REG - Caledonia Investmnts - Half-year Financial Report
25/11/2025 07:00
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RNS Number : 8075I Caledonia Investments PLC 25 November 2025
Caledonia Investments plc
Half-year results for the six months ended 30 September 2025
Financial highlights
Six months Year
30 Sept 2025 31 Mar 2025(2)
Net asset value total return(1) 4.4% 3.3%
Net asset value per share 566p 548p
Net asset value £3,012m £2,932m
Interim dividend per share 3.68p 1.97p
1. NAV total return, and investment and pool returns are Alternative Performance
Measures - see note 9
2. On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. All number of share
figures have been restated for periods prior to 25 July 2025
An investor and analyst webcast will take place at 09:30 and is available via
this link
(https://sparklive.lseg.com/CaledoniaInvestments/events/442909ad-f7d3-4717-a1ce-47bac68cfb74/caledonia-investments-plc-half-year-results-presentation)
.
Highlights
• NAV Total Return: 4.4% to £3.0bn (566p per share)
• Strong portfolio performance: 9.9% from Public Companies and 7.7% from Private
Capital, partly offset by ‑2.2% from Funds
• Agreement to sell Stonehage Fleming: Expected proceeds of £288m, 3.2x cost
and 30% uplift to March 2025 carrying value
• Robust balance sheet with significant liquidity: £430m available to
capitalise on new opportunities (£105m cash and £325m undrawn credit
facilities)
• Progressive dividend: Interim dividend of 3.68p per share, reflecting the
change in dividend payment profile to 50% of the prior year's total annual
dividend
• Share buybacks: Accretive purchases continued, delivering a 1.29p accretion to
NAV per share
• Share split: 10:1 share split executed in July 2025, making Caledonia shares
more accessible to a wider range of investors
Performance track record to 30 September 2025
6 months 1 year 3 years 5 years 10 years
% % % % %
NAV total return 4.4 7.3 16.9 78.1 155.8
Annualised
NAV total return 7.3 5.4 12.2 9.8
Total shareholder return(1) 12.3 8.4 12.3 8.7
CPIH(2) 4.1 4.3 4.9 3.3
FTSE All Share total return 16.4 14.5 13.0 8.1
1. Alternative Performance Measure - see note 9
2. Consumer Prices Index including owner occupiers' housing costs ('CPIH')
Mat Masters, Chief Executive Officer, commented:
"Caledonia has delivered another strong performance over the first half of the
year, with continued progress across our investment pools and particularly
good results from both our Public Companies and Private Capital strategies.
Within Private Capital, the agreement to sell our interest in Stonehage
Fleming represents an excellent outcome for Caledonia and is an example of our
patient approach to capital in action: partnering with an exceptional
management team to build an even stronger business, create significant value
over the long-term and ultimately delivering excellent returns for
shareholders.
In our Public Companies pool, Caledonia's permanent balance sheet provided the
flexibility to deploy capital swiftly during the period of market turbulence
in April. This agility to act decisively, a structural advantage provided by
our model, enabled us to capture attractive opportunities, resulting in strong
returns over the period. Oracle was a stand-out performer, which gave us an
opportunity to realise gains.
While the macroeconomic uncertainty that characterised the end of the last
financial year has continued into the first half, our objective remains, as
ever, on preserving and growing capital in real terms, looking through
short-term market cycles and positioning Caledonia for sustained long-term
value creation."
25 November 2025
Enquiries
Caledonia Investments plc Teneo
Mat Masters (CEO), Rob Memmott (CFO) Tom Murray, Robert Yates
+44 20 7802 8080 +44 20 7260 2700
Business review
Caledonia's long term investment approach of 'Time Well Invested', making
thoughtful compounding investments, has underpinned this period of positive
performance, with NAVTR of 4.4%. This continues to build on our track record
of delivering long term real returns, outperforming both inflation and the
FTSE All-Share total return over the past decade. The essence of long-term
investing is the ability to endure shorter-term fluctuations and maintain a
focus on achieving sustainable returns over the longer term. Whilst we remain
cognisant of short-term performance, we invest and assess investment success
over the long-term. This approach has delivered long-term real returns with
annualised NAVTR of 9.8% outperforming inflation by 6.5% and the FTSE-All
Share index by 1.7% over the last 10 years.
Asset allocation
Caledonia holds investments in both listed and private markets via three
pools: Public Companies, Private Capital and Funds, each managed by a
specialist investment team who are fully aligned with shareholders. The
diversity and long-term outlook of our investment approach means we can
effectively manage risk, both through diversification and disciplined capital
allocation across our three pools, providing shareholders with a well-balanced
global portfolio.
To ensure that we maintain a balanced portfolio, each of our investment pools
has a strategic allocation range. At 30 September 2025, all of our investment
pools were within their strategic allocation ranges.
Strategic allocation Allocation NAV at 30 Sept 2025
Public Companies 30%-40% 35%
Private Capital 25%-35% 30%
Funds 25%-35% 29%
Investment performance
At 30 September 2025, the investment portfolio was valued at £2.9bn,
delivering a return of 5.2% during the six months (7.4% in local currencies).
Investment pool returns
6 months 1 year 3 years 5 years 10 years
annualised annualised annualised annualised
% % % % %
Public Companies 9.9 7.5 12.6 9.5 10.6
Private Capital 7.7 14.9 8.5 20.7 12.5
Funds (2.2) 2.4 (1.8) 13.3 13.3
Public Companies
Strategy
The Public Companies pool provides Caledonia with exposure to a concentrated
portfolio of high-quality well-managed businesses. The qualities we focus on
include a strong market position, good and sustainable returns on capital and
experienced management teams, who are closely aligned with long-term
investors. We expect that a combination of these factors will reward long-term
ownership. The portfolio is well positioned to withstand short-term market
volatility, which we believe does not materially impact the long-term value in
the businesses we own.
The permanent nature of Caledonia's balance sheet ensures the strategy is not
affected by the need to manage subscriptions or redemptions. This allows the
team to introduce or realise capital from the pool when markets provide
opportunities.
The global portfolio comprises two strategies, the Capital and the Income
portfolios, each holding between 15 and 20 companies. The Income portfolio
aims to deliver an initial yield on invested cost of 3.5% with the overall
dividend from these holdings growing ahead of inflation over the longer term.
The Capital portfolio has no dividend target, is unconstrained and
consequently, should produce higher returns over time. The portfolios are
managed by a single team, with no benchmark and with the same research
methodology and investment discipline.
