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Caledonia Inv PLC (CLDN)

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Tuesday 27 November, 2007

Caledonia Inv PLC

Interim Results

Caledonia Investments PLC
27 November 2007

Caledonia Investments plc

Half-year results for the six months ended 30 September 2007

Key points

•         357% total shareholder return over ten years (276% outperformance vs
          FTSE All-Share Total Return index)

•         289% total shareholder return over five years (172% outperformance vs
          FTSE All-Share Total Return index)

•         137% increase in NAV per share (undiluted) over five years (53%
          outperformance against FTSE All-Share index)

•         4.2% increase in interim dividend to 9.9p

•         £113m invested and £40m realised

•         2.0% decrease in NAV per share (undiluted) over the period



Tim Ingram, Chief Executive, commented:

'Our strategy has continued to deliver over the medium term, and we have
continued our progressive dividend policy with a 4.2% increase in the interim
dividend. We have a sound portfolio and, with no gearing at this stage, are well
placed to take advantage of the opportunities that are likely to arise in the
more constrained circumstances that now prevail in the markets.'



                                                                27 November 2007



Enquiries:

Caledonia Investments plc                       020 7802 8080
    Tim Ingram, Chief Executive
    Jonathan Cartwright, Finance Director

College Hill                                    020 7457 2020
    Tony Friend
    Roddy Watt



Chairman's statement

The first half of our financial year has seen considerable turbulence and
volatility in markets, triggered by the US sub-prime crisis, and our net asset
value per share fell by 2.0%, compared with a 1.0% increase in the FTSE
All-Share index.

Nonetheless, we take a long term view and our well established strategy of
acquiring significant, usually minority, stakes in promising listed and unlisted
companies and working with proven managements to add value over the longer term
has enabled us to continue to record outperformance against our benchmark FTSE
All-Share Total Return index over five and ten years of 172% and 276%
respectively.

Dividend

The directors have declared an interim dividend of 9.9 pence per share,
representing an increase of 4.2% over last year's interim dividend and
maintaining our aim to make progressive annual dividend payments. This dividend
will be paid on 8 January 2008.

Share price and discount

Despite a small reduction in our net asset value per share over the period, our
share price rose by 3.3% to 2135 pence from 2066 pence, outperforming the 1.0%
increase in the FTSE All-Share index, with a consequent narrowing of the
discount of the market value of our shares to their underlying net asset value
from 9.5% to 4.6%, although this discount can vary, particularly in volatile
markets such as we are experiencing at present. It is important to bear in mind
that the handsome outperformance in total shareholder return referred to above
for the five and ten year periods stems substantially from the relatively large
discounts, of over 30%, which attached to our share price at the outset of these
periods. Whilst we have worked strenuously over the years to build an awareness
of our investment approach and the performance which has derived from it, we
hope that such wide discounts will not prevail going forward, albeit we do not,
as I have mentioned before, control our share price. However, we remain mindful
that the share price discount affects shareholder value and we will continue to
use our authority to buy back our own shares, when we believe it is in the
interest of our shareholders.

Portfolio

The level of investment activity during the period reflected our ability to
access opportunities that are not always available to others and our continued
investment in Asia. Further details are given in the Chief Executive's review.

Outlook

Markets have now been visited by the shockwaves of the sub-prime lending follies
in the USA egged on by the greed of big investment banks. This has combined with
the failure of the UK watchdogs to avert the Northern Rock crisis despite
volumes of burdensome regulatory impositions on the financial sectors. It is a
bit surprising that reality has been so slow to reflect in the markets and we
have, even now, probably not felt the full impact. Whilst our long term approach
does not always facilitate maximum liquidity for the perfect moment of timing,
we believe that we have a sound portfolio and, with no borrowings on our balance
sheet, are well placed to take advantage of the opportunities which these more
constrained circumstances should present.

Peter Buckley
Chairman


Chief Executive's review

Performance summary

Our aim continues to be to provide consistently over five and ten year periods
total shareholder returns ('TSR') which outperform the FTSE All-Share Total
Return index and to provide positive total returns over rolling five year
periods.

The Chairman has referred in his statement to these returns, which have been
significantly enhanced by the narrowing of the discount between our share price
and net asset value ('NAV') per share. It is our wish for this discount to
remain in future within modest limits or, at the higher end of our expectations,
to reach a premium. As we cannot control our own share price, our performance
focus is on growing our NAV per share.

