1.1) - (1.1) (1.0) - (1.0) (2.1) - (2.1)
Exchange movements 0.2 - 0.2 0.4 - 0.4 0.5 - 0.5
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Profit before tax 13.9 86.8 100.7 14.1 168.1 182.2 33.2 163.7 196.9
Taxation 0.8 (0.1) 0.7 0.8 - 0.8 1.4 (0.1) 1.3
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Profit for the
period 14.7 86.7 101.4 14.9 168.1 183.0 34.6 163.6 198.2
Other comprehensive
income items never
to be reclassified
to
profit or loss
Gain on acquisition
of pension scheme - - - 0.7 - 0.7 1.4 - 1.4
Re-measurement
of defined benefit
pension schemes - - - - - - - (0.1) (0.1)
Tax on other comprehensive
income - - - - (0.1) (0.1) - 0.2 0.2
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Total comprehensive
income 14.7 86.7 101.4 15.6 168.0 183.6 36.0 163.7 199.7
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
Basic earnings
per share 26.8p 157.8p 184.6p 27.1p 306.1p 333.2p 63.0p 297.9p 360.9p
Diluted earnings
per share 26.2p 154.7p 180.9p 26.6p 299.5p 326.1p 61.9p 292.8p 354.7p
--------------------------- ------- ------- ------ ------- ------- ------ ------- ------- ------
The total column of the above statement represents the condensed
group statement of comprehensive income, prepared in accordance
with IFRSs as adopted by the European Union.
The revenue and capital columns are supplementary to the
condensed group statement of comprehensive income and are prepared
under guidance published by the Association of Investment
Companies.
The profit for the period and total comprehensive income for the
period is attributable to equity holders of the parent.
Condensed statements of financial position
at 30 September 2019
Group Company
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2019 2018 2019 2019 2018 2019
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------------- ------- ------- ------- ------- ------- -------
Non-current assets
Investments held at fair value through
profit or loss 2,043.5 1,915.8 1,860.0 2,044.1 1,918.4 1,864.2
Investments in subsidiaries held at cost - - - 0.9 0.8 0.9
Investment property 7.6 7.8 6.7 - - -
Property, plant and equipment 28.2 30.0 28.4 - - -
Deferred tax assets 3.8 3.7 3.6 - - -
Employee benefits 2.5 3.3 2.6 - - -
----------------------------------------- ------- ------- ------- ------- ------- -------
Non-current assets 2,085.6 1,960.6 1,901.3 2,045.0 1,919.2 1,865.1
----------------------------------------- ------- ------- ------- ------- ------- -------
Current assets
Trade and other receivables 20.3 3.6 21.3 60.7 43.7 50.8
Current tax assets 2.4 5.1 5.3 2.7 5.0 5.2
Cash and cash equivalents 11.3 67.0 112.3 10.1 66.3 111.3
----------------------------------------- ------- ------- ------- ------- ------- -------
Current assets 34.0 75.7 138.9 73.5 115.0 167.3
----------------------------------------- ------- ------- ------- ------- ------- -------
Total assets 2,119.6 2,036.3 2,040.2 2,118.5 2,034.2 2,032.4
----------------------------------------- ------- ------- ------- ------- ------- -------
Current liabilities
Interest-bearing loans and borrowings (5.0) - - (5.0) - -
Trade and other payables (29.2) (27.8) (28.1) (45.1) (40.1) (34.3)
Employee benefits (1.3) (1.4) (2.8) - - -
----------------------------------------- ------- ------- ------- ------- ------- -------
Current liabilities (35.5) (29.2) (30.9) (50.1) (40.1) (34.3)
----------------------------------------- ------- ------- ------- ------- ------- -------
Non-current liabilities
Employee benefits (7.6) (7.1) (7.3) - - -
Deferred tax liabilities - (0.2) - - - -
----------------------------------------- ------- ------- ------- ------- ------- -------
Non-current liabilities (7.6) (7.3) (7.3) - - -
----------------------------------------- ------- ------- ------- ------- ------- -------
Total liabilities (43.1) (36.5) (38.2) (50.1) (40.1) (34.3)
----------------------------------------- ------- ------- ------- ------- ------- -------
Net assets 2,076.5 1,999.8 2,002.0 2,068.4 1,994.1 1,998.1
----------------------------------------- ------- ------- ------- ------- ------- -------
Equity
Share capital 3.2 3.2 3.2 3.2 3.2 3.2
