Caledonia Investments plc

For the year ended 31 March 2026, Caledonia reported NAV total return of 5.4%, growing NAV to GBP 3 billion. Reported portfolio return was GBP 167 million, management expenses were GBP 29.9 million, and operating cost ratio was 83 basis points. The company reported an FX loss of GBP 22.4 million, reducing NAV by 0.7%, and total shareholder return was -7.1% after the discount widened to 43.4% at year-end. Dividend for the year will be 7.68p per share, up 4.4% year on year, including a final dividend of 4p. Cash on balance sheet was GBP 90 million, and the undrawn revolving credit facility was GBP 325 million. The company expects to complete the Stonehage Fleming sale in mid-2026, with proceeds of circa GBP 290 million and a 3.2x money multiple. No formal next-quarter or full-year earnings guidance was given; management instead said it expects uncertainty to remain, but sees the portfolio and balance sheet as well placed to keep compounding NAV and selectively deploy capital.

Mat Masters emphasized the resilience of Caledonia’s long-term model, saying the diversified portfolio and active risk management helped deliver NAV growth despite volatile markets. He highlighted the agreed sale of Stonehage Fleming as a strong realization and pointed to improving conditions in the Asia funds with better IPO and fundraising activity. His tone was confident but measured, acknowledging disappointment in the share price performance and discount widening.

Rob Memmott focused on financial strength and capital deployment. He said NAV ended at GBP 3 billion, cash was GBP 90 million, and Caledonia still had GBP 325 million of undrawn RCF capacity, with no structural leverage. He detailed cash generation and usage, including GBP 58.7 million of investment income, GBP 47.4 million of dividend payments, GBP 34.6 million of buybacks, and GBP 29.9 million of management expenses, and said the company would use Stonehage Fleming proceeds selectively, with private capital at 23% of NAV versus a 25% to 35% strategic range.

Analysts focused on the underperformance of the listed equity portfolio, the improving but still subdued funds environment, and the widening discount to NAV. Management said the public equity team is still happy with its approach and pointed to risk management in Oracle, while noting the March selloff again hit results. On funds, they said Asia saw six IPOs during the year, two more after year-end, and five filings in process, while North American underlying trading remained strong but exit cadence was still subdued after geopolitical disruptions. On capital allocation and buybacks, management said the Stonehage proceeds will mostly support private capital, but they will also keep buying back shares when appropriate.