We can now measure, on a consistent basis, our NAV per share for the five year
period to 30 September 2007. We can therefore report that, over this five year
period, NAV per share increased by 137%, which reflects an outperformance of 53%
over the FTSE All-Share index.

The first six months of our financial year has seen significant turbulence in
the markets initiated by the sub-prime mortgage crisis in the USA. The ensuing
drying up in the credit markets has led to emergency funding from central banks
in the USA, Europe and the UK and a 0.5% cut in dollar interest rates by the
Federal Reserve Bank in September (and a further 0.25% cut in October). Slightly
surprisingly, but perhaps as a result of the huge quantities of funding put into
the markets by government bodies, the FTSE All-Share index ended 1.0% up over
the period, with the FTSE 100 up 2.5%.

Our company NAV per share, on an undiluted basis, was 2237p at 30 September
2007, compared with 2283p at 31 March 2007. The principal components of this 2%
decline were a total return loss of 24p and dividends paid of 22p. Total return
was mainly impacted by the decreasing valuations of some of our larger quoted
holdings, notably Close Brothers, Quintain Estates and Melrose Resources,
partially offset by a strong performance in aggregate from our Indian
investments and gains in the share price of Bristow Group. Investment income and
expenses were at a similar level to the same period last year.

We have continued to maintain our prudent approach and have remained ungeared
throughout the period with £36m of cash at the end of September.

Investment activity

In the first six months of our financial year we made around £113m of new and
follow-on investments. Most (approximately £86m) of this was for follow-on
investments and in many cases we have taken advantage of some low share prices
during the period to add to our existing stakes in businesses that we know well.
Major new and follow-on investments included:

                      Resulting
                         equity
                        holding                Country of                                   Cost
Name                          %   Category     domicile     Business                          £m

New investments
Retif                      15.4   Equity/loans France       Shop fittings supplier          12.9
Hedging subsidiary(1)       100   Loans        UK           FTSE 250 put options             8.0
Vietnamese portfolio              Equity       Vietnam                                       3.1
Celona(2)                         Loans        UK           Telecoms                         3.0
                                                                                            27.0
Follow-on investments
Quintain Estates            9.6   Equity       UK           Property invest/develop         24.7
Incisive Media                    Capital      UK           Business publisher              15.5
Eddington Capital                 Shares       Cayman       Hedge fund                      10.0
fund
Avanti Communications      19.9   Loans        UK           Satellite comms services         7.0
Polar Capital funds               Shares       Cayman       Hedge fund                       5.0
Pragma                            Shares       France       Private equity fund              3.5
Other investments                                                                           20.4
                                                                                            86.1
Total                                                                                      113.1


1.  Subsidiary company used to purchase FTSE 250 put options.
2.  The company also holds warrants to subscribe for shares representing up to 49.9% of the equity.



During the six months, we realised a total of £40m. Significant realisations
included:


                                                                                               Realised
                                                                                    Proceeds       gain
Name                                Nature of realisation                                 £m         £m
Polar Capital funds                 Redemption                                          11.1        0.2
CF AVI Global fund                  Redemption                                           9.3        2.3
Pragma fund                         Distributions                                        5.7        4.1
Savills                             Sale of remaining holding                            2.9        2.5
Other realisations                                                                      11.0        4.5
                                                                                        40.0       13.6

In view of the general uncertainties in economic outlook, we felt it prudent to
protect in part the considerable value gains we have achieved in the portfolio
by hedging against possible significant falls in equity values. Accordingly,
during the period we invested a total of £8m in purchasing one-year put options
on the FTSE 250 index through a subsidiary (included in new investments above),
which provides some downside protection on approximately £85m of our portfolio.

Net liquidity at 30 September of £36m has reduced from £109m at the last year
end. Whilst we have increased our level of investment over the period, we have
continued to maintain our prudent approach and have remained ungeared.

Outlook

The market turbulence resulting from the USA sub-prime mortgage crisis is likely
to continue into the second half of the year and equity markets will face
uncertainty as credit spreads widen, confidence is tested and volumes are low.
Nevertheless, we are continuing to see a healthy flow of opportunities and are
willing to make further investments, but we remain cautious in these uncertain
times. We expect to remain ungeared for the rest of the year, but, at some time
in the future, conditions could bring opportunities which may justify a moderate
amount of borrowing.

