9th Jan 2023 10:11
(Alliance News) - Caledonia Investments PLC on Monday said that while its private assets generated good returns over the first nine months of the year, public equity holdings were adversely impacted by market volatility.
The London-based investment trust's net asset value per share as at December 31 was 4,943 pence, up 2.3% from 4,833p a year prior.
For the nine months to December 31, the firm's NAV total return was positive 2.9%, down from 22.6% the previous year.
Caledonia's private capital portfolio generated a total return of 6.2% during the recent period, compared to 34% in same period in 2021.
The firm noted that two of its investments in the financial services businesses, 7IM and Stonehage Fleming, continued to perform well "despite challenging market conditions".
Meanwhile, the total return on the quoted equity pool was negative 5.7%, swung from positive 21% a year before.
Caledonia noted the detrimental impact of "rising inflation and resulting interest rate increases, plus the uncertainty created by the conflict in Ukraine".
However, it argued that the firm's total liquidity "remains healthy", with cash of GBP231 million and undrawn bank facilities of GBP250 million as at December 31, 2022.
In late November, Caledonia renegotiated its banking facilities with the Royal Bank of Scotland International Ltd, creating a single facility of GBP137.5 million running through to November 2027.
The balance of GBP112.5 million with ING expires in July 2025.
A final dividend of 47.3p per share for the financial year that ended March 31, plus a special dividend of 175p, was paid to shareholders back in August.
An interim dividend of 18.2p per share was paid last Thursday, up from 17.5p a year before.
Caledonia Investments shares were trading 0.3% higher at 3,570.00 pence each in London on Monday morning. The stock is down 11% over the past 12 months.
By Holly Beveridge; Alliance News reporter
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