Performance
In the first half of the year, the Public Companies pool generated a total
return of 9.9% (13.1% in local currencies), reflecting positive performance of
a number of our holdings. Over the last 10 years the Public Companies pool has
delivered returns of 10.6% p.a..
Public Companies - Capital portfolio
Performance
At 30 September 2025 the Capital portfolio was valued at £799.2m and
delivered a return of 12.6% over the six months. The portfolio remains
concentrated, with 19 holdings and is managed on an absolute return basis, not
against a benchmark. Over the last 10 years the Capital portfolio has
delivered returns of 12.9% p.a..
The strongest performers in terms of returns were Oracle (110.5%), Microsoft
(32.9%) and Alibaba Group (31.3%), particularly driven by their cloud
businesses and AI-related services. Gains across the Capital portfolio were
partially offset by negative contributions from a small number of companies,
with the largest detractors including Charter Communications (-27.8%) and
Watsco (-22.7%), due to weaker than expected broadband growth in the former
and some headwinds in the residential air conditioning end market for the
latter. However, we remain confident in the longer-term prospects for both
companies.
Investment activity
Following the US Administration's 'Liberation Day' announcement in April 2025,
global equity markets experienced a period of volatility and decline. We took
advantage of this market weakness to deploy £44.1m into the Capital
portfolio, including the addition of a new position, Charles Schwab (a leading
US financial services firm with over $10 trillion assets under management),
which we had been monitoring since 2017. This contributed to a
higher-than-usual level of investment activity in the first half of the year.
We realised £53.9m from our holding in Oracle during the period. The
company's share price rose sharply following a series of AI-related
announcements which led to a significant re-rating of the shares. Given the
strong performance and valuation, we took the opportunity to realise gains.
Since initiating our investment in 2014, we have invested a total of £35.2m
and realised £100.7m (including dividends). At 30 September 2025, the
remaining holding was valued at £89.0m and the annualised return since
investment was 22.1%.
During the first half of the year, we invested a total of £70.7m and realised
£53.9m resulting in net investment across the portfolio of £16.8m.
Public Companies - Income portfolio
Performance
At 30 September 2025 the Income portfolio was valued at £268.4m and generated
a return of 2.4% over the six months. Like the Capital portfolio, it is
concentrated, comprising 17 holdings and is not managed against a benchmark.
Over the last 10 years the Income portfolio has delivered returns of 5.6%
p.a..
The strongest performers were British American Tobacco ('BAT') (27.9%), Sabre
Insurance (27.9%) and Fastenal (23.1%). This reflected underlying business
performance as well as rating expansion. Gains were offset by a weaker share
price performance from Watsco and to a lesser extent from Diageo, Sage and
RELX.
Investment activity
During the period, we invested £7.4m into the portfolio and realised £7.0m,
as we continue to risk manage the portfolio appropriately and take advantage
of opportunities when the market presents.
Private Capital
Strategy
The Private Capital pool comprises a small number of direct investment
holdings in private companies, predominantly in the UK mid-market. We
buy-to-own, focusing on cash generative businesses with strong growth
potential and favourable market dynamics. We typically invest £50m to £150m
using low levels of leverage, providing long-term capital along with
operational and strategic support to portfolio company management teams.
Unlike private equity firms, as a balance sheet investor, we are not
constrained by the finite life of a private equity fund. This allows us to
create fundamental value over the medium to long-term, allowing us to exit
only when the time is right to maximise value for shareholders. Excluding the
agreed sale of Stonehage Fleming, the strategy has returned £1.1bn of
realised proceeds at an IRR of 17% and a multiple of 1.8x cost from
investments made since 2012.
Performance
At 30 September 2025 the Private Capital portfolio consisted of eight
companies, with five investments representing over 90% of pool NAV.
The portfolio was valued at £906.7m and generated a return of 7.7% over the
six months, driven primarily by the agreed sale of Stonehage Fleming and good
operational performance from AIR-serv. Over the last 10 years the Private
Capital pool has delivered a return of 12.5% p.a..
The majority of the portfolio is valued on an earnings multiple basis, with
these multiples in the range 10 to 14.5 times last 12 months' earnings before
interest, tax, depreciation and amortisation ('LTM EBITDA'). Gearing levels
are low, with net debt typically in the range of 2 to 2.5 times LTM EBITDA.
Realisation of Stonehage Fleming
On 2 September 2025 we announced the agreed sale of Stonehage Fleming, a
leading multi-family office providing advisory services to the ultra-high net
worth market. Expected cash proceeds are £288.4m, of which £251.6m will be
received on completion, with a further £36.8m split equally across two
tranches payable six and 12-months post completion. The sales proceeds
represent a 3.2x multiple on cost and a £67.0m or 30% uplift to the carrying
value at 31 March 2025.
The transaction is subject to change in control approval by the Financial
Conduct Authority in the United Kingdom and several other international
regulators and is expected to complete in the first half of 2026.
We first invested in Stonehage Fleming in 2019 and during our period of
ownership, the Stonehage Fleming team has delivered upon our investment
thesis, which was centred on building scale, international reach and providing
additional services to the fast-growing ultra-high net worth market.
The valuation at 30 September 2025 of £259.7m reflects expected cash proceeds
less a c.10% discount in recognition of the limited transaction execution risk
and time value of money.
Portfolio summary
Cobepa, the Belgian based investment company, owns a diverse portfolio of 19
private global investments. Performance for the period reflected the effect of
acquisitions made in 2024 and elevated cash balances - the latter accounting
for nearly 20% of the company's enterprise value - which moderated overall
returns. Operationally, the majority of the portfolio companies performed well
while a few faced more challenging conditions. The valuation at 30 September
2025 was £194.9m, a return of 2.7% (-1.5% in local currency) for the
six-month period.
AIR-serv Europe, a leading designer and manufacturer of air, vacuum and jet
wash machines, which it provides to fuel station forecourt operators across
the UK and Western Europe, has continued to perform well since acquisition in
April 2023. The business delivered solid year-on-year growth, supported by
operational efficiencies and expansion of its estate, which now includes
operations in Portugal and Austria. Caledonia received a dividend of £24.5m
during the six-month period, bringing total dividends received since
acquisition to £30.7m. The valuation at 30 September 2025 was £193.0m, a
return of 11.1% for the six-month period.
