03:00 Wed 27 May 2020
Caledonia Inv PLC - Final Results
Final results for the year ended
Financial highlights
| | | Change |
Net asset value total return | -8.1% | +10.9% |
|
Net asset value | 3236p | 3582p | -9.7% |
Net assets | | | -10.7% |
Annual dividend per share | 61.1p | 59.3p | +3.0% |
Highlights
· ‑8.1% NAV total return for the year.
· Revenue profit after tax of
· Strong balance sheet with
· Valuation approach for private companies and funds included an assessment of the potential impact of the developing Covid‑19 pandemic.
· 3.0% increase in the dividend to 61.1p per share, 53 consecutive years of increase, to be paid in August.
Quoted Equity
· Resilient performance from Quoted Equity portfolios, ‑0.3% return over the year (FTSE All-Share was ‑18.5%), supported by our cautious approach to risk management and rebalancing of the Income portfolio.
· Good progress and robust trading from portfolio companies for the first 11 months of the year, but overall return of ‑18.0% for the 12 months.
· Majority of companies continue to trade normally with low degree of disruption from Covid-19.
· Acquisition of minority holding in
Funds
· Strong underlying performance from private equity fund investments, but full year return of -2.8% (after
"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.
"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."
Enquiries
| |
| |
| |
+44 20 7802 8080 | +44 20 7353 4200 |
Chairman's statement
Results
The NAVTR of ‑8.1% for the year was a resilient performance despite the appearance of the Covid‑19 virus in the last quarter. There was significant variance within the three pools through which Caledonia is managed. The Quoted Equity and Funds pools held up well on an absolute basis and relative to stock markets, proving effective at protecting shareholders' capital. Resulting from the Covid‑19 pandemic, the exposure to the consumer leisure sector in
Covid-19
The pandemic has caused a number of unexpected outcomes. On the positive side Caledonia's IT team has managed the move to home working very effectively with minimal disruption to normal business. We are now planning in line with official guidance how we might safely return to office life, and intend to consult staff on these plans.
There is likely to be more volatility in markets as the full economic impact of the pandemic becomes apparent. It is also to be expected that some of our investee companies will have to adapt to the longer-term implications of customer concerns, social distancing and changing consumer demand. A degree of uncertainty is to be expected after a shock of this magnitude ripples through the global economy.
Income and dividend
Caledonia has a long and proud record of paying an increased dividend. In the year to 31 March, income totalled
As we look forward, it is likely that Caledonia will face a reduction in income from our investee companies suffering disruption from the Covid‑19 pandemic. If this occurs, any shortfall would require utilisation of Caledonia's
In response to the current crisis and the impact these events are having within some of our majority owned investee companies, a fund has been established to assist their employees suffering financial hardship. This is being funded by Caledonia, a contribution by our largest shareholder,
The focus of the fund is on supporting employees at those companies where the business can no longer operate as normal and management have needed to utilise the Government backed furlough scheme. It should be noted this is primarily at Buzz Bingo and Liberation, where action has been taken to minimise costs wherever possible to preserve liquidity and reduce cash outflow. Measures include the use of the furlough scheme, reductions in senior management pay and the suspension of any cash payments to Caledonia.
Since the implementation of the Government's furlough scheme, no cash has been received by Caledonia from any of its majority owned investee companies that are accessing this scheme. In this regard, the proposed final dividend is not financed by any contribution made by these companies since the start of the Covid‑19 pandemic.
Outlook
Caledonia is well positioned to take a long-term view of its investments. As noted before, we expect the pandemic and its associated economic impact to provide both challenges and opportunities in the year ahead. At the time of writing the response by central banks has been extraordinary and the result of that action is being seen in a partial recovery in a number of markets. The issue is how sustainable this action is with government borrowing at record levels and the potential distortion to asset pricing. As the market goes through a process of normalisation it would not be surprising if we see more volatility in the months ahead.
Caledonia thinks long term and in this challenging environment is well positioned. It has available cash and banking facilities to ensure we have liquidity in place to take advantage of opportunities as they arise. As a board we are committed to the dividend and where income shortfalls do occur, we have retained earnings to maintain those payments in the future.
Chief Executive's report
Aim
Caledonia's objective is to grow net assets and dividends over the long term, whilst managing risk to avoid permanent loss of capital.
