TIDMCLDN
RNS Number : 2622A
Caledonia Investments PLC
23 May 2023
Caledonia Investments plc
Final results for the year ended 31 March 2023
Financial highlights (1)
31 Mar 2023 31 Mar 2022 Change
Net asset value total return 5.5% 27.9%
Net asset value 5068p 5041p +0.5%
Net assets GBP2,798m GBP2,783m +0.5%
Annual dividend per share 67.4p 64.8p +4.0%
1. NAV total return, and investment and pool returns are Alternative
performance measures. Definitions of these measures may be found
at https://www.caledonia.com/invest-with-us/investment-trusts/
Hi ghlights
5.5% NAV total return for the year. Net assets of GBP2.8bn,
-- after special dividend payment in summer 2022.
4.0% increase in the dividend to 67.4p per share, 56th consecutive
-- year of increase.
Private assets, both Private Capital and Funds, were the key
-- drivers of returns in the year.
Strong balance sheet with GBP472m of total liquidity (GBP222m
-- cash and GBP250m undrawn facilities).
Chief Financial Officer succession announced.
--
Quoted Equity Public equity holdings were adversely impacted by volatility
-- and weakness in global equity markets, with total return of
0.2% in the year.
Private Capital Private Capital portfolio delivered total return of 8.4%, following
-- very strong returns in FY22.
Majority of portfolio companies demonstrated good progress
-- in terms of both growth and profitability.
Acquisition of AIR-Serv Europe announced post year end.
--
Funds Funds portfolio generated total return of 13.3% for the year,
-- supported by 6% weakening of Sterling against the US dollar.
Strong underlying performance from the North American funds
-- partially offset by weaker Asia fund performance in the year:
longer-term performance from both regions remains very strong.
Mat Masters, Chief Executive Officer , commented:
"Our approach of investing in a diversified portfolio of
high-quality companies and funds has generated positive returns
over the last year against a challenging market environment.
We have a strong platform from which to continue to deliver our
objectives of growth in net assets and dividends paid to
shareholders over the long term."
22 May 2023
Enquiries
Caledonia Investments plc Teneo
Mat Masters, Chief Executive Officer Tom Murray
Tim Livett, Chief Financial Officer Robert Yates
caledonia@teneo.com
+44 20 7802 8080 +44 20 7353 4200
Chair's statement
Results
The NAV total return for the year ended 31 March 2023 was 5.5%
which, whilst below our long-term target of inflation plus 3% to
6%, compares favourably to the FTSE All-Share return of 2.9% for
the same period. This follows strong returns of 27.9% last year,
25.9% in the preceding year and 19.3% annualised over the last
three years. Our private assets, in both Private Capital and Funds,
generated good returns during the year, based on a mix of positive
underlying performance and the advantageous impact of the 6% fall
in the value of Sterling against the US dollar. In contrast, our
public equity holdings were adversely impacted by volatility and
weakness in global equity markets. Our balance sheet remains strong
with total liquidity of GBP472m available at 31 March 2023,
reflecting our banking facilities and GBP222m of cash.
Income and dividends
Investment and other income (revenue account) declined by 15% to
GBP44m and net income was GBP21m. The gradual reduction in
investment income was highlighted last year and we will maintain
our focus on total returns rather than pure income from our
portfolio. The Funds pool generated a net cash inflow of GBP24m
which, together with net income of GBP21m, was sufficient to cover
our proposed annual dividend. The board is recommending a final
dividend of 49.2p per share, which represents a full year dividend
of 67.4p, an increase of 4.0% when compared to the previous year.
If approved by shareholders, this would represent the 56th
consecutive year of increases in our annual dividend.
Board
Will Wyatt, who retired as Chief Executive at last year's annual
general meeting, continues to serve on the board as a non-executive
director following re-election by shareholders. Will was succeeded
by Mat Masters who has made an excellent start in his new role.
In November, Tim Livett, our Chief Financial Officer, advised
the board of his intention to retire and leave the company to
develop a portfolio of non-executive roles once his successor joins
the board. The search for Tim's successor very recently concluded
with the appointment of Rob Memmott. Rob will join the company and
the board on 1 September 2023.
Towards the end of the financial year, we welcomed Farah Buckley
as a new independent non-executive director. Stuart Bridges, who
has served on the board since 2013, will retire at the forthcoming
annual general meeting as planned. Following a period of notable
change, the board has asked me to extend my tenure until the annual
general meeting in 2025, subject to ongoing approval by
shareholders.
On behalf of the board, I would like to thank Tim and Stuart for
their contribution to Caledonia.
Strategy
We completed a strategic review during the year. Aside from the
small refinements set out in the Chief Executive Officer's report,
we have not implemented any significant changes.
Annual general meeting
I look forward to once again meeting shareholders at our annual
general meeting on 19 July.
Outlook
While inflation is at last showing signs of peaking, rising
interest rates are a threat to global growth. The recent banking
sector issues on both sides of the Atlantic reveal the economic
stress lurking in the system after years of ultra-low interest
rates. The high levels of government debt, built up since the last
financial crisis, have accelerated significantly on the back of
pandemic and energy support measures. It may well be that our
attention will turn to the underlying deflationary forces from this
debt once the current round of fiscal tightening is complete.
As Mat has outlined in his report, we remain confident in our
strategy of selecting quality companies and funds which can deliver
long-term compounding returns. However, it would not be a surprise
to see increased volatility in the year ahead as the impact of rate
rises becomes more apparent in the global economy.
David Stewart
Chair
Chief Executive Officer's report
Purpose
Caledonia's purpose is to grow the real value of net assets and
dividends paid to shareholders over the long term, whilst managing
risk to avoid the permanent loss of capital. We pursue this through
a strategy of taking a long-term approach, identifying and
investing directly, and indirectly via funds, into well-managed
businesses. The company is self-managed and, investing from our own
balance sheet, we do not seek to raise new funds so can remain
focused on investing without compromising our investment
process.
I succeeded Will Wyatt as Chief Executive Officer during the
year, having previously held the position of Head of Quoted Equity.
I am privileged to work with exceptional colleagues who share the
same values of conducting business to the highest standards coupled
with a long-term horizon.
Strategy and allocation
Our three investment pools provide a clear structure for
managing specialist teams and risk diversification. Each investment
team is able to focus on a concentrated portfolio which, in
combination, provide a good level of diversification for our
shareholders.