Butcombe Group (formerly Liberation Group), is an inns and drinks business
with an estate of 71 managed and 50 tenanted pubs, stretching from Southwest
London to Bristol and the Channel Islands. Trading performance has improved
across all three business units, with year-on-year profits increasing, despite
the increase in National Insurance and National Minimum Wage in the UK. The
continuing programme of improvements to the Cirrus estate is also delivering
good results. The valuation at 30 September 2025 was £145.2m, a return of
6.4% for the six-month period.
Direct Tyre Management ('DTM'), the UK's leading independent provider of
outsourced tyre management services to fleet operators, was acquired in August
2024. Headquartered in Blackpool, DTM has over 100 employees and serves c.250
fleet customers with c.285,000 vehicles and c.1.3 million tyres under
management. Enabled by a proprietary technology platform, which allows
customers to maximise their fleet efficiency, compliance and output, DTM
connects the vehicles it manages to a national network of over 3,500 service
provider locations. Since acquisition, DTM has successfully onboarded new
members of the management team and is well positioned for future growth. The
valuation at 30 September 2025 was £57.2m, a return of 3.9% for the six-month
period.
Cooke Optics, a leading manufacturer of cinematography lenses, continues to be
heavily impacted by the repercussions from the Hollywood strikes in 2023.
These disputes were resolved later that year, however recovery is taking
longer than anticipated. A new CEO joined the business in January 2025; we are
encouraged by the progress he and the management team have made in a short
period to strategically reposition the company and bring new products to
market. Reflecting the slower pace of recovery and current trading
performance, the valuation at 30 September 2025 was reduced to £31.1m. Cooke
remains unlevered and we continue to work closely with management as they
execute a turnaround plan for the business.
Funds
Strategy
The pool invests in funds operating in North America and Asia with a bias to
buyouts. It provides attractive diversification, investing in 82 funds managed
by 46 managers, with an underlying portfolio of over 600 companies in our
directly held funds, across a wide range of sectors and company sizes,
generally focusing on domestic markets. We are frequently the only European
investor in these funds, providing privileged access and scale exposure to
markets that would otherwise be challenging to access directly.
The North America based funds, which represent 64% of the Funds pool (19% of
Caledonia's NAV) invest into the lower mid-market, with a focus on small to
medium sized, often owner-managed, established businesses. These funds
regularly provide the first institutional investment into these businesses,
and support their professionalisation and growth, both organically and through
M&A activity. Realisations are typically through trade sales or to other,
larger private equity funds. The North America holdings are a combination of
directly owned funds (55% of Funds pool), fund of funds investments (8% of
Funds pool) and quoted funds (1% of Funds pool).
Our Asia funds represent 36% of the Funds pool (10% of Caledonia's NAV), and
invest across a wide range of sectors, which are set to benefit from wider
socio economic and demographic trends, such as healthcare and technology. The
funds typically invest in businesses in the early years of significant growth,
having successfully developed their business model. Whilst focused on local
markets and domestic drivers, a small number, particularly those with a
healthcare focus, also invest into the US. The pool is a combination of
directly owned funds (20% of Funds pool), with a broad range of managers and
the balance (16% of Funds pool) is invested with Asia Alternatives, Axiom and
Unicorn, all fund of funds providers, investing in buyout, growth and venture
capital.
Performance
At 30 September 2025 the pool was valued at £884.2m, comprising £567.3m of
North America funds, £313.8m of Asia funds and £3.1m of legacy fund
investments. The pool generated a total return of -2.2% (+1.9% in local
currencies) driven by positive performance from our North America holding
(+2.9% in local currency) and Asia holding remaining flat in local currency,
offset by the adverse impact of foreign exchange. Over the last 10 years, the
Funds pool has delivered returns of 13.3% p.a..
As anticipated, drawdowns and distributions across both portfolios have
remained subdued over the past six months, reflecting the broader
macroeconomic environment. Despite these headwinds, we remain confident in the
fundamental strength of both portfolios, comprising underlying companies with
a strong domestic market focus and selective exposure to resilient,
high-growth sectors. Overall, our managers across both portfolios anticipate a
continued moderated cashflow profile in the near-term as companies assess the
duration and implications of the current macroeconomic uncertainty.
Investment activity
Investments totalled £51.8m with 75% deployed into North America funds and
the balance into Asia funds. Distributions of £42.8m were broadly split
70%/30% between North America and Asia.
Portfolio maturity
Our primary funds portfolio has a weighted average age of approximately 4.6
years. The weighted average age of our North America holdings is 4.3 years.
The weighted average age of the Asia holdings is 5.5 years.
Uncalled commitments
During the first half of the year, US$55m was committed to North America lower
mid-market buyout funds; $30m to an existing manager and $25m to a new
manager.
At 30 September 2025, uncalled commitments were £394m, c.75% to North America
and 25% to Asia.
Investment movements in the period
31 Investments Realisations Accrued income Gains / (losses) 30 Income Return(1)
March Sept
2025
2025
£m £m £m £m £m £m £m %
Public Companies 964.7 78.1 (60.9) - 85.7 1,067.6 13.1 9.9
Private Capital 870.7 2.9 (0.5) 1.3 32.3 906.7 33.6 7.7
Funds 897.3 51.8 (42.8) - (22.1) 884.2 2.1 (2.2)
Total pools 2,732.7 132.8 (104.2) 1.3 95.9 2,858.5 48.8 5.2
Other investments(2) 10.9 - - - (11.4) (0.5) 8.8
Total investments(3) 2,743.6 132.8 (104.2) 1.3 84.5 2,858.0 57.6
Net cash 151.3 105.4
Other net (liabilities) / assets 36.7 48.3
Net assets 2,931.6 3,011.7
1. Returns for investments are calculated using the Modified Dietz
Methodology
2. Other investments comprise legacy investments and cash and net other
assets in subsidiary investments
3. Total investments of £2,858.0m includes £259.7m of investments that are
classified as assets held for sale in the Group's Statement of Financial
Position
Cash flows, liquidity and facilities
At 30 September 2025, total liquidity was £430.4m, comprising cash of
£105.4m and £325m of undrawn revolving credit facilities (31 March 2025: net
cash £151.3m and undrawn facilities of £325m).
Our net investment cashflows were an outflow of £27.0m. Investments into our
portfolio totalled £131.2m. Realisations from our portfolio totalled
£104.2m.
Excluding net investment cash flows, the net movement in cash was an outflow
of £18.4m.
Foreign exchange
63% of our net asset value is non-Sterling denominated. We do not hedge our
foreign currency exposure. However, this risk is fully recognised by the
business and considered carefully within our risk management approach. Since 1
April 2025, foreign exchange resulted in a decrease in net assets of £59m
(2.0% of NAV).
