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Caledonian Inv trust

Analysing companies' finances and value from their financial statements using ratios and formulae
scrumpyjack
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Caledonian Inv trust

#402814

Postby scrumpyjack » April 9th, 2021, 9:36 am

I see Caledonian announced their results
https://www.investegate.co.uk/caledonia ... 01239684U/

24% rise in NAV for the year to 31/3/21 to 3940p NAV

The shares rose sharply to 2884p, up 6.6% today but still at a huge discount to NAV due to the large Cayzer family holding which I think prevents share buybacks.

One to hold for the long term IMO

Dod101
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Re: Caledonian Inv trust

#402822

Postby Dod101 » April 9th, 2021, 9:51 am

Thanks for that. Note the name is Caledonia (no 'n') otherwise we risk confusing it with a mining outfit. They can also make typos, having called themselves Caledonia Investmnts.

Not quite the results announcement. Their year end is 31 March. Just a bit more than their usual announcement about NAV and an update on their portfolio. I guess they must have felt that after the Buzz Bingo failure the market needed some reassurance.

Re the continuing big discount. Sooner or later some family member will surely start carping about it and they may provide the opportunity to sell at nearer NAV if anyone wants out. As it is of course the big discount helps the yield for any buyer.

Dod

scrumpyjack
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Re: Caledonian Inv trust

#402829

Postby scrumpyjack » April 9th, 2021, 10:03 am

Dod101 wrote:Thanks for that. Note the name is Caledonia (no 'n') otherwise we risk confusing it with a mining outfit. They can also make typos, having called themselves Caledonia Investmnts.

Not quite the results announcement. Their year end is 31 March. Just a bit more than their usual announcement about NAV and an update on their portfolio. I guess they must have felt that after the Buzz Bingo failure the market needed some reassurance.

Re the continuing big discount. Sooner or later some family member will surely start carping about it and they may provide the opportunity to sell at nearer NAV if anyone wants out. As it is of course the big discount helps the yield for any buyer.

Dod


Whoops, sorry - as a Scot you would notice that?

Quite so re the discount, and the 48% family holding seems a block on change, but it is, I think, a mistake to think of families always being a monolithic block, particularly after 150 years. The family is likely now to consists of a large number of individuals with ever decreasing commitment to maintaining the independence of the Investment Trust. Many of them probably do not even know each other. It could take only a few of them wanting to do something else with their inheritance for CLDN to be open to the unwinding of the discount. It may be hard for some of them to be sentimental about an investment trust!

monabri
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Re: Caledonian Inv trust

#402867

Postby monabri » April 9th, 2021, 11:50 am

A good example of where the younger generation wanted to realise can be found with Victoria Carpets.

viewtopic.php?p=236540#p236540

"Basically, businessmen (opportunist) comes along to help a family run business at a board members request. The Vic was a family owned business poodling along going nowhere. Some of the family wanted to get their hands on cash...especially the younger ones. Internal arguments followed by the strop resignation of the MD (who really cut his nose off to spite his face...not reported in the press). Businesman cuts deal with family....eventually ending up significantly profiting for a relatively small financial risk. Businessman goes on acquisition trail, buying up all relevant businesses..share price starts to defy gravity. Where will it all end up?"

scrumpyjack
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Re: Caledonian Inv trust

#402876

Postby scrumpyjack » April 9th, 2021, 12:25 pm

monabri wrote:A good example of where the younger generation wanted to realise can be found with Victoria Carpets.

viewtopic.php?p=236540#p236540

"Basically, businessmen (opportunist) comes along to help a family run business at a board members request. The Vic was a family owned business poodling along going nowhere. Some of the family wanted to get their hands on cash...especially the younger ones. Internal arguments followed by the strop resignation of the MD (who really cut his nose off to spite his face...not reported in the press). Businesman cuts deal with family....eventually ending up significantly profiting for a relatively small financial risk. Businessman goes on acquisition trail, buying up all relevant businesses..share price starts to defy gravity. Where will it all end up?"


There is a big difference between a family company that has some historic business and one that is simply an investment company. There really is no reason of tradition or sentiment for the latter to continue when that involves a 30% discount to the market value of its investments. A similar case may be the Brunner Investment trust which was set up to invest the Brunner family money arising out of ICI. It is now managed as any other investment trust with one eye on ensuring the market value does not drift too far from the NAV.

monabri
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Re: Caledonian Inv trust

#402902

Postby monabri » April 9th, 2021, 1:59 pm

Granted , but the point was that the "youngsters" wanted to get their hands on the money and their votes ultimately lead to essentially someone else owning the business and doing very nicely out of it.

scrumpyjack
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Re: Caledonian Inv trust

#402917

Postby scrumpyjack » April 9th, 2021, 2:34 pm

There was a big family bust up in 2002!
https://www.theguardian.com/business/20 ... business14

The present CEO Will Wyatt is a Cayzer. IHT is one thing that can eventually force the breakup of situations like this.

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Re: Caledonian Inv trust

#403127

Postby Dod101 » April 10th, 2021, 10:31 am

Looking again at the figures announced, they are quite remarkable although of course they are measuring from just about the lowest point due to Covid. They were overshadowed by the general rise in the market and by the death of a 99 year old member of the Royal family.

NAV up by 24% and that is after writing off the value of Buzz Bingo (valued at £41 million at 31 March 2020 or 2.3% of their then assets)

Augers well for the annual results and they should have no difficulty in providing a decent rise in the dividend The huge discount to NAV may provide some spice.

Dod


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