Over the course of the year, we completed a strategic review to
ensure that we maintain our focus on investments capable of
delivering our long-term objectives and continue to execute well
via our three pools, supported by our distinctive culture. Aside
from the minor adjustments outlined below, we have not implemented
any significant changes.
To enable our investment teams to continue to invest in quality
businesses we have reduced the overall income requirement. We have
not changed Caledonia's strategic aim of growing the dividend over
time but have revised the company's dividend policy. Caledonia has
very high levels of retained reserves available to pay the dividend
with little requirement for earned income to provide dividend
cover. However, ensuring cash flow cover to meet operational costs
and dividend payments without recourse to the investment portfolio
is prudent. The Funds pool has reached its strategic allocation
target, delivered returns above the average for the group, with a
portfolio of sufficient scale to appropriately manage risk and has
reached a stage of maturity where we anticipate positive cash flow.
We have therefore moved from an income cover policy to one where
half of Caledonia's costs and normal dividend is covered by income
from the investment portfolio and the remainder from net cash
inflow from the Funds pool.
In 2019 we reduced the income target for the Income portfolio
from 4.5% on value to 3.5% on cost. Moving from measuring yield on
value to cost enables investment in good quality companies when the
market presents opportunities, without the need to sell when share
prices subsequently recover. This reduction in yield requirement
expanded the opportunity set and further enabled the team to focus
on quality. The change led to the disposal of several potentially
riskier, lower quality assets over the winter of 2019 and early
2020 before funds were reinvested into higher quality companies
during the period of market volatility brought on by the Covid-19
pandemic. We have recently made a similar reduction to the income
target for the Private Capital pool from 5% on value to 2.5% on
cost. A summary of each pool, together with return requirement and
revised income target, is shown below.
Pool name Description Return requirements
----------------- ---------------------------------- ----------------------
Caledonia Capital strategy 10% total return,
Quoted Equity no yield target
Income strategy 7% total return,
3.5% yield (on cost)
Caledonia Majority and minority investments 14% total return,
predominantly in UK mid-market
companies with equity values
of between GBP50m and GBP150m
Private Capital 2.5% yield (on cost)
Caledonia US and Asian private equity 12.5% total return
Funds funds and funds of funds
----------------- ---------------------------------- ----------------------
We have also refined the asset allocation model, with the
following new bandings.
Pool name New Old
% %
------------------ ------ ------
Quoted Equity 30-40 35-50
Private Capital* 25-35 35-45
Funds 25-35 20-30
------------------ ------ ------
*includes Cobepa
The most significant change was a reduction to Private Capital's
allocation range, which supports a portfolio of six to eight
holdings at an average entry equity value of around GBP100m,
together with our existing investment in Cobepa. We also adjusted
the allocation to the Funds pool to facilitate a small increase in
our exposure to US lower mid-market private equity funds which have
shown strong, reliable performance over time.
Results
The result for the year was a NAVTR of 5.5% which, whilst lower
than our previous two years of very strong results (2021: 25.9%,
2022: 27.9%), was a good outcome given the challenging market
environment. The table below shows our results over multiple time
periods compared to our strategic KPIs.
Years to 31 March 1 year 3 years 5 years 10 years
% % % %
--------------------------- ------- -------- -------- ---------
NAVTR 5.5 69.8 72.9 179.4
FTSE All-Share 2.9 47.4 27.8 75.9
NAVTR v FTSE All-Share TR +2.6 +22.4 +45.1 +103.5
Annualised performance
NAVTR 5.5 19.3 11.6 10.8
RPI 13.5 7.9 5.7 4.0
NAVTR v RPI -8.0 +11.4 +5.9 +6.8
FTSE All-Share TR 2.9 13.8 5.0 5.8
NAVTR v FTSE All-Share TR +2.6 +5.5 +6.6 +5.0
--------------------------- ------- -------- -------- ---------
The macro-economic impact can be seen, with increases in
inflation and interest rates presenting a notable change to the
investment environment. In most cases it is reasonable to assume
that increased interest rates will reduce the rating valuation for
equities. This rating change has been factored into our thinking
and led to a pause in significant investment activity for much of
the year.
Pool performance - annualised
Year to 31 March 1 year 3 years 5 years 10 years
% % % %
---------------------- ------- -------- -------- ---------
Pool name
Quoted Equity 0.2 14.2 11.2 8.8
- Capital portfolio 1.1 16.4 14.1 10.8
- Income portfolio -2.4 9.2 5.2 4.2
Private Capital 8.4 27.4 13.5 14.5
Funds 13.3 28.3 18.7 18.4
Portfolio 7.2 21.9 13.6 12.7
---------------------- ------- -------- -------- ---------
Quoted Equity
The Quoted Equity pool, a concentrated portfolio of high-quality
companies, delivered a return of 0.2%, reflecting wider market
performance. During the year the portfolio made selective changes
to existing holdings with a net total investment of GBP26m. The
increase in interest rates was generally reflected in equity
valuations although the team made opportunistic purchases when
individual companies traded at good prices.
The Capital portfolio produced a good performance relative to
major international markets. Longer-term performance remains very
strong, with the continued focus on high-quality companies and
global developed markets, especially North America, reflected in
the performance outcomes.
The Income portfolio produced weaker performance over the
period. Companies in the energy and banking sectors, which
generally do not meet our long-term quality criteria, were the main
contributors to the positive performance of the FTSE All-Share
during the year. Our investment in high-quality real estate
investment trusts ('REITs'), which continued to deliver robust
operational performance, were de-rated. In addition, our holding in
specialist insurer Sabre materially underperformed as the insurance
market recovers from the impact of Covid-19 and responds to high
inflation.
Private Capital
Private Capital delivered a return of 8.4% for the year. The
return reflects continued development from portfolio companies
where most, by value and number, continued to make progress.
Despite making good strategic and operational progress, Liberation
Group (5% of Group NAV) was impacted by rising costs and weakening
consumer demand.
After the year end, we acquired a majority interest in AIR-Serv
Europe, a leading designer and manufacturer of air, vacuum and jet
wash machines which it provides as turn-key solutions to fuel
station forecourt operators across Western Europe. Caledonia
invested GBP142.5m for a 99.8% equity stake, alongside the
management team. The balance of the purchase price was financed by
bank debt facilities of GBP60.0m. We now hold five core businesses
and remain disciplined as we look for future opportunities.
Funds
The Funds pool delivered a return of 13.3% for the year, which
comprised the North American and Asian-based funds achieving 21.8%
and 3.6% respectively. The weakening in Sterling against the US
dollar over the year added 6% to performance. The divergence in the
regional short-term returns reflects the profile of their
respective investments and markets.