Over the longer term, we believe that our strategy will continue to deliver
enhanced performance.

Tim Ingram
Chief Executive



Our portfolio

Significant holdings

                          Equity                                                               Net
                          holding  Country   Business                                Total  assets
                                   of
Name                           %   domicile  sector      Nature of business             £m       %
Close Brothers(1,2)         12.2   UK        Financial   Merchant banking            146.3    11.4
British Empire Securities   18.3   UK        Funds       Investment trust            140.9    10.9
(1,2)
Quintain Estates(1)          9.6   UK        Property    Property investor/           92.1     7.1
                                                         developer
Rathbone Brothers(1,2)      10.7   UK        Financial   Funds management             55.9     4.3
Bristow Group(1,2)           6.9   USA/UK    Oil and gas Helicopter services          44.5     3.5
Polar Capital funds(2)             Ireland/  Funds       Hedge funds                  42.4     3.3
                                   Cayman
Cobepa(2)                    9.9   Belgium   Funds       Investment company           41.7     3.2
Oval(2)                     27.4   UK        Financial   Insurance broking            34.4     2.7
Incisive Media(2)                  UK        Consumer    Business publisher           32.1     2.5
Melrose Resources(1,2)       9.4   UK        Oil and gas Oil and gas exploration      31.1     2.4
Satellite Information       22.5   UK        Consumer    Betting information          25.9     2.0
Services(2)                                              distribution
Eddington Triple Alpha             Cayman    Funds       Fund of hedge funds          25.4     2.0
Fund(2)
India Capital Growth Fund   26.3   Guernsey  Funds       Investment company           24.5     1.9
(1,2)
Sterling Industries(2)     100.0   UK        Industrial  Engineering                  22.3     1.7
Alok Industries(1,2)        14.8   India     Consumer    Textiles manufacturer        22.2     1.7
A G Barr(1)                  9.4   UK        Consumer    Soft drinks                  21.9     1.7
Polar Capital(1,2)          15.9   UK        Financial   Funds management             21.7     1.7
Ermitage(2)                 60.0   Jersey    Financial   Hedge funds management       20.7     1.6
Novae Group(1,2)             6.1   UK        Financial   Insurance services           20.3     1.6
TGE Gas Engineering(2)      49.9   Germany   Industrial  Gas engineering              19.5     1.5
Avanti Communications       19.9   UK        Consumer    Satellite comms services     17.2     1.3
(1,2)
Nova Springboard fund              Guernsey  Funds       Investment fund              16.0     1.2
Terrace Hill(1,2)            8.3   UK        Property    Property development         15.1     1.2
Serica Energy(1)            10.2   UK        Oil and gas Oil and gas exploration      15.1     1.2
Marketform(2)               26.8   UK        Financial   Insurance services           14.4     1.1
Begbies Traynor(1,2)        10.9   UK        Industrial  Corporate recovery           13.8     1.1
                                                         services
Edinmore(2)                100.0   UK        Property    Property trading             13.7     1.1
The Sloane Club(2)         100.0   UK        Consumer    Residential club owner/      13.5     1.0
                                                         operator
Varun Shipping(1,2)         11.7   India     Industrial  Shipping services            13.3     1.0
Retif(2)                    15.4   France    Industrial  Shop fittings supplier       12.9     1.0
Buckingham Gate(2)         100.0   UK        Property    Property investment          12.9     1.0
Other investments                                                                    228.5    17.7
Total investments                                                                  1,272.2    98.6
Cash and other net assets                                                             18.0     1.4
Net assets                                                                         1,290.2   100.0


1.  Equity securities listed on UK or overseas stock exchanges.
2.  Board or equivalent representation.


Net assets by business            Net assets by geography          Net assets by currency
sector
Financial               27%       United Kingdom         64%       Pounds sterling        82%
Funds                   28%       Continental Europe     13%       Euro                    7%
Property                13%       North America           9%       US dollar               6%
Oil and gas              7%       Asia                   12%       Indian rupee            4%
Industrial              11%       Other countries         1%       Other currencies        1%
Consumer                13%       Cash and other          1%
Cash and other           1%


Responsibility statement of the directors in respect of the half-yearly
financial report