Results for the year
Caledonia's portfolio is comprised of cash, listed equities, private equity funds and direct holdings in private businesses. This diversified portfolio offers shareholders some protection from over-exposure to particular sectors and geographies but, with an international pandemic of the scale of Covid‑19, has inevitably suffered from some loss of value. The NAVTR for the year was ‑8.1%. The revenue account of the income statement shows minimal impact from the pandemic, with profits for the year of
Our strong balance sheet, including
Impact of Covid-19 pandemic
The impact of the pandemic was first felt in the final quarter of our financial year. At a practical level, the restrictions on movement have led to the head office staff working from home. Whilst no replacement for normalised operations, we have been able to carry out our functions and controls to ensure the smooth running of the business. The board has been kept informed throughout this period of uncertainty and board meetings have continued via conferencing technology.
The performance of the portfolio was strong for eleven months of the year, with the pandemic only starting to have a notable effect in March, despite some exposure to
The principal effect of the pandemic has been in our
Much of the portfolio has performed in a resilient fashion despite the immense disruption caused by Covid‑19. Until we have clarity on the lifting of restrictions and economies begin to normalise, it would be unwise to predict how quickly trading will recover in those companies most adversely affected.
Investment performance
Caledonia aims to achieve a NAVTR of 3-6% ahead of inflation over the short term, leading to results over the long term that exceed the FTSE All-Share Index. However, it is worth noting that our management and investment teams are incentivised on an absolute, not relative, basis. The table below shows our investment performance over one, three, five and ten years, with the adverse performance in the current year having a negative impact on short term metrics:
| 1 year | 3 years | 5 years | 10 years |
| % | % | % | % |
NAV total return | -8.1 | 3.3 | 25.1 | 94.8 |
Annualised |
|
|
|
|
NAV total return | -8.1 | 1.1 | 4.6 | 6.9 |
Retail Prices Index | 2.6 | 2.8 | 2.6 | 2.9 |
NAVTR vs RPI | -10.7 | -1.7 | 2.0 | 4.0 |
FTSE All-Share Total Return | -18.5 | -4.2 | 0.6 | 4.4 |
NAVTR vs FTSE All-Share TR | 10.4 | 5.3 | 4.0 | 2.5 |
Long-term performance remains satisfactory though one and three-year numbers are weak compared with inflation. The element of protection afforded to shareholders' capital, compared on a relative basis to markets, is noteworthy.
Strategy and allocation
As indicated in the half-year results to
The investment portfolio consists of three pools of capital as shown in the tables below:
|
|
| Strategic |
| 2020 | 2019 | allocation |
| % | % | % |
Quoted Equity | 32.1 | 34.4 | 35-50 |
| 34.2 | 32.9 | 35-45 |
Funds | 25.2 | 24.2 | 20-25 |
Cash and other | 8.5 | 8.5 | +/-10 |
Net assets | 100.0 | 100.0 |
|
The allocation ranges expressed in the table above are a guide to ensure that the portfolio remains proportionately balanced.
The table below summarises the pool targets and strategic allocation:
|
|
| Strategic |
Pool name | Description | Return targets | allocation |
Caledonia Quoted Equity | Capital strategy | 10% total return no yield target | 35-50% |
Income strategy | 7% total return 3.5% yield |
| |
| Investments in | 14% total return 5% yield | 35-45% |
Caledonia Funds | US and Asian private equity funds and funds of funds | 12.5% total return | 20-25% |
Pool performance
| 1 year | 3 years | 5 years |
Pool name | % | % | % |
Quoted Equity | -0.3 | 13.5 | 28.8 |
Capital | 1.3 | 27.0 | 42.4 |
Income | -3.8 | -10.5 | 4.3 |
| -18.0 | -4.2 | 33.4 |
Funds | -2.8 | 20.7 | 57.4 |
Portfolio | -7.9 | 8.2 | 35.9 |
Ten-year figures are not available, as measurement by pool commenced in 2011.