The success of North American funds (18% of Group NAV) is
closely linked to the operational development of investee companies
and their cash flows. There is a deep, robust market for potential
divestment, either via trade sales or to other, larger private
equity funds.
Asian funds invest in earlier stage companies and consequently
their economic success is driven by their continued development,
subsequent funding rounds and more volatile public markets.
Liquidity within the Asian markets has been resilient with the
A-share IPO market remaining buoyant and accounting for nearly half
of global proceeds during 2022. The Shanghai Composite Index
reduced in value by 9% between June and December 2022, before
recovering in the period to March 2023, which provides context for
performance.
Over the year the Funds pool generated GBP24.2m in cash (2022:
GBP67.5m), including GBP10.6m from Asia, reflecting the maturing
strategy and its position as a meaningful cash generator.
Liquidity and balance sheet
Caledonia ended the financial year with net cash of GBP221.6m
having made net investments of GBP2.7m plus annual and special
dividend payments of GBP130.5m. In addition, our committed bank
facilities of GBP250m provide us with a good level of liquidity and
the ability to take advantage of opportunities that may arise. Over
the course of the year the absence of net investment activity
reflected the challenge of investing in high quality assets at
reasonable prices. The year-end commitment for the Funds pool was
GBP423m. We aim to be conservatively funded with bank facilities
and liquidity available from the Quoted Equity pool should extreme,
unforeseen risks occur.
During the year we conducted a review of our North American
private equity fund holdings held in our subsidiary Caledonia US
Investments Ltd ('CUSIL'). We determined that a significant
proportion of these holdings could be transferred from CUSIL into
the parent company and therefore benefit from its investment trust
tax status. The proceeds from the transfer are shown within our
non-pool assets at the year end. The majority of the proceeds were
loaned back to the parent entity.
Inflation measure
We have completed a review of the inflation measure used in our
strategic objective of generating total returns that outperform
inflation by at least 3% over the medium and long term. Retail
Prices Index ('RPI'), our current inflation measure, had lost its
status as a national statistic which resulted in a decision to move
to Consumer Prices Index including owner occupiers' housing costs
('CPIH') from 1 April 2023.
Our annual bonus scheme assesses performance against this
strategic objective and will also be adjusted to use CPIH over
time.
People
Our staff are, of course, our most important asset and over the
course of the year we have continued to invest in their
development. Our first colleague engagement survey has enabled us
to receive anonymous feedback to help us better understand our
employees' thoughts and areas for future improvement. We were
particularly pleased that 98% of those who participated in the
survey would recommend Caledonia as a great place to work.
Alan Murran and Ben Archer succeeded me as joint Co-Heads of the
Quoted Equity pool, with Alan leading the Capital portfolio and Ben
leading the Income portfolio. We also made a number of additions to
the Private Capital team to further improve our focus on this
important market and our existing portfolio. The Funds pool has
also added a small number of new staff bringing additional energy,
ideas, skills and resource to both the US and Asian strategies.
During the year we extended the membership and remit of our
Investment Committee to increase knowledge and experience and draw
on a broader, more diverse range of views.
Being a responsible investor and corporate
We have always been very engaged and attentive investors. Team
members serve on the boards of companies within our Private Capital
portfolio and on the majority of the advisory boards for our North
American funds. The listed companies in which we invest appreciate
our long-term approach and empowerment of the investment team to
develop close working relationships. The Quoted Equity investment
team review and determine votes for all the stocks we hold.
Over the course of the year, we have further developed our
approach and systems integrating consideration of Environmental,
Social and Governance ('ESG') matters into our investment process
formally and established a working group to develop our thinking,
provide effective coordination, monitor our activities and market
developments and to share good practice. We have given further
consideration to the issues associated with climate change and its
potential impact on our business. A separate Taskforce on
Climate-related Financial Disclosure ('TCFD') report has also been
developed.
Outlook
It is clear that the current issues facing the global economy,
including high levels of inflation, rising interest rates and
geopolitical tensions, together with more recent concerns about the
banking sector and potential recession, provides a very challenging
backdrop for investment activity.
However, the team at Caledonia are well placed to operate in
this environment drawing on decades of experience. Investing in
good quality companies and funds operating in attractive markets,
which eschew the use of risky levels of leverage to magnify
returns, remains highly relevant in current conditions. We have
learnt, over time, that ignoring these basic risk management
principles is unwise. Our long-term mindset and current allocation
provide a strong platform from which to continue to deliver our
objectives of growth in net assets and dividends paid to
shareholders over the long term.
Mat Masters
Chief Executive Officer
Investments summary
H oldings over 1% of net assets at 31 March 2023 were as
follows:
Net
Value assets
Name Pool Geography Business GBPm %
------------------------- ---------------- ---------- ----------------------- -------- ------
Seven Investment
Management Private Capital Jersey Investment management 187.1 6.7
Cobehold Private Capital Belgium Investment company 176.1 6.3
Stonehage Fleming Private Capital Guernsey Family office services 141.6 5.1
Liberation Group Private Capital Jersey Pubs & restaurants 131.9 4.7
Cooke Optics Private Capital UK Cine lens manufacturer 124.5 4.4
Aberdeen US PE Funds Funds US Funds of funds 114.9 4.1
Axiom Asia funds Funds Asia Funds of funds 84.3 3.0
Watsco Quoted Equity US Ventilation products 70.4 2.5
Oracle Quoted Equity US Software 70.1 2.5
Microsoft Quoted Equity US Software 66.6 2.4
Texas Instruments Quoted Equity US Semiconductors 61.5 2.2
Philip Morris Quoted Equity US Tobacco 50.0 1.8
Asia Alternatives
funds Funds Asia Funds of funds 48.1 1.7
Pharma & life sciences
Thermo Fisher Scientific Quoted Equity US services 46.7 1.7
Fastenal Quoted Equity US Industrial supplies 39.3 1.4
Unicorn funds Funds Asia Funds of funds 37.7 1.3
Charter Communications Quoted Equity US Cable communications 37.3 1.3
Stonepeak funds Quoted Equity US Private equity funds 37.1 1.3
British American
Tobacco Quoted UK Tobacco & vaping 37.0 1.3
SIS Private Capital UK Content services 36.1 1.3
CenterOak funds Funds US Private equity funds 33.5 1.2
Decheng funds Funds US/Asia Private equity funds 33.2 1.2
Spirax Sarco Quoted Equity UK Steam engineering 31.8 1.1
Hill & Smith Quoted Equity UK Infrastructure 31.4 1.1
Ironbridge Funds Funds Canada Private equity funds 30.3 1.1
PAG Asia funds Funds Asia Private equity funds 29.6 1.1
Becton Dickinson Quoted Equity US Medical technology 29.2 1.0
Other investments 717.4 25.8
Investment portfolio 2,534.7 90.6
Non pool investments
(1) 260.2 9.3
Cash and other 3.1 0.1
-------------------------------------------------------------------------------- -------- ------
Net assets 2,798.0 100.0
-------------------------------------------------------------------------------- -------- ------
(1) Non pool investments comprise legacy investments, cash and
receivables and deferred tax liabilities in subsidiary investment
entities.
