Caledonia Investments plc
Final results for the year ended 31 March 2026
Financial highlights
| Year 31 March 2026 | Year 31 March 2025 | ||
| Net asset value total return1 | 5.4% | 3.3% | |
| Net asset value per share1,2 | 568p | 548p | |
| Net assets | £2,980m | £2,932m | |
| Annual dividend per share2 | 7.68p | 7.36p | |
1. Net asset value total return (‘NAVTR’) and net asset value per share (‘NAVPS’) are Alternative Performance Measures
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 net asset per share and dividend per share figures have been restated for the prior year comparatives
An investor and analyst webcast will take place at 09:30 on 19 May 2026, with a live webcast available via this link.
Mat Masters, Chief Executive Officer, commented:
“The past year has again demonstrated the strengths of Caledonia’s distinctive model and approach. Despite a volatile backdrop for the global economy we have delivered positive NAV growth, with contributions from all three of our investment pools and significant value realised from the sale of Stonehage Fleming at a 3.2x multiple on cost.
While market conditions, particularly late in our financial year, impacted overall returns, we remain confident in our high-quality, diversified portfolio and our ability to deliver over the long-term. Through this period of market dislocation, the strength of our balance sheet is a clear advantage. We have the flexibility to deploy capital where we see compelling opportunities for long-term value creation, and we remain focused on taking clear, disciplined steps to ensure that value is reflected more fully for shareholders over time.”
Highlights
- NAV Total Return: 5.4% to £2,980m (568p per share)
- Portfolio performance: All three investment pools contributed to growth, with the investment portfolio delivering a return of 6.1% in the year. 1.2% from Public Companies, 13.1% from Private Capital and 4.9% from Funds
- Agreement to sell Stonehage Fleming: Expected proceeds of c.£290m, generating a 3.2x multiple on cost and 30% uplift to March 2025 carrying value
- Robust balance sheet: Significant liquidity, well positioned to take advantage of investment opportunities. Net cash of £90m and undrawn revolving credit facility of £325m, providing total liquidity of £415m
- 59 consecutive years of progressive dividend growth: Proposing a final dividend of 4.00p per share, taking the total dividend for the year to 7.68p per share, a 4.4% increase compared to 2025 and extending our record of growing annual dividends to 59 consecutive years
- Share buybacks: £35m allocated to share buybacks, with 9,465,511 shares repurchased at an average discount of 35%, resulting in a 3.49p or 0.6% accretion to NAV per share
- Board changes: David Stewart, Chair of the board and Charles Cayzer, non-executive director will step down at the forthcoming AGM. Will Wyatt appointed as David’s successor
Performance to 31 March 2026
| 1 year % | 3 years % | 5 years % | 10 years % | |
| NAV total return1 | 5.4 | 16.9 | 57.7 | 142.0 |
| Annualised | ||||
| NAV total return1 | 5.4 | 5.4 | 9.5 | 9.2 |
| CPIH2 | 3.4 | 3.5 | 5.1 | 3.4 |
| FTSE All Share total return | 21.5 | 13.3 | 11.1 | 8.7 |
1. Alternative Performance Measure.
2. Consumer Prices Index including owner occupiers’ housing costs (‘CPIH’).
Chair’s statement
Results
Caledonia delivered another year of positive performance, with NAVTR of 5.4%, extending our track record of generating long-term real returns with annualised NAVTR of 9.2% over the last decade, outperforming inflation by 5.8% p.a.. The portfolio is constructed with a broad opportunity set and a long-term return objective. Whilst NAVTR was below the FTSE All-Share total return over the short term we outperformed the index over 10 years.
Income and dividend
Total net investment income from the revenue account increased from £53.6m to £64.7m and total net revenue profit was £40.4m, sufficient to fully cover the dividend for the year. As previously reported, we expect a gradual reduction in investment income as we maintain our focus on total returns and, over time, anticipate that net distributions from our fund investments will play a more material role in dividend cover.
We remain committed to a progressive dividend policy which aims to increase annual dividends by at least the rate of inflation over the long term. The board has recommended a final dividend of 4.00p per share for the year ended 31 March 2026 which, if approved by shareholders, will be payable on 6 August 2026 to ordinary shareholders on the register on 3 July 2026. This represents a full-year dividend of 7.68p per share, an increase of 4.4% when compared to the previous year, and 59 consecutive years of increased annual dividends.
Discount and total shareholder return
Over the year the average share price discount to net asset value (‘NAV’) was 34.0%, widening significantly in March and ending the year at 43.4%, in part due to the Iranian conflict. This movement resulted in a disappointing total shareholder return for the year of -7.1%. Whilst the discount narrowed to 37.1% at the end of April, we believe that the share price continues to undervalue the quality of our portfolio and our long-term performance track record.
The board regularly considers what additional steps could be taken to address the discount, which to date have included the following initiatives:
Dividend re-profiling
To provide shareholders with a more predictable and balanced income stream, during the year we re-profiled the interim dividend to 50% of the prior year’s total.
Share split
To improve accessibility for a wider range of shareholders, following shareholder approval at last year’s annual general meeting, a 10:1 share split was implemented on 25 July 2025. This reduced the nominal value of ordinary shares from 5p to 0.5p. The combination of the share split, and the re-profiling of the dividend has made dividend re-investment easier.
Share buybacks
Alongside continued allocation to our investment strategy and our progressive dividend policy, we continue to invest in our own portfolio via share buybacks, which represents a lower-risk way to enhance NAV per share. In considering whether to undertake share buybacks, the board will continue to take into account the liquidity of the company’s shares, the need to remain appropriately invested in the portfolio and the level of any discount at which the shares trade relative to NAV per share.
During the year, we allocated £34.6m to purchase and cancel 9,465,511 ordinary shares at an average discount of 34.7%, generating 3.49p of NAV per share accretion. The board is cognisant that share buybacks increase the percentage of voting rights held by the Cayzer family concert party (the ‘Cayzer Concert Party’). The Cayzer Concert Party remains a long-term shareholder and the source of Caledonia’s strong culture and long-term outlook. As at 31 March 2026, its holding in the company was 51.05%.
Investor communications
To ensure that our investment proposition is understood and more appropriately rated, we have continued to evolve our investor communications during the year. Our series of successful ‘spotlight’ events focused on each of our investment pools was a particular highlight, showcasing the quality of our portfolio, our differentiated investment approach and, importantly, the calibre of our people. We made further investment in our brand, successfully launching a new website in late 2025 and increased our participation in investor focused events. This enhanced level of engagement is expected to continue.
Board changes
There have been several changes to the composition of the board and its committees during the year. Lynn Fordham resigned as a non-executive director on 31 August 2025. I would like to thank her for the considerable contribution that she made during her time on the board. Farah Buckley was appointed as a member of the Audit and Risk Committee and subsequently succeeded Lynn as Chair of that Committee on 1 September 2025. We also welcomed Michael McLintock as a new non-executive director on 16 February 2026, bringing extensive investment management and listed company knowledge and experience to Caledonia.
Charles Cayzer, after a little over four decades of service, has decided not to stand for re-election as a non-executive director at this year’s annual general meeting (‘AGM’). Charles has been a significant asset to Caledonia during his long tenure and I, together with board colleagues past and present, have benefitted from his diligence and wise counsel.
My tenure as company Chair will end at the AGM. The board has appointed Will Wyatt as my successor. Will successfully led Caledonia as Chief Executive for over a decade until becoming a non-executive director in July 2022. He is a member of the Cayzer family and has a deep understanding of Caledonia’s culture, investment strategy and long-term approach. Will’s appointment follows the completion of a formal, rigorous and transparent process undertaken by the Nomination Committee led by Guy Davison, Caledonia’s Senior Independent Director. Major shareholders, who were consulted in advance, confirmed their broad support for his appointment.
Annual general meeting
Each year I look forward to meeting fellow shareholders in person at our AGM, which once again takes place in London, on 15 July 2026. This year, shareholders are also invited to meet me and my board colleagues informally ahead of the meeting.
Outlook
I have been very proud to serve as Chair and, as I step down at this year’s AGM, I do so with confidence in Caledonia’s future. The external environment remains unsettled and is likely to continue to present further uncertainty. However, I believe Caledonia is well placed to navigate these challenges, supported by a high-quality portfolio, a robust balance sheet and a strong, experienced team.
I wish Will every success as he takes on the role of Chair and I would like to thank my board colleagues, the management team and colleagues across the business for their commitment and support.
David Stewart
Chair