We confirm that to the best of our knowledge:
o   the condensed set of financial statements has been prepared in accordance with IAS 34 '
    Interim Financial Reporting'; and
o   the interim management report includes a fair review of the information required by:
    1. DTR 4.2.7 of the 'Disclosure Rules and Transparency Rules', being an indication of
       important events that have occurred during the first six months of the financial year
       and their impact on the condensed set of financial  statements and a description of the
       principal risks and uncertainties for the remaining six months of the year; and
    2. DTR 4.2.8 of the 'Disclosure Rules and Transparency Rules', being related parties
       transactions that have taken place in the first six months of the current financial
       year and that have materially affected the financial position or the performance of the
       enterprise during that period and any changes in the related parties transactions
       described in the last annual report that could have a material effect on the financial
       position or performance of the enterprise in the first six months of the current
       financial year.



Signed on behalf of the Board


Tim Ingram                   Jonathan Cartwright
Chief Executive              Finance Director





Independent review report to Caledonia Investments plc



Introduction

We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2007 which comprises the income statement, the statement of recognised
income and expense, the balance sheet, the cash flow statement and related notes
1 to 9 on a company and group basis. We have read the other information
contained in the half-yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements.

This report is made solely to the company in accordance with International
Standard on Review Engagements 2410 issued by the Auditing Practices Board. Our
work has been undertaken so that we might state to the company those matters we
are required to state to them in an independent review report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company, for our review work, for this
report, or for the conclusions we have formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the company are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard 34
'Interim Financial Reporting', as adopted by the European Union.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.

Scope of review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 September 2007 is not prepared, in all
material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.

Deloitte & Touche LLP
Chartered Accountants and Registered Auditor
London, UK
27 November 2007



Condensed income statement
for the six months ended 30 September 2007

                                                      Company                  Group
                                              6 mths  6 mths    Year  6 mths  6 mths    Year
                                              30 Sep  30 Sep  31 Mar  30 Sep  30 Sep  31 Mar
                                                2007    2006    2007    2007    2006    2007
                                                  £m      £m      £m      £m      £m      £m
Gains and losses on investments                (35.2)    2.3    96.5   (39.2)  (15.2)   66.0
    held at fair value through profit or loss
Gains and losses on derivatives used to          0.3     5.9     5.6     1.4     6.1     5.9
    hedge the fair value of investments
Provisions                                         -       -       -       -    (3.1)   (3.1)
Investment income                               16.8    13.1    40.1    15.1    10.7    25.5
Gross portfolio return                         (18.1)   21.3   142.2   (22.7)   (1.5)   94.3
Management expenses                             (5.2)   (5.3)  (11.0)   (5.2)   (5.3)  (11.0)
Other expenses                                  (0.2)   (0.8)   (1.1)   (0.2)   (0.8)   (1.1)
Net portfolio return                           (23.5)   15.2   130.1   (28.1)   (7.6)   82.2
Revenue from sales of goods and services           -       -       -    57.1    64.4   135.0
Operating expenses                                 -       -       -   (53.4)  (55.2) (120.0)
Gain on disposal of operations                     -       -       -       -       -     4.4
Gain on investment property                        -       -       -     2.9       -       -
Share of results of joint ventures                 -       -       -     1.8     1.7     6.1
Profit/(loss) before finance costs             (23.5)   15.2   130.1   (19.7)    3.3   107.7
Gains on money market funds                        -     1.0     1.0       -     1.0     1.0
    held at fair value through profit or loss
Treasury interest receivable                     3.0     0.9     3.5     3.6     1.6     4.3
Exchange movements                              (0.2)   (0.5)   (0.7)   (0.2)   (0.5)   (0.7)
Finance costs                                      -    (0.6)   (0.3)   (2.1)   (2.1)   (4.1)
Profit/(loss) before tax                       (20.7)   16.0   133.6   (18.4)    3.3   108.2
Taxation                                         6.5     1.2     2.5     5.0    (0.7)   (0.3)
Profit/(loss) for the period                   (14.2)   17.2   136.1   (13.4)    2.6   107.9

Attributable to
Equity holders of the parent                   (14.2)   17.2   136.1   (13.4)    1.6   106.1
Minority interest                                  -       -       -       -     1.0     1.8
                                               (14.2)   17.2   136.1   (13.4)    2.6   107.9

Basic earnings per ordinary share              -24.5p   28.2p  228.6p  -23.1p    2.6p  178.3p
Diluted earnings per ordinary share            -24.5p   28.0p  226.9p  -23.1p    2.6p  176.9p