Geography is based on the country of listing, country of
domicile for unlisted investments and underlying regional analysis
for funds.
Risk management
Effective risk management is a key component of the company's
business model and assists in ensuring that the different parts of
the group operate within strategic risk parameters. The board has
overall responsibility for setting and monitoring the company's
risk appetite.
Principal risks Mitigation and management Key developments
-------------------------------------- -------------------------------------- --------------------------------------
Strategic
Risks in relation to the The company's business model and Strategic review completed and
appropriateness of the business model strategy are reviewed periodically, approved by the board. Three-pool
to deliver long-term growth against market conditions and target approach retained with banding
in capital and income. returns. slightly amended. Dividend policy
Strategic risks include the allocation The performance of the company and its refined.
of capital between public and private key risks are monitored regularly Private Capital strategy amended, with
equity, by management and the board. lower yield target for new investments
and in relation to geography, sector, to optimise risk-adjusted returns.
currency, yield, liquidity Funds pool increased annual
commitments agreed, reflecting growing
cash inflows, managed through
three year vintage allocations.
-------------------------------------- -------------------------------------- --------------------------------------
Investment
Risks in respect of specific Investment opportunities are subject New staff added to investment teams to
investment and realisation decisions. to rigorous appraisal and a multi- ensure appropriate skills and
Investment risks include the stage approval process. Investment resources are in place.
appropriate research and due diligence managers have well-developed Investment Committee established with
of new investments and networks through which they attract broader representation to approve key
the timely execution of both proprietary deal flow. investment decisions /
investments and realisations for Opportunities to enter or exit recommendations.
optimising value. investments are reviewed regularly, Activity of the Private Capital team
being informed by market rebalanced to provide an increased
conditions, pricing and strategic focus on sourcing and transacting new
aims. investments.
-------------------------------------- -------------------------------------- --------------------------------------
Market
Risk of losses in value of investments Market risks and sensitivities are Market volatility remains a factor,
arising from sudden and significant reviewed weekly with actions taken, but has reduced compared to this time
movements in public where appropriate, to balance risk and last year, when
market prices, particularly in highly return. it was elevated due to uncertainties
volatile markets. A regular review of market and arising from higher inflation and the
Private asset valuations have an portfolio volatility is conducted by conflict in Ukraine.
element of judgement and could also be the board. The Quoted Equity team, whilst
impacted by market Reviews also consider investment remaining long term focused, remains
fluctuations. concentration, currency exposure and alert to pricing opportunities
Caledonia's principal market risks are portfolio liquidity. to add target holdings when
therefore equity price volatility, Portfolio construction, including use appropriate.
foreign exchange of private assets, provides some Foreign exchange exposure remains a
rate movements mitigation. live issue. Review undertaken during
and interest rate volatility. the year concluded
that no hedging action would be taken
at present, but the position would
remain under review.
-------------------------------------- -------------------------------------- --------------------------------------
Liquidity
Risk that liabilities cannot be met or Detailed cash forecasting for the year ING existing GBP112.5m facility
new investments made due to a lack of ahead is updated and reviewed renewed for further three years to
liquidity. Such quarterly, including the expected July 2025.
risk can arise from not being able to drawdown of capital commitments. A Existing facilities with RBSI renewed
sell an investment due to lack of a weekly cash update is produced focused as a
market or from not on the short-term cash forecast. single facility of GBP137.5m for five
holding cash or being able to raise Loan facilities are maintained to years to
debt. provide appropriate liquidity November 2027.
headroom. All excess liquidity placed in AAA
rated money market funds on an
overnight basis. Regular
counterparty reviews undertaken.
No bank term deposits utilised.
-------------------------------------- -------------------------------------- --------------------------------------
ESG & Climate change
Risks in relation to the successful Caledonia continues to build ESG Responsible Investment / Responsible
incorporation of ESG and climate knowledge, particularly on climate Corporate Working Group established
change impacts into our change, and develop policy and under leadership of the CEO to
investment approach. processes to integrate ESG matters integrate ESG matters into
Identifying opportunities to drive our into our investment approach. core business approach. New investment
policy objectives, deliver strong We anticipate proposals include relevant ESG
returns and that the assessment of new and information. Biannual
manage the risks to meet evolving existing investment pool board reporting to
stakeholder expectations. investments will fully incorporate ESG include ESG information relevant to
and climate change risks and the pool's investments.
opportunities. Revised TCFD reporting for current
year, with significantly enhanced
disclosure in our 2023
Annual Report.
-------------------------------------- -------------------------------------- --------------------------------------
Regulatory & legal
Risks arising from exposure to Caledonia has internal resources to Full review undertaken regarding
litigation or fraud or failure to consider regulatory and tax matters holding
adhere to the tax and as they arise. Professional advisers structure for US private equity funds.
regulatory environment. are engaged, where necessary, to Following detailed investigation and
Caledonia operates across a number of supplement internal analysis, the legal ownership of a
jurisdictions and in an industry that knowledge in specialised areas or when number of funds was
is new regulations are introduced. transferred within the Caledonia Group
subject to significant regulatory Activities supported in March 2023.
oversight. by regular staff training.
Caledonia is a member of the
Association of Investment Companies
and operates in line with
industry standards.
-------------------------------------- -------------------------------------- --------------------------------------
Operational
Risks arising from inadequate or Systems and control procedures are Focus on cyber security continues.
failed processes, people and systems developed and reviewed regularly. Project to assess maturity against
or from external factors. They are tested to ensure effective NIST (National Institute
Operational risks arise from the operation. of Standards and Technology) cyber
recruitment, development and retention Appropriate remuneration and other security framework undertaken, with
of staff, systems policies are in place to facilitate improvements identified
and procedures and business the and being addressed. At least annual
disruption. retention of key staff. training for all staff maintained and
Business continuity plans are successful penetration
maintained and updated as the business testing
evolves and in response completed. Remuneration review
to emerging threats. This includes a undertaken with external support to
specific focus on cyber security. assess suitability and
competitiveness of remuneration
structure. Number of small changes to
current approach
recommended and being put into action.