Caledonia Quoted Equity
Our two listed equity portfolios invest in well-managed businesses with good margins which are often leaders in their sectors, on a global basis. The performance of the Capital portfolio in exceptionally volatile markets was impressive, returning 1.3% for the year. The portfolio, which consists of high quality compounding businesses, proved resilient and largely avoided sectors hard hit by Covid‑19. The Income portfolio produced a return of ‑3.8%, including the impact of exiting historic legacy positions. Our cautious approach to risk management resulted in high cash balances and the rebalancing of the Income portfolio helped to protect capital and performance as markets fell in February and
Our diverse portfolio includes significant positions in six
DSE, the industry leading manufacturer of genset and ATS control modules, battery chargers and power supplies, has traded strongly over the past year delivering double digit returns. The changes being seen elsewhere from the Covid‑19 virus had only a marginal impact on DSE's operations, with its manufacturing site in the
Cobepa, the Belgian based investment company, owns a diverse portfolio of private global investments. We have used the net asset value at its year end of
7IM, the retail investment manager, remains fully operational. Its revenue is directly linked to the value of its AUM, which have been negatively impacted by the declines in public equity markets. It is pleasing to note, however, that 7IM's defensively orientated funds have performed well on a relative basis. The business remains profitable and well-funded with significant amounts of available liquidity. The valuation at
Cooke Optics, a leading manufacturer of cinematography lenses, temporarily closed its facilities near
Buzz Bingo, the
BioAgilytix, a US based bioanalytical testing solutions provider, had a strong year of growth, including completing the expansion of its facilities to provide further capacity. Caledonia is a co-investor in the business and follows the valuation methodology utilised by Cobepa, the lead investor. Valuation at
The three remaining businesses in the portfolio have a combined carrying value of
Caledonia Funds
The Funds portfolio valuations were based on the managers' latest published capital account statements, which, due to timing, did not take account of the potential impact of Covid‑19. Therefore, managers' NAVs were adjusted by 16% overall, resulting in the Funds return reducing from 13.2% to -2.8%. The underlying performance of the portfolio was creditable, with some notable gains and distributions during the first nine months of the year. The investments are principally in private equity funds operating in the US and in
Geographic and foreign exchange exposure
Caledonia's diverse portfolio includes substantial exposure to non-Sterling assets, as set out in the table below. In
| Investment | Hedged |
| exposure | exposure |
Currency | % | % |
Sterling | 48 | 69 |
US dollar | 45 | 26 |
Euro | 6 | 4 |
Other | 1 | 1 |
Subsequent to the year end, and in light of events surrounding the Covid‑19 pandemic, the overlay position (which generated the hedged exposure position shown in the table) was phased out and our currency exposure reverted to that provided by our investments.
Outlook
The outlook for our financial year 20/21 very much depends on the successful return to normal for societies and economies around the world. It is developing into an annus horribilis but we hope that it will provide the platform from which we are able to return to growth.
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. It is likely that income for the 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.
Investments summary
Holdings over 1% of net assets at
|
|
|
|
| Net |
|
|
|
| Value | assets |
| Pool | Geography | Business | £m | % |
| | | Control systems | 122.6 | 6.9 |
| | | Investment company | 97.4 | 5.4 |
| | Guernsey | Family office services | 89.5 | 5.0 |
| | Jersey | Investment management | 84.8 | 4.7 |
Cooke Optics | | | Cine lens manufacturer | 75.8 | 4.2 |
Aberdeen US PE funds | Funds | US | Funds of funds | 70.0 | 3.9 |
| | Jersey | Pubs and restaurants | 50.6 | 2.8 |
Axiom | Funds | | Funds of funds | 49.0 | 2.7 |
Buzz Bingo | | | Bingo operator | 41.0 | 2.3 |
Microsoft | Quoted Equity | US | Software | 39.8 | 2.2 |
Oracle | Quoted Equity | US | Infrastructure technology | 37.1 | 2.1 |
Watsco | Quoted Equity | US | Ventilation products | 34.3 | 1.9 |
British American Tobacco | Quoted Equity | | Tobacco | 32.6 | 1.8 |
Charter Communications | Quoted Equity | US | Cable telecommunications | 32.0 | 1.8 |
Texas Instruments | Quoted Equity | US | Semiconductor manufacturer | 31.8 | 1.8 |
JF Lehman funds | Funds | US | Private equity funds | 31.6 | 1.8 |
Asia Alternatives funds | Funds | | Funds of funds | 30.1 | 1.7 |
Unilever | Quoted Equity | | Consumer goods | 28.3 | 1.6 |
Becton Dickinson | Quoted Equity | US | Medical technology | 27.0 | 1.5 |
Stonepeak funds | Funds | | Infrastructure funds | 26.1 | 1.5 |
Spirax-Sarco | Quoted Equity | | Steam engineering | 26.0 | 1.5 |
Thermo Fisher Scientific | Quoted Equity | US | Biotechnology development | 24.8 | 1.4 |
Fastenal | Quoted Equity | US | Fasteners | 22.6 | 1.3 |
BioAgilytix | | US | Bioanalytical testing services | 22.0 | 1.2 |
Decheng funds | Funds | | Private equity funds | 22.0 | 1.2 |
| Quoted Equity | | Fund manager | 21.9 | 1.2 |
AG Barr | Quoted Equity | | Soft drinks | 20.9 | 1.2 |
Hill & Smith | Quoted Equity | | Infrastructure products | 20.5 | 1.1 |
PAG Asia funds | Funds | | Private equity fund | 20.5 | 1.1 |
North Haven fund | Funds | | Private equity fund | 18.8 | 1.1 |
Other investments |
|
|
| 384.0 | 21.6 |
Investment portfolio |
|
|
| 1,635.4 | 91.5 |
Non-pool investments |
|
|
| 21.3 | 1.2 |
Cash and other |
|
|
| 130.6 | 7.3 |
Net assets |
|
|
| 1,787.3 | 100.0 |
1. | Geography is based on the country of listing, country of domicile for unlisted investments and underlying regional analysis for funds. |
2. | Funds pool investment valuations are based principally on managers' NAV statements at |
Pool distribution |
| Geographic distribution |
| Asset class distribution | |||
Quoted Equity | 32% |
| | 30% |
| Listed equities | 32% |
| 35% |
| | 13% |
| Private companies | 34% |
Funds | 25% |
| | 7% |
| Private equity funds | 25% |
Cash and other | 8% |
| | 30% |
| Quoted market funds | 1% |
|
|
| | 12% |
| Cash and other | 8% |
|
|
| Cash and other | 8% |
|
|
|
1. | Cash and other in the distributions above included non-pool investments. |
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.