Condensed statement of recognised income and expense
for the six months ended 30 September 2007

                                                       Company                   Group
                                                6 mths  6 mths    Year  6 mths  6 mths    Year
                                                30 Sep  30 Sep  31 Mar  30 Sep  30 Sep  31 Mar
                                                  2007   2006     2007    2007    2006    2007
                                                    £m     £m       £m      £m      £m      £m
Exchange differences on translation                  -      -        -     0.1    (0.7)   (1.2)
    of foreign operations
Actuarial gains and losses on defined                -      -     (0.3)      -     2.5     0.2
    benefit pension schemes
Tax on items recognised directly in equity        (0.2)     -      1.9    (0.2)      -     1.7
Net income/(expense) recognised                   (0.2)     -      1.6    (0.1)    1.8     0.7
    directly in equity
Profit/(loss) for the period                     (14.2)  17.2    136.1   (13.4)    2.6   107.9
Total recognised income and expense              (14.4)  17.2    137.7   (13.5)    4.4   108.6

Attributable to
Equity holders of the parent                     (14.4)  17.2    137.7   (13.5)    3.4   106.8
Minority interest                                    -      -        -       -     1.0     1.8
                                                 (14.4)  17.2    137.7   (13.5)    4.4   108.6

Condensed balance sheet
as at 30 September 2007

                                                        Company                    Group
                                                30 Sep   30 Sep   31 Mar  30 Sep  30 Sep  31 Mar
                                                  2007     2006     2007    2007    2006    2007
                                                    £m       £m       £m      £m      £m      £m
Non-current assets
Investments held at fair value through profit  1,271.4  1,142.9  1,228.1  1,157.2 1,031.7 1,125.9
or loss
Investments in subsidiaries held at cost           0.8      2.8      0.8       -       -       -
Available for sale investments                       -        -        -     0.5     0.5     0.5
Intangible assets                                    -        -        -    40.6    40.6    40.7
Property, plant and equipment                        -        -        -    76.9    75.1    78.6
Investment property                                  -        -        -     4.3     5.8     5.8
Interests in joint ventures                          -        -        -     9.7    11.0    11.6
Deferred tax assets                                6.9      2.3      5.8     8.9     4.2     8.0
Non-current assets                             1,279.1  1,148.0  1,234.7  1,298.1 1,168.9 1,271.1

Current assets
Inventories                                          -        -        -    16.8    29.5    19.5
Trade and other receivables                        2.6      4.3      6.5    34.6    28.4    29.0
Current tax assets                                   -        -        -       -     0.6     0.2
Money market funds held at fair value through        -        -        -     0.3     0.3     0.3
profit or loss
Cash and cash equivalents                         36.1     84.1    108.6    52.7   115.0   123.2
Current assets                                    38.7     88.4    115.1   104.4   173.8   172.2
Total assets                                   1,317.8  1,236.4  1,349.8  1,402.5 1,342.7 1,443.3

Current liabilities
Bank overdrafts                                      -        -        -    (0.4)   (1.7)   (1.5)
Interest-bearing loans and borrowings                -        -        -    (1.3)   (1.0)   (1.3)
Trade and other payables                          (8.9)    (5.6)    (4.8)  (31.2)  (23.7)  (27.1)
Employee benefits                                    -        -        -    (1.3)   (1.4)   (3.1)
Current tax liabilities                           (1.0)    (7.6)    (5.2)   (2.8)   (9.8)   (6.6)
Provisions                                       (13.5)   (13.5)   (13.5)  (14.0)  (14.7)  (14.1)
Current liabilities                              (23.4)   (26.7)   (23.5)  (51.0)  (52.3)  (53.7)
Non-current liabilities
Interest-bearing loans and borrowings                -        -        -   (58.0)  (63.4)  (64.7)
Employee benefits                                 (1.0)    (1.7)    (0.9)   (5.4)   (4.9)   (5.4)
Deferred tax liabilities                          (3.2)       -     (2.2)   (4.4)   (1.1)   (3.6)
Provisions                                           -        -        -       -    (4.0)      -
Non-current liabilities                           (4.2)    (1.7)    (3.1)  (67.8)  (73.4)  (73.7)
Total liabilities                                (27.6)   (28.4)   (26.6) (118.8) (125.7) (127.4)
Net assets                                     1,290.2  1,208.0  1,323.2  1,283.7 1,217.0 1,315.9