Dividend
The board has declared an interim dividend of 3.68p per share, this reflects
the change in dividend payment profile to 50% of the prior year total annual
dividend. This will be paid to shareholders on 8 January 2026.
Shareholder initiatives
Sentiment towards investment companies and in particular those investing in
private assets, continues to weigh on discounts across the sector. We believe
it is important for shareholders to capture more fully the benefit from the
long-term increase in NAV per share. We believe the share price discount to
NAV per share undervalues the Company's high quality and diverse portfolio,
its long-term track record and its future prospects.
Addressing the discount remains a priority for the Board and management team.
While the continued delivery of the Company's long-term performance track
record remains the primary focus, the Board has also implemented a number of
initiatives aimed at enhancing the accessibility and attractiveness of the
Company's shares. These include measures to improve transparency through
enhanced disclosure, increased engagement with retail investors via
conferences and other forums, adjustments to the dividend payment profile and
a share split to facilitate broader investor participation. Collectively,
these actions are intended to ensure that the Company remains accessible to a
wide investor base and to support efforts to narrow the discount over time.
We have also been allocating capital to share buybacks. In the six-month
period to 30 September 2025, we allocated £13.5m to share buybacks,
purchasing and cancelling 3,718,063 shares at an average discount of 33.7%,
resulting in a 1.29p accretion to NAV per share.
The Board continues to believe that share buybacks at the current discount to
NAV per share are accretive to shareholders and that it is in the best
interests of the Company and shareholders to continue to do so.
Looking forward
While near-term uncertainty continues to influence markets and at times, our
returns, it also creates opportunities for disciplined, long-term investors
such as Caledonia. Our investment approach and structure allow us to look
through short-term volatility and stay committed to generating long-term
sustainable value for shareholders. We are supported by a strong balance
sheet, robust financial resources and a high-quality, diversified portfolio
managed by an experienced team of investors fully aligned with shareholders'
interests.
Supplementary information
Change in pool investments value
£m
Opening portfolio balance 2,732.7
Investments 132.8
Realisations (104.2)
Gains/losses 95.9
Accrued income 1.3
Closing portfolio balance(1) 2,858.5
Cash and other 153.2
Closing net assets 3,011.7
1. Closing portfolio balance of £2,858.5m includes £259.7m of investments
that are classified as assets held for sale in the Group's Statement of
Financial Position
Net asset distribution
30 Sept 31 Mar
2025 2025
Public Companies 35.4% 32.9%
Private Capital 30.1% 29.7%
Funds 29.4% 30.6%
Cash and other 5.1% 6.8%
100.0% 100.0%
Geography by region (headquartered)
30 Sept 31 Mar
2025 2025
North America 46.5% 45.5%
UK & Channel Islands 34.9% 34.6%
Asia 10.5% 11.4%
Europe 8.1% 8.5%
100.0% 100.0%
Net assets currency distribution
30 Sept 31 Mar
2025 2025
Pound sterling 37.3% 38.0%
US dollar 53.8% 52.8%
Euro 7.0% 7.3%
Other currencies 1.9% 1.9%
100.0% 100.0%
Investments summary
Holdings over 1% of net assets at 30 September 2025 were as follows:
Net
Value assets
Name Pool Geography Business £m %
Stonehage Fleming Private Capital Chan Is. Family office services 259.7 8.6
Cobepa Private Capital Europe Investment Company 194.9 6.5
AIR-serv Europe Private Capital UK Forecourt vending 193.0 6.4
Butcombe Group Private Capital Chan Is. Pubs, bars & inns 145.2 4.8
Microsoft Public Companies US Software 97.5 3.2
Oracle Public Companies US Software 89.0 3.0
Philip Morris Public Companies US Tobacco & smoke-free products 88.2 2.9
HighVista Strategies Funds US Funds of funds 84.6 2.8
Texas Instruments Public Companies US Semiconductors 70.7 2.3
Axiom Asia funds Funds Asia Funds of funds 67.5 2.2
Watsco Public Companies US Ventilation products 65.9 2.2
De Cheng funds Funds Asia Private equity funds 57.2 1.9
Direct Tyre Management Private Capital UK Tyre management services 57.2 1.9
Fastenal Public Companies US Industrial supplies 50.4 1.7
Hill & Smith Public Companies UK Infrastructure 44.9 1.5
Charles Schwab Public Companies US Investment management 43.3 1.4
Moody's Corporation Public Companies US Financial services 42.0 1.4
Thermo Fisher Scientific Public Companies US Pharma & life sciences 40.2 1.3
Unicorn funds Funds Asia Funds of funds 37.9 1.3
Pool Corp Public Companies US Pool services 37.1 1.2
Alibaba Group Public Companies Asia E-commerce 36.9 1.2
Spirax Sarco Public Companies UK Steam engineering 35.1 1.2
Croda International Public Companies UK Speciality chemicals 33.9 1.1
Asia Alternatives funds Funds Asia Funds of funds 33.8 1.1
AE Industrial funds Funds US Private equity funds 32.2 1.1
Charter Communications Public Companies US Cable communications 31.3 1.0
Cooke Optics Private Capital UK Cinematography lenses 31.1 1.0
Other investments 857.8 28.5
Total pools(1) 2,858.5 94.9
Cash and other net assets 153.2 5.1
Net assets 3,011.7 100.0
1. Total pools of £2,858.5m includes £259.7m of investments that are
classified as assets held for sale in the Group's Statement of Financial
Position
Risks and uncertainties
Caledonia has a risk management framework in place that provides a structured
process for identifying, assessing and managing risks that the company faces
in executing its 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 2025 pages 65-67. These
remain materially unchanged, summarised below:
• Strategic: risks in relation to the appropriateness of the business model to
deliver long-term growth in capital and income
• Investment: risks in respect of specific investment and realisation decisions,
requiring timely execution to optimise value
• Market: risk of losses in the value of investments arising from sudden and
significant movements in public market prices particularly in highly volatile
markets. Private asset valuations have an element of judgement and could also
be impacted by market fluctuations. Caledonia's principal market risks are
therefore equity price volatility, foreign exchange rate movements and
interest rate volatility
• Liquidity: risk that liabilities, including private equity fund drawdowns,
cannot be met or new investments cannot be made due to a lack of liquidity
• Operational: risks arising from inadequate or failed processes, people and
systems, or from external factors. Operational risks arise from failures
around the recruitment, development and retention of staff, system failures,
and integrity issues, poor procedures, business disruption and failure to
adhere to legal or regulatory requirements
• Environmental, social and governance ("ESG") and climate change: risks in
relation to the successful incorporation of ESG matters and climate change
impacts into investment approach
As set out in more detail in the annual report, 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.