Business continuity improved with
three
key initiatives. Additional power
protection provided for Cayzer House.
Off-site back-up data
centre set up and fully tested.
Business interruption scenario
workshop undertaken by
the senior team: improvements
identified and currently being
implemented.
New Enfusion system, covering public
equity trading activity and investment
accounting, successfully
implemented. Oracle NetSuite selected
as replacement core finance system,
with 2023 implementation
planned.
-------------------------------------- -------------------------------------- --------------------------------------
Group statement of comprehensive income
for the year ended 31 March 2023
2023 2022
Revenue Capital Total Revenue Capital Total
GBPm GBPm GBPm GBPm GBPm GBPm
------------------------------------ ------- ------- ------ ------- ------- -------
Revenue
Investment income 43.2 - 43.2 51.0 4.8 55.8
Other income 0.8 1.3 2.1 0.6 - 0.6
Net gains on fair value investments - 133.0 133.0 - 567.1 567.1
Net (losses)/gains on fair
value property - (1.4) (1.4) - 3.6 3.6
Total revenue 44.0 132.9 176.9 51.6 575.5 627.1
Management expenses (21.3) (8.6) (29.9) (21.0) (11.8) (32.8)
Profit before finance costs 22.7 124.3 147.0 30.6 563.7 594.3
Treasury interest receivable 4.6 - 4.6 0.1 - 0.1
Finance costs (2.4) - (2.4) (2.3) - (2.3)
Exchange movements - - - (0.1) - (0.1)
------------------------------------- ------- ------- ------ ------- ------- -------
Profit before tax 24.9 124.3 149.2 28.3 563.7 592.0
Taxation (4.3) (2.0) (6.3) 11.0 8.2 19.2
------------------------------------- ------- ------- ------ ------- ------- -------
Profit for the year 20.6 122.3 142.9 39.3 571.9 611.2
Other comprehensive income
items never to be reclassified
to profit or loss
Re-measurements of defined
benefit pension schemes - 1.4 1.4 - (1.4) (1.4)
Tax on other comprehensive
income - (0.3) (0.3) - 1.5 1.5
Total comprehensive income 20.6 123.4 144.0 39.3 572.0 611.3
Basic earnings per share 37.9p 225.3p 263.2p 72.1p 1049.3p 1121.4p
Diluted earnings per share 37.3p 221.7p 259.0p 70.8p 1030.7p 1101.5p
------------------------------------- ------- ------- ------ ------- ------- -------
The total column of the above statement represents the group's
statement of comprehensive income, prepared in accordance with
IFRSs as adopted in the United Kingdom.
The revenue and capital columns are supplementary to the group's
statement of comprehensive income and are prepared under guidance
published by the Association of Investment Companies.
The profit for the year and total comprehensive income for the
year is attributable to equity holders of the parent.
Statement of financial position
at 31 March 2023
Group Company
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
------------------------------------------------------ ------- ------- ------- -------
Non-current assets
Investments held at fair value through profit or loss 2,794.9 2,385.4 2,803.2 2,394.6
Investments in subsidiaries held at cost - - 0.9 0.9
Investment property 15.1 16.0 - -
Property, plant and equipment 27.9 29.2 - -
Deferred tax assets 5.7 24.2 - 18.1
Other receivables - - 37.1 37.3
Employee benefits 4.0 2.3 - -
Non-current assets 2,847.6 2,457.1 2,841.2 2,450.9
------------------------------------------------------- ------- ------- ------- -------
Current assets
Trade and other receivables 6.9 7.5 3.1 3.8
Current tax assets 19.3 8.9 20.3 9.8
Cash and cash equivalents 221.6 341.1 221.1 341.0
------------------------------------------------------- ------- ------- ------- -------
Current assets 247.8 357.5 244.5 354.6
------------------------------------------------------- ------- ------- ------- -------
Total assets 3,095.4 2,814.6 3,085.7 2,805.5
------------------------------------------------------- ------- ------- ------- -------
Current liabilities
Interest bearing loans and borrowings (266.0) - (266.0) -
Trade and other payables (22.1) (22.4) (33.8) (35.6)
Employee benefits (2.4) (3.6) - -
Current tax liabilities - (0.1) - (0.1)
Current liabilities (290.5) (26.1) (299.8) (35.7)
------------------------------------------------------- ------- ------- ------- -------
Non-current liabilities
Employee benefits (5.1) (4.7) - -
Deferred tax liabilities (1.8) (1.1) - -
Non-current liabilities (6.9) (5.8) - -
------------------------------------------------------- ------- ------- ------- -------
Total liabilities (297.4) (31.9) (299.8) (35.7)
------------------------------------------------------- ------- ------- ------- -------
Net assets 2,798.0 2,782.7 2,785.9 2,769.8
------------------------------------------------------- ------- ------- ------- -------
Equity
Share capital 3.1 3.1 3.1 3.1
Share premium 1.3 1.3 1.3 1.3
Capital redemption reserve 1.4 1.4 1.4 1.4
Capital reserve 2,555.4 2,527.0 2,554.3 2,526.0
Retained earnings 247.4 263.2 236.4 251.3
Own shares (10.6) (13.3) (10.6) (13.3)
------------------------------------------------------- ------- ------- ------- -------
Total equity 2,798.0 2,782.7 2,785.9 2,769.8
------------------------------------------------------- ------- ------- ------- -------
Undiluted net asset value 5150p 5133p
Diluted net asset value 5068p 5041p
------------------------------------------------------- ------- ------- ------- -------
The Company profit for the year ended 31 March 2023 was
GBP144.8m (2022: GBP608.2m)
The financial statements were approved by the board and
authorised for issue on 22 May 2023 and were signed on its behalf
by:
Mat Masters Tim Livett
Chief Executive Officer Chief Financial Officer
Statement of changes in equity
for the year ended 31 March 2023
Capital
Share Share redemption Capital Retained Own Total
capital premium reserve reserve earnings shares equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Group
Balance at 31 March 2021 3.2 1.3 1.3 1,979.1 254.3 (13.9) 2,225.3
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total comprehensive income
Profit for the year - - - 571.9 39.3 - 611.2
Other comprehensive income - - - 0.1 - - 0.1
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total comprehensive income - - - 572.0 39.3 - 611.3
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Transactions with owners
of the company
Contributions by and distributions
to owners
Share-based payments - - - - 8.2 - 8.2
Transfer of shares to employees - - - - (4.0) 4.0 -
Own shares purchased and
cancelled (0.1) - 0.1 (24.1) - - (24.1)
Own shares purchased - - - - - (3.4) (3.4)
Dividends paid - - - - (34.6) - (34.6)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total transactions with