Covid-19 pandemic risk management
In
Principal risks | Mitigation | Key developments |
Strategic |
|
|
Risks in relation to the appropriateness of the business model to deliver long-term growth in capital and income.
Strategic risks include the allocation of capital between public and private equity, and in relation to geography, sector, currency, yield and liquidity. | The company's business model and strategy are reviewed periodically, against market conditions and target returns.
The performance of the company and its key risks are monitored regularly by management and the board. | Quoted Equity approach adopted for Income portfolio.
Funds investment reduced by disposal of quoted market funds.
Approach to broad ESG issues under development. |
|
|
|
Investment |
|
|
Risks in respect of specific investment and realisation decisions.
Investment risks include the appropriate research and due diligence of new investments and the timely execution of both investments and realisations for optimising value. | Investment opportunities are subject to rigorous appraisal and a multi-stage approval process. Investment managers have well-developed networks through which they attract proprietary deal flow. Target entry and exit events and prices are monitored and updated regularly, in relation to market conditions and strategic aims. | Continued development of risk management processes at portfolio and company levels.
Active management of
Level of new Fund commitments paired back and more focused. |
|
|
|
Market (risk level increased to reflect potential Covid-19 impact) |
|
|
Risk of losses in value of investments arising from sudden and significant movements in market prices, particularly in highly volatile markets.
Caledonia's principal market risks are therefore equity price volatility, foreign exchange rate movements and interest rate volatility. | Market risks and sensitivities are reviewed weekly and actions taken, where appropriate, to balance appropriately risk and return.
A regular review of market and portfolio volatility is conducted by the board. Reviews also consider investment concentration, currency exposure and portfolio liquidity. | Performance issues with Income portfolio recognised and corrective action taken.
A foreign currency overlay strategy was implemented to address asymmetric currency risk arising from Brexit process.
Response to Covid-19 pandemic for |
|
|
|
Liquidity (risk level increased to reflect potential Covid-19 impact) |
|
|
Risk that liabilities cannot be met or new investments made due to a lack of liquidity. Such risk can arise from not being able to sell an investment due to lack of a market or from not holding cash or being able to raise debt. | Detailed cash forecasting for six months ahead is updated and reviewed weekly, including the expected drawdown of capital commitments.
Loan facilities are maintained to provide appropriate liquidity headroom. The liquidity of the portfolio is reviewed regularly. | Use of banking facilities limited to short term only. Undrawn committed banking facilities of
Cash at year end of |
|
|
|
Operational (risk level increased to reflect potential Covid-19 impact) |
|
|
Risks arising from inadequate or failed processes, people and systems or from external factors.
Operational risks arise from the recruitment, development and retention of staff, systems and procedures and business disruption. | Systems and control procedures are developed and reviewed regularly. They are tested to ensure effective operation.
Appropriate remuneration and other policies are in place to encourage the retention of key staff. Business continuity plans are maintained and updated as the business evolves. | Continued investment in IT security and business continuity.
