Portfolio

Caledonia Investments proposes bumper special dividend

By Alexander Bueso

Date: Thursday 25 May 2017

Caledonia Investments proposes bumper special dividend

(ShareCast News) - Caledonia Investments proposed paying a bumper special dividend to shareholders after posting a sharp increase in its full-year returns and realising some of its investments.


The self-managed investment trust said its net asset value total return for the year to 31 March rose by 18%, versus just 2.6% for 2016.

Management attributed six percentage points of that increase to the fall in the value of Sterling after the Brexit referendum.

However, management sounded a cautious note with Will Wyatt, Caledonia's boss, saying: "While global markets have witnessed recent significant gains, we remain mindful of political and economic uncertainties in key regions. We will remain disciplined in our investment decisions but are confident that the portfolio will continue to perform well over the long term."

The company, a significant part of whose assets consists of unlisted investments, also said private equity markets were "buoyant", with prices reaching levels not seen since before the financial crisis.

Hence its decision during the period to sell Park Holidays for a net £197m in proceeds to Caledonia which allowed it to almost triple the value of the investment it made in 2013.

In total, the investment trust realised £433m of investments during the year, while investing £247m.

As a result, Caledonia proposed paying a special dividend of 100p per share.

At period end, cash on hand stood at £207m and its unutilised committed facilities at £175m.

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