Consideration of changes to the economic environment forms an important part
of the valuation process for the assets within the Private Capital pool
• managing cash and borrowings to ensure liquidity is available to meet
investment and operating needs
• reducing counterparty risk by limiting maximum aggregate exposures
• actively reviewing and assessing the effectiveness of key internal controls to
ensure that operational risks are effectively managed within risk appetite
tolerances
Caledonia continues to closely monitor and manage these principal risks with
only minor updates to the commentary in the annual report, as follows:
• whilst positive indicators can be drawn out, geopolitical conflict risk
remains heightened, which, with ongoing uncertainty around US trade tariffs,
sustains the potential for market volatility
• UK inflation increased to 4.1% in the 12 months to September 2025
• against a backdrop of high profile cyber-attacks, Caledonia continues to
maintain robust defences against any external threats supported by a programme
of continuous development across its IT estate
Going concern
The factors likely to affect the company's ability to continue as a going
concern were set out in the annual report 2025. As at 30 September 2025, there
have been no significant changes to these factors.
The group has made an assessment of going concern for a period of at least 12
months from the date of approval of this half-year report. In making this
assessment the directors considered an analysis of future cash flows,
liquidity, available credit facilities and banking covenant requirements, in
addition to a stress scenario reflecting an uncertain economic outlook.
Having performed 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 interim financial
statements and therefore the interim financial statements have been prepared
on a going concern basis.
Directors' Responsibilities 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 United Kingdom;
• 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
Mat Masters
Chief Executive Officer
24 November 2025
INDEPENDENT REVIEW REPORT TO CALEDONIA INVESTMENT PLC
Conclusion
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 2025 is not prepared,
in all material respects, in accordance with UK-adopted International
Accounting Standard 34 "Interim Financial Reporting" and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct
Authority.
We have been engaged by Caledonia Investments plc and its subsidiaries ("the
group") to review the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2025, which comprises
the condensed group statement of comprehensive income, the condensed group
statement of financial position, the condensed group statement of changes in
equity, the condensed group statement of cash flows, and the related
explanatory notes.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). 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. 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.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with UK-adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK-adopted International
Accounting Standard 34 "Interim Financial Reporting".
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410 (Revised), however future events or conditions may cause the
group to cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority. In preparing the half-yearly financial report, the
directors are responsible for assessing the group's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend
to liquidate the group or to cease operations, or have no realistic
alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
group a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the group in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
London, UK
24 November 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
Condensed group statement of comprehensive income
for the six months ended 30 September 2025
Unaudited Unaudited Audited
Six months 30 Sep 2025 Six months 30 Sep 2024 Year 31 Mar 2025
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£m £m £m £m £m £m £m £m £m
Revenue
Investment income 49.6 8.0 57.6 29.4 - 29.4 52.7 - 52.7
Other income 0.5 - 0.5 0.4 - 0.4 0.9 0.4 1.3
Net gains/(losses) on fair value investments - 43.9 43.9
- 84.5 84.5 - (10.5) (10.5)
Net gains/(losses) on fair value property - (1.3) (1.3)
- 0.7 0.7 - 0.3 0.3
Total net investment income 50.1 93.2 143.3 29.8 (10.2) 19.6 53.6 43.0 96.6
Management expenses (12.8) (4.0) (16.8) (13.6) (3.5) (17.1) (25.9) (6.1) (32.0)
Other non-recurring expenses - - - - - - (2.9) - (2.9)
Profit before finance costs 37.3 89.2 126.5 16.2 (13.7) 2.5 24.8 36.9 61.7
Treasury interest receivable 2.0 - 2.0 5.7 - 5.7 9.9 - 9.9
Finance costs (1.1) - (1.1) (1.6) - (1.6) (3.5) - (3.5)
Exchange movements (0.3) - (0.3) (0.4) - (0.4) (1.3) - (1.3)
Profit before tax 37.9 89.2 127.1 19.9 (13.7) 6.2 29.9 36.9 66.8
Taxation 0.6 (0.7) (0.1) 2.0 (0.4) 1.6 1.0 (1.7) (0.7)
Profit for the period 38.5 88.5 127.0 21.9 (14.1) 7.8 30.9 35.2 66.1
Other comprehensive income items never to be reclassified to profit or loss
Re-measurements of defined benefit pension schemes - 0.3 0.3
- (0.5) (0.5) - (0.5) (0.5)
Tax on other comprehensive income - 0.6 0.6 - 0.6 0.6 - 0.5 0.5
Total comprehensive income 38.5 88.6 127.1 21.9 (14.0) 7.9 30.9 36.0 66.9
Basic earnings per share* 7.3p 16.9p 24.2p 4.0p -2.6p 1.4p 5.7p 6.6p 12.3p
Diluted earnings per share* 7.2p 16.6p 23.8p 4.0p -2.6p 1.4p 5.6p 6.5p 12.1p
* On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all earnings per share
figures have been restated for periods prior to 25 July 2025.
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 period and total comprehensive income for the period is
attributable to equity holders of the parent.
Condensed group statement of financial position
at 30 September 2025
Unaudited Unaudited Audited
30 Sep 30 Sep 31 Mar
2025 2024 2025
£m £m £m
Non-current assets
Investments held at fair value through profit or loss 2,598.3 2,754.7 2,743.6
Investment property 13.7 13.3 12.6
Property, plant and equipment 24.3 26.5 25.3
Deferred tax assets 4.5 4.2 5.3
Employee benefits 5.5 4.3 5.4
Non-current assets 2,646.3 2,803.0 2,792.2
Current assets
Asset held for sale 259.7 - -
Trade and other receivables 8.5 8.1 10.3
Current tax assets 5.0 4.5 4.2
Cash and cash equivalents 105.4 134.6 151.3
Current assets 378.6 147.2 165.8
Total assets 3,024.9 2,950.2 2,958.0
Current liabilities
Trade and other payables (5.4) (25.8) (16.4)
Employee benefits (2.2) (1.6) (3.7)
Current liabilities (7.6) (27.4) (20.1)
Non-current liabilities
Employee benefits (4.1) (4.0) (4.8)
Deferred tax liabilities (1.5) (1.1) (1.5)
Non-current liabilities (5.6) (5.1) (6.3)
Total liabilities (13.2) (32.5) (26.4)
Net assets 3,011.7 2,917.7 2,931.6
Equity
Share capital 3.0 3.1 3.0
Share premium 1.3 1.3 1.3
Capital redemption reserve 1.5 1.4 1.5
Capital reserve 2,764.9 2,676.3 2,689.9
Retained earnings 246.7 240.1 240.4
Own shares (5.7) (4.5) (4.5)
Total equity 3,011.7 2,917.7 2,931.6
Undiluted net asset value* 575.3p 543.0p 555.8p
Diluted net asset value* 566.3p 534.6p 547.5p
* On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all net asset per share
figures have been restated for periods prior to 25 July 2025.