Technology development completed to allow the business to operate remotely ahead of Covid-19 impact in the
Risk raised to reflect concerns around staff health, remote operation and broader business continuity issues. |
|
|
|
Regulatory and legal |
|
|
Risk arising from exposure to litigation or fraud or failure to adhere to the tax and regulatory environment. Caledonia operates across a number of jurisdictions and in an industry that has been subject to increasing regulatory oversight. | Caledonia has internal resources to consider regulatory and tax matters as they arise: use is made of advisers where necessary to supplement internal knowledge in specialised areas. Caledonia is a member of the | US private equity fund interests moved into a
New carbon disclosure regulations incorporated into reporting regime. |
|
|
|
EU/ |
|
|
Risk arising from a failure to agree a trade agreement with the EU will add cost to
Potential volatility to public equity and foreign exchange markets due to uncertainty as to any trade agreement and its impact. | Continued monitoring of directly held unquoted investment performance and business model exposure to potential EU/
Continued monitoring of public equity and foreign exchange market responses to EU/ | Review of the continuing business models of our
We continue to monitor potential impacts to our public equities as the EU/ |
|
|
|
Group statement of comprehensive income
for the year ended
| 2020 | 2019 | ||||
| Revenue | Capital | Total | Revenue | Capital | Total |
| £m | £m | £m | £m | £m | £m |
Revenue |
|
|
|
|
|
|
Investment income | 53.4 | - | 53.4 | 52.1 | - | 52.1 |
Other income | - | - | - | 0.1 | 0.9 | 1.0 |
Net gains and losses on fair value investments | - | (206.3) | (206.3) | - | 176.7 | 176.7 |
Net gains and losses on fair value property | - | - | - | - | (5.3) | (5.3) |
Total revenue | 53.4 | (206.3) | (152.9) | 52.2 | 172.3 | 224.5 |
Management expenses | (17.2) | 0.6 | (16.6) | (17.9) | (8.6) | (26.5) |
Profit/(loss) before finance costs | 36.2 | (205.7) | (169.5) | 34.3 | 163.7 | 198.0 |
| 0.6 | - | 0.6 | 0.5 | - | 0.5 |
Finance costs | (2.1) | - | (2.1) | (2.1) | - | (2.1) |
Exchange movements | (0.9) | - | (0.9) | 0.5 | - | 0.5 |
Profit/(loss) before tax | 33.8 | (205.7) | (171.9) | 33.2 | 163.7 | 196.9 |
Taxation | 0.8 | (1.8) | (1.0) | 1.4 | (0.1) | 1.3 |
Profit/(loss) for the year | 34.6 | (207.5) | (172.9) | 34.6 | 163.6 | 198.2 |
Other comprehensive income items never to be reclassified to profit or loss |
|
|
|
|
|
|
Gain on acquisition of pension scheme | - | - | - | 1.4 | - | 1.4 |
Re-measurements of defined benefit pension schemes | - | 1.1 | 1.1 | - | (0.1) | (0.1) |
Tax on other comprehensive income | - | (0.7) | (0.7) | - | 0.2 | 0.2 |
Total comprehensive income | 34.6 | (207.1) | (172.5) | 36.0 | 163.7 | 199.7 |
|
|
|
|
|
|
|
Basic earnings per share | 63.1p | -378.1p | -315.0p | 63.0p | 297.9p | 360.9p |
Diluted earnings per share | 62.6p | -378.1p | -315.0p | 61.9p | 292.8p | 354.7p |
The total column of the above statement represents the group's statement of comprehensive income, prepared in accordance with IFRSs as adopted by the
The revenue and capital columns are supplementary to the group's statement of comprehensive income and are prepared under guidance published by the
The loss for the year and total comprehensive income for the year is attributable to equity holders of the parent.
