The Lemon Fool

Unaudited net asset value and portfolio update out with the biannual re-evaluation of private equity. NAV is 12% above the previous month's quoted number so factsheet shows a discount of 32.9% (based on a share price of 2645p). Share price currently up 7.58% at 2917.5p. Notable that despite the loss on Buzz Bingo Private Equity is now 37% of holdings compared to 33% last March, so the NAV needs to be treated with some caution.

No idea where the share price will go from here short-term since Polar Capital have been selling (they currently hold around 4.9%) and presumably is why CLDN has been struggling in terms of share price (because the 1% NAV loss on Buzz Bingo is not a reason for a 15% first quarter of the calendar year underperformance!), since CLDN doesn't have any practical method of buying back shares short-term share price performance can always be frustrating.

disclosure: currently hold and i did buy a little more when the SP was up 1% shortly after the announcement at 9am.

https://otp.investis.com/clients/uk/cal ... id=1479184

Final results.

Proposed final dividend for the year ended 31 March 2021 45.9
The proposed final dividend for the year ended 31 March 2021 was not included as a liability in these financial statements. This dividend, if approved by shareholders at the annual general meeting to be held on 21 July 2021, will be payable on 5 August 2021 to holders of shares on the register on 2 July 2021.

The dividend is not covered by earnings but being supported from reserves - this is not a problem to me. Exactly the sort of smoothing I’d want.

Best wishes,

Steve

Steveam wrote:https://otp.investis.com/clients/uk/caledonia/rns/regulatory-story.aspx?cid=2554&newsid=1479184

Final results.

Proposed final dividend for the year ended 31 March 2021 45.9
The proposed final dividend for the year ended 31 March 2021 was not included as a liability in these financial statements. This dividend, if approved by shareholders at the annual general meeting to be held on 21 July 2021, will be payable on 5 August 2021 to holders of shares on the register on 2 July 2021.

The dividend is not covered by earnings but being supported from reserves - this is not a problem to me. Exactly the sort of smoothing I’d want.

Best wishes,

Steve

Thanks for that. This is a good IT which I have held for just short of 30 years. A pity that they cannot narrow the discount. Good results when you consider that they more or less wrote off Buzz Bingo, and the strength of sterling did not help their USD investments.

They have very large distributable reserves so I am not in the least concerned about using some of them to bolster the dividend.

Furthermore, they hold a net cash position, very helpful in these uncertain times.

Dod

https://otp.investis.com/clients/uk/cal ... id=1480055

Caledonia sells DSE. £50m over holding price. The private capital arm of Caledonia doing its stuff.

A good price but the cash (£242m) will need to find new homes. Personally I’m dreading having to find investments for the cash I’m going to receive from RSA and Signature Aviation.

Best wishes,

Steve

Steveam wrote:https://otp.investis.com/clients/uk/caledonia/rns/regulatory-story.aspx?cid=2554&newsid=1480055

Caledonia sells DSE. £50m over holding price. The private capital arm of Caledonia doing its stuff.

A good price but the cash (£242m) will need to find new homes. Personally I’m dreading having to find investments for the cash I’m going to receive from RSA and Signature Aviation.

Best wishes,

Steve

Excellent thank you. It will hopefully help offset the losses in Buzz Bingo (which were of course reflected in their results to 31 March.)

Presumably you do not have the resources of Caledonia to help your reinvestment. So sorry.

Dod

Caledonia Investments plc ("Caledonia") announces that on 25 June 2021 it purchased 144,901 of its own ordinary shares of 5p ("Ordinary Shares") each at an average price of 3174.56 pence per share. The purchased shares will be cancelled.

Best wishes,

Steve

Steveam wrote:Caledonia Investments plc ("Caledonia") announces that on 25 June 2021 it purchased 144,901 of its own ordinary shares of 5p ("Ordinary Shares") each at an average price of 3174.56 pence per share. The purchased shares will be cancelled.

Best wishes,

Steve

So that is presumably where some of the money from the sale of DSE went. It will not make a lot of difference to anything as it is a modest number of shares cancelled but will marginally help the NAV per share as they have clearly been bought at a big discount.