Condensed group statement of changes in equity
for the six months ended 30 September 2025
Capital
Share Share redemption Capital Retained Own Total
capital premium reserve reserve earnings shares equity
£m £m £m £m £m £m £m
Six months ended 30 September 2025 (Unaudited)
Balance at 1 April 2025 3.0 1.3 1.5 2,689.9 240.4 (4.5) 2,931.6
Total comprehensive income
Profit for the period - - - 88.5 38.5 - 127.0
Other comprehensive income - - - 0.1 - - 0.1
Total comprehensive income - - - 88.6 38.5 - 127.1
Transactions with owners of the company
Contributions by and distributions to owners
Share-based payments - - - - 2.7 - 2.7
Transfer of shares to employees - - - - (6.6) 6.6 -
Own shares purchased and cancelled - - - (13.6) - - (13.6)
Own shares purchased - - - - - (7.8) (7.8)
Dividends paid - - - - (28.3) - (28.3)
Total transactions with owners - - - (13.6) (32.2) (1.2) (47.0)
Balance at 30 September 2025 3.0 1.3 1.5 2,764.9 246.7 (5.7) 3,011.7
Six months ended 30 September 2024 (Unaudited)
Balance at 1 April 2024 3.1 1.3 1.4 2,716.6 250.2 (7.3) 2,965.3
Total comprehensive income
Profit for the period - - - (14.1) 21.9 - 7.8
Other comprehensive income - - - 0.1 - - 0.1
Total comprehensive income - - - (14.0) 21.9 - 7.9
Transactions with owners of the company
Contributions by and distributions to owners
Share-based payments - - - - 2.6 - 2.6
Transfer of shares to employees - - - - (6.7) 6.7 -
Own shares purchased and cancelled - - - (26.3) - - (26.3)
Own shares purchased - - - - - (3.9) (3.9)
Dividends paid - - - - (27.9) - (27.9)
Total transactions with owners - - - (26.3) (32.0) 2.8 (55.5)
Balance at 30 September 2024 3.1 1.3 1.4 2,676.3 240.1 (4.5) 2,917.7
Year ended 31 March 2025 (Audited)
Balance at 1 April 2024 3.1 1.3 1.4 2,716.6 250.2 (7.3) 2,965.3
Total comprehensive income
Profit for the year - - - 35.2 30.9 - 66.1
Other comprehensive income - - - 0.8 - - 0.8
Total comprehensive income - - - 36.0 30.9 - 66.9
Transactions with owners of the company
Contributions by and distributions to owners
Share-based payments - - - - 4.5 - 4.5
Transfer of shares to employees - - - - (6.8) 6.8 -
Own shares purchased and cancelled (0.1) - 0.1 (62.7) - - (62.7)
Own shares purchased - - - - - (4.0) (4.0)
Dividends paid - - - - (38.4) - (38.4)
Total transactions with owners (0.1) - 0.1 (62.7) (40.7) 2.8 (100.6)
Balance at 31 March 2025 3.0 1.3 1.5 2,689.9 240.4 (4.5) 2,931.6
Condensed group statement of cash flows
for the six months ended 30 September 2025
Unaudited Unaudited Audited
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025 2024 2025
£m £m £m
Operating activities
Dividends and fund income distributions received 46.7 26.5 38.5
Interest received 2.2 5.7 9.9
Cash received from customers 0.5 0.4 1.3
Cash paid to suppliers and employees (17.1) (16.1) (29.7)
Taxes received - - 0.2
Group tax relief received 0.4 0.5 0.5
Group tax relief paid - - (2.8)
Net cash flow from operating activities 32.7 17.0 17.9
Investing activities
Purchases of investments (131.2) (224.8) (318.9)
Proceeds from realisation of investments 104.2 177.2 337.4
Purchases of property, plant and equipment (0.1) (1.5) (1.8)
Net cash flow (used in)/from investing activities (27.1) (49.1) 16.7
Financing activities
Interest paid (0.9) (2.2) (3.7)
Dividends paid to owners of the company (28.3) (27.9) (38.4)
Purchases of own shares (21.8) (28.9) (67.7)
Net cash flow used in financing activities (51.0) (59.0) (109.8)
Net decrease in cash and cash equivalents (45.4) (91.1) (75.2)
Cash and cash equivalents at period start 151.3 227.4 227.4
Effect of foreign exchange rate changes on cash (0.5) (1.7) (0.9)
Cash and cash equivalents at period end 105.4 134.6 151.3
Notes to the condensed financial statements
1. General information
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 listed on the London Stock
Exchange under Equity shares (commercial companies).
This condensed set of financial statements was approved for issue on 24
November 2025 and is unaudited.
The information for the period ended 30 September 2025 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 2025 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 2025, which were
prepared in accordance with IFRSs adopted by the United Kingdom.
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 2025,
except for the mandatory amendments that had an effective date prior to the
start of the six-month period. None of the mandatory 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 2026.
The group classifies assets as held-for-sale under IFRS 5 (Non-current assets
held for sale and discontinued operations) where it judges they meet the
relevant criteria.
A number of new amendments to standards and interpretations will be effective
for periods beginning on or after 1 April 2026. The group plans to apply
these amendments in the reporting period in which they become effective.
Basis of consolidation
In accordance with the IFRS 10/IAS 28 investment entity 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 for as held at fair value through profit
or loss.
Going concern
As at 30 September 2025, the group has undertaken an assessment of the
appropriateness of preparing its financial statements on a going concern
basis, taking into consideration future cash flows, current cash holdings of
£105m, undrawn banking facilities of £325m and readily realisable assets of
£1.1bn as part of a wider process in connection with its viability
assessment. It has concluded that the group has sufficient cash, other liquid
resources and committed bank facilities to meet existing and new investment
commitments.
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 economic environment over at
least 12 months from the date of approval of these financial statements.
