Caledonia Investments Share Discussion Threads

[bigboyblue] 26/6/2023 11:56

It's a big discount. IGC (which I also hold) is interesting by way of a case study. They traded at a discount which was typically around 20-25% until 2 years ago when the board introduced a 2 yearly redemption facility. In 2021 the redemption was at a 6% discount to NAV and guess what; as the redemption date approached so the discount narrowed to around 6%. Post redemption it widened again, but nowhere near as much as it was previously. This year the redemption, in December, will be at a 3% discount and the recent share price has already narrowed to around 5-7%.

IGCs investments are all listed companies. A similar policy at CLDN would be more difficult because of the practical problem of valuing private companies accurately and selling them, if necessary, at short notice. However I'd have thought if the board wanted to narrow the NAV they could offer a redemption facility of around 10-15% without too much difficulty.

[qs99] 26/6/2023 10:44

Wow, nearly 40% discount to latest NAV now? Views?

[essentialinvestor] 22/6/2023 14:35

Another small amount, that's my lot for now as cautious on wider equity markets
and lower down may be available.

[essentialinvestor] 22/6/2023 11:26

XD this day week.

[bigboyblue] 22/6/2023 11:08

Discount is now over 35%. It doesn't often go this low and when it does there's usually a sharp correction.

[essentialinvestor] 20/6/2023 15:02

Added a few at 32.35.

[qs99] 23/5/2023 11:14

Great NAV and continued yield....DYOR

[apparition1] 20/4/2023 15:10

Seems a steep price. Worryingly the accounts for AIR-serv Ltd (which seems to be the group holding company) to 31 March 2022 are overdue at Companies House. Last available accounts are March 2021 and they show EBITDA of about £11 million. Obviously those accounts will probably have been hit by the pandemic. Based on the quoted profits in the press release EBITDA for the year to 31/3/22 might be nearer £13 million but even those accounts (wherever they are) are now 12 month old.

[qs99] 20/4/2023 14:00

"Headquartered in Wigan, Lancashire, it also has offices in six European countries (the Netherlands, Belgium, Spain, France, Germany and Ireland), employing over 200 people and selling to over 2,500 customers. In its year to 31 March 2022, Airvending Limited reported profit after tax of GBP4.5m and gross assets of GBP45.3m, and AIR-serv Netherlands B.V. and its subsidiaries reported an aggregated profit after tax of EUR0.9m and gross assets of EUR35.0m respectively."

Poor RNS, price paid only, nothing about how profitable (or not) it is, merely this at the bottom of the notes.....what is the normalised EBITDA it has been bought on for instance, debt/cash free what?

Really poor for such a big deal.

DYOR

[jaf111] 12/4/2023 15:15

So in addition to a significant disposal we have a significant acquisition - anyone like to hazard a guess on cost of AIR-Serve?

Clearly some unknowns then but I certainly can’t see how this changes the basic case that Caledonia remains incredibly cheap……..

[essentialinvestor] 12/4/2023 14:57

It looked oversold.

[qs99] 12/4/2023 14:46

Nice new potential deal/RNS...DYOR

[jaf111] 11/4/2023 18:07

Yes agreed 18BT.
Slightly surprised to see no comment on the disposal of 71M after the Mark Kleinman story but assume this means a formal announcement must be imminent…̷0;..

[18bt] 11/4/2023 07:20

31% discount to NAV at 31/3. Latest valuation well worth reading.

[pjmurf] 08/4/2023 21:53

https://www.trustintelligence.co.uk/investor/articles/fund-research-investor-caledonia-investments-retail-oct-2021/portfolio#profileFew sentences about 7im in this piece from 2021. 94% mentioned.

[essentialinvestor] 06/4/2023 19:56

JAF, appreciated.

[jaf111] 06/4/2023 19:48

From Citywire June 2015…..

“Caledonia Investments is to acquire a majority stake in wealth management firm Seven Investment Management (7IM) in a deal that values the business at £100 million.

Caledonia, an investment trust with around £1.6 billion of assets which was originally launched to house the wealth of the Cayzer shipping family, will invest £77 million in cash to acquire around 94% of 7IM.”

Obviously this is very old so things could have changed!!!

[contrarian joe] 06/4/2023 19:38

If you go into 2016 accounts they paid £74m for £10bn of Aum.Average fund management is valued at 2/3% of Aum, so on that estimate it's very unlikely they own 100%,at a guess maybe 30/35%.

[essentialinvestor] 06/4/2023 18:57

That's a good question.

[jaf111] 06/4/2023 18:56

71M is the largest holding valued at £184.5m so £400m sounds pretty good…..
Does Caledonia own all of 71M?

[contrarian joe] 06/4/2023 16:21

hxxps://news.sky.com/story/buyout-firm-inflexion-plots-400m-bid-for-investment-manager-7im-12851160

Not holding at the moment,not quick enough yesterday,good luck to all in here.

[essentialinvestor] 06/4/2023 15:00

So we did get some buying.

[essentialinvestor] 05/4/2023 14:10

Yup, some end of year positioning yesterday and perhaps
over the last week. May get some new tax year buying this week

[spoole5] 04/4/2023 19:17

Looking good value here at these levels