Share premium 1.3 1.3 1.3 1.3 1.3 1.3
Capital redemption reserve 1.3 1.3 1.3 1.3 1.3 1.3
Capital reserve 1,835.1 1,752.7 1,748.4 1,837.2 1,754.7 1,754.2
Retained earnings 285.8 280.7 292.4 275.6 273.0 282.7
Own shares (50.2) (39.4) (44.6) (50.2) (39.4) (44.6)
----------------------------------------- ------- ------- ------- ------- ------- -------
Total equity 2,076.5 1,999.8 2,002.0 2,068.4 1,994.1 1,998.1
----------------------------------------- ------- ------- ------- ------- ------- -------
Undiluted net asset value per share 3787p 3641p 3645p
Diluted net asset value per share 3712p 3563p 3582p
----------------------------------------- ------- ------- ------- ------- ------- -------
Condensed group statement of changes in equity
for the six months ended 30 September 2019
Capital
redemp-
Share Share tion Capital Retained Own Total
capital premium reserve reserve earnings shares equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Six months ended 30 September 2019
Balance at 1 April 2019 3.2 1.3 1.3 1,748.4 292.4 (44.6) 2,002.0
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total comprehensive income
Profit and total comprehensive
income - - - 86.7 14.7 - 101.4
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 2.4 - 2.4
Own shares purchased - - - - - (5.6) (5.6)
Dividends paid - - - - (23.7) - (23.7)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - - (21.3) (5.6) (26.9)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 30 September 2019 3.2 1.3 1.3 1,835.1 285.8 (50.2) 2,076.5
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Six months ended 30 September 2018
Balance at 1 April 2018 3.2 1.3 1.3 1,584.9 284.1 (38.2) 1,836.6
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total comprehensive income
Profit for the period - - - 168.1 14.9 - 183.0
Other comprehensive income - - - (0.1) 0.7 - 0.6
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total comprehensive income - - - 168.0 15.6 - 183.6
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 3.8 - 3.8
Own shares cancelled - - - (0.2) - - (0.2)
Own shares purchased - - - - - (1.2) (1.2)
Dividends paid - - - - (22.8) - (22.8)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - (0.2) (19.0) (1.2) (20.4)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 30 September 2018 3.2 1.3 1.3 1,752.7 280.7 (39.4) 1,999.8
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Year ended 31 March 2019
Balance at 1 April 2018 3.2 1.3 1.3 1,584.9 284.1 (38.2) 1,836.6
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total comprehensive income
Profit for the year - - - 163.6 34.6 - 198.2
Other comprehensive income - - - 0.1 1.4 - 1.5
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total comprehensive income - - - 163.7 36.0 - 199.7
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 3.9 - 3.9
Own shares cancelled - - - (0.2) - - (0.2)
Own shares purchased - - - - - (6.4) (6.4)
Dividends paid - - - - (31.6) - (31.6)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - (0.2) (27.7) (6.4) (34.3)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 31 March 2019 3.2 1.3 1.3 1,748.4 292.4 (44.6) 2,002.0
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Condensed company statement of changes in equity
for the six months ended 30 September 2019
Capital
redemp-
Share Share tion Capital Retained Own Total
capital premium reserve reserve earnings shares equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Six months ended 30 September 2019
Balance at 1 April 2019 3.2 1.3 1.3 1,754.2 282.7 (44.6) 1,998.1
Profit and total comprehensive
income - - - 83.0 14.2 - 97.2
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 2.4 - 2.4
Own shares purchased - - - - - (5.6) (5.6)
Dividends paid - - - - (23.7) - (23.7)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - - (21.3) (5.6) (26.9)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 30 September 2019 3.2 1.3 1.3 1,837.2 275.6 (50.2) 2,068.4
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Six months ended 30 September 2018
Balance at 1 April 2018 3.2 1.3 1.3 1,585.6 277.3 (38.2) 1,830.5
Profit and total comprehensive
income - - - 169.3 14.7 - 184.0