Equity
Share capital                                      3.3      3.3      3.3     3.3     3.3     3.3
Share premium                                      1.3      1.3      1.3     1.3     1.3     1.3
Capital redemption reserve                         1.2      1.2      1.2     1.2     1.2     1.2
Capital reserve                                1,011.7    935.6  1,048.6       -       -       -
Retained earnings                                272.7    266.6    268.8  1,273.7 1,207.4 1,305.9

Foreign exchange translation reserve                 -        -        -    (0.6)   (0.2)   (0.7)
Equity attributable to owners of the parent    1,290.2  1,208.0  1,323.2  1,278.9 1,213.0 1,311.0

Minority interest                                    -        -        -     4.8     4.0     4.9
Total equity                                   1,290.2  1,208.0  1,323.2  1,283.7 1,217.0 1,315.9


Net asset value per ordinary share (undiluted)    2237p    2083p    2283p
Net asset value per ordinary share (diluted)      2212p    2061p    2258p



Condensed cash flow statement
for the six months ended 30 September 2007

                                                      Company                  Group
                                              6 mths  6 mths    Year  6 mths  6 mths    Year
                                              30 Sep  30 Sep  31 Mar  30 Sep  30 Sep  31 Mar
                                                2007    2006    2007    2007    2006    2007
                                                  £m      £m      £m      £m      £m      £m
Operating activities
Dividends received                              12.3     9.8    29.7    12.8     8.7    12.8
Interest received                                4.7     2.9     7.9     4.6     3.2     7.2
Cash received from customers                       -       -       -    61.2    69.0   144.8
Cash paid to suppliers                          (6.5)   (6.9)  (10.1)  (58.5)  (75.0) (130.5)
Taxes received/(paid)                            2.1       -             0.9    (3.3)   (4.5)

                                                                   -
Group relief received                            0.1     0.6     0.4       -       -       -
Net cash from operating activities              12.7     6.4    27.9    21.0     2.6    29.8
Investing activities
Purchases of property, plant and equipment         -       -       -    (2.1)  (12.1)  (18.9)
Proceeds from disposal of property,                -       -       -       -       -     0.7
    plant and equipment
Purchases of investments held at fair value   (112.6) (168.4) (290.4) (105.0) (138.7) (253.3)
    through profit or loss
Purchases of money market funds                    -       -       -       -    (0.3)      -
    held at fair value through profit or loss
Proceeds on disposal of investments             40.9   176.3   309.5    43.5   145.5   255.0
   held at fair value through profit or loss
Proceeds on disposal of money market funds         -    76.8    76.8       -    76.8    76.8
    held at fair value through profit or loss
Proceeds on disposal of investment property        -       -       -     4.5       -       -
Net receipts/(payments) from derivatives         0.3     5.3     4.4    (7.4)    6.0     5.1
Purchase of subsidiary net of cash acquired        -       -       -    (0.7)  (17.1)  (17.1)
Proceeds on disposal of subsidiaries               -       -       -       -     0.9     3.0
    net of cash disposed
Taxes received                                     -       -       -       -     0.9       -
Net cash from/(used in) investing activities   (71.4)   90.0   100.3   (67.2)   61.9    51.3
Financing activities
Interest paid                                      -    (0.3)   (0.3)   (2.0)   (1.5)   (2.7)
Distributions paid to holders of equity        (12.5)  (13.0)  (18.5)  (12.5)  (13.0)  (18.5)
shares
Dividends paid to minority interests               -       -       -    (0.1)   (0.4)   (0.4)
Elective special dividend paid                     -  (102.9) (102.9)      -  (102.0) (102.0)
Proceeds from new borrowings                       -    38.0    43.0     1.3    51.2    83.8
Repayment of borrowings                            -   (38.0)  (43.0)   (8.6)  (41.8)  (73.9)
Net purchase of own shares                      (1.3)    0.1    (1.7)   (1.3)    0.1    (1.7)
Net cash used in financing activities          (13.8) (116.1) (123.4)  (23.2) (107.4) (115.4)
Net increase/(decrease) in cash                (72.5)  (19.7)    4.8   (69.4)  (42.9)  (34.3)
    and cash equivalents
Cash and cash equivalents at period start      108.6   103.8   103.8   121.7   156.5   156.5
Exchange gains/(losses) on cash and cash           -       -       -       -    (0.3)   (0.5)
equivalents
Cash and cash equivalents at period end         36.1    84.1   108.6    52.3   113.3   121.7



Notes to the condensed set of financial statements

1. General information

Caledonia Investments plc is an investment trust company domiciled in the United
Kingdom and incorporated in England, under the Companies Acts 1908 to 1917. The
address of its registered office is Cayzer House, 30 Buckingham Gate, London
SW1E 6NN. The ordinary shares of the company are listed on the London Stock
Exchange and the New Zealand Exchange.