Statement of financial position
at
| Group | Company | ||
| 2020 | 2019 | 2020 | 2019 |
| £m | £m | £m | £m |
Non-current assets |
|
|
|
|
Investments held at fair value through profit or loss | 1,656.7 | 1,860.0 | 1,658.1 | 1,864.2 |
Investments in subsidiaries held at cost | - | - | 0.9 | 0.9 |
Investment property | 8.7 | 6.7 | - | - |
Property, plant and equipment | 28.0 | 28.4 | - | - |
Deferred tax assets | 1.0 | 3.6 | - | - |
Employee benefits | 5.1 | 2.6 | - | - |
Non-current assets | 1,699.5 | 1,901.3 | 1,659.0 | 1,865.1 |
Current assets |
|
|
|
|
Trade and other receivables | 6.6 | 21.3 | 36.4 | 50.8 |
Current tax assets | 2.6 | 5.3 | 2.6 | 5.2 |
Cash and cash equivalents | 114.7 | 112.3 | 112.6 | 111.3 |
Current assets | 123.9 | 138.9 | 151.6 | 167.3 |
Total assets | 1,823.4 | 2,040.2 | 1,810.6 | 2,032.4 |
Current liabilities |
|
|
|
|
Trade and other payables | (30.0) | (28.1) | (30.0) | (34.3) |
Employee benefits | (0.9) | (2.8) | - | - |
Current liabilities | (30.9) | (30.9) | (30.0) | (34.3) |
Non-current liabilities |
|
|
|
|
Employee benefits | (5.2) | (7.3) | - | - |
Non-current liabilities | (5.2) | (7.3) | - | - |
Total liabilities | (36.1) | (38.2) | (30.0) | (34.3) |
Net assets | 1,787.3 | 2,002.0 | 1,780.6 | 1,998.1 |
|
|
|
|
|
Equity |
|
|
|
|
Share capital | 3.2 | 3.2 | 3.2 | 3.2 |
Share premium | 1.3 | 1.3 | 1.3 | 1.3 |
Capital redemption reserve | 1.3 | 1.3 | 1.3 | 1.3 |
Capital reserve | 1,541.3 | 1,748.4 | 1,543.2 | 1,754.2 |
Retained earnings | 255.5 | 292.4 | 246.9 | 282.7 |
Own shares | (15.3) | (44.6) | (15.3) | (44.6) |
Total equity | 1,787.3 | 2,002.0 | 1,780.6 | 1,998.1 |
|
|
|
|
|
Undiluted net asset value | 3259p | 3645p |
|
|
Diluted net asset value | 3236p | 3582p |
|
|
The financial statements were approved by the board and authorised for issue on
Chief Executive | Chief Financial Officer |
Statement of changes in equity
for the year ended
| | | Capital | | | | | |
| | | redemp- | | | | | |
| Share | Share | tion | Capital | Retained | Own | Total | |
| capital | premium | reserve | reserve | earnings | shares | equity | |
| £m | £m | £m | £m | £m | £m | £m | |
Group |
|
|
|
|
|
|
| |
Balance at | 3.2 | 1.3 | 1.3 | 1,584.9 | 284.1 | (38.2) | 1,836.6 | |
Total comprehensive income |
|
|
|
|
|
|
| |
Profit for the year | - | - | - | 163.6 | 34.6 | - | 198.2 | |
Other comprehensive income | - | - | - | 0.1 | 1.4 | - | 1.5 | |
Total comprehensive income | - | - | - | 163.7 | 36.0 | - | 199.7 | |
Transactions with owners of the company |
|
|
|
|
|
|
| |
Contributions by and distributions to owners |
|
|
|
|
|
|
| |
Share-based payments | - | - | - | - | 3.9 | - | 3.9 | |
Own shares cancelled | - | - | - | (0.2) | - | - | (0.2) | |
Own shares purchased | - | - | - | - | - | (6.4) | (6.4) | |
Dividends paid | - | - | - | - | (31.6) | - | (31.6) | |
Total transactions with owners | - | - | - | (0.2) | (27.7) | (6.4) | (34.3) | |
Balance at | 3.2 | 1.3 | 1.3 | 1,748.4 | 292.4 | (44.6) | 2,002.0 | |
Total comprehensive income |
|
|
|
|
|
|
| |
Loss for the year | - | - | - | (207.5) | 34.6 | - | (172.9) | |
Other comprehensive income | - | - | - | 0.4 | - | - | 0.4 | |
Total comprehensive income | - | - | - | (207.1) | 34.6 | - | (172.5) | |
Transactions with owners of the company |
|
|
|
|
|
|
| |
Contributions by and distributions to owners |
|
|
|
|
|
|
| |
Share-based payments | - | - | - | - | (1.5) | - | (1.5) | |
Transfer of shares to employees | - | - | - | - | (37.2) | 37.2 | - | |
Own shares purchased | - | - | - | - | - | (7.9) | (7.9) | |