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 3.8 - 3.8
Own shares cancelled - - - (0.2) - - (0.2)
Own shares purchased - - - - - (1.2) (1.2)
Dividends paid - - - - (22.8) - (22.8)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - (0.2) (19.0) (1.2) (20.4)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 30 September 2018 3.2 1.3 1.3 1,754.7 273.0 (39.4) 1,994.1
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Year ended 31 March 2019
Balance at 1 April 2018 3.2 1.3 1.3 1,585.6 277.3 (38.2) 1,830.5
Profit and total comprehensive
income - - - 168.8 33.1 - 201.9
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Transactions with owners of the
company
Contributions by and distributions
to owners
Share-based payments - - - - 3.9 - 3.9
Own shares cancelled - - - (0.2) - - (0.2)
Own shares purchased - - - - - (6.4) (6.4)
Dividends paid - - - - (31.6) - (31.6)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Total transactions with owners - - - (0.2) (27.7) (6.4) (34.3)
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Balance at 31 March 2019 3.2 1.3 1.3 1,754.2 282.7 (44.6) 1,998.1
----------------------------------- ------- ------- ------- ------- -------- ------ -------
Condensed statements of cash flows
for the six months ended 30 September 2019
Group Company
6 mths 6 mths Year 6 mths 6 mths Year
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2019 2018 2019 2019 2018 2019
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------------------- ------- ------- ------- ------- ------- -------
Operating activities
Dividends received 22.1 21.4 45.9 22.1 21.4 45.9
Interest received 1.0 0.3 1.6 1.0 0.2 1.6
Cash received from customers 0.1 0.1 0.1 - - -
Cash paid to suppliers and
employees (14.3) (10.6) (19.2) (15.6) (18.9) (25.9)
Taxes paid (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)
Group tax relief received 3.7 2.0 2.5 3.7 2.0 2.5
Group tax relief paid - (1.5) (1.5) - (1.5) (1.5)
-------------------------------------- ------- ------- ------- ------- ------- -------
Net cash flow from operating
activities 12.5 11.6 29.3 11.1 3.1 22.5
-------------------------------------- ------- ------- ------- ------- ------- -------
Investing activities
Purchases of investments (193.4) (281.5) (558.2) (193.4) (281.5) (558.2)
Proceeds from disposal of investments 103.9 153.6 473.7 103.9 157.4 476.9
Purchases of property, plant
and equipment (1.3) (1.1) (2.0) - - -
-------------------------------------- ------- ------- ------- ------- ------- -------
Net cash flow used in investing
activities (90.8) (129.0) (86.5) (89.5) (124.1) (81.3)
-------------------------------------- ------- ------- ------- ------- ------- -------
Financing activities
Interest paid (0.9) (0.9) (1.8) (0.8) (0.8) (1.8)
Dividends paid to owners of
the company (23.7) (22.8) (31.6) (23.7) (22.8) (31.6)
Proceeds from bank borrowing 10.0 - - 10.0 - -
Repayments of bank borrowing (5.0) - - (5.0) - -
Loan receipts from subsidiaries 2.5 1.7 1.7 2.5 6.2 7.0
Loan payments to subsidiaries - - - (0.2) (1.3) (4.3)
Purchases of own shares (5.6) (1.4) (6.6) (5.6) (1.4) (6.6)
-------------------------------------- ------- ------- ------- ------- ------- -------
Net cash flow used in financing
activities (22.7) (23.4) (38.3) (22.8) (20.1) (37.3)
-------------------------------------- ------- ------- ------- ------- ------- -------
Net decrease in cash and cash
equivalents (101.0) (140.8) (95.5) (101.2) (141.1) (96.1)
Cash and cash equivalents at
period start 112.3 207.8 207.8 111.3 207.4 207.4
-------------------------------------- ------- ------- ------- ------- ------- -------
Cash and cash equivalents at
period end 11.3 67.0 112.3 10.1 66.3 111.3
-------------------------------------- ------- ------- ------- ------- ------- -------
Notes to the condensed financial statements
1. General information
Caledonia Investments plc is an investment trust company
registered in England and Wales with company number 00235481. The
address of its registered office is Cayzer House, 30 Buckingham
Gate, London SW1E 6NN. The ordinary shares of the company are
premium listed on the London Stock Exchange.