In making this assessment, the directors took comfort from the results of two
stress tests, which considered the impact of significant market downturn
conditions.
The first stress test addressed two discrete scenarios: a 5% reduction in the
value of Sterling versus the US dollar compared to the rate on 30 September
2025 and a 12-month delay to Private Capital realisations.
The second stress test modelled a market downturn event over a two-year period
reflecting a fall in Public Companies investment income of 20%, reduction of
Private Capital investment income by 100%, an inability to realise the Private
Capital portfolio and a 50% reduction in distributions from the group's Funds
portfolio. To simulate an extreme downside scenario, the impact of a market
downturn event and all fund commitments falling due was also assessed. The
directors do not believe the extreme downside scenario is likely but factors
this into the going concern assessment.
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.
3. Dividends
Amounts recognised as distributions to owners of the company in the year were
as follows:
Six months 30 Sep 2025 Six months 30 Sep 2024 Year 31 Mar 2025
p/share £m p/share £m p/share £m
Final dividend for the year ended 31 March 2025 (2024)*
5.39 28.3 5.15 27.9 5.15 27.9
Interim dividend for the year ended 31 March 2025*
- - - - 1.97 10.5
5.39 28.3 5.15 27.9 7.12 38.4
* On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all dividend per share
figures have been restated for periods prior to 25 July 2025.
The directors have declared an interim dividend for the year ending 31 March
2026 of 3.68p per share, totalling £19.3m, which has not been included as a
liability in this condensed set of financial statements. This dividend will be
payable on 8 January 2026 to holders of shares on the register on 5 December
2025. The ex-dividend date will be 4 December 2025. The deadline for elections
under the dividend reinvestment plan offered by MUFG Corporate Markets will be
the close of business on 15 December 2025.
4. 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 period. 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:
Unaudited Unaudited Audited
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025 2024 2025
£m £m £m
Revenue 38.5 21.9 30.9
Capital 88.5 (14.1) 35.2
Total 127.0 7.8 66.1
The weighted average number of shares was as follows:
Unaudited Unaudited Audited
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025 2024 2025
000's 000's 000's
Issued shares at the period start 528,827 546,118 546,118
Effect of shares cancelled (2,482) (3,615) (7,404)
Effect of shares held by the employee share trusts and share incentive plan
(1,621) (1,683) (1,508)
Basic weighted average number of shares in the period 524,724 540,820 537,206
Effect of performance shares, share incentive plan and deferred bonus awards
8,317 8,494 7,931
Diluted weighted average number of shares in the period 533,041 549,314 545,137
* On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all number of share figures
have been restated for periods prior to 25 July 2025.
5. Operating segments
The following is an analysis of the profit/(loss) before tax for the period
and assets analysed by primary operating segments:
Profit/(loss) before tax Total assets
6 months 6 months Year
30 Sep 30 Sep 31 Mar 30 Sep 30 Sep 31 Mar
2025 2024 2025 2025 2024 2025
£m £m £m £m £m £m
Public Companies 98.8 66.2 44.1 1,067.6 1,015.6 964.7
Private Capital(1) 65.9 (23.7) 30.5 906.7 848.1 870.7
Funds (20.0) (22.1) 19.5 884.2 874.6 897.3
Investment portfolio 144.7 20.4 94.1 2,858.5 2,738.3 2,732.7
Other investments(2) (1.4) (0.8) 2.5 (0.5) 16.4 10.9
Total revenue/investments 143.3 19.6 96.6 2,858.0 2,754.7 2,743.6
Cash and cash equivalents 2.0 5.7 9.9 105.4 134.6 151.3
Other items (18.2) (19.1) (39.7) 61.5 60.9 63.1
Reportable total 127.1 6.2 66.8 3,024.9 2,950.2 2,958.0
1. Private Capital investment in Stonehage Fleming was classified as an asset
held for sale at 30 September 2025.
2. Other investments included -£0.5m of non-pool provisions (30 September 2024:
£16.4m and 31 March 2025: £10.9m of non-pool investments).
6. Share-based payments
In the period to 30 September 2025, participating employees in the performance
share scheme were awarded options over 2,377,410 shares at nil-cost (30
September 2024: 2,338,020 and 31 March 2025: 2,400,200 shares). Also, in the
period to 30 September 2025, participating employees received deferred awards
over 132,600 shares (30 September 2024 and 31 March 2025: 292,240 shares).
In the period, following the launch of the Caledonia Investments Share
Incentive Plan in July 2025, participating employees were awarded 32,560 free
shares and 8,462 matching shares.
The IFRS 2 expense included in profit or loss for the period was £3.4m (30
September 2024: £2.9m and 31 March 2025: £5.1m).
On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all number of share and
NAV/share figures have been restated for periods prior to 25 July 2025.
7. Net asset value
The group's undiluted net asset value is based on the net assets of the group
at the period/year end and on the number of ordinary shares in issue at the
period/year-end less ordinary shares held by The Caledonia Investments plc
Employee Share Trust, The Caledonia 2024 Employee Benefit Trust and free and
matching shares held by the trustees of The Caledonia Investments Share
Incentive Plan on behalf of employees. The group's diluted net asset value
assumes the exercise of performance shares and deferred bonus awards and the
withdrawal of free and matching share incentive plan awards.
Six months 30 Sep 2025 Six months 30 Sep 2024 Year 31 Mar 2025
Net Number Net Number Net Number
assets of shares(1) NAV assets of shares(1,2) NAV assets of shares(1,2) NAV
£m 000's p/share £m 000's p/share(2) £m 000's p/share(2)
Undiluted 3,011.7 523,534 575.3 2,917.7 537,313 543.0 2,931.6 527,497 555.8
Share awards - 8,317 (9.0) - 8,494 (8.4) - 7,931 (8.3)
Diluted 3,011.7 531,851 566.3 2,917.7 545,807 534.6 2,931.6 535,428 547.5
1. Number of shares in issue at the period/year-end is stated after the
deduction of 1,079,820 (30 September 2024: 1,335,140, 31 March 2025:
1,330,250) ordinary shares held by the Caledonia Investments plc Employee
Share Trust, 455,567 (30 September 2024: nil, 31 March 2025: nil) ordinary
shares held by The Caledonia 2024 Employee Benefit Trust and 39,871 (30
September 2024: nil, 31 March 2025: nil) ordinary shares (free and matching
awards) held by The Caledonia Investments Share Incentive Plan.
2. On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all number of share and NAV
per share figures have been restated for periods prior to 25 July 2025.
