Year ended 31 March 2025

Annual Report 2025

Introduction

1 Performance

2 At a glance

13 Strategic report

14 Chair’s statement

16  ChiefExecutiveOfficer’sreport

20  Howwecreatevalue

22  Keyperformanceindicators

24  Investmentreview

28  PublicCompanies

32  PrivateCapital

36  Funds

40 Financialreview

44 Sustainability

63 Risk management

68 Goingconcernandviability

71 Corporate governance

72  Boardofdirectors

74  Governanceframework

76  Corporategovernancereport

80 Section172statement

86 NominationCommitteereport

88 AuditandRiskCommitteereport

94 GovernanceCommitteereport

96 Directors’remunerationreport

115 Directors’report

119 Responsibilitystatements

121 Financial statements

122 Independentauditor’sreport

130 Financial statements

134 Materialaccountingpolicies

139 Notestothefinancialstatements

158 Other information

158 Companyperformancerecordand

 investmentssummary

159 Glossaryoftermsandalternative

 performancemeasures

161 Valuationmethodology

163 Informationforinvestors

164 Directorsandadvisers

Caledonia is a FTSE 250

self-managed investment

trust company with a long

track record of delivering

consistent returns and

progressive annual dividend

payments to shareholders.

Our aim is to generate long-term

compounding real returns that

outperform inflation by 3%-6%

over the medium to long term,

and the FTSE All-Share index

over 10 years.

Welcome to Caledonia

Sources: Caledonia Investments plc (‘Caledonia’) © Caledonia 2025 and FTSE International Limited

(‘FTSE’) © FTSE 2025. Caledonia Investments, Time Well Invested and the sealion guardant are

registered trademarks. ‘FTSE®’ is a trademark of the London Stock Exchange Group companies

and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or

FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability

for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further

distribution of FTSE Data is permitted without FTSE’s express written consent.

The images displayed throughout the annual report are a

selection of the following:

Charities supported by The Caledonia Investments Charitable

Foundation

The Caledonia office and artefacts on display from the Cayzer

Family archive

Employees of Caledonia, either in the central London office or

on an offsite strategy day

Images relating to Caledonia portfolio companies

Performance

Highlights

“Caledonia has delivered another year of positive performance, with our long-term, disciplined

investment approach continuing to prove its strength within a macroeconomic and geopolitical

backdrop that remains highly volatile. All three of our investment pools contributed to growth,

demonstrating the resilience and quality of our diversified portfolio.

The performance has further extended our track record of delivering consistent real returns

for shareholders, alongside 58 years of consecutive dividend growth. The uncertain operating

environment currently shows little sign of easing, but our focus remains on allocating capital

prudently, investing in high-quality companies and fund managers with track records of success,

and continuing to position Caledonia to compound value for our shareholders over the long term.”

Mat Masters

ChiefExecutiveOfficer

£2.9bn

Net asset value (NAV)

(31March2024:£3.0bn)

73.6p

Dividend per share

(31March2024:70.4p)

3,540p

Share price

(31March2024:3,280p)

3.3%

NAV per share total return

(31March2024:7.4%)

4.5%

Dividend growth

(31March2024:4.5%)

1.AlternativePerformanceMeasure–seepage159fordetails.

10.2%

Total shareholder return

(31March2024:-1.2%)

Strong consistent long-term

NAV growth

NAV total return growth since 2005 Annual dividend / share (p)

58 consecutive years of

dividend increases

800

2005 2010 2015 2020 2025

800

2005 2010 2015 2020 2025

APM

Strategic report

Corporate governance

Financial statements

Other information

Introduction

At a glance

Time well invested

We are investors, not traders,

driven by fundamentals, not

trends. We think in decades,

not quarters and invest time to

make confident, well-balanced

compounding investments and

build rewarding partnerships.

2 Caledonia Investments plc Annual Report 2025

A history that dates back to the late 1800s…

Caledonia traces its history back to the Cayzer family’s shipping business,

founded in the late 1800s. Towards the end of the boom in shipping, Caledonia

was converted into a broader investment holding company, and later to an

investment trust. The Cayzer family remain supportive shareholders and the

family’s long-term investment approach underpins how Caledonia is run today.

To today – a long track record of delivering

consistent returns and progressive

annual dividend payments

With net assets of £2.9bn, Caledonia holds investments in both listed and private

markets across three pools: Public Companies, Private Capital and Funds. Each

has a strategic allocation of capital, investment strategy and target return. The

result is a well-balanced diversified portfolio of investments with a global reach.

Geography

SectorNAV

1.Headquartered

2.IncludesAIR-servEurope,DTM

andCookeOptics

PublicCompanies 33%

PrivateCapital 30%

Funds 31%

Cashandother 6%

NorthAmerica 45%

UK&ChannelIslands 35%

Asia 11%

Europe 9%

Industrials

 27%

Consumerdiscretionary

 14%

Financials 13%

Informationtechnology 12%

Fundsoffunds 9%

Healthcare 8%

Materials 6%

Consumerstaples 6%

Communicationservices

 2%

Othersectors 3%

Strategic report

Corporate governance

Financial statements

Other information

Introduction

With an investment approach

and purpose grounded in

Time Well Invested

Ourhistory,structureandcultureunderpinsourlong-term

approachtoinvestmentandiscapturedinourmanifesto,which

underpinsourfocusongeneratinglong-termcompoundingreal

returnsthatoutperforminflationby3%-6%overthemedium

tolong-term,andtheFTSEAll-Shareover10years.

What differentiates us

Our expert

team

Ourteamhasdeep

knowledgeofthe

companiesandsectors

inwhichweinvest.Our

cultureiscentredaround

acollectionofvaluesthat

shapeourapproachto

everyaspectofinvesting:

insightful,supportive,

responsible,considered

andlong-term.

Our investment

process

Webuildrewarding

relationshipsandadeep

understandingofour

investmentsthataligns

withourriskappetite,with

ESGfactorsembedded.

We are long-term

investors

Ourevergreenbalance

sheetunderpinsour

investmentphilosophy.

Webuytohold,investing

inhigh-qualitycompanies

with strong market

positionsandfundamentals,

alongsideinvestmentsin

fundswithtrackrecords

ofsuccess.

Wholly aligned

with shareholders

Asaself-managedvehicle,

weinvestfromthebalance

sheet,ensuringourinterests

arewhollyalignedwithour

shareholders.

At a glance (continued)

Annualised performance

1.TargetreturnisCPIHplus3%to6%.CPIHoverthelast

10yearswas3%.CPIHisConsumerPricesIndex

includingowneroccupiers’housingcosts

10%

Over 10 years

Caledonia NAVTR

Caledonia Share Price TR

FTSE All-Share TR

Target

return

+9%

+8%

+3%

+6%

4 Caledonia Investments plc Annual Report 2025

Our manifesto

We believe in the power of time.

While others fight against it,

Trying to conquer every passing minute,

We work with it.

We invest it patiently and judiciously,

Harnessing its power year after year.

Never afraid to wait, but always ready to act.

Time is key to our knowledge, the trust we’re given,

And the relationships we build

It is the source of our enduring partnerships,

Carefully tended over decades.

Never fleeting, always meaningful

We dedicate time to our people:

Giving it generously to nurture their growth,

Both personal and professional.

We invest time now to plan for success in the future,

To sow seeds that will flourish for generations to come.

Time cannot be tamed or altered,

But its power can be harnessed,

Invested in the things that matter most,

To create something that lasts.

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Our Public Companies team believe, over the long term, performance of the portfolio is primarily driven

by the operational performance of the underlying companies. Underpinned by Caledonia’s evergreen

balance sheet, the team targets companies that are built on solid foundations that will continue to provide

compounding returns for shareholders over time.

The global portfolio is managed by one investment team across two strategies, with the same quality

criteria, research methodology and operational discipline. Each portfolio generally holds between 15

and 20 companies, with a small number of companies held in both portfolios.

The companies in our Public Companies pool typically have similar characteristics, including:

Public Companies

Investing in high quality quoted businesses where long term

ownership will be rewarded.

Capital portfolio

Unconstrainedinvestmentsinwell-

managedcompanies,heldforthelong

term.Welooktoselectpubliclyquoted

businesseswithanumberofquality

characteristicsincludingpricingpower,

strongreturnsoncapitalandalong

reinvestmentandgrowthrunway.Our

objectiveistodelivera10%annualreturn.

10% p.a.

Total return target

Weinvestselectivelyinmature,well

managed,long-termbusinesseswith

resilientbusinessmodels,andthe

capacityandmanagementcultureto

paysustainabledividends.Ourobjective

istodelivera7%annualreturn,withan

initialyieldof3.5%basedonthecost

ofinvestment.

Income portfolio

7% p.a.

Total return target

Strategic allocation

30%-40%

of net assets

Actual

33%

of net assets

£965m of NAV

30 companies

10%

15%

Over 1 year

Total Public Companies pool

Over 3 years

Over 5 years

Over 10 years

Capital Portfolio Income Portfolio

12%

13%

10%

Annualised performance – total return

At a glance (continued)

Strong market

position

Capable management

closely aligned with

long-term investors

Profitable with good and

sustainable returns on

capital

Underlying growth

and pricing power

Further detail

Turn to page 28

6 Caledonia Investments plc Annual Report 2025

Case study

A leading North American distributor of wide-ranging

industrial and construction products, partnering with

organisations to simplify and secure supply chains for a

vast range of industrial products.

£22m

Weighted average cost

23% p.a.

Total return since initial

investment (£)

2020

Date of initial investment

$44bn

Market capitalisation

Distribution

Sector

£43m

Valuation at 31 March 25

Original investment thesis

Well-run supply chain distribution business with a strong long term track record

• Outsourced supply chain management

• De-centralised business

• Cost and customer focused culture

• Strong balance sheet

ThePublicCompaniesteamidentifiedFastenalasapotentialinvestmentin2017and

thenfollowedthecompanyuntilMarch2020whentheteamtookadvantageofmarket

conditionsrelatingtotheCovid-19pandemictomakeaninvestment.Sincethis

investment,thebusinesshasgrownrevenuesfrom$5.3bnto$7.5bn

,aCAGRof7.2%,

reportinganEBITgrowthof7.4%overthesameperiodandamarginof20.0%in2024.

Overthesameperiod,thesharepricehasmorethandoubled,reportinganannualised

totalreturnof23%,includingdividends.