This condensed set of financial statements was approved for
issue on 25 November 2019 and is unaudited.
The information for the period ended 30 September 2019 does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006. A copy of the statutory accounts for the year
ended 31 March 2019 has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not
qualified, did not draw attention to any matters by way of emphasis
of matter and did not contain a statement under section 498(2) and
(3) of the Companies Act 2006.
2. Accounting policies
Basis of accounting
This condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting and should be
read in conjunction with the annual financial statements for the
year ended 31 March 2019, which were prepared in accordance with
IFRSs as adopted by the European Union.
This condensed set of financial statements has been prepared in
accordance with the recommendations of the Statement of Recommended
Practice issued by the Association of Investment Companies.
Adopted IFRSs
The accounting policies adopted in the preparation of the
condensed consolidated financial statements are consistent with
those followed in the preparation of the group's annual report for
the year ended 31 March 2019, except for the mandatory standards
and amendments that had an effective date prior to the start of the
six-month period. None of the new mandatory standards, including
IFRS 16 nor the amendments, had an impact on the reported financial
position or performance of the group. The changes in accounting
policies will also be reflected in the group's consolidated
financial statements for the year ending 31 March 2020.
A number of new standards and amendments to standards and
interpretations will be effective for periods beginning on or after
1 April 2020. These new standards are not applicable to these
financial statements and they are not expected to have an impact
when they become effective. The group plans to apply these
standards and amendments in the reporting period in which they
become effective.
Basis of consolidation
In accordance with the IFRS 10/IAS 28 amendments to apply the
investment entities exemption, the consolidated financial
statements include the financial statements of the company and
service entities controlled by the company made up to the reporting
date. All other investments in controlled entities are accounted as
held at fair value through profit or loss.
Going concern
The directors have assessed the risks facing the group and
consider that it has adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to
adopt the going concern basis in preparing this half-yearly
condensed set of financial statements.
Changes in accounting policies
As required by the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority, this condensed set of financial
statements has been prepared applying the accounting policies and
presentation that were applied in the preparation of the company's
published consolidated financial statements for the year ended 31
March 2019.
Judgements and estimates
In preparing these interim financial statements, management has
made judgements, estimates and assumptions that affected the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense.
The significant judgements made by management in applying the
group's accounting policies and the key sources of estimation
uncertainty were the same as those applied to the consolidated
financial statements for the year ended 31 March 2019.
3. Dividends
Amounts recognised as distributions to owners of the company in
the period were as follows:
6 mths 6 mths Year
30 Sep 30 Sep 31 Mar
2019 2018 2019
GBPm GBPm GBPm
---------------------------------------------------------------------------------- ------ ------ ------
Final dividend for the year ended 31 March 2019 of 43.2p per share (2018 - 41.5p) 23.7 22.8 22.8
Interim dividend for the year ended 31 March 2019 of 16.1p per share - - 8.8
---------------------------------------------------------------------------------- ------ ------ ------
23.7 22.8 31.6
---------------------------------------------------------------------------------- ------ ------ ------
The directors have declared an interim dividend for the year
ending 31 March 2020 of 16.6p per share, totalling GBP9.1m, which
has not been included as a liability in this condensed set of
financial statements. This dividend will be payable on 9 January
2020 to holders of shares on the register on 6 December 2019. The
ex-dividend date will be 5 December 2019.