The information for the period ended 30 September 2007 does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. A copy
of the statutory accounts for the year ended 31 March 2007 has been delivered to
the Registrar of Companies. The auditors' report on those accounts was not
qualified and did not contain statements under section 237(2) or (3) of the
Companies Act 1985.

The half-year results are unaudited. They should not be taken as a guide to the
full year and do not constitute the statutory accounts.

2. Accounting policies

This condensed set of financial statements has been prepared using accounting
policies consistent with International Financial Reporting Standards ('IFRS') as
adopted by the European Union and in accordance with International Accounting
Standard 34 'Interim Financial Reporting'. The half-yearly condensed set of
financial statements should be read in conjunction with the annual financial
statements for the year ended 31 March 2007, which were prepared in accordance
with IFRS as adopted by the European Union.

The same accounting policies, presentations and methods of computation are
followed in this condensed set of financial statements as were applied in the
company's latest audited annual financial statements.

3. Dividends

                                                                        6 mths   6 mths     Year
                                                                        30 Sep   30 Sep   31 Mar
                                                                          2007     2006     2007
                                                                            £m       £m       £m
Amounts recognised as distributions to equity holders in the period
Final dividend for the year ended 31 March 2007                           12.5     13.0     13.0
    of 21.6p per share (2006 - 20.5p)
Interim dividend for the year ended 31 March 2007 of 9.5p per share          -        -      5.5
Elective special dividend paid on 13 July 2006 of 1902.17p per share         -    102.9    102.9
elected
                                                                          12.5    115.9    121.4


The directors have proposed an interim dividend for the year ending 31 March
2008 of 9.9p per share, totalling £5.7m, which has not been included as a
liability in this condensed set of financial statements. This dividend will be
payable on 8 January 2008 to holders of shares on the register on 7 December
2007. The ex-dividend date will be 5 December 2007.

4. Earnings and net asset values per share

Basic and diluted earnings per share

The calculation of basic earnings per share of the company and of the group at
30 September 2007 was based on the profit attributable to ordinary shareholders
and the weighted average number of ordinary shares outstanding during the six
months ended 30 September 2007.

The calculation of diluted earnings per share takes account of the share options
and deferred bonus plan awards with dilutive potential. The weighted average
number of ordinary shares takes account of the number of dilutive potential
ordinary shares that could be issued as a result of the exercise of share
options and the vesting of shares under the deferred bonus plan.

                                                      Company                  Group
                                              6 mths  6 mths    Year  6 mths  6 mths    Year
                                              30 Sep  30 Sep  31 Mar  30 Sep  30 Sep  31 Mar
                                                2007    2006    2007    2007    2006    2007
                                                  £m      £m      £m      £m      £m      £m
Earnings (basic and diluted)                   (14.2)    17.2   136.1  (13.4)     1.6   106.1

                                               000's   000's   000's   000's   000's   000's
Weighted average shares (basic)               57,924   61,081  59,537 57,921   61,051  59,520
Effect of share options and deferred bonus         -      389     455      -      389     455
awards
Weighted average shares (diluted)             57,924   61,470  59,992 57,921   61,440  59,975



Undiluted and diluted net asset values per share

The company's undiluted net asset value per ordinary share is based on the net
assets of the company at the period end and on the number of ordinary shares in
issue at the period end less shares held by the Caledonia Investments plc
Employee Share Trust and shares held in treasury or by a subsidiary.

The company's diluted net asset value per ordinary share assumes the exercise of
all outstanding, in-the-money share options, the calling of shares in the
deferred bonus plan and the reissue of shares held in treasury at the mid-market
price at the balance sheet date.