Dividends paid | - | - | - | - | (32.8) | - | (32.8) | |
Total transactions with owners | - | - | - | - | (71.5) | 29.3 | (42.2) | |
Balance at | 3.2 | 1.3 | 1.3 | 1,541.3 | 255.5 | (15.3) | 1,787.3 | |
|
|
|
|
|
|
|
| |
Company |
|
|
|
|
|
|
| |
Balance at | 3.2 | 1.3 | 1.3 | 1,585.6 | 277.3 | (38.2) | 1,830.5 | |
Profit and total comprehensive income | - | - | - | 168.8 | 33.1 | - | 201.9 | |
Transactions with owners of the company |
|
|
|
|
|
|
| |
Contributions by and distributions to owners |
|
|
|
|
|
|
| |
Share-based payments | - | - | - | - | 3.9 | - | 3.9 | |
Own shares cancelled | - | - | - | (0.2) | - | - | (0.2) | |
Own shares purchased | - | - | - | - | - | (6.4) | (6.4) | |
Dividends paid | - | - | - | - | (31.6) | - | (31.6) | |
Total transactions with owners | - | - | - | (0.2) | (27.7) | (6.4) | (34.3) | |
Balance at | 3.2 | 1.3 | 1.3 | 1,754.2 | 282.7 | (44.6) | 1,998.1 | |
Loss and total comprehensive income | - | - | - | (211.0) | 35.7 | - | (175.3) | |
Transactions with owners of the company |
|
|
|
|
|
|
| |
Contributions by and distributions to owners |
|
|
|
|
|
|
| |
Share-based payments | - | - | - | - | (1.5) | - | (1.5) | |
Transfer of shares to employees | - | - | - | - | (37.2) | 37.2 | - | |
Own shares purchased | - | - | - | - | - | (7.9) | (7.9) | |
Dividends paid | - | - | - | - | (32.8) | - | (32.8) | |
Total transactions with owners | - | - | - | - | (71.5) | 29.3 | (42.2) | |
Balance at | 3.2 | 1.3 | 1.3 | 1,543.2 | 246.9 | (15.3) | 1,780.6 | |
Statement of cash flows
for the year ended
| Group | Company | ||
| 2020 | 2019 | 2020 | 2019 |
| £m | £m | £m | £m |
Operating activities |
|
|
|
|
Dividends received | 48.8 | 45.9 | 48.8 | 45.9 |
Interest received | 1.7 | 1.6 | 1.7 | 1.6 |
Cash received from customers | - | 0.1 | - | - |
Cash paid to suppliers and employees | (23.3) | (19.2) | (28.7) | (25.9) |
Taxes received | 0.2 | - | 0.2 | - |
Taxes paid | (0.1) | (0.1) | (0.1) | (0.1) |
Group tax relief received | 3.7 | 2.5 | 3.7 | 2.5 |
Group tax relief paid | (0.1) | (1.5) | - | (1.5) |
Net cash flow from operating activities | 30.9 | 29.3 | 25.6 | 22.5 |
Investing activities |
|
|
|
|
Purchases of investments | (383.1) | (558.2) | (383.1) | (558.2) |
Proceeds from disposal of investments | 397.2 | 473.7 | 399.6 | 476.9 |
Purchases of property, plant and equipment | (2.7) | (2.0) | - | - |
Net cash flow from/(used in) investing activities | 11.4 | (86.5) | 16.5 | (81.3) |
Financing activities |
|
|
|
|
Interest paid | (1.7) | (1.8) | (1.6) | (1.8) |
Dividends paid to owners of the company | (32.8) | (31.6) | (32.8) | (31.6) |
Proceeds from bank borrowings | 10.0 | - | 10.0 | - |
Repayment of bank borrowings | (10.0) | - | (10.0) | - |
Loan receipts from subsidiaries | 2.5 | 1.7 | 2.5 | 7.0 |
Loan payments to subsidiaries | - | - | (1.0) | (4.3) |
Purchases of own shares | (7.9) | (6.6) | (7.9) | (6.6) |
Net cash flow used in financing activities | (39.9) | (38.3) | (40.8) | (37.3) |
Net increase/(decrease) in cash and cash equivalents | 2.4 | (95.5) | 1.3 | (96.1) |
Cash and cash equivalents at year start | 112.3 | 207.8 | 111.3 | 207.4 |
Cash and cash equivalents at year end | 114.7 | 112.3 | 112.6 | 111.3 |
Notes to the final results announcement
1. General information
The financial information included in this announcement has been prepared using accounting policies consistent with International Financial Reporting Standards ('IFRSs') as adopted by the
Under the
In the current year, the group has adopted IFRS 16 Leases. Adoption of this standard did not impact the financial position of the group.