Net asset value total return is calculated in accordance with guidance from
the Association of Investment Companies ('AIC'), 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.
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025 2024(4) 2025(4)
P P P
Diluted NAV at period start 547.5 536.9 536.9
Diluted NAV at period end 566.3 534.6 547.5
Dividends payable in the period 5.4 5.1 7.1
Reinvestment adjustment(3) (0.1) (0.2) -
571.6 539.5 554.6
NAVTR over the period 4.4% 0.5% 3.3%
3. The reinvestment adjustment is the gain or loss resulting from
reinvesting the dividends in NAV at the ex-dividend date.
4. On 25 July 2025, the company executed a 10:1 sub-division of its ordinary
shares which reduced the nominal value from 5p to 0.5p. As a result of the
increased number of ordinary shares now in issue, all NAV and dividend per
share figures have been restated for periods prior to 25 July 2025.
8. Capital commitments
At 30 September 2025, the group had undrawn fund and other commitments
totalling £394.0m (30 September 2024: £398.6m and 31 March 2025: £415.9m).
Amounts are callable within the next 12 months. The group has conducted a
going concern assessment which considered future cash flows, the availability
of liquid assets and debt facilities over the 12-month period required. In
making this assessment a number of stress scenarios were developed. All
scenarios include all outstanding private equity fund commitments being drawn.
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.
9. 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, the 2024 Employee
Benefit Trust and free and matching shares held by the trustees of the
Caledonia Investments Share Incentive plan on behalf of employees and for
dilution by the exercise of outstanding share awards and withdrawal of free
and matching share incentive plan 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 compare performance. The calculation follows the
method prescribed by the AIC.
Total shareholder return ('TSR')
TSR measures the return to shareholders, taking into account the change in
share price over a period of time as well as all the dividends paid during
that period. It is assumed that the dividends are reinvested at the time the
shares are quoted ex dividend.
10. Fair value hierarchy
The company measures fair values using the following fair value hierarchy,
reflecting the significance of the inputs used in making the measurements:
Level 1 Quoted prices (unadjusted) in active markets for identical assets.
Level 2 Inputs other than quoted prices included within Level 1 that are directly or
indirectly observable.
Level 3 Inputs for the asset that are not based on observable market data.
The table below analyses financial instruments held at fair value according to
level in the fair value hierarchy into which the fair value measurement is
categorised:
Unaudited Unaudited Audited
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025 2024 2025
£m £m £m
Investments held at fair value
Level 1 1,067.6 1,015.6 964.7
Level 2 13.4 9.0 14.4
Level 3(1) 1,777.0 1,730.1 1,764.5
2,858.0 2,754.7 2,743.6
1. Private Capital investment in Stonehage Fleming, was included in Level 3 and
was classified as an asset held for sale at 30 September 2025.
The following table shows a reconciliation from the opening balances to the
closing balances for fair value measurements in Level 3 of the fair value
hierarchy:
Unaudited Unaudited Audited
6 months 6 months Year
30 Sep 30 Sep 31 Mar
2025(2) 2024 2025
£m £m £m
Balance at the period start 1,764.5 1,737.1 1,737.1
Purchases 54.7 146.0 213.5
Realisation proceeds (43.3) (90.1) (203.9)
Gains and losses on investments sold in the period 0.7 10.3 56.2
Gains and losses on investments held at the period end (0.9) (74.5) (40.6)
Accrued income 1.3 1.3 2.2
Balance at the period end 1,777.0 1,730.1 1,764.5
2. Private Capital investment in Stonehage Fleming, was included in Level 3 and
was classified as an asset held for sale at 30 September 2025.
11. 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 £906.7m (March 2025: £870.7m) 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 £870.8m (March 2025: £882.9m) 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.
The following tables provide information on significant unobservable inputs
used at 30 September 2025 and 31 March 2025 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 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 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 30 September 2025
Description/ valuation method Fair value Unobservable input Weighted average input Input sensitivity Change in valuation
£m +/- +/- £m
Internally developed
Private companies
Large, earnings 338.2 EBITDA multiple 11.8x 10.0% +39.8/-40.9
Small and Medium, blend of methods 113.9 Various +13.3/-9.8
Transaction 259.7 Discount 10.3% -2.8%/+2.1% +8.2/-6.2
Net assets / manager valuation 194.9 Multiple 1 0.1x +/-19.5
906.7 80.8/-76.4
Non-pool companies (0.5)
Total internal 906.2
Externally developed
Private equity fund
Net asset value 870.8 Manager NAV 1 5% +/-43.5
1,777.0 +124.3/-119.9
The principal change during the half-year was the change in valuation method
used to value Stonehage Fleming, valued at an agreed transaction price,
previously valued on an EBITDA multiple.
At 31 March 2025
Description/ valuation method Fair value Unobservable input Weighted average input Input sensitivity Change in valuation
£m +/- +/- £m
Internally developed
Private companies
Large, earnings 555.5 EBITDA multiple 12.5x 10.0% +56.2/-59.8
Small and Medium, blend of methods 67.5 Various +6.8/-7.5
Transaction 55.0 5% +/-2.8
Net assets / manager valuation 192.7 Multiple 1 0.1x +/-19.3
870.7 +85.1/-89.4
Non-pool companies 10.9
Total internal 881.6
Externally developed
Private equity fund
Net asset value 882.9 Manager NAV 1 5% +/-44.1
1,764.5 +129.2/-133.5
12. Asset held for sale
In September 2025, Caledonia agreed terms for the sale of a minority stake in
Stonehage Fleming, a multi-family office providing advisory services to many
of the world's leading families and wealth creators, to Corient Private Wealth
LLC, a US-headquartered wealth management and advisory business. The
transaction is subject to change in control approval by the Financial Conduct
Authority in the United Kingdom and several other international regulators and
is expected to complete in the first half of 2026. Cash proceeds of c.£288m,
are expected net of transaction expenses. The valuation at the end of
September of £259.7m reflects expected cash proceeds, adjusted for the time
value of money, less a 5% discount to equity value in recognition of the very
limited degree of transaction execution risk. To reflect this transaction,
this asset was disclosed as held for sale in the condensed group statement of
financial position as at 30 September 2025.
Forward looking statements: This announcement may contain statements about the
future including certain statements about the future outlook for Caledonia
Investments plc and its subsidiaries ('Caledonia'). These are not guarantees
of future performance and will not be updated. Although we believe our
expectations are based on reasonable assumptions, any statements about the
future outlook may be influenced by factors that could cause actual outcomes
and results to be materially different.
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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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