owners (0.1) - 0.1 (24.1) (30.4) 0.6 (53.9)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Balance at 31 March 2022 3.1 1.3 1.4 2,527.0 263.2 (13.3) 2,782.7
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total comprehensive income
Profit for the year - - - 122.3 20.6 - 142.9
Other comprehensive income - - - 1.1 - - 1.1
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total comprehensive income - - - 123.4 20.6 - 144.0
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Transactions with owners
of the company
Contributions by and distributions
to owners
Share-based payments - - - - 5.8 - 5.8
Transfer of shares to employees - - - - (6.7) 6.7 -
Own shares purchased - - - - - (4.0) (4.0)
Dividends paid - - - (95.0) (35.5) - (130.5)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total transactions with
owners - - - (95.0) (36.4) 2.7 (128.7)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Balance at 31 March 2023 3.1 1.3 1.4 2,555.4 247.4 (10.6) 2,798.0
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Company
Balance at 31 March 2021 3.2 1.3 1.3 1,979.8 243.8 (13.9) 2,215.5
Profit and total comprehensive
income - - - 570.3 37.9 - 608.2
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Transactions with owners
of the company
Contributions by and distributions
to owners
Share-based payments - - - - 8.2 - 8.2
Transfer of shares to employees - - - - (4.0) 4.0 -
Own shares purchased and
cancelled (0.1) - 0.1 (24.1) - - (24.1)
Own shares purchased - - - - - (3.4) (3.4)
Dividends paid - - - - (34.6) - (34.6)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total transactions with
owners (0.1) - 0.1 (24.1) (30.4) 0.6 (53.9)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Balance at 31 March 2022 3.1 1.3 1.4 2,526.0 251.3 (13.3) 2,769.8
Profit and total comprehensive
income - - - 123.3 21.5 - 144.8
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Transactions with owners
of the company
Contributions by and distributions
to owners
Share-based payments - - - - 5.8 - 5.8
Transfer of shares to employees - - - - (6.7) 6.7 -
Own shares purchased - - - - - (4.0) (4.0)
Dividends paid - - - (95.0) (35.5) - (130.5)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Total transactions with
owners - - - (95.0) (36.4) 2.7 (128.7)
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Balance at 31 March 2023 3.1 1.3 1.4 2,554.3 236.4 (10.6) 2,785.9
----------------------------------- ------- ------- ---------- ------- -------- ------ -------
Statement of cash flows
for the year ended 31 March 2023
Group Company
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
------------------------------------------- ------- ------- ------- -------
Operating activities
Dividends received 41.6 52.9 44.5 52.9
Interest received 6.5 1.7 6.5 1.7
Cash received from customers 2.6 0.5 1.8 -
Cash paid to suppliers and employees (25.3) (20.4) (28.2) (21.0)
Taxes received 0.1 0.1 0.1 0.1
Taxes paid - (0.1) - (0.1)
Group tax relief received 2.0 1.4 2.1 1.4
Group tax relief paid - - (0.1) -
Net cash flow from operating activities 27.5 36.1 26.7 35.0
-------------------------------------------- ------- ------- ------- -------
Investing activities
Purchases of investments (468.1) (226.9) (468.1) (226.9)
Proceeds from disposal of investments 192.1 602.2 192.1 602.2
Purchases of property, plant and equipment (0.3) (0.4) - -
Net cash flow (used in)/from investing
activities (276.3) 374.9 (276.0) 375.3
-------------------------------------------- ------- ------- ------- -------
Financing activities
Interest paid (2.2) (2.6) (2.0) (2.3)
Dividends paid to owners of the company (130.5) (34.6) (130.5) (34.6)
Proceeds from bank borrowings 266.0 - 283.7 -
Repayment of bank borrowings - (15.0) - (15.0)
Loan payments to subsidiaries - (4.4) (17.8) (4.4)
Purchases of own shares (4.0) (27.5) (4.0) (27.5)
-------------------------------------------- ------- ------- ------- -------
Net cash flow from/(used in) financing
activities 129.3 (84.1) 129.4 (83.8)
-------------------------------------------- ------- ------- ------- -------
Net (decrease)/increase in cash and
cash equivalents (119.5) 326.9 (119.9) 326.5
Cash and cash equivalents at year start 341.1 14.2 341.0 14.5
Cash and cash equivalents at year end 221.6 341.1 221.1 341.0
-------------------------------------------- ------- ------- ------- -------
Notes to the final results announcement
1. General information and basis of preparation
Caledonia Investments plc is an investment trust company
domiciled in the United Kingdom and incorporated in England in
1928, under number 235481. 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.
Under the UK Corporate Governance Code and applicable
regulations, the directors are required to satisfy themselves that
it is reasonable to presume that the company is a going
concern.
As at 31 March 2023 the group holds GBP1,058m of liquid assets
and has access to GBP250m of undrawn committed banking facilities,
GBP112.5m of which expires in July 2025 and GBP137.5m of which
expires in November 2027. The Directors therefore believe the group
will be able to meet its liabilities as they fall due for at least
12 months from the date of approval of the financial
statements.
The group has conducted a going concern assessment which
considered future cash flows, the availability of liquid assets and
debt facilities, banking covenant requirements and consideration of
the risks arising from the war in Ukraine and the inflationary
environment over at least 12 months from the date of approval of
these financial statements. In making this assessment a number of
stress scenarios were developed, factoring in (a) adverse foreign
exchange movements, (b) reduction in investment income, (c)
reduction in distributions received from private equity funds and
drawdown of all existing private equity fund commitments, (d) a
delay and reduction in disposals of directly owned private equity
investments, and (e) a significant temporary market decline for
part of the year and (f) the cumulative impact of the above.
Under these scenarios the group would have a range of mitigating
actions available to it, including sales of liquid assets, and
usage of banking facilities, which would provide sufficient funds
to meet all of its liabilities as they fall due and still hold
significant liquid assets over the assessment period. As a result
of this assessment the directors are confident that the company
will have sufficient funds to continue to meet its liabilities as
they fall due for at least 12 months from the date of approval of
the financial statements and therefore have prepared the financial
statements on a going concern basis.