2. Dividends
Amounts recognised as distributions to owners of the company in the year were as follows:
| 2020 | 2019 | ||
| p/share | £m | p/share | £m |
Final dividend for the year ended | 43.2 | 23.7 | 41.5 | 22.8 |
Interim dividend for the year ended | 16.6 | 9.1 | 16.1 | 8.8 |
| 59.8 | 32.8 | 57.6 | 31.6 |
Amounts proposed after the year end and not recognised in the financial statements were as follows:
Proposed final dividend for the year ended | 44.5 | 24.4 |
|
|
The proposed final dividend for the year ended
The deadline for elections under the dividend reinvestment plan offered by
For the purposes of section 1158 of the Corporation Tax Act 2010 and associated regulations, the dividends payable for the year ended
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/(loss) 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/(loss) attributable to shareholders (basic and diluted) was as follows:
| 2020 | 2019 |
| £m | £m |
Revenue | 34.6 | 34.6 |
Capital | (207.5) | 163.6 |
Total | (172.9) | 198.2 |
The weighted average number of shares was as follows:
| 2020 | 2019 |
| 000's | 000's |
Issued shares at the year start | 55,374 | 55,381 |
Effect of shares cancelled | - | (6) |
Effect of shares held by the employee share trust | (490) | (451) |
Basic weighted average number of shares in the year | 54,884 | 54,924 |
Effect of performance shares, share options and deferred bonus awards | 388 | 960 |
Diluted weighted average number of shares in the year | 55,272 | 55,884 |
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 | ||
| 2020 | 2019 | 2020 | 2019 |
| £m | £m | £m | £m |
Quoted Equity | (1.7) | 95.6 | 574.0 | 688.9 |
| (128.5) | 63.4 | 611.3 | 659.5 |
Funds | (13.6) | 69.9 | 450.1 | 482.7 |
Investment portfolio | (143.8) | 228.9 | 1,635.4 | 1,831.1 |
Other investments | (9.1) | (4.4) | 21.3 | 28.9 |
Total revenue/investments | (152.9) | 224.5 | 1,656.7 | 1,860.0 |
Cash and cash equivalents | 0.6 | 0.5 | 114.7 | 112.3 |
Other items | (19.6) | (28.1) | 52.0 | 67.9 |
Reportable total | (171.9) | 196.9 | 1,823.4 | 2,040.2 |
5. Share-based payments
In the year to
Also in the year to
The IFRS 2 credit included in profit or loss for the year was
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
| 2020 | 2019 | ||||
| Net | Number |
| Net | Number |
|
| assets | of shares | NAV | assets | of shares | NAV |
| £m | 000's | p/share | £m | 000's | p/share |
Undiluted | 1,787.3 | 54,839 | 3259 | 2,002.0 | 54,929 | 3645 |
Share options | - | 388 | (23) | - | 960 | (63) |
Diluted | 1,787.3 | 55,227 | 3236 | 2,002.0 | 55,889 | 3582 |
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.
| 2020 | 2019 |
| p | p |
Diluted NAV at year start | 3582 | 3285 |
Diluted NAV at year end | 3236 | 3582 |
Dividends payable in the year | 60 | 58 |
Reinvestment adjustment | (6) | 3 |
| 3290 | 3643 |
NAVTR over the year | -8.1% | 10.9% |
1. | 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 | ||
| 2020 | 2019 | 2020 | 2019 |
| £m | £m | £m | £m |
Investments |
|
|
|
|
Contracted but not called | 305.2 | 330.6 | 313.5 | 339.0 |
Conditionally contracted | 75.6 | 167.6 | 75.6 | 167.6 |
| 380.8 | 498.2 | 389.1 | 506.6 |
Conditionally contracted commitments at 31 March 2019 included £142.6m in respect of the acquisition of a minority holding in
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 expressed as pence per share. NAV 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. NAVTR assumes that dividends are reinvested at the NAV on the ex-dividend date.
Annual dividends
Annual dividends are dividends declared as part of the company's recurring dividend cycle and are typically paid out of earnings in a financial year. Annual dividend growth is the compound annual dividend growth rate over the period.
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 information
The financial information set out above does not constitute the company's statutory accounts for the years ended 31 March 2020 or 2019 but is derived from those accounts. Statutory accounts for 31 March 2019 have been delivered to the Registrar of Companies, and those for 31 March 2020 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 2020 will be delivered to shareholders on 25 June 2020 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 Act, following approval by shareholders.
The statutory accounts for the year ended 31 March 2020 include a 'Directors' statement of responsibility' as follows:
We confirm that, to the best of our knowledge:
- | the group financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and loss of the group |
|
|
- | the strategic report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal risks and uncertainties that it faces. |
Signed on behalf of the board by:
Chief Executive 26 May 2020 | Chief Financial Officer 26 May 2020 |
END
Copies of this statement are available at the company's registered office,
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
FOR OUR FULL DISCLAIMER CLICK HERE