20th May 2025 09:24
(Alliance News) - Caledonia Investments PLC on Tuesday reported a growth in net asset value during its most recent financial year, while its total return falls short of its benchmark amid wider market volatility.
The London-based investor in both public companies and private capital said its net asset value per share at March 31, 2025, was 5,475p, up 2.0% from 5,369p at March 31, 2024.
Its total return for the year that ended March 31 was 3.3%, against a 7.4% return the year before. This return was inclusive of around GBP42 million in foreign exchange headwinds and also compared to a 10.5% return on the FTSE All Share index over the same twelve-month period.
"Market volatility rose significantly in March as investors assessed the potential implications of higher tariffs and escalating US-China trade tensions on global growth, productivity and inflation. This volatility, along with recent elevated levels of inflation, has reduced short-term real returns," the company explained.
Caledonia declares a total dividend of 73.6 pence per share, increased 4.5% from 70.4p a year prior. The trust remains committed to its progressive dividend policy, and targets an increase of future dividends to 50% of the prior year's annual dividend, to become effective "later this year".
"Caledonia has delivered another year of positive performance, with our long-term, disciplined investment approach continuing to prove its strength within a macroeconomic and geopolitical backdrop that remains highly volatile. All three of our investment pools contributed to growth, demonstrating the resilience and quality of our diversified portfolio," said Chief Executive Officer Mat Masters.
"The performance has further extended our track record of delivering consistent real returns for shareholders, alongside 58 years of consecutive dividend growth. The uncertain operating environment currently shows little sign of easing, but our focus remains on allocating capital prudently, investing in high-quality companies and fund managers with track records of success, and continuing to position Caledonia to compound value for our shareholders over the long term."
The trust intends to seek approval at its annual general meeting on July 16 for a 10:1 share split, which will make its shares "more accessible to a wider range of investors", Caledonia said. The split will reduce the nominal value of shares to 0.5p from 5.0p.
Shares in Caledonia Investments were down 0.9% at 3,774.77 pence each in London on Tuesday morning. The stock has risen 8.2% over the past year.
By Emily Parsons, Alliance News reporter
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