27th May 2020 10:19
(Alliance News) - Caledonia Investments PLC on Wednesday reported a drop in assets over financial 2020 but stressed its confidence in continuing shareholder payouts.
At March 31, the investment trust's NAV per share stood at 3,236 pence, down 9.6% compared to the 3,582p seen at the same point the year before.
Net assets dropped 11% over the 12-month period to GBP1.79 billion from GBP2.00 billion.
Caledonia's annual dividend, however, improved 3.0% to 61.6p from 59.3p.
Despite the dividend growth, the trust's NAV total return was negative 8.1%. Caledonia noted it targets a total return of 3% to 6% ahead of inflation in the short term - which was 2.6% over the period. The trust noted, however, it was ahead of the FTSE All-Share Total Return over the period, which lost 18.5%.
Chief Executive Will Wyatt said: "Our diversified portfolio and our preference for investing in high quality businesses has so far provided some resilience to the impact of Covid‑19 on the company.
"The Quoted Equity portfolios were particularly effective at protecting shareholders' capital in volatile markets. Despite a decrease in net assets for the year, the majority of our investments are in a good position to withstand this challenging economic period though those in the consumer leisure sector face an uncertain future."
Caledonia's Quoted Equity pool returned negative 0.3% in the 12-month period, with its Capital portfolio gaining 1.3%.
The Private Capital and Funds pools returned negative 18% and 2.8%, respectively.
Wyatt continued: "It is likely that income for the current year will be lower than in 2020. However, our strong balance sheet and, in particular, our reserves of retained earnings, should give shareholders comfort that Caledonia is well placed to achieve its aims of growing net assets and dividends over the long term."
Shares in Caledonia Investments were 2.0% higher in London on Wednesday at 2,697.50p each.
By Paul McGowan; [email protected]
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