2. Dividends
Amounts recognised as distributions to owners of the company in
the year were as follows:
2023 2022
p/share GBPm p/share GBPm
--------------------------------------------------------- ------- ----- ------- ----
Final dividend for the year ended 31 March 2022 (2021) 47.3 25.6 45.9 25.1
Special dividend for the year ended 31 March 2022 175.0 95.0
Interim dividend for the year ended 31 March 2023 (2022) 18.2 9.9 17.5 9.5
240.5 130.5 63.4 34.6
--------------------------------------------------------- ------- ----- ------- ----
Amounts proposed after the year end and not recognised in the
financial statements were as follows:
Proposed final dividend for the year ended 31 March 2023 49.2 26.7
--------------------------------------------------------- ---- ----
The proposed final dividend for the year ended 31 March 2023 was
not included as a liability in these financial statements. The
dividend, if approved by shareholders at the annual general meeting
to be held on 19 July 2023, will be payable on 3 August 2023 to
holders of shares on the register on 30 June 2023. The ex-dividend
date will be 29 June 2023. The deadline for elections under the
dividend reinvestment plan offered by Link Group will be the close
of business on 13 July 2023.
For the purposes of section 1158 of the Corporation Tax Act 2010
and associated regulations, the dividends payable for the year
ended 31 March 2023 are the interim and final dividends for that
year, amounting to GBP36.6m (2022: GBP130.1m).
3. Earnings per share
Basic and diluted earnings per share
The calculation of basic earnings per share of the group was
based on the profit attributable to shareholders and the weighted
average number of shares outstanding during the year. The
calculation of diluted earnings per share included an adjustment
for the effects of dilutive potential shares.
The profit attributable to shareholders (basic and diluted) was
as follows:
2023 2022
GBPm GBPm
-------- ----- -----
Revenue 20.6 39.3
Capital 122.3 571.9
-------- ----- -----
Total 142.9 611.2
-------- ----- -----
The weighted average number of shares was as follows:
2023 2022
000's 000's
---------------------------------------------------------------------- ------ ------
Issued shares at the year start 55,664 55,374
Effect of shares cancelled - (404)
Effect of shares held by the employee share trust (376) (468)
---------------------------------------------------------------------- ------ ------
Basic weighted average number of shares in the year 54,288 54,502
Effect of performance shares, share options and deferred bonus awards 881 987
---------------------------------------------------------------------- ------ ------
Diluted weighted average number of shares in the year 55,169 55,489
---------------------------------------------------------------------- ------ ------
4. Operating segments
The following is an analysis of the profit/(loss) before tax for
the year and assets analysed by primary operating segments:
Profit/(loss) before tax Total assets
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
-------------------------------------------------- ------------- ----------- ----------- -----------
Quoted Equity 1.4 100.7 836.9 830.1
Private Capital 64.6 322.0 824.0 781.7
Funds 103.6 230.4 873.8 794.4
Investment portfolio 169.6 653.1 2,534.7 2,406.2
Other investments 7.3 (26.0) 260.2 (20.7)
-------------------------------------------------- ------------- ----------- ----------- -----------
Total revenue/investments 176.9 627.1 2,794.9 2,385.5
Cash and cash equivalents 4.6 0.1 221.6 341.1
Other items (1) (32.3) (35.2) 78.9 88.0
-------------------------------------------------- ------------- ----------- ----------- -----------
Reportable total 149.2 592.0 3,095.4 2,814.6
-------------------------------------------------- ------------- ----------- ----------- -----------
1. Other investments included GBP260.2m of non-pool investments (2022: -GBP20.7m of non-pool
provisions).
5. Share-based payments
In the year to 31 March 2023, participating employees in the
performance share scheme were awarded options over 172,802 shares
at nil-cost (2022: 237,861 shares). Also in the year to 31 March
2023, participating employees received deferred awards over 39,500
shares (2022: 49,267 shares). The IFRS 2 expense included in profit
or loss for the year was GBP7.4m (2022: GBP9.0m).
6. Net asset value
The group's undiluted net asset value is based on the net assets
of the group at the year end and on the number of ordinary shares
in issue at the year-end less ordinary shares held by The Caledonia
Investments plc Employee Share Trust. The group's diluted net asset
value assumes the calling of performance share and deferred bonus
awards.
2023 2022
Net Number Net Number
assets of shares (1) NAV assets of shares (1) NAV
GBPm 000's p/share GBPm 000's p/share
---------------------- ---------- ------------------ ---------- --------- ----------------- ---------
Undiluted 2,798.0 54,326 5150 2,782.7 54,211 5133
Share awards - 881 (82) - 987 (92)
---------------------- ---------- ------------------ ---------- --------- ----------------- ---------
Diluted 2,798.0 55,207 5068 2,782.7 55,198 5041
---------------------- ---------- ------------------ ---------- --------- ----------------- ---------
1. Number of shares in issue at the year end is stated after the deduction of 337,962 (2022:
452,645) ordinary shares held by the Caledonia Investments plc Employee Share Trust.
Net asset value total return is calculated in accordance with
AIC guidance, as the change in NAV from the start of the period,
assuming that dividends paid to shareholders are reinvested at NAV
at the time the shares are quoted ex-dividend.
2023 2022
p p
------------------------------------------------------------------ ---------------- ---------------
Diluted NAV at year start 5041 4000
------------------------------------------------------------------ ---------------- ---------------
Diluted NAV at year end 5068 5041
Dividends payable in the year 241 63
Reinvestment adjustment (2) 9 12
5318 5116
------------------------------------------------------------------ ---------------- ---------------
NAVTR over the year 5.5% 27.9%
------------------------------------------------------------------ ---------------- ---------------
2. The reinvestment adjustment is the gain or loss resulting from reinvesting the dividends in
NAV at the ex-dividend date.
7. Capital commitments
At the reporting date, the group and company had entered into
unconditional commitments to limited partnerships, committed loan
facility agreements and a conditional loan and purchase agreement,
as follows:
Group Company
2023 2022 2023 2022
GBPm GBPm GBPm GBPm
-------------------------- ----- ----- ----- -----
Investments
Contracted but not called 422.6 331.1 422.6 331.1
Conditionally contracted - - 4.5 4.5
422.6 331.1 427.1 335.6
-------------------------- ----- ----- ----- -----
Amounts are callable within the next twelve months. The group
has conducted a going concern assessment which considered future
cash flows, the availability of liquid assets and debt facilities,
and consideration of the risks arising from the war in Ukraine and
the inflationary environment over the 12 month period required. In
making this assessment a number of stress scenarios were developed.