                                                                        30 Sep   30 Sep   31 Mar
                                                                          2007     2006     2007
Undiluted
Net assets (£m)                                                        1,290.2  1,208.0  1,323.2
Number of shares (000's)                                                57,673   57,988   57,952
Net asset value per share (p)                                             2237     2083     2283
Diluted
Net assets (£m)                                                        1,311.5  1,221.2  1,336.1
Number of shares (000's)                                                59,302   59,243   59,169
Net asset value per share (p)                                             2212     2061     2258


5. Related parties

Caledonia Group Services Ltd, a wholly-owned subsidiary of the company, provides
management services to the company. During the period, £5.0m was charged to the
company (30 September 2006 - £5.0m and 31 March 2007 - £11.3m).

6. Segment reporting

The following is an analysis of the revenue and results for the period analysed
by business segment, the group's primary basis of segmentation:


                                                          Financial  Industrial/
                                               Investing   services    consumer  Property    Total
                                                      £m         £m          £m        £m       £m
6 mths 30 Sep 2007
Gross portfolio return                             (20.7)         -           -         -    (20.7)
Trading revenue                                        -        7.4        44.3       5.7     57.4
Inter-segment sales                                 (2.0)         -           -      (0.3)    (2.3)
                                                   (22.7)       7.4        44.3       5.4     34.4
Segment result                                     (28.0)       2.0         2.8       1.7    (21.5)
Unallocated net income                                                                         8.1
Loss for the period                                                                          (13.4)
6 mths 30 Sep 2006
Gross portfolio return                               4.5          -           -         -      4.5
Trading revenue                                        -        6.9        48.1       9.9     64.9
Inter-segment sales                                 (2.9)         -           -      (0.5)    (3.4)
                                                     1.6        6.9        48.1       9.4     66.0
Segment result                                      (6.5)       2.5         5.0       0.6      1.6
Unallocated net income                                                                         1.0
Profit for the period                                                                          2.6
Year 31 Mar 2007
Gross portfolio return                             113.2          -           -         -    113.2
Trading revenue                                        -       14.3        99.0      22.4    135.7
Inter-segment sales                                (15.8)         -           -      (0.7)   (16.5)
                                                    97.4       14.3        99.0      21.7    232.4
Segment result                                      86.3        4.6         5.9       4.8    101.6
Unallocated net income                                                                         6.3
Profit for the year                                                                          107.9


7. Impairment of assets

There was no group impairment loss for the period (30 September 2006 - £nil and
31 March 2007 - £0.6m).

8. Capital commitments

On 30 September 2007, the company had undrawn fund and other commitments
totalling £63.3m (30 September 2006 - £50.1m and 31 March 2007 - £73.9m).

9. Share based payments

The company operates two types of share based payment plans. The executive share
option scheme is a discretionary plan for directors and senior management,
entitling participants to purchase shares in the company at the market price at
the date of grant, subject to service and company performance criteria, between
three and ten years after the date of grant. The company also has a deferred
bonus plan under which senior employees compulsorily defer part of their annual
bonus, being any bonus in excess of 50% of their basic salary for the bonus
year, into shares and may voluntarily defer up to 50% of their remaining cash
bonus into shares. The company will match the number of shares comprised in the
voluntary deferral, subject to service and company performance criteria.

In the period to 30 September 2007, participating employees in the executive
share option scheme were awarded options over 172,930 shares at a price of 2158p
per share (30 September 2006 and 31 March 2007 - 172,690 shares at 1878p per
share). The weighted average fair value of these shares at the date of grant,
using a binomial valuation model, was estimated at 588p per share (30 September
2006 and 31 March 2007 - 496p per share).


Also in the period to 30 September 2007, participating employees in the deferred
bonus plan applied a proportion of their annual bonuses to purchase 40,561
shares at a price of 2158p per share (30 September 2006 and 31 March 2007 -
65,347 shares at 1878p per share). Matching awards of 16,733 shares were granted
(30 September 2006 and 31 March 2007 - 20,859 shares), which depend on company
performance. The fair value of the bonus deferral shares was measured directly
as the bonus foregone. The fair value of the matching shares was also 2158p per
share, on a market neutral valuation basis (30 September 2006 and 31 March 2007
- 1878p per share).

The IFRS 2 expense charged to the income statement for the period was £0.7m (30
September 2006 - £0.3m and 31 March 2007 - £1.6m).

Copies of this statement are available at the company's registered office,
Cayzer House, 30 Buckingham Gate, London SW1E 6NN, England, or from its website
at www.caledonia.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange