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1. Company Snapshot

1.a. Company Description

Caledonia Investments plc is a self-managed investment trust company.It invests in private and public equity markets across the globe.The firm benchmarks the performance of its portfolios against the FTSE All-Share Total Return Index.


Caledonia Investments plc was founded in 1928 and is based in London, United Kingdom.

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1.b. Last Insights on CLDN

Caledonia Investments plc's recent performance was driven by key factors. Firstly, insider buying activity has been significant, with insiders increasing their holdings over the past 12 months. This indicates confidence in the company's prospects and may attract institutional investors. Additionally, 47% of the company is owned by private companies, which implies significant control and alignment of interests with long-term investors. Furthermore, the company's ownership structure suggests a low risk of activist investors or short-term focused shareholders.

1.c. Company Highlights

2. Caledonia Investments Plc: Delivering Strong Returns Amidst Strategic Shifts

Caledonia Investments Plc reported a net asset value (NAV) total return of 4.4% and a total shareholder return of 8.5% for the half-year period ending September 30, 2025. The company's NAV grew to just over GBP 3 billion, driven by strong performances from its public company strategy and private capital portfolio. The interim dividend is 3.68p per share, reflecting a change in dividend payment profile to 50% of the prior year's annual total dividend. The earnings per share (EPS) for the period wasn't explicitly stated, but the company's focus on delivering long-term value is evident.

Publication Date: Nov -26

📋 Highlights
  • Total Shareholder Return: 8.5% driven by NAV growth of 4.4% and a 50% interim dividend (3.68p/share) of prior year’s total.
  • Private Capital Proceeds: £288 million expected from Stonehage Fleming stake sale, contributing to £907 million NAV for private capital portfolio (7.7% total return).
  • Funds Portfolio Performance: 13.3% total return over 5–10 years, invested in 82 funds across 46 managers with a £884 million NAV.
  • Share Buyback Impact: £78 million allocated to buybacks since March 2024, delivering 7.44p NAV per share accretion.
  • Public Company Strategy: 9.9% return led by Oracle, Microsoft, Alibaba, and new £35 million Charles Schwab position in cloud services.

Portfolio Performance

The public company strategy delivered a 9.9% return, driven by Oracle, Microsoft, and Alibaba, which benefited from demand for cloud-based services. A new position was initiated in Charles Schwab, with GBP 35 million deployed in April. The private capital portfolio had a net asset value of GBP 907 million and delivered a 7.7% total return. The sale of a minority stake in Stonehage Fleming to Corient Wealth is expected to deliver cash proceeds of approximately GBP 288 million.

Valuation and Dividend

With a Price-to-Book Ratio (P/B Ratio) of 0.69, Caledonia Investments Plc appears to be undervalued relative to its book value. The Dividend Yield stands at 1.96%, indicating a relatively stable return for shareholders. The company's prudent capital allocation policy is reflected in its allocation of GBP 14 million to share buybacks during the 6 months, increasing the total since March '24 to GBP 78 million, delivering a 7.44p NAV per share accretion.

Investment Strategy and Outlook

The company's investment strategy focuses on good-quality companies for the long term, rather than trying to time the market or respond to macroeconomic trends. Caledonia holds a 5.2% stake in Oracle, which it views as having a fantastic future ahead, driven by its growing forward order book, particularly in AI-related areas. The funds portfolio's maturity profile has increased, with reduced realization and investment activity in the last 6 months, but there are signs of increased activity in the market.

Currency Exposure and Hedging

The company's assets are domiciled in U.S. dollars (54%) and sterling (37%), and movements in the sterling-dollar exchange rate will impact in-period results. Caledonia does not hedge its currency exposure, adopting a long-term approach to investment and value creation.

3. NewsRoom

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Helios Underwriting And 2 Other UK Penny Stocks Worth Watching

Sep -30

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Caledonia Investments' (LON:CLDN) Upcoming Dividend Will Be Larger Than Last Year's

May -23

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The ultra-wealthy invest through family offices. Here’s how to join them

May -01

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This Caledonia Investments Insider Increased Their Holding In The Last Year

Feb -21

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Private companies account for 47% of Caledonia Investments Plc's (LON:CLDN) ownership, while institutions account for 33%

Jan -11

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Caledonia Investments Plc (LON:CLDN) Is About To Go Ex-Dividend, And It Pays A 2.1% Yield

Dec -01

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Caledonia Investments Insiders Added UK£1.50m Of Stock To Their Holdings

Sep -13

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Caledonia Investments (LON:CLDN) Will Pay A Larger Dividend Than Last Year At £0.5147

Jun -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.29%)

6. Segments

Funds

Expected Growth: 7.3%

Caledonia Investments plc's focus on UK and European markets, diversified portfolio, and long-term investment approach drive growth. Strong fundamentals, including income generation and capital growth, support a positive outlook.

Private Capital

Expected Growth: 10.2%

Private capital investments from Caledonia Investments plc drive growth through strategic funding, supporting private companies' expansion and development, fostering innovation and job creation.

Other Investments

Expected Growth: 5.5%

Diversified portfolio of quoted and unquoted investments in various sectors provides a hedge against market volatility, driving growth.

Quoted Equity

Expected Growth: 7.5%

Diversification and potential long-term growth driven by publicly traded shares of companies in Caledonia's investment portfolio, providing a stable source of returns.

7. Detailed Products

Caledonia Private Capital

Caledonia Investments plc's private capital segment provides long-term capital to businesses, supporting entrepreneurs and management teams in achieving their growth ambitions.

Caledonia Public Equity

Caledonia Investments plc's public equity segment invests in listed companies, focusing on long-term value creation through active engagement with management teams.

Caledonia Fund Management

Caledonia Investments plc's fund management segment provides investment management services to institutional clients, including pension funds and charities.

Caledonia Real Assets

Caledonia Investments plc's real assets segment invests in property, infrastructure, and other real assets, providing a diversified source of returns.

8. Caledonia Investments plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Caledonia Investments plc operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Caledonia Investments plc has a diversified customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Caledonia Investments plc has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate this risk.

Threat Of New Entrants

Caledonia Investments plc operates in a highly regulated industry, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

Caledonia Investments plc operates in a highly competitive industry, with intense rivalry among existing players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.98%
Debt Cost 3.95%
Equity Weight 84.02%
Equity Cost 7.78%
WACC 7.17%
Leverage 19.01%

11. Quality Control: Caledonia Investments plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vontobel

A-Score: 6.5/10

Value: 6.8

Growth: 4.1

Quality: 6.4

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Wendel

A-Score: 6.0/10

Value: 7.7

Growth: 3.9

Quality: 5.9

Yield: 6.9

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Man

A-Score: 5.8/10

Value: 5.0

Growth: 5.8

Quality: 7.2

Yield: 8.1

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Peugeot

A-Score: 5.6/10

Value: 2.7

Growth: 6.2

Quality: 6.8

Yield: 5.6

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Caledonia Investments

A-Score: 5.4/10

Value: 2.5

Growth: 2.4

Quality: 7.2

Yield: 4.4

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Bure Equity

A-Score: 3.5/10

Value: 5.4

Growth: 3.0

Quality: 4.6

Yield: 0.6

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.81$

Current Price

3.81$

Potential

-0.00%

Expected Cash-Flows