The most severe scenario included all outstanding private equity
fund commitments being drawn. Under this severe scenario the group
would have a range of mitigating actions available to it, including
sales of liquid assets, and usage of banking facilities, which
would provide sufficient funds to meet all of its liabilities as
they fall due and still hold significant liquid assets over the
assessment period.
8. Performance measures
Caledonia uses a number of performance measures to aid the
understanding of its results. The performance measures are standard
within the investment trust industry and Caledonia's use of such
measures enhances comparability. Principal performance measures are
as follows:
Net assets
Net assets provides a measure of the value of the company to
shareholders and is taken from the IFRS group net assets.
Net asset value ('NAV')
NAV is a measure of the value of the company, being its assets -
principally investments made in other companies and cash held -
minus any liabilities. NAV per share is calculated by dividing net
assets by the number of shares in issue, adjusted for shares held
by the Employee Share Trust and for dilution by the exercise of
outstanding share awards. NAV takes account of dividends payable on
the ex-dividend date.
NAV total return ('NAVTR')
NAVTR is a measure of how the net asset value per share has
performed over a period, considering both capital returns and
dividends paid to shareholders. NAVTR is calculated as the increase
in NAV between the beginning and end of the period, plus the
accretion from assumed dividend reinvestment during the period. We
use this measure as it enables comparisons to be drawn against an
investment index in order to benchmark performance. The calculation
follows the method prescribed by the Association of Investment
Companies ('AIC').
Total shareholder return ('TSR')
TSR measures the return to shareholders through the movement in
the share price and dividends paid during the measurement
period.
9. Financial instruments - private asset valuation
Caledonia makes private equity investments in two forms: direct
private equity investments (the Private Capital pool) and
investments into externally managed unlisted private equity funds
and fund of funds (the Funds pool). The directors have made two
estimates which they deem to have a significant risk of resulting
in a material adjustment to the amounts recognised in the financial
statements within the next financial year, which relate to the
valuation of assets within these two pools.
For directly owned private investments (Private Capital
investments), totalling GBP824.0m (2022: GBP781.7m) valuation
techniques using a range of internally and externally developed
unobservable inputs are used to estimate fair value. Valuation
techniques make maximum use of market inputs, including reference
to the current fair values of instruments that are substantially
the same (subject to appropriate adjustments).
For private equity fund investments (unlisted Funds Pool
investments), totalling GBP869.0m (2022: GBP784.7m) held through
externally managed fund vehicles, the estimated fair value is based
on the most recent valuation provided by the external manager,
usually received within 3-6 months of the relevant valuation date.
Where required, valuations are adjusted for investments and
distributions between the valuation date and the reporting
date.
The following table provides information on significant
unobservable inputs used at 31 March 2023 in measuring financial
instruments categorised as Level 3 in the fair value hierarchy.
For private company assets we have chosen to sensitise and
disclose EBITDA multiple or tangible asset multiple inputs because
their derivation involves the most significant judgements when
estimating valuation, including which data sets to consider and
prioritise. Valuations also include other unobservable inputs,
including earnings and tangible assets, which are based on historic
and forecast data and are less judgmental. For each asset category,
inputs were sensitised by a percentage deemed to reflect the
relative degree of estimation uncertainty, and valuation
calculations re-performed to identify the impact.
Private equity fund assets are each held in and managed by the
same type of fund vehicle, valued using the same method of adjusted
manager valuations, and subject to broadly the same economic risks.
They are therefore subject to a similar degree of estimation
uncertainty. They have been sensitised at an aggregated level by 5%
to reflect a degree of uncertainty over managers' valuations which
form the basis of their fair value.
At 31 March 2023
Description / Fair value Unobservable input Weighted average Input sensitivity Change in valuation
valuation method input
GBPm +/- +/- GBPm
--------------------- ----------- ------------------ -------------------- ----------------- -------------------
Internally developed
Private companies
Large, earnings 460.6 EBITDA multiple 14.0x 10.0% +39.6/-55.5
Medium, earnings 160.6 EBITDA multiple 11.0x 10.0% +/-13.1
Small, earnings 10.3 EBITDA multiple 4.6x 15.0% +/-1.2
Net assets / manager
valuation 192.5 Multiple 1 0.1x +/-21.8
--------------------- ----------- ------------------ -------------------- ----------------- -------------------
824.0 +75.7/-91.6
Non-pool companies 260.2
--------------------- ----------- ------------------ -------------------- ----------------- -------------------
Total internal 1,084.2
Externally developed
Private equity fund
Net asset value 869.0 Manager NAV 1 5% +/-43.5
--------------------- ----------- ------------------ -------------------- ----------------- -------------------
1,953.2 +119.2/-135.1
--------------------- ----------- ------------------ -------------------- ----------------- -------------------
10. Financial information
The financial information set out above does not constitute the
company's statutory accounts for the years ended 31 March 2023 or
2022 but is derived from those accounts. Statutory accounts for 31
March 2022 have been delivered to the Registrar of Companies, and
those for 31 March 2023 will be delivered in due course. The
auditor has reported on those accounts; their reports were: (i)
unqualified; (ii) did not include a reference to any matters to
which the auditor drew attention by way of emphasis without
qualifying their report; and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006.
The statutory accounts for the year ended 31 March 2023 will be
published on 16 June 2023 and made available for download from the
company's website on that date. Also, a copy will be delivered to
the Registrar of Companies in accordance with section 441 of the
Companies Act 2006, following approval by shareholders.
The statutory accounts for the year ended 31 March 2023 include
a 'Directors' statement of responsibility' as follows:
Each of the directors confirm that, to the best of their
knowledge:
The group and parent company financial statements, which have
-- been prepared in accordance with applicable accounting standards,
give a true and fair view of the assets, liabilities, financial
position and profit or loss of the company and the undertakings
included in the consolidation taken as a whole
The strategic report includes a fair review of the development
-- and performance of the business and the position of the company
and the undertakings included in the consolidation taken as
a whole, together with a description of the principal risks
and uncertainties that it faces.
Signed on behalf of the board by:
Mat Masters Tim Livett
Chief Executive Officer Chief Financial Officer
22 May 2023 22 May 2023
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Neither FTSE nor its licensors accept any liability for any errors
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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.
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END
FR SEIFAEEDSELI
(END) Dow Jones Newswires
May 23, 2023 02:00 ET (06:00 GMT)
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