The deadline for elections under the dividend reinvestment plan
offered by Link Asset Services will be the close of business on 16
December 2019.
4. Share capital
During the period, The Caledonia Investments plc Employee Share
Trust sold 90,844 shares for GBPnil and purchased 85,009 shares for
GBP2.6m relating to the calling of performance share and deferred
bonus awards. The Employee Share Trust also purchased 100,000
shares from The Cayzer Trust Company Ltd for GBP3.0m.
In the six months ended 30 September 2018, the Employee Share
Trust sold 44,126 shares for GBPnil and purchased 43,126 shares for
GBP1.2m relating to the calling of performance share and deferred
bonus awards.
In the year ended 31 March 2019, the Employee Share Trust sold
232,830 shares for GBPnil and purchased 223,764 shares for GBP6.4m
relating to the calling of performance share and deferred bonus
awards.
5. Net asset value per share
The group's undiluted net asset value per share is based on the
net assets of the group at the period end and on the number of
shares in issue at the period end less shares held by The Caledonia
Investments plc Employee Share Trust. The group's diluted net asset
value per share assumes the calling of performance share and
deferred bonus awards for nil consideration.
6. Operating segments
The chief operating decision maker has been identified as the
Executive Committee, which reviews the company's internal reporting
to assess performance and allocate resources. Management has
determined the operating segments based on these reports.
The performance of operating segments is assessed on a measure
of group total revenue, principally comprising gains and losses on
investments and investment income. Reportable profit or loss is
after treasury income and 'Other items', which comprise management
and other expenses. Reportable assets equate to the group's total
assets. 'Cash' and 'Other items' are not identifiable operating
segments.
'Non-portfolio investments' comprise subsidiaries and other
investments not managed as part of the investment portfolio.
Profit before tax Total assets
6 mths 6 mths Year
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2019 2018 2019 2019 2018 2019
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------------- ------ ------ ------ ------- ------- -------
Quoted pool 45.9 65.5 88.9 489.3 480.3 464.4
Income pool 7.2 16.9 6.7 203.4 256.0 224.5
Private Capital 10.5 60.9 63.4 765.1 629.8 659.5
Funds pool 54.3 55.6 69.9 553.2 521.4 482.7
-------------------------- ------ ------ ------ ------- ------- -------
Portfolio investments 117.9 198.9 228.9 2,011.0 1,887.5 1,831.1
Non-portfolio investments (1.2) (0.2) (4.4) 32.5 28.3 28.9
-------------------------- ------ ------ ------ ------- ------- -------
Total revenue/investments 116.7 198.7 224.5 2,043.5 1,915.8 1,860.0
Cash and cash equivalents 0.3 0.3 0.5 11.3 67.0 112.3
Other items (16.3) (16.8) (28.1) 64.8 53.5 67.9
-------------------------- ------ ------ ------ ------- ------- -------
Reportable total 100.7 182.2 196.9 2,119.6 2,036.3 2,040.2
-------------------------- ------ ------ ------ ------- ------- -------
7. Related parties
Caledonia Group Services Ltd, a wholly-owned subsidiary of the
company, provides management services to the company. During the
six months ended 30 September 2019, GBP13.1m was charged to the
company for these services (30 September 2018 - GBP13.0m and 31
March 2019 - GBP23.7m).
During the six months ended 30 September 2019, The Caledonia
Investments plc Employee Share Trust purchased 100,000 shares in
Caledonia from The Cayzer Trust Company Ltd at a price of 3012.63p
per share, representing the volume-weighted average price for the
company's shares at midday on the day of execution.
There were no other changes in the transactions or arrangements
with related parties as described in the company's annual report
for the year ended 31 March 2019 that have had a material effect on
the results or the financial position of the company or of the
group in the six months ended 30 September 2019.
8. Capital commitments
At 30 September 2019, the company had undrawn fund and other
commitments totalling GBP405.8m (30 September 2018 - GBP317.9m and
31 March 2019 - GBP498.2m).
9. Fair value hierarchy
The table below analyses financial instruments held at fair
value according to the subjectivity of the valuation method, using
the following hierarchy:
Level Quoted prices (unadjusted) in active markets for identical
1 assets.
Level Inputs other than quoted prices included within Level 1 that
2 are directly or indirectly observable.
Level Inputs for the asset that are not based on observable market
3 data.
Group Company
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2019 2018 2019 2019 2018 2019
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------- ------- ------- ------- ------- ------- -------
Investments held at fair value
Level 1 692.7 736.3 688.9 692.7 736.3 688.9
Level 2 64.9 156.8 79.0 66.1 159.9 83.8
Level 3 1,285.9 1,022.7 1,092.1 1,285.3 1,022.2 1,091.5
------------------------------- ------- ------- ------- ------- ------- -------
2,043.5 1,915.8 1,860.0 2,044.1 1,918.4 1,864.2
------------------------------- ------- ------- ------- ------- ------- -------
The methods used to determine fair value investments are
unchanged from those described in the annual report 2019. Listed
investments are valued at bid price or the most recent transaction
price. Unlisted companies are valued according to the International
Private Equity and Venture Capital Valuation Guidelines (December
2015), using one of the following methods: price of recent
investment, multiples or net assets. The valuation of fund
interests is based on the latest fund managers' NAVs and other
investments are valued using appropriate techniques.
Movement in Level 3 financial instruments was as follows:
Group Company
6 mths 6 mths Year 6 mths 6 mths Year
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2019 2018 2019 2019 2018 2019
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------------------------------- ------- ------- ------- ------- ------- -------
Balance at the period start 1,092.1 779.5 779.5 1,091.5 779.1 779.1
Purchases 184.2 181.3 417.1 184.2 181.3 417.1
Realisation proceeds (43.2) (38.4) (214.4) (43.2) (38.4) (214.4)
Gains and losses on investments sold in the period 8.7 9.9 67.5 8.7 9.9 67.5
Gains and losses on investments held at the period end 41.4 88.0 38.6 41.4 87.9 38.4
Accrued income 2.7 2.4 3.8 2.7 2.4 3.8
------------------------------------------------------- ------- ------- ------- ------- ------- -------
Balance at the period end 1,285.9 1,022.7 1,092.1 1,285.3 1,022.2 1,091.5
------------------------------------------------------- ------- ------- ------- ------- ------- -------
10. Share-based payments
The company operates a performance share scheme and a deferred
bonus plan. Details of these schemes were disclosed in the annual
report 2019 and the basis of measuring fair value was consistent
with those disclosures.
During the six months ended 30 September 2019, awards over
239,138 shares were issued under the performance share scheme (30
September 2018 and 31 March 2019 - 261,816 shares). Compulsory
deferred bonus awards over 44,930 shares were granted (30 September
2018 and 31 March 2019 - 493 shares).
Expenses in respect of share-based payments in the period were
GBP2.7m (30 September 2018 - GBP3.8m and 31 March 2019 -
GBP6.6m).
FTSE International Limited ('FTSE') (c) FTSE 2019. 'FTSE(R)' is
a trade mark of the London Stock Exchange Group companies and is
used by FTSE International Limited under licence. All rights in the
FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors.
Neither FTSE nor its licensors accept any liability for any errors
or omissions in the FTSE indices and/or FTSE ratings or underlying
data. No further distribution of FTSE Data is permitted without
FTSE's express written consent.
END
Copies of this statement are available at the company's
registered office, Cayzer House, 30 Buckingham Gate, London SW1E
6NN, United Kingdom, or from its website at www.caledonia.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR FEFEFIFUSEEF
(END) Dow Jones Newswires
November 26, 2019 02:01 ET (07:01 GMT)
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