Thanks.

Dod

Half of one percent discount (by my reckoning). Not so big.

Of course, "my reckoning" is not always to be relied on.

Laughton wrote:Half of one percent discount (by my reckoning). Not so big.

Of course, "my reckoning" is not always to be relied on.

Discount to NAV. Much larger. 3174p vs NAV >4000p.

Spet0789 wrote:

Laughton wrote:Half of one percent discount (by my reckoning). Not so big.

Of course, "my reckoning" is not always to be relied on.

Discount to NAV. Much larger. 3174p vs NAV >4000p.

Laughton will probably respond but I assumed that he was commenting on the benefit to an individual share by the modest share buyback not the actual discount to NAV of the share price.

Dod

Ah yes. Apologies to Dod101. As I said - ""my reckoning" is not always to be relied on".

Caledonia Investments plc ("Caledonia") announces that on 30 June 2021 it purchased 35,549 of its own ordinary shares of 5 pence each ("Ordinary Shares") at an average price of 3210.33 pence per share. The purchased shares will be cancelled.

Best wishes,

Steve

Perhaps there has been a change of policy on buybacks? Most ITs do buybacks to manage the discount and one reason for the large discount to NAV at Caledonia is that the very large holding by the Cayzers prevented buybacks (because if the Cayzer 'concert party' shareholding exceeds 30% they have to make a bid). Perhaps there is now scope for buybacks but I haven't seen any announcements about this?

If there is no scope for sustained buybacks, the discount is likely to narrow

scrumpyjack wrote:Perhaps there has been a change of policy on buybacks? Most ITs do buybacks to manage the discount and one reason for the large discount to NAV at Caledonia is that the very large holding by the Cayzers prevented buybacks (because if the Cayzer 'concert party' shareholding exceeds 30% they have to make a bid). Perhaps there is now scope for buybacks but I haven't seen any announcements about this?

If there is no scope for sustained buybacks, the discount is likely to narrow

Did you mean "unlikely" there?

Lootman wrote:

scrumpyjack wrote:Perhaps there has been a change of policy on buybacks? Most ITs do buybacks to manage the discount and one reason for the large discount to NAV at Caledonia is that the very large holding by the Cayzers prevented buybacks (because if the Cayzer 'concert party' shareholding exceeds 30% they have to make a bid). Perhaps there is now scope for buybacks but I haven't seen any announcements about this?

If there is no scope for sustained buybacks, the discount is likely to narrow

Did you mean "unlikely" there?

Sorry meant to say 'If there is scope for sustained buybacks, the discount is likely to narrow'

From the RNS …

Following the above purchase of shares, Caledonia's issued share capital includes 55,193,284 Ordinary Shares with voting rights.

As set out in Caledonia's notice of Annual General Meeting dated 11 June 2021 (the "Notice"), shareholders will be asked to approve the waiver of mandatory offer provisions set out in Rule 9 of the Takeover Code at the forthcoming Annual General Meeting (Resolution 16). The Concert Party (as defined in the Notice) is currently interested in 26,778,059 Ordinary Shares which, as a result of the above purchase, represents approximately 48.52 per cent of the Ordinary Shares carrying voting rights in respect of Caledonia as at 30 June 2021.

The Concert Party (what a delightful thought) already own over 48%.

Best wishes,

Steve

Routine change of auditor (think chocolate teapots) after a competitive tender.

https://otp.investis.com/clients/uk/cal ... id=1492284

Best wishes,

Steve

https://otp.investis.com/clients/uk/cal ... id=1526707

Disposal at good price.

Best wishes,

Steve

Steveam wrote:https://otp.investis.com/clients/uk/caledonia/rns/regulatory-story.aspx?cid=2554&newsid=1526707

Disposal at good price.

Best wishes,

Steve

Caledonia is a good investor and just ticks along. The share price is doing well.

Dod

Early market reaction seems positive - up 3% as I type.

It seems a long time since we’ve had a special dividend. Not a particular issue and as Dod says they just tick on.

Best wishes, Steve