1.FY2019toFY2024

Share price US$

Initial investment at avg buy price of $31

Further top slicing at $82 per share

Top slice at $60 per share

23% annualised return (£)

Jan 20

Mar 20

May 20

Jul 20

Sep 20

Nov 20

Jan 21

Mar 21

May 21

Jul 21

Sep 21

Nov 21

Jan 22

Mar 22

May 22

Jul 22

Sep 22

Nov 22

Jan 23

Mar 23

May 23

Jul 23

Sep 23

Nov 23

Jan 24

Mar 24

May 24

Jul 24

Sep 24

Nov 24

Jan 25

Mar 25

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Our Private Capital team has a “buy-to-own” investment philosophy. Unlike typical private equity investors,

the team, as balance sheet investors, are under no pressure to invest or divest. This freedom allows them to

be highly selective and only focus on the best opportunities. They work closely with companies, providing

operational and strategic support along with long-term capital to drive growth. The team exits the company

when the time is right to maximise value for shareholders.

The companies in our Private Capital pool typically have similar characteristics, including:

Strategic allocation

25%-35%

of net assets

Actual

30%

of net assets

Well-established

businesses with strong

market positions and a

sustainable competitive

advantage

Prudent capital

structures

Profitable and cash

generative with multiple

levers for growth

Strong and experienced

management teams

£871m of NAV

8 companies

Annualised performance – total return

At a glance (continued)

Further detail

Turn to page 32

Wetargetatotalreturnof14%p.a.with

a2.5%yieldoncost,acrossaportfolioof

upto10predominantlyUKheadquartered

mid-marketprivatecompanies.We

typicallyinvestincompaniesthathave

anenterprisevalueof£75millionto

£250million.

£1.1bnofproceedsgeneratedon

investmentsmadesince2012,at

a1.8xmultipleofcost.

10%

20%

30%

Over 1 year Over 3 years

Over 5 years

Over 10 years

19%

12%

14% p.a.

Total return target

17%

IRR on realised

investments

Private Capital

Direct investments in a small number of high quality companies,

predominantly in the UK mid-market.

1.Frominvestmentsmadesince2012

8 Caledonia Investments plc Annual Report 2025

Case study

The UK’s leading independent tyre management provider

of outsourced tyre management services to fleet operators,

with a differentiated, customer centric, service proposition.

£55m

Cost

2024

Date of initial investment

Industrials

Sector

£55m

Valuation at 31 March 2025 (at cost)

HeadquarteredinBlackpool,DTMhasover100employeesandservesc.250fleet

customerswithc.285,000vehiclesandc.1.3mtyresundermanagement.Enabled

byaproprietarytechnologyplatform,whichallowscustomerstomaximisetheirfleet

efficiency,complianceandoutput,DTMconnectsthevehiclesitmanagestoanational

networkofover3,500serviceproviderlocations.

Caledoniaacquiredamajoritystakeinthebusiness,investingalongsidemanagement,

inAugust2024,withCaledonia’sdifferentiatedofferingplayingakeypartinsecuringthe

transaction.Sincetheacquisition,theCaledoniateamhasworkedwiththemanagement

teamtosupportDTM’svaluecreationplanandsupportedtheappointmentofanew

non-executiveChairman,ChiefRevenueOfficerandDirectorofNetworkServices.

Thebusinesscontinuestoperformwellwithsomenotablerecentsaleswins.

Why we like DTM

• Strong market presence – national service provider network

• Market leading proposition – low churn in existing customer base

• Impressive long term track record – c.15% CAGR in revenues over the last

15 years

• Technology enabled solutions – scalable proprietary digital platform

• Multiple levers for growth – organic wins, performance efficiencies, adjacent

services/geographies

• High calibre management team – experienced industry operators who are

excited to grow the business

• Technology led, environmentally considerate tyre management – 100% of

used tyres fitted by DTM recycled or reused – no waste to landfill

Watch the video

www.caledonia.com

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Our Funds team seek to partner with some of the world’s most talented managers in long and profitable

relationships. The team focus on regions that are the engines of well-proven global growth, namely

North America and Asia, providing a counterbalance to our quoted equity and UK-centric Private Capital

investments. The team build relationships that typically span multiple fund vintages and often take

advisory board positions for deeper insight.

The qualities that the Funds team focus on are:

Strategic allocation

25%-35%

of net assets

North America fund investments

•buyout,lowermid-market.Focusonsmall

tomediumsized,oftenowner-managed,

establishedbusinesses.

•usuallyfirstinstitutionalinvestmentandwill

supporttheirprofessionalisationandgrowth,

bothorganicallyandthroughM&Aactivity.

63%

of pool NAV

•focusonventure,growthandbuyout

investmentsinnon-cyclical,neweconomy

sectorssuchashealthcareandtechnology,

whicharewellplacedtobenefitfromwider

demographictrends.

•investingintobusinessesintheearlyyears

ofsignificantgrowth,havingsuccessfully

developedtheirbusinessmodel.Whilst

focusedonlocalmarkets,asmallnumber,

particularlythosewithahealthcarefocus,

alsoinvestintotheUS.

Asia fund investments

37%

of pool NAV

Actual

31%

of net assets

£897m of NAV 80 funds

45 managers 600+ companies

At a glance (continued)

Further detail

Turn to page 36

Weseekdiversifiedfundholdingsin

privatecompaniesthatprovidelong-

termandconsistentreturnsinNorth

AmericaandAsia.

12.5% p.a.

Total return target

Successful track record

Alignment of interest

Expertise in driving

value through cyclesStable team

Funds

Investing in funds managed by leading managers in North

America and Asia.

Annualised performance – total return

10%

15%

20%

Over 1 year Over 3 years

Over 5 years

Over 10 years

17%

13%

10 Caledonia Investments plc Annual Report 2025

Case study

Founded in 2012, De Cheng Capital is a leading investor in the

life science and healthcare sectors, with deep commercial and

scientific expertise within the two largest healthcare markets

in the world; US and China. De Cheng focuses on providing

capital and strategic support to early-stage life science

companies with revolutionary technologies and growth stage

healthcare companies with strong market presence. It is a

preferred partner for entrepreneurs, world-class scientists

and strategic partners, and its extensive market knowledge

allows it to capitalise on the rapid growth of the Chinese

healthcare industry, as well as breakthroughs in life science

research, typically found in the US.

Target company criteria

Portfolio company snapshot

Alpine Immune Sciences –seekingtocreatefirstorbest-in-classmultifunctional

immunotherapiesviauniqueproteinengineeringtechnologiestoimprovepatients’lives.

DeChengled,co-ledandparticipatedinthreePIPEinvestmentsinthebusinessbetween

2019to2022.AlpineImmuneScienceswasacquiredbyVertexin2024for$4.9bn,

generatingan8.2xgrossmoneymultipleoncost.

Caledonia’s commitment

DeChengmanages$2.1bnofcapitalacrossfivefunds.CaledoniafirstidentifiedDe

Chengsoonafteritslaunchin2012,andmadeitsfirstcommitmenttoDeChengII

in2016.CaledoniahassinceinvestedinallofDeCheng’ssubsequentfunds.

Fund name De Cheng II De Cheng III De Cheng IV De Cheng V

Vintage year 2016 2018 2021 2024

Fund size $303m $470m $673m $700m

Caledonia's commitment $12.0m $18.0m $15.0m $20.0m

1.TargetFundSize

Data

driven

Strong

management

teams with

proven

track records

Clear value

proposition

to potential

acquirers

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Insightful

& supportive

Through our extensive network of contacts,

we identify and select companies with

strong fundamentals and great potential.

We maintain effective and constructive

relationships with the people, companies

and funds in which we invest.

The Outward Bound Trust

The Caledonia Investments Charitable Foundation supported

The Outward Bound Trust whose mission is to inspire young people

to believe they can achieve more than they ever thought possible

through their wild adventures. Their funding helps break down

barriers and unlock opportunities for those who need it most.

12 Caledonia Investments plc Annual Report 2025

Strategic

report

Chair's statement

Chief Executive Officer’s report

How we create value

Key performance indicators

Investment review

Public Companies

Financial review

Going concern and viability

Funds

Risk management

Private Capital

Sustainability

Strategic report

Corporate governance

Financial statements

Other information

Introduction

David Stewart

Chair

All three of our investment pools

contributed to growth in the year.

Results

Iampleasedtoreportanotheryearofpositive

performanceatCaledonia,withNAVTRof3.3%.Thishas

furtherextendedourtrackrecordofgeneratinglong-term

realreturns,outperforminginflationby5.8%p.a.overthe

lastdecade,atthetopendofourmediumtolongterm

goal.Ourportfoliodelivereda3.5%returnagainstan

increasinglyuncertainmacroeconomicandgeopolitical

backdrop.Allthreeofourinvestmentpoolscontributed

togrowthintheyear.

Income and dividend

Investmentandotherincome

decreasedfrom£62.7m

to£53.6m

andtotalnetrevenuewas£30.9m

.As

reportedinpreviousyears,weexpectagradual

reductionininvestmentincomeaswemaintainour

focusontotalreturnsand,overtime,weanticipatethat

netdistributionsfromourfundinvestmentswillplay

amorematerialroleindividendcover.TheFundspool

generatedanetcashinflowof£43.8mwhich,together

withnetrevenue,wassufficienttocoverourproposed

annualdividend.

Theboardisrecommendingafinaldividendof53.91p

persharefortheyearended31March2025which,if

approvedbyshareholders,willbepayableon7August

2025toordinaryshareholdersontheregisteron27June

2025.Thisrepresentsafull-yeardividendof73.6pper

share,anincreaseof4.5%whencomparedtothe

previousyear,and58consecutiveyearsofincreased

annualdividends.

Weremaincommittedtoourprogressivedividendpolicy

whichaimstoincreaseannualdividendsbyatleastthe

rateofinflationoverthelongterm.Theboardintendsto

increasefutureinterimdividendsto50%oftheprioryear’s

totalannualdividend,commencinglaterthisyear.Thiswill

ensureamorebalanceddividendprofilethanhasbeen

paidhistoricallyandprovideamorepredictableincome

streamtoourshareholders.

Share split

Theboardisrecommendinga10:1sharesplitwhich,

ifapprovedbyshareholdersattheforthcomingannual

generalmeeting,isplannedforimplementationonorafter

17July2025.Thiswillreducethenominalvalueofordinary

sharesfrom5pto0.5pandisexpectedtoimprove

accessibilityforawiderrangeofshareholders.

Chair’s statement

1. Revenueaccount.

2. Includingthebenefitof£9mofrevenuefromnon-consolidatedsubsidiaries.

3.AlternativePerformanceMeasure.

14 Caledonia Investments plc Annual Report 2025

Share buybacks and general meeting

TheCayzerfamilyconcertparty(the‘ConcertParty’)is

along-termshareholderandthesourceofCaledonia’s

strongcultureandlong-termoutlook.Sharebuybacks

increasethepercentageofvotingrightsheldbythe

ConcertParty.Previously,incircumstanceswherethe

ConcertPartyownedmorethan30%butlessthan50%

oftheshares,anyincreaseinthepercentageofsharesit

ownedcouldhavetriggeredanobligationontheConcert

Partytomakeamandatoryofferforthecompanyunder

Rule9ofTheCityCodeonTakeoversandMergers(the

‘Code’).Independentshareholderswerethereforeasked

eachyeartorenewawaiverofthesemandatoryoffer

provisionssuchthattheywouldnotbetriggeredprovided

thattheConcertParty’spercentageholdinginthe

companydidnotexceed49.9%.

ThiscapontheConcertParty’sholdingwasconstraining

thecompany’sabilitytobuybackanyfurthershares.

Duringtheyeartheboardcarefullyconsideredthe

possibilityoftakingstepstoremovethe49.9%capand

toseekapprovalforfurtherbuybackswhichcouldresult

intheConcertParty’sinterestinthecompany'svoting

rightsincreasingbeyond50%.Iwaspleasedtotakepart

inmeetingswithindependentshareholderstodiscussthis.

Tworesolutionswereproposedatageneralmeetingheld

on18December2024.Thefirstresolutionrefreshedthe

authoritytomakemarketpurchasesofordinaryshares.

Thesecondresolutionsoughtapprovalofanuncapped

waiverofanyrequirementontheConcertPartytomake

anofferforthecompanyundertheCode’smandatory

offerprovisionsduetosharebuybacks.Theboardis

pleasedthatbothresolutionsweredulypassed,giving

thecompanyflexibilitytobuybackitssharesinthefuture.

Inconsideringwhethertodothis,theboardwillcontinue

totakeintoaccounttheliquidityofthecompany’sshares,

itsongoinginvestmentstrategyandthelevelofany

discountatwhichthesharesaretradinginthemarket

relativetoNAVpershare.

Sincethegeneralmeeting,theConcertParty'spercentage

holdinginthecompanyhasincreasedtoover50%.Asat

19May2025,theConcertPartyholdingwas50.4%.

Chairing the board

TheboardhasaskedthatIextendmytenureforonefinal

year,untilnolongerthantheannualgeneralmeetingin

2026.Thisissubjecttomyre-electionbeingapprovedby

shareholdersinJuly.

Annual general meeting

EachyearI,togetherwithmyboardcolleagues,verymuch

welcometheopportunitytomeetwithshareholdersin

personatourannualgeneralmeetingwhichonceagain

takesplaceinLondonon16July2025.

Outlook

AsMatoutlinesinhisreport,theunstablemacroeconomic

andgeopoliticalbackdropislikelytocontinue,causing

adegreeofuncertaintyacrosstheportfolio.However,

Caledonia’sinvestmentstrategytakesalong-termview.

Wehaveadiversifiedportfolioofhighquality,well

managedandprofitablecompaniesalongsideinvestments

infundswithtrackrecordsofsuccess.Wecontinueto

focusonthequalityandresilienceofeachinvestment.

WhileCaledoniaisalong-terminvestor,anactive

approachtoportfoliomanagementenablesusto

takeadvantageofopportunitiesastheyarise.

David Stewart

Chair

19May2025

Strategic report

Corporate governance

Financial statements Other information

Introduction

Mat Masters

ChiefExecutiveOfficer

Our performance has been delivered

against a background of increasing

macroeconomic and geopolitical

uncertainty, underlining the strength

of our investment strategy.

3.3%

NAV total return

Caledonia’slongterminvestmentapproachof'TimeWell

Invested',makingthoughtfulcompoundinginvestments,

hasunderpinnedanotheryearofpositiveperformance,

withNAVTRof3.3%.Thisperformancecontinuestobuild

onourtrackrecordofdeliveringlongtermrealreturns,

outperformingbothinflationandtheFTSEAll-Sharetotal

returnoverthepastdecade.Alongsidethis,wehave

increaseddividendspaidtoshareholdersfor58

consecutiveyears.

Wehavedeliveredthisperformanceagainstan

increasinglyuncertainmacroeconomicandgeopolitical

backdrop,demonstratingthestrengthandresilienceof

ourdiversified,globalportfolioofqualitycompaniesand

funds,withallinvestmentpoolscontributingtogrowthin

theyear.

Inparticular,inthelatterpartofourfinancialyear,changes

inUStradepolicyintroducedsignificantuncertainty

intotheglobaleconomicoutlook.Marketvolatilityrose

significantlyinMarchasinvestorsassessedthepotential

implicationsofhighertariffsandescalatingUS-Chinatrade

tensionsonglobalgrowth,productivityandinflation.This

volatility,alongwithrecentelevatedlevelsofinflation,has

reducedshort-termrealreturns.Webelieveourfocuson

investinginhighquality,wellmanagedcompanies,aswell

asfundmanagerswithtrackrecordsofsuccess,positions

uswelltonavigatethecurrentuncertainty.

Annualised performance

CPIH

Target

return

10%

15%

Over 5 yearsOver 3 years

+5%

+4%

+7%

Over 10 years

Caledonia NAVTR Caledonia Share Price TR FTSE All-Share TR

+14%

+11%

+12%

+9%

+8%

+6%

Target

return

CPIH

Target

return

Chief Executive Officer’s report

16 Caledonia Investments plc Annual Report 2025

Performance highlights

Weinvestacrossprivateandpublicmarkets.Overallthe

portfoliogeneratedareturnof3.5%intheyear.This

includedadverseforeignexchangemovementswhich

negativelyimpactedreturnsby1.4%.

10%

15%

20%

25%

Public Companies Private Capital Funds

Annualised investment pool returns

1year 3 years 5years 10years

OurPublicCompaniespoolisinvestedinhigh-quality,

well-managedbusinesseswithstrongmarketpositions

andpricingpower.Theglobalportfolioissplitbetween

capitalandincomeinvestments,withthelatterproviding

animportantcontributiontocoverourcostbaseand

dividend.Performancewasaffectedbythemarket

volatilitynearingtheendoftheyear.Despitethis,the

pooldelivereda4.7%returnintheyear.

WithinPrivateCapital,weacquiredDirectTyre

Management('DTM'),addinganotherexcellentbusiness

toourportfolioofdirectlyheldprivateassets.DTMisthe

UK’sleadingproviderofoutsourcedtyremanagement

services-afantastictechnologyledsolutionenablingits

customerstomaximisefleetefficiency.BothStonehage

FlemingandAIR-servEuropecontinuedtoreportastrong

performance,resultinginanincreaseintheirvaluations.

Thishasbeenpartiallyoffsetbyadeclineinthevaluation

ofCookeOptics.Aspreviouslyreported,followingthe

Hollywoodstrikesin2023,demandforCooke’sproducts

hastakenlongerthanweanticipatedtorecover.Asaresult

wehavereflectedamoreconservativeoutcomeinour

valuationofthebusiness.Overall,PrivateCapitalreported

areturnof3.7%.

OurFundspooldeliveredanetpositivecashflowof

£44mfollowingasubduedpriorfinancialyear.Our

NorthAmericaportfoliodeliveredan8.4%returninlocal

currency,withgainsbeingdrivenbystrongunderlying

operatingperformanceandrealisationactivity.OurAsia

portfolioreturnwas-1.6%inlocalcurrency,whichreflects

themorechallengingmarketconditionsintheregion.

Takentogetherandincludingthenegativeimpactof

foreignexchangemovements,ourFundspoolproduced

areturnof2.2%intheyear.

Liquidity and balance sheet

AstrongfinancialpositioniscoretoCaledonia’sstrategy.

Weendedtheyearwithnetcashof£151mwhich,

alongsideour£325mrevolvingcreditfacility,provides

significantliquiditytoinvestinattractiveopportunities

astheyarise.

Shareholder returns

Broadermarketvolatilityandsentimenttowards

investmentcompaniescontinuetoweighonratingsacross

thesector,andinparticularthoseinvestmentcompanies

thatinvestinprivateassets,manyofwhichcontinueto

tradeatsignificantdiscountstonetassetvalue.

Caledonia’ssharepriceincreasedby10.2%onatotal

returnbasisovertheyear,withthediscountnarrowing

from39%to35%.Despitethisreductionindiscount,

webelievethesharepricecontinuestofundamentally

undervaluethequalityofourportfolioandourlong-term

trackrecord.

Alongsidecontinuingtodeliverlong-termcompounding

returns,addressingthediscountremainsapriorityfor

theboardandmanagementteam;itisimportantfor

shareholderstocapturemorefullythelong-termincrease

innetassetvaluepershare.Thereisnosinglesolutionto

narrowingthediscount.Duringtheyearwehavefocused

muchofoureffortsonimprovingourinvestorrelations

andcommunicationsactivitiesincludinglaunchingaseries

ofeventsprofilingeachofourinvestmentpoolsandour

differentiatedapproach.Thefirstofthese,thePrivate

CapitalSpotlight,washeldinJanuaryandwewillhost

asimilarspotlightforourPublicCompaniespoolin

June2025.

AscoveredintheChair'sstatement,alongsideimproving

communication,wealsoincreasedourabilityto

repurchaseshares,whichishighlyaccretivetoNAVper

share.Weareannouncingtodaytwofurtherinitiatives:

a10:1sharesplitwhichwehopewillmakeourshares

moreaccessibletoawiderrangeofinvestorsanda

changetoourdividendpaymentprofile.Areliable

sourceofincomeisimportanttoourshareholdersand

ourprogressivedividendpolicyaimstoincreaseannual

dividendsbyatleasttherateofinflationoverthe

longterm.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Chief Executive Officer’s report (continued)

People

Ouremployeesremainourgreatestassetandweare

committedtofosteringanenvironmentthatenablesus

toattract,retainandnurtureexceptionalpeople.Thisyear,

wehavecontinuedtostrengthentheteamacrossa

numberoffunctions,promotinginternaltalentand

bringinginnewexpertise.Iwouldliketothankmy

colleaguesfortheirunwaveringenthusiasmand

dedication,whichdrivesthesuccessofourbusiness.

Caledonia’slong-termethosandculturefocusedon‘Time

WellInvested’iscentraltoourworkingenvironment.

Duringtheyear,wecompletedoursecondanonymised

employeeengagementsurveyandaredelightedtohave

receiveda92%responseratewith96%ofresponders

recommendingCaledoniaasa‘greatplacetowork’.We

benchmark our analysis against businesses within the UK’s

financialservicessectorandarepleasedthatCaledoniais

representedinthetopquartileforbothparticipationrates

andengagementscores.

Further information on our people and culture

can be found in our Sustainability section

Turn to pages 57-62

Our approach to responsible investment

AswehighlightintheSustainabilitysection,wehave

furtherdevelopedourapproachtoresponsible

investment.Duringtheyear,throughourworkinggroup,

wehavestrengthenedourinvestmentprocessesand

continuetoconsidertheissuesassociatedwithclimate

changeanditspotentialimpactonourbusinessand

portfolio.Thisyear,forthefirsttime,wearedisclosing

emissionsforourPrivateCapitalpool.OurthirdTaskforce

onClimate-relatedFinancialDisclosuresreportwillbe

publishedalongsidethisannualreport.

Further details on our activities in this area are

provided within the Sustainability section

Turn to pages 52-56

Looking forward

Webelieveourdiversified,globalportfolioiswell

positionedtoweathertheuncertaintiesofthecurrent

market.Weinvestinbusinesseswithstrongmarket

positionsandfundamentals.Wehaveadiversified

portfolioofhighquality,wellmanagedandprofitable

companies.Thisstrategyhasdeliveredcompoundingreal

returns.Centraltooursuccessisalongtermperspective

underpinnedbyourrobustevergreenbalancesheet.

Thesestrengthsenableustolookthroughshorterterm

volatilityandtakeadvantageofthelongterm

opportunitiesarisingfrommarketdisruptions.

Mat Masters

ChiefExecutiveOfficer

19May2025

TheStrategicreportincludestheSection172

statement,whichsetsoutfurtherdetailofour

stakeholders,onpages80to85

18 Caledonia Investments plc Annual Report 2025

Strategic report

Corporate governance

Financial statements

Other information

Introduction

How we create value

We invest in proven, well-managed businesses that combine long-term growth

characteristics with an ability to deliver increasing levels of income. We are a self-

managed investment trust, and capitalise on our resources and relationships to identify

opportunities, to deliver long-term capital growth and dividends for our shareholders.

Key enablers

of value

•expertteam

• long term

•evergreen

balance sheet

•investmentprocess

•carefulportfolio

constructionandrisk

mitigation

•reputationand

network

Expert team

Ourteamhasdeepknowledgeof

thecompaniesandsectorsinwhich

weinvest.Ourcultureiscentred

aroundacollectionofvaluesthat

shapeourapproachtoeveryaspect

ofinvesting:insightful,supportive,

responsible,consideredand

long-term.

Long term

Webuytohold,investing

inhigh-qualitycompanies

withstrongmarketpositions

andfundamentalsalongside

investmentsinfundswith

trackrecordsofsuccess.

Evergreen balance sheet

Ourlongtermapproachisunderpinnedbyour

evergreenbalancesheet,whichprovidesuswith

flexibilitytoinvestinbothprivateequityandquoted

opportunitiesoverlongertimeframes(+10year),

andsignificantlyreducesourinvestmentcyclerisk.

Weinvestsolelyfromthebalancesheetandhave

nopermanentcorporatedebt.Weaimtomaintain

sufficientcash,liquidassetsandcommittedfacilities

tocoverourliabilitiesandcommitmentsasthey

falldue.

Investment and monitoring

Capital

allocation

Responsible

investing

Collaboration

Source

opportunities

Reinvest or

return

Analyse and

invest

Investment

Committee

Risk

management

20 Caledonia Investments plc Annual Report 2025

Investment pools

Public Companies

Target return

10.0%p.a.Capitalportfolio

7.0%p.a.Incomeportfolio

Further information

Turn to page 28

Private Capital

Target return

14.0%p.a.

Further information

Turn to page 32

Funds

Target return

12.5%p.a.

Further information

Turn to page 36

Our investment process is tailored to the nature and risk of each investment pool.

All investments are approved by the central Investment Committee with board

approval required for investments and disposals over a defined threshold.

Reputation

and network

Ourreputationas

asupportiveand

constructivelyinvolved

long-terminvestorenables

ustodevelopournetwork

ofbusinesscontacts.

Thisnetworkenablesus

toidentifyopportunities

andcarryoutduediligence,

aswellasbeinginvaluable

to the management of our

investeecompanies.

Careful portfolio

construction and

risk management

Toachieveourtargetreturns,

weprimarilyinvestinequities,

onaglobalbasis.Wemanage

theriskofpermanentloss

ofcapitalbydiversifyingour

interestsandavoidingexcessively

riskyinvestments.Effectiverisk

managementisakeycomponent

ofourinvestmentapproachand

weconsideranumberofkeyrisk

areas which assist in ensuring that

theinvestmentpoolsoperate

withinstrategicriskparameters.

Investment process

Source opportunities

Opportunitiesareidentifiedthroughourbusiness

networkandourownresearch,withopportunities

initiallyscreenedforcharacteristicswhichmeetourstrategic

risk/returnappetite.

Analyse and invest

Extensiveandongoingbusinessandfinancialduediligenceis

conductedbytheteam,oftenwithinputfromindependent

advisers,beforeafinalinvestmentdecisionismade.

Collaboration

Webuildlong-termrewardingrelationshipswhilecontinuously

monitoringperformanceandrisk.

Reinvest or return

Proceedsfromrealisationsarereinvestedinnewinvestment

opportunitiesorreturnedtoshareholdersthroughdividendsor

sharebuybacks.

Who benefits

Our shareholders

Ourshareholdersprovide

Caledonia

’

spermanentcapital

anditisfortheirbenefitthatthe

directorsarerequiredtopromote

thecompany

’

s success

Our people

Ouremployeesareourmost

importantassetandweinvest

timetofostertheirprofessional

developmentandwellbeing

Our portfolio companies

and funds

Webuildrewardingrelationships

andadeepunderstandingofour

investments

Suppliers

Webuildandvaluelong-term

relationships

Community

Throughourfoundation,wehave

an ongoing commitment to the

widercommunity

Further information

Turn to page 80

Strategic report

Corporate governance

Financial statements Other information

Introduction

KPI Rationale Progress in the year Links to strategic objectives and risks Metric

Net asset value total

return ('NAVTR')

NAVTRisameasureofhowthenet

assetvalue(‘NAV’)persharehas

performedoveraperiod,takinginto

accountbothcapitalreturnsand

dividendspaidtoshareholders

APM

Alternativeperformancemeasure

-seepage159fordetails

•thecompanyhasfurtherextendedits

performancetrackrecord,reportingNAVTRof

3.3%intheyear

•overfiveand10yearsthecompanyhasreported

aNAVTRof13.5%p.a.and9.0%p.a.respectively,

outperforminginflationby8.9%and5.8%overthe

sameperiods

•over10yearsthecompany’sNAVTRhas

outperformedtheFTSEAll-ShareTRIndexby

2.8%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

Total shareholder

return ('TSR')

TSRmeasuresthereturntoour

shareholdersthroughthemovementin

thesharepriceanddividendspaid

duringthemeasurementperiod

APM

Alternativeperformancemeasure

-seepage159fordetails

•thecompany’sTSRfortheyearwas10.2%p.a.

•overfiveand10years,thecompany’sTSRwas

11.0%p.a.and7.5%p.a.respectively

•overfiveyearsthecompany’sTSRhas

underperformedagainsttheFTSEAll-Share

indexby1.0%p.a.andoutperformedinflation

by6.4%p.a.

•over10yearsthecompany’sTSRhas

outperformedtheFTSEAll-Shareindexby

1.3%p.a.andinflationby4.3%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

Dividend growth

over time

A reliable source of income is

importantforourshareholders.

Caledoniahasaprogressivedividend

policy

Annualdividendisthepershare

amountpayabletoshareholdersoutof

profitsfortheyear,excludingany

specialdividends

•thecompanypaidaninterimdividendof19.69p

andhasproposedafinaldividendof53.91p,taking

totaldividendsto73.6ppershare,a4.5%increase

yearonyear,extendingourrecordofgrowing

annualdividendsfor58consecutiveyears

•overthelastfiveand10years,ourdividendhas

grownby3.8%p.a.and3.8%p.a.

•overthesameperiod,inflationhasincreasedby

4.6%p.a.and3.2%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

NAV per share

Themeasureofthecompanyassets,

calculatedbydividingnetassetsbythe

fullydilutednumberofsharesinissue

Pleaseseenote17ofthefinancial

statements

•at31March2025,thecompanyhadnetassetsof

£2,932m(5475ppershare),reportinga2.0%NAV

persharereturnovertheyear

•overfiveand10yearsthecompanyhasreporteda

NAVpersharegrowthof11.1%p.a.and6.5%p.a.

respectively

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

We measure our performance against four strategic objectives

using key performance indicators.

Key performance indicators

22 Caledonia Investments plc Annual Report 2025

KPI Rationale Progress in the year Links to strategic objectives and risks Metric

Net asset value total

return ('NAVTR')

NAVTRisameasureofhowthenet

assetvalue(‘NAV’)persharehas

performedoveraperiod,takinginto

accountbothcapitalreturnsand

dividendspaidtoshareholders

APM

Alternativeperformancemeasure

-seepage159fordetails

•thecompanyhasfurtherextendedits

performancetrackrecord,reportingNAVTRof

3.3%intheyear

•overfiveand10yearsthecompanyhasreported

aNAVTRof13.5%p.a.and9.0%p.a.respectively,

outperforminginflationby8.9%and5.8%overthe

sameperiods

•over10yearsthecompany’sNAVTRhas

outperformedtheFTSEAll-ShareTRIndexby

2.8%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

Total shareholder

return ('TSR')

TSRmeasuresthereturntoour

shareholdersthroughthemovementin

thesharepriceanddividendspaid

duringthemeasurementperiod

APM

Alternativeperformancemeasure

-seepage159fordetails

•thecompany’sTSRfortheyearwas10.2%p.a.

•overfiveand10years,thecompany’sTSRwas

11.0%p.a.and7.5%p.a.respectively

•overfiveyearsthecompany’sTSRhas

underperformedagainsttheFTSEAll-Share

indexby1.0%p.a.andoutperformedinflation

by6.4%p.a.

•over10yearsthecompany’sTSRhas

outperformedtheFTSEAll-Shareindexby

1.3%p.a.andinflationby4.3%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

Dividend growth

over time

A reliable source of income is

importantforourshareholders.

Caledoniahasaprogressivedividend

policy

Annualdividendisthepershare

amountpayabletoshareholdersoutof

profitsfortheyear,excludingany

specialdividends

•thecompanypaidaninterimdividendof19.69p

andhasproposedafinaldividendof53.91p,taking

totaldividendsto73.6ppershare,a4.5%increase

yearonyear,extendingourrecordofgrowing

annualdividendsfor58consecutiveyears

•overthelastfiveand10years,ourdividendhas

grownby3.8%p.a.and3.8%p.a.

•overthesameperiod,inflationhasincreasedby

4.6%p.a.and3.2%p.a.

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

NAV per share

Themeasureofthecompanyassets,

calculatedbydividingnetassetsbythe

fullydilutednumberofsharesinissue

Pleaseseenote17ofthefinancial

statements

•at31March2025,thecompanyhadnetassetsof

£2,932m(5475ppershare),reportinga2.0%NAV

persharereturnovertheyear

•overfiveand10yearsthecompanyhasreporteda

NAVpersharegrowthof11.1%p.a.and6.5%p.a.

respectively

Risks:

StrategicLiquidity

InvestmentOperational

Market ESG

Our strategic objectives

Generate total returns

that outperform

inflation by 3%-6%

over the medium to

long term

Generate total returns

that outperform the

FTSE All-Share index

over 10 years

Pay annual dividends

increasing by inflation

or more over the

long term

Manage investment risk

effectively for long-term

wealth creation

10%

12%

14%

Caledonia NAVTRCPI-H +3% to CPI-H +6%

Caledonia NAVTR Caledonia TSR FTSE All Share TR

10%

12%

14%

16%

20.0

10.0

30.0

40.0

50.0

60.0

70.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

March 2015 March 2017 March 2019 March 2021 March 2023 March 2025

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NAV/share over 10 years (p)

10%

12%

14%

Caledonia NAVTRCPI-H +3% to CPI-H +6%

Caledonia NAVTR Caledonia TSR FTSE All Share TR

10%

12%

14%

16%

20.0

10.0

30.0

40.0

50.0

60.0

70.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

March 2015 March 2017 March 2019 March 2021 March 2023 March 2025

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Annual dividend/share over 10 years (p)

10%

12%

14%

Caledonia NAVTRCPI-H +3% to CPI-H +6%

Caledonia NAVTR Caledonia TSR FTSE All Share TR

10%

12%

14%

16%

20.0

10.0

30.0

40.0

50.0

60.0

70.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

March 2015 March 2017 March 2019 March 2021 March 2023 March 2025

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NAVTR annualised 10-year rolling performance

10%

12%

14%

Caledonia NAVTRCPI-H +3% to CPI-H +6%

Caledonia NAVTR Caledonia TSR FTSE All Share TR

10%

12%

14%

16%

20.0

10.0

30.0

40.0

50.0

60.0

70.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

March 2015 March 2017 March 2019 March 2021 March 2023 March 2025

1,000

2,000

3,000

4,000

5,000

6,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

TSR annualised 10-year rolling performance

Strategic report

Corporate governance

Financial statements Other information

Introduction

Investment review

Caledonia is a long term investor

in both listed and private markets

via three pools: Public Companies,

Private Capital and Funds. Each

investment pool is managed by

a specialist team investing in well-

managed businesses that combine

long-term growth characteristics

with, in many cases, an ability to

deliver increasing levels of income.

To ensure that we maintain a

balanced portfolio, each of our

investment pools has a strategic

allocation range. At 31 March

2025, all of our investment pools

were within their strategic

allocation ranges.

Public Companies

Private Capital

Funds

30%-40%

Strategic asset allocation

25%-35%

Strategic asset allocation

25%-35%

Strategic asset allocation

33%

NAV

30%

NAV

31%

NAV

Overall performance

At31March2025,theinvestmentportfoliowasvalued

at£2,732.7m,generatingareturnof3.5%duringtheyear.

Allinvestmentpoolscontributedtogrowth,with

performancedeliveredagainstacontinuingbackdrop

ofuncertaintyandeconomicheadwinds,underscoring

thevalueofourdiversifiedglobalportfolioofhigh-quality

well-managedbusinesseswithstrongmarket

fundamentals,alongsidefundswithstrongtrack

recordsofsuccess.

Investment activity

Duringtheyear,weinvestedatotalof£320.3mintothe

portfolio,againstwhich£336.4mofproceedswere

received,resultinginnetinflowof£16.1m.

24 Caledonia Investments plc Annual Report 2025

Geographic diversification

Thefollowingchartshowsthedistributionoftheportfolio

at31March2025betweenregions.Thebasisofthis

analysisisthecountryoflistingforquotedsecurities,

countryofheadquarterforunlistedinvestmentsand

underlyingregionalanalysisforfunds.

Sector

Thefollowingchartshowsthedistributionoftheportfolio

at31March2025bysector,demonstratingahighly

diversesectorexposureacrossourinvestments.

Currency

Thefollowingchartanalysesnetassetsat31March2025

bycurrencyexposure,basedonthecurrenciesinwhich

investments,cashorotherassetsaredenominatedor

traded.Duringtheyear,Sterlingstrengthenedby2.2%

againsttheUSdollar,adverselyimpactingourtotalreturn.

Geography by region (headquartered)

NorthAmerica 45%

UK&ChannelIslands 35%

Asia 11%

Europe 9%

1.IncludesAIR-servEurope,DTM

andCookeOptics

Sector

Industrials

 27%

Consumerdiscretionary

 14%

Financials 13%

Informationtechnology 12%

Fundsoffunds 9%

Healthcare 8%

Materials 6%

Consumerstaples 6%

Communicationservices

 2%

Othersectors 3%

Currency exposure

USdollar 53%

PoundSterling 38%

Euro 7%

Othercurrencies 2%

March

2024

£m

Investments

£m

Realisations

£m

Accrued

income

£m

Gains/

(losses)

£m

31

March

2025

£m

Income

£m

Return

PublicCompanies 949.8 106.8 (114.2) - 22.3 964.7 21.8 4.7

PrivateCapital 820.3 83.7 (48.6) 2.2 13.1 870.7 17.5 3.7

Funds 926.3 129.8 (173.6) - 14.8 897.3 4.4 2.2

Totalpools 2,696.4 320.3 (336.4) 2.2 50.2 2,732.7 43.7 3.5

Otherinvestments

18.0 - (0.8) - (6.3) 10.9 9.0

Totalinvestments

2,714.4 320.3 (337.2) 2.2 43.9 2,743.6 52.7

Net cash 227.4 151.3

Othernetassets 23.5 36.7

Net assets 2,965.3 2,931.6

Investment movements in the year

1.Otherinvestmentscompriselegacyinvestments,cash,receivablesanddeferredtaxliabilityinsubsidiaryinvestmententities.

2.Totalinvestmentportfolioat31March2024included£19.0mrelatingtooneinvestmentthatwasclassifiedasassetsheldforsaleintheGroup’sStatement

offinancialpositionandwasrealisedduringtheyearto31March2025.

3.PrivateCapitalrealisationof£48.6mrelatestotherepaymentofabridgeloanrelatingtotheacquisitionofDTMandtherealisationofBloom.

4.ReturnsforinvestmentsarecalculatedusingtheModifiedDietzmethodology.

Strategic report

Corporate governance

Financial statements Other information

Introduction

At 31 March 2025, our top 10 investments were valued at £1,234.2m and represent 42.2% of net assets.

Top 10 investments

Investment review (continued)

Sector

Financials

Investmentpool

Private Capital

Belgian-basedindependentinvestmentcompanywithnetassetsof€5.1bn,investinginprivatebusinessesin

EuropeandNorthAmerica.

Investment thesis

•firstinvestedwithCobepain2004andtheinvestmenthassincedeliveredstrong,compoundingreturns

•long-termpartner,withsimilarinvestmentphilosophytoCaledoniaPrivateCapital

•geographicdiversificationandsourceofpotentialco-investments.

Value £192.7m

%ofNAV6.6%

Sector

Industrials

Investmentpool

Private Capital

Leadingdesignerandmanufacturerofair,vacuumandjetwashmachines,providingturnkeysolutionstofuel

stationforecourtoperatorsacrossWesternEurope.

Investment thesis

•expandtheinstalledmachineestate,focusingonjetwashandincrementalairopportunitiesintheUKand

airgrowthinexistingandnewEuropeangeographies

•createastandalonebusiness,investinginpeople,operationsandgovernance

•driveperformanceefficienciesandcashgeneration.

Value £197.7m

%ofNAV6.7%

Sector

Financials

Investmentpool

Private Capital

Largestindependentmulti-familyofficeinEMEA,providingfamilyoffice,fiduciary,investmentmanagement,

corporateservices,treasuryandcustodyservices.

Investment thesis

•attractivelong-termgrowthdynamicsoftheultrahighnetworthmarket

•geographicandproductbasedacquisitionstrategy

•significantinvestmentintechnologyplatformandpeople.

Value £221.4m

%ofNAV7.6%

Sector

Consumer Discretionary

Investmentpool

Private Capital

Innsanddrinksbusinesswithapubestatestretchingfromsouth-westLondontoBristolandtheChannelIslands.

Investment thesis

•defensive,assetbackedbusinessgeneratingrobustcashflowfromitsChannelIslandsoperationswhichisbeing

reinvestedinexpandingtheUKoperations

•capitalgrowthgeneratedthroughtargetedcapexwithintheUKestate,bothenhancingcurrentassetsandthe

acquisitionofadditionalpubs

•marketsharegainsandsynergiesfromacquisitions.

Value £136.5m

%ofNAV4.7%

Sector

Diversified sector exposure

Investmentpool

Funds

PrivateequityfundsoffundsinvestingintheUSlowermid-marketmanagedbyHighVistaStrategies.

Investment thesis

•providesdiversifiedexposuretoUSprivateequity

•committedtofivefundsoffunds.

Value £99.9m

%ofNAV3.4%

26 Caledonia Investments plc Annual Report 2025

Investments summary

Turn to page 158

Sector

Information technology

Investmentpool

Public Companies

Leadingdeveloperofcomputersoftwaresystems,applicationsandcloudservices.

Investment thesis

•focusesonMicrosoft’sstrengthasatoptiercloudplatformandaleaderinenterprisesoftware.Inaddition

theyareanimportantplayerinAIandarequicklyintegratingAItechnologyacrosstheirproductrange

•longdurationofgrowthduetolongtermenterprisecloudtransitionwithMicrosoft’seconomicsdrivenby

AzureandMicrosoftOffice365.

Value £73.6m

%ofNAV2.5%

Sector

Consumer discretionary

Investmentpool

Public Companies

Leadinginternationaltobaccocompany,activelydeliveringasmoke-freefuturebytransitioningitsportfoliofrom

predominantlycombustibletobaccotosmoke-freenicotineproducts.

Investment thesis

•market-leadingpositioninsmoke-freeproducts,withIQOSandZyndemonstratingstronggrowthandpremium

pricingpower

•attractiveeconomicsandresilientcashflowswithoptionalitytogrowrevenuesfurtherintheUSoverthe

mediumterm.

Value £90.1m

%ofNAV3.1%

Sector

Information technology

Investmentpool

Public Companies

Oneofthelargestglobalprovidersofproductsandservices,includingenterpriseapplicationsandinfrastructure,

forenterpriseinformationmanagement.

Investment thesis

•revenuegrowthshouldaccelerateduetoincreasingdemandforOraclecloudinfrastructureservices

•longtermeconomicsbenefitfromthecontinuedtransitiontoacloudandsubscriptionbasedmodel.

Value £72.3m

%ofNAV2.5%

Sector

Diversified sector exposure

Investmentpool

Funds

AleadingprivateequityinvestmentfirmfocusedontheAsiaPacificregionwithtotalcommitmentsofover$8bn

across10funds.

Investment thesis

•accesstotop-tiermid-marketprivateequityfundsdiversifiedacrossbuyout,growthandventurecapital

•primarilyinvestsinmid-market,country-specificfundswithproventrackrecordsandstrategies

•committedtofivefundsoffunds.

Value £73.4m

%ofNAV2.5%

Sector

Industrials

Investmentpool

Public Companies

Largestdistributorofairconditioning,heatingandrefrigerationequipmentinNorthAmerica.

Investment thesis

•sustainedinvestmentindigitalisationofthebusinessshouldsupportmarketsharegrowth,marginimprovement

andenhancetheattractivenessofWatscoasanownerofothersmallerdistributors

•continuedpositiveindustrydynamicsshouldleadtostrongcompoundingofearnings.

Value £76.6m

%ofNAV2.6%

Alltrademarksusedonpages26and27arethepropertyoftheirrespectiveownersandtheiruseheredoesnotimplyendorsement.  

Strategic report

Corporate governance

Financial statements Other information

Introduction

Public Companies

Strategy

ThePublicCompaniespoolprovidesCaledoniawith

exposuretoaconcentratedportfolioofhigh-quality

well-managedbusinesses.Thequalitieswefocuson

includeastrongmarketposition,goodandsustainable

returnsoncapital,andexperiencedmanagementteams,

whicharecloselyalignedwithlong-terminvestors.

Weexpectthatacombinationofthesefactorswill

rewardpatientlong-termownership.Theportfoliois

wellpositionedtowithstandshort-termmarketvolatility,

whichwebelievedoesnotmateriallyimpactthelong-term

valueinthebusinessesweown.

Caledonia'severgreenbalancesheetensuresourstrategy

isnotconstrainedbytheneedtomanagesubscriptions

orredemptions.Thisallowsustointroduceandrealise

capitaltoandfromthepoolwhenmarketsprovide

goodopportunities.

Theglobalportfoliocomprisestwostrategies,the

CapitalandtheIncomeportfolios,eachgenerallyholding

between15and20companies.TheIncomeportfolioaims

todeliveraninitialyieldoninvestedcostof3.5%withthe

dividendpersharefromtheseholdingsgrowingaheadof

inflationoverthelongerterm.TheCapitalportfoliohas

nodividendtarget,isunconstrainedand,consequently,

shouldproducehigherreturnsovertime.Theportfolios

aremanagedbyasingleteam,withnobenchmark,

andwiththesameresearchmethodologyand

investmentdiscipline.

Performance

Duringtheyear,thePublicCompaniespoolgenerateda

totalreturnof4.7%(6.6%inlocalcurrencies).Overthelast

10yearsthePublicCompaniespoolhasdeliveredreturns

of8.4%p.a.

We believe, over the long term,

performance of the portfolio is

primarily driven by the operational

performance of the underlying

companies. Focused on ‘co-owning’

companies that are built on solid

foundations and generate cash, we

target businesses that we

understand with underlying growth

and pricing power that can deliver

good returns on capital.

Sector

Geography by region

(headquartered)

NorthAmerica 66%

UK&ChannelIslands 27%

Europe 4%

Asia 3%

Informationtechnology 24%

Industrials 20%

Consumerstaples 14%

Materials 12%

Healthcare 7%

Financials 6%

Consumerdiscretionary 6%

Communicationservices 4%

Utilities 4%

Realestate 3%

Annualised returns (%)

10%

15%

1 year 3 years 5 years 10 years

12%

28 Caledonia Investments plc Annual Report 2025

Performance

Attheyearend,theCapitalportfoliowasvaluedat£697.9m

anddeliveredareturnof3.6%intheyear.Volatilityand

uncertaintyinequitymarketsduringMarch2025hada

particularlysharpimpact,withadeclineof7.3%inthe

month.Theportfolioremainsconcentrated,comprising

18holdings.Includingtheimpactofforeignexchange,

overthelast10yearstheCapitalportfoliohasdelivered

annualisedreturnsof10.2%p.a.

Thestrongestperformersintermsofsharepricereturns

wereAlibabaGroup(82.4%),PhilipMorris(77.1%)and

CharterCommunications(24.1%),primarilydrivenbya

combinationofunderlyingcompanyoperatingresultsand

improvedexpectationsforfuturegrowthprospects.Alibaba

Group’sperformancefollowedgrowthinitsdomesticand

internationale-commercebusinessesandanexpansionin

cloudcomputingrevenues,coupledwitheconomicstimulus

measuresinChinawhichboostedinvestorconfidence.

PhillipMorris’smoke-freeproductscontinuetogrow

stronglywithnetrevenuesupover20%fromtheprioryear.

Charterremainswellpositionedtobenefitfromrobustfree

cashflowgrowthascapexdiminishes,particularlyinthe

wirelessmarket.GainsacrosstheCapitalportfoliowere

partiallyoffsetbynegativecontributionsprimarilyfrom

CrodaInternational(-39.7%)andSpiraxSarco(-36.8%)due

tooperationaldeleveragingamiddemandheadwindsin

theirendmarkets.However,weremainconfidentinthe

longer-termprospectsofboth.

Investment activity

uringtheyear,theportfolioinitiatedanewpositionin

PoolCorp,aleadingUSdistributorofswimmingpools

andrelatedoutdoorlivingproductsandsolditsholding

inBritishAmericanTobacco.Followingaperiodofstrong

sharepriceappreciation,theportfoliocrystalisedgains

onaportionofitsholdingsinFastenal,OracleandWatsco.

Otherthanthistradingactivityremainedtargetedwith

refinedpositionsinanumberofexistinginvestments.

Capital portfolio

Significant portfolio investments

Name Business Geography

First

invested

Value

£m

Portfolio

Return

Microsoft Software US 2014 73.6 10.5 (12.1)

Oracle Software US 2014 72.3 10.4 15.7

PhilipMorris Tobaccoandsmoke-freeproducts US 2016 64.8 9.3 77.1

Watsco Ventilationproducts US 2017 58.4 8.4 19.1

TexasInstruments Semiconductors US 2018 46.5 6.7 3.6

Charter Communications Cable communications US 2017 40.4 5.8 24.1

ThermoFisherScientific Pharmaandlifesciencesservices US 2015 38.7 5.5 (15.9)

Moody'sCorporation Financialservices US 2022 38.3 5.5 16.8

Hill & Smith Infrastructure UK 2011 35.6 5.1 (5.9)

PoolCorp Poolservices US 2024 31.9 4.6 (6.6)

SpiraxSarco Steam engineering UK 2011 31.0 4.4 (36.8)

AlibabaGroup E-commerce Asia 2021 28.5 4.1 82.4

Fastenal IndustrialSupplies US 2020 27.8 4.0 2.4

Other 110.1 15.7

697.9 100.0 3.6

10%

15%

20%

1 year 3 years 5 years 10 years

13%

10%

Annualised portfolio returns - Capital

Opening

value

Investments Realisations Investment

income

received

Closing

value

Total

return

698.2

58.4

(70.8)

(12.5)

24.6 697.9

Portfolio movements (£m) - Capital

“We invest in high quality

companies with strong market

fundamentals and resilient

cashflows. The portfolio is well

positioned to withstand short-term

market volatility, which we believe

does not materially impact the long-

term value we see in the businesses

we own.”

Alan Murran

Co-Headof

PublicCompanies

Moody's case study

Turn to page 31

Strategic report

Corporate governance

Financial statements Other information

Introduction

Public Companies (continued)

Performance

TheIncomeportfoliowasvaluedat£266.9mand

generatedareturnof8.0%intheyear.Thehigher

weightingtomoredefensivecompaniespartially

shieldeditsperformancefromthevolatilityinequity

marketsduringMarch2025.LiketheCapitalportfolio,

itisconcentrated,comprising17holdings.Including

theimpactofforeignexchange,overthelast10years

theIncomeportfoliohasdeliveredannualisedreturns

of4.6%p.a.

ThestrongestperformerswerePhilipMorris(77.1%),

BritishAmericanTobacco('BAT')(43.2%),Unilever(21.0%)

andSage(20.1%).WhileBAT'ssmoke-freebusinessisnot

aswelldevelopedasthatofPhilipMorris,itcontinuesto

makeprogresswhilepayinganattractivedividend.Both

UnileverandSagecontinuedtoexecutewellagainsttheir

statedstrategies.

Gainswerepartiallyoffsetbyweakershareprice

performancesfromCrodaInternational(-38.8%)and

Diageo(-28.6%).Bothcompanieshavesufferedfrom

anextendedperiodofpostpandemicnormalisationin

theirendmarketscharacterisedbydestockingandsofter

demandconditions.However,weremainpositiveontheir

longer-termprospects.

Investment activity

Duringtheyear,theportfolioinitiatedthreenewpositions:

Sage,aleadingaccounting,HRandpayrollsoftware

providertoSMEs;Howdens,theUK’sleadingtradekitchen

supplier;andCrodaInternational,thespecialitychemicals

company,whichisalsoheldintheCapitalportfolio.

TheportfolioexitedpositionsinDSSmith,followingthe

announcementoftheagreedofferfromInternational

Paper,togetherwithPennonGroupandReckittBenckiser.

Income portfolio

Significant portfolio investments

Name Business Geography

First

invested

Value

£m

Portfolio

Return

PhilipMorris Tobacco&smoke-freeproducts US 2021 25.3 9.5 77.1

NationalGrid Electricity UK 2015 20.9 7.8 9.5

Unilever Consumergoods UK 2019 18.9 7.1 21.0

Fortis Utilities US 2020 18.5 6.9 16.2

Watsco Ventilationproducts US 2020 18.2 6.8 19.9

Relx Research & consulting UK 2023 18.2 6.8 15.1

TexasInstruments Semiconductors US 2020 17.7 6.6 3.6

SGS Testing&certification Europe 2020 16.8 6.3 2.6

SageGroup Software UK 2024 16.6 6.2 20.1

Fastenal Industrialsupplies US 2020 15.4 5.8 0.1

Diageo Alcoholicdrinks UK 2020 13.9 5.2 (28.6)

OtherInvestments 66.5 25.0

266.9 100.0 8.0

“This strategy offers a resilient

and growing income stream.

The quality focus and defensive

bias delivered a strong result for

the year and in an increasingly

uncertain environment these

companies continue to provide

robust cashflows.”

Ben Archer

Co-Headof

PublicCompanies

10%

1 year 3 years 5 years 10 years

Annualised portfolio returns - Income

Opening

value

Investments Realisations Investment

income

received

Closing

value

Total

return

251.7

48.4

(43.4)

(9.3)

19.5 266.9

Portfolio movements (£m) - Income

Fastenal case study

Turn to page 7

30 Caledonia Investments plc Annual Report 2025

Case study

Leading global provider of credit ratings and

risk management solutions.

£25m

Weighted average cost

17% p.a.

Return since initial

investment (£)

2022

Date of initial investment

$64bn

Market capitalisation

Financial

services

Sector

£38m

Valuation at 31 March 25

Original investment thesis

•Strongpricingpowerunderpinnedbycompellingcustomervalueproposition

•Attractivere-investmentopportunitiesacrosstheanalyticsbusiness

•Lowcapitalrequirementsandconservativelymanaged

CaledoniabuiltapositionintheCapitalportfoliooverMarchtoOctober2022,followinga

c.40%sharepricedeclineduetomarketconcernsregardingdebtissuanceamidasharp

FederalReservetighteningcycleandRussia'sinvasionofUkraine.

SincethattimeMoody'shasincreasedrevenuesfrom$5.4bnto$7.3bn(CAGR15.5%),

reportedanEBITCAGRof28.2%andsubstantialEBITmarginexpansionof788bpsto42.4%.

Overthesameperiod,thesharepricehasnearlydoubled,reportinganannualisedtotal

returnof17%,includingdividendsof£0.7m.

100

200

300

400

500

600

Sep 21

Nov 21

Jan 22

Mar 22

May 22

Jul 22

Sep 22

Nov 22

Jan 23

Mar 23

May 23

Jul 23

Sep 23

Nov 23

Jan 24

Mar 24

May 24

Jul 24

Sep 24

Nov 24

Jan 25

Mar 25

Initial investment at $314

Various top-ups

17% annualised return (£)

Share price (US$)

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Private Capital

Strategy

ThePrivateCapitalpoolcomprisesasmallnumber

ofdirectinvestmentholdingsinprivatecompanies,

predominantlyintheUKmid-market.Webuy-to-own,

focusingoncashgenerativebusinesseswithstronggrowth

potentialandfavourablemarketdynamics.Wetypically

invest£50mto£150mineachcompanyusinglowlevels

ofleverage,providinglong-termcapitalalongwith

operationalandstrategicsupporttoportfoliocompany

managementteams.Unlikemanyprivateequityfirms,as

abalancesheetinvestor,wearenotconstrainedbythe

finitelifeofaprivateequityfund.Thisallowsustocreate

fundamentalvalueoverthemediumtolongtermallowing

ustoexitonlywhenthetimeisrighttomaximisevaluefor

shareholders.Frominvestmentsmadesince2012,the

strategyhasreturned£1.1bnofrealisedproceedsat

anIRRof17%andamultipleof1.8xcost.

Performance

At31March2025,thePrivateCapitalportfolioconsisted

ofeightcompanies,withfiveinvestmentsrepresenting

over90%ofvalue.

Theportfoliowasvaluedat£870.7mandgenerateda

returnof3.7%,drivenbygoodoperationalperformance

fromStonehageFlemingandAIR-servEurope.Thiswas

partiallyoffsetbyareductioninthevalueofour

investmentinCookeOptics.Includingtheimpactof

foreignexchange,overthelast10yearsthePrivateCapital

poolhasdeliveredanannualisedreturnof12.4%p.a.

Themajorityoftheportfolioisvaluedonanearnings

multiplebasis,withthesemultiplesintherangeof10

to14.5timeslast12months’earningsbeforeinterest,

tax,depreciationandamortisation(‘LTMEBITDA’).

Gearinglevelsarelow,withnetdebttypicallyinthe

rangeof2to2.5timesLTMEBITDA.

Concentrating on mid-market

companies, we focus on delivering

enduring value in the shape of

capital growth and a current yield

throughout the business cycle.

“We seek to invest in high-quality,

well-established UK centric

businesses, with a mid-market

focus. We provide a whole eco-

system of support to our portfolio

companies, be that through M&A,

establishing governance structures

or supporting their data and digital

strategies. This, along with our

buy-to-own, rather than buy-to-sell,

philosophy differentiates us from

other private equity managers.”

Tom Leader

HeadofPrivate

Capital

Annualised pool returns - Private Capital

10%

20%

30%

1 year 3 years

5 years

10 years

19%

12%

Opening

value

Investments Realisations Investment

income

received

Closing

value

Total

return

820.3

83.7

(48.6)

(15.3)

30.6 870.7

Portfolio movements (£m) - Private Capital

Geography by

revenue generation

UK&ChannelIslands 60%

Europe 30%

NorthAmerica 4%

Othercountries 3%

Asia 3%

Sector

Industrials

 43%

Financials 26%

Consumerdiscretionary 21%

Materials 3%

Healthcare 2%

Consumerstaples 2%

Othersectors 2%

Informationtechnology 1%

1.IncludesAIR-servEurope,DTM

andCookeOptics

32 Caledonia Investments plc Annual Report 2025

Investment activity

Weinvestedatotalof£68.7mduringtheperiod,primarily

our£55.0macquisitionofDTMinAugust2024.We

receivedproceedsof£33.6mfromthesaleofBloom

EngineeringinDecember2024,atanupliftof42.5%to

the31March2024carryingvalue.

Portfolio summary

StonehageFleming,theinternationalmulti-familyoffice,

continuestodeliverstrongorganicgrowthacrosseachof

theFamilyOffice,InvestmentManagementandFinancial

Servicesbusinesses,withrevenueincreasingbyover10%

duringthelast12months.Thevaluationat31March2025

was£221.4m,areturnof32.1%fortheyear.

AIR-servEurope,isaleadingdesignerandmanufacturerof

air,vacuumandjetwashmachines,whichitprovidestofuel

stationforecourtoperatorsacrosstheUKandWestern

Europe.Thebusinesshasc.60%marketshare,withc.23,000

machinesinstalledatover15,000customerlocations.Ithas

performedwellsinceacquisition,reportinggoodyear-on-

yeargrowth.AIR-servEuropecontinuestotradeaheadof

expectationsandwereceivedourfirstdividendof£6.2m

intheyear.Thevaluationat31March2025was£197.7m,

areturnof20.0%fortheyear.

Cobepa,theBelgianbasedinvestmentcompany,ownsa

diverseportfolioof18privateglobalinvestments.The

majorityofthebusinesseswithintheCobepaportfolio

continuetomakeprogress.Thevaluationat31March2025

was£192.7m,areturnof7.8%(10.0%inlocalcurrency)

fortheyear.

ButcombeGroup(formerlyLiberationGroup),isaninnsand

drinksbusinesswithanestateof69managedand50

tenantedpubs,stretchingfromSouthwestLondontoBristol

andtheChannelIslands.Tradingperformancehasimproved

acrossallthreebusinessunits,withyear-on-yearprofits

increasing.TheoptimisationoftheCirrusInnsbusiness,

acquiredinDecember2022,isalsodeliveringgoodresults.

Despitethisimprovedtrading,theUKoperationswillbe

impactedbytheChancellor’sincreasetobothNational

InsuranceandNationalMinimumWage,accordinglythe

valuationat31March2025wasbroadlyinlinewith31

March2024at£136.5m,areturnof0.9%fortheyear.

DTM,theUK'sleadingindependentproviderofoutsourced

tyremanagementservicestofleetoperators,wasacquired

inAugust2024.HeadquarteredinBlackpool,DTMhasover

100employeesandservesc.250fleetcustomerswith

c.285,000vehiclesandc.1.3milliontyresunder

management.Enabledbyaproprietarytechnology

platform,whichallowscustomerstomaximisetheirfleet

efficiency,complianceandoutput,DTMconnectsthe

vehiclesitmanagestoanationalnetworkofover3,500

serviceproviderlocations.Overthelast15years,DTMhas

consistentlydeliveredyear-on-yeargrowthwitharevenue

CAGRofc.15%.Sinceacquisitionwehaveappointedanew

Chairtosupportthemanagementteamandhaverecruited

aChiefRevenueOfficer,whobringsextensiveindustry

experienceandwillfurtherstrengthenthesalesfunction.

Thevaluationhasbeenmaintainedattheequitypurchase

costof£55.0m.

CookeOptics,aleadingmanufacturerofcinematography

lenses,continuestobeheavilyimpactedbythe

repercussionsfromtheHollywoodstrikesin2023.These

disputeswereresolvedlaterthatyear,howeverrecovery

inthecinematographymarkethasbeenslowanditisclear

thatitwilltakelongerthanpreviouslyanticipatedforthe

industrytorecovertopre-strikelevels.Aspreviously

reported,wehavereflectedamoreconservativeoutcome

ofthetimingandlevelofthisrecoveryinthevaluationat

31March2025of£44.1m,areductionof63.2%forthe

period.Cookehasnothird-partydebt.Duringtheyear,

followingacomprehensiveexecutivesearch,anewCEO

joinedthebusinessinJanuary2025.Wehavebeen

working closely with the management team as they

navigatethroughthischallengingperiod.

Wehaveassessedtheportfolioagainstthebackdropof

possibleglobaltariffincreasesand,whilethesituation

remainsvolatile,wedonotbelieveanyofthecompanies

willbemateriallyimpacted,whetherdirectlyorindirectly.

Noneareexposedinawaywhichwouldthreatentheir

viabilityorliquidityposition.Themostsignificantriskisthat

tariffincreasesresultinageneraleconomicandcapital

marketsdownturn.

Significant pool investments

Name Business Geography

First

invested

Value

£m

Pool

Return

Stonehage Fleming Familyofficeservices ChannelIslands 2019 221.4 25.4 32.1

AIR-servEurope Forecourtvending UK 2023 197.7 22.7 20.0

Cobepa Investmentcompany Europe 2004 192.7 22.1 7.8

ButcombeGroup Pubs,bars&inns ChannelIslands 2016 136.5 15.7 0.9

DirectTyreManagement Tyremanagementservices UK 2024 55.0 6.3 0.6

CookeOptics Cine lens manufacturer UK 2018 44.1 5.1 (63.2)

Other 23.3 2.7

870.7 100.0 3.7

DTM Case study

Turn to page 9

Stonehage Fleming case study

Turn to page 34

Strategic report

Corporate governance

Financial statements Other information

Introduction

Case study

A leading independent global

multi-family office.

£89m

Cost

18%

IRR

2019

Date of initial investment

Financial

Services

Sector

£221m

Valuation at 31 March 25

Investment thesis

• Attractive long-term growth dynamics

• Geographic and product-based acquisition strategy

• Significant investment in technology platform and people

Formedin2015throughthemergerofStonehageGroupandFlemingFamily&Partners,

StonehageFlemingisaleadingindependentmulti-familyofficeandultra-highnetworth

wealthmanager.In2018,StonehageFleming’sshareholderssoughttoidentifyalongterm

financialinvestorwithasimilarethosandheritagetothebusiness,andCaledoniainvested

inthebusinessinJuly2019.

Ourinvestmentthesiswascentredonbuildingscale,internationalreachandadditional

servicestobeabletoservicethefast-growingultra-highnetworthmarketwitha

comprehensiveindependentserviceofferingfromaglobalfootprint.Sinceacquiringour

stakeinthebusinessithasdeliveredstrongorganicandinorganicgrowth,including

completingthreeacquisitions,whichhaveaddedAUMandgeographicscaletothe

business.Since2019,thebusinesshasgrownintothelargestindependentmulti-family

officeinEMEA,with20officesin14countriesanditisinvolvedinthemanagement,

fiduciaryoversightandadministrationofassetsofUS$170billion.

Private Capital (continued)

Invested cost

Capital gain

Cumulative dividends

116

145

150

179

Mar 20 Mar 21 Mar 22 Mar 23 Mar 24 Mar 25

234

Returns track record

34 Caledonia Investments plc Annual Report 2025

“With the long-term backing

of the Cayzer family, Caledonia

was ideally placed to

understand the values and

heritage of Stonehage Fleming

and the many clients we serve

around the world.”

Giuseppe Ciucci

ExecutiveChair

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Annualised pool returns - Funds

Funds

We seek diversified fund holdings

in private capital that provide long-

term returns in geographic markets

that counterbalance our quoted

equity and UK-centric private

capital investments.

Strategy

WeinvestinfundsoperatinginNorthAmericaandAsia

withabiastobuyouts.Thepoolprovidesattractive

diversification,investingin80fundsmanagedby45

managers,withanunderlyingportfolioofover600

companiesinourdirectlyheldfunds,acrossawide

rangeofsectorsandcompanysizes.

TheNorthAmericabasedfunds,whichrepresent63%of

theFundspool(19%ofCaledonia’sNAV),investintothe

lowermid-market,withafocusonsmalltomediumsized,

oftenowner-managed,establishedbusinesses.These

fundsregularlyprovidethefirstinstitutionalinvestment

intothesebusinesses,andsupporttheirprofessionalisation

andgrowth,bothorganicallyandthroughM&Aactivity.

Realisationsaretypicallythroughtradesalesortoother,

largerprivateequityfunds.TheNorthAmericaholdings

areacombinationofdirectlyownedfunds(52%ofFunds

pool),fundoffundsinvestments(9%ofFundspool)and

quotedfunds(2%ofFundspool).

OurAsiafundsrepresent37%oftheFundspool(11%of

Caledonia’sNAV)investingacrossawiderangeofsectors,

whicharesettobenefitfromwiderdemographictrends,

suchashealthcareandtechnology.Thefundstypically

investinbusinesseswhichhavesuccessfullydeveloped

theirbusinessmodelandareintheearlyyearsof

significantgrowth.Whilstfocusedonlocalmarkets,asmall

number,particularlythosewithahealthcarefocus,also

investintotheUS.Thepoolisacombinationofdirectly

ownedfunds(20%ofFundspool)withthebalance(17%

ofFundspool)investedwithAsiaAlternatives,Axiomand

Unicorn,allfundoffundsproviders.

“Although no portfolio is immune

to geopolitical and macroeconomic

headwinds, we believe our

diversified portfolio is well-

positioned to navigate the ongoing

uncertainty around US trade policy

and its global implications. Our

North America portfolio, focused on

the lower mid-market, is composed

of resilient businesses with limited

exposure to international trade

flows. Likewise, our Asia holdings

are predominantly focused on

domestic markets and supply

chains.”

Jamie Cayzer-Colvin

HeadofFunds

Geography by region

N.America 63%

Asia 37%

By strategy

N.Americabuyout 52%

N.Americafundoffunds 9%

N.Americaother 2%

Asiaventureandgrowth 20%

Asiafundoffunds 17%

10%

15%

20%

Over 1 year Over 3 years

Over 5 years

Over 10 years

17%

13%

Opening

value

Investments Realisations Investment

income

received

Closing

value

Total

return

926.3

129.8

(173.6)

(4.4)

19.2 897.3

Portfolio movements (£m) - Funds

De Cheng Capital case study

Turn to page 11

KLH Capital case study

Turn to page 38

36 Caledonia Investments plc Annual Report 2025

Performance

At31March2025,thepoolwasvaluedat£897.3m,

comprising£565.7mofNorthAmericafunds,£328.7mof

Asiafundsand£2.9moflegacyfundinvestments.Thepool

generatedatotalreturnof2.2%(4.6%inlocalcurrencies)

drivenbycontinuedpositiveperformancefromourNorth

Americaholdings(8.4%inlocalcurrency)partiallyoffsetby

thedeclineinthevalueofourAsiaholdings(-1.6%inlocal

currency)reflectingthemorechallengingmarketconditions

intheregion.Includingtheimpactofforeignexchange,over

thelast10years,theFundspoolhasdeliveredannualised

returnsof13.3%p.a.

LookingattheperformancedriversinourNorthAmerica

primaryfundprogramme,alongsideimprovedrealisation

activity,robustoperatingperformancecontinuedtobeakey

driverofreturns.Thatsaid,noportfolioisimmuneto

geopoliticalandmacroeconomicheadwinds,butwebelieve

ourdiversifiedportfolioiswell-positionedtonavigatethe

ongoinguncertaintyaroundUStradepolicyanditsglobal

implications.OurNorthAmericaportfolio,focusedonthe

lowermid-market,iscomposedofresilientbusinesseswith

limitedexposuretointernationaltradeflows.Whilstthe

underlyingcompaniesarefundamentallysound,our

managersanticipateamoremoderateddistributionprofile

inthenear-termascompaniesassessthedurationand

economicimpactoftheannouncedUStradepolicy.

Likewise,ourmanagersanticipatethatnewinvestment

activitymayalsobeimpacted,andfunddrawdownsmaybe

moderatedduringtheperiodofuncertainty.

WithinourAsiaportfolio,webelieveunderlyingportfolios

arewellpositioned,benefittingfromselectiveexposureto

high-growthsectors.However,valuationshavecontinuedto

beimpactedbytheweaknessinlocalpublicmarkets,the

operatingenvironmentandreducedattractivenessof

foreignpublicmarketsforIPOs.InAsiawehaveseenan

increaseinthelevelofdistributionsfrom2024,albeitthe

paceofdistributionshasyettorecovertothepeakof2021.

Giventhecontinueduncertaintyinthemacroenvironment,

alongsidetheearlierstagefocusofourAsiafundholdings,

weexpectthepaceofdistributionstotakelongertoreturn

tonormallevels.SimilartoourNorthAmericaportfolio,

ourAsiaholdingsarepredominantlyfocusedondomestic

marketsandsupplychains.

Investment activity

Overall,theFundspoolgeneratednetcashof£43.8min

theyear.Drawdownstotalled£129.8m,with80%

deployedintoNorthAmericafundsandthebalanceinto

Asiafunds.Distributionstotalled£173.6mwith65%

distributedfromtheNorthAmericaportfolio.Included

withindistributionsof£173.6m,is£19.0mfroma

secondarysaleofanAsiafund.

Portfolio maturity

Ourprimaryfundsportfoliohasaweightedaverageage

ofapproximately4.3years(31March2024:4.3years).

TheweightedaverageageofourNorthAmericaholdings

is4.0years(31March2024:4.0years),withinthewindow

ofafourtosixyearholdingperiodtypicallytargetedby

ourmanagers.GiventheearlierstagefocusofourAsia

portfoliotheweightedaverageageoftheseholdingsis

4.9years(31March2024:5.1years).

Portfolio maturity (excluding funds of funds)

<1year 12%

1-3years 21%

3-5years 32%

5-7years

 20%

7yearsplus 15%

Uncalled commitments

At31March2025,uncalledcommitmentswere£415.9m

(2024:£377.0m),73%toNorthAmericaand27%toAsia.

Duringtheyear,US$200mwascommitted:US$180mto

NorthAmericalowermid-marketbuyoutfundsand

US$20mtoanexistingfundmanagerintheAsiaportfolio.

Significant manager exposure

Name Business Geography

First

invested

Value

£m

Pool

Return

HighVista Strategies Fundsoffunds US 2013 99.9 11.1 (9.8)

AxiomAsiafunds Fundsoffunds Asia 2012 73.4 8.2 (4.6)

DeChengfunds Privateequityfunds Asia 2015 58.5 6.5 (12.6)

Unicornfunds Fundsoffunds Asia 2018 39.9 4.4 (5.0)

AsiaAlternativesfunds Fundsoffunds Asia 2012 38.2 4.3 (4.2)

Boynefunds Privateequityfunds US 2017 33.4 3.7 51.3

AEIndustrialfunds Privateequityfunds US 2018 29.0 3.2 39.0

Stonepeakfunds Privateequityfunds US 2015 28.6 3.2 (10.2)

Otherinvestments 496.4 55.4

897.3 100.0 2.2

Funds

Strategic report

Corporate governance

Financial statements Other information

Introduction

Funds (continued)Funds (continued)

Case study

$20m-$125m

Enterprise value

$10m-$60m

Total equity investment

$20m+

Revenue

8-12

Platform investments per fund

$5m+

EBITDA

1-3

Investments per annum

Founded in 2005, KLH Capital pursue value-oriented investments

in small companies in the specialty services, value-added

distribution and niche manufacturing sectors.

Typically KLH will be the first institutional capital into closely-

held or family-owned businesses who roll meaningful equity.

They look to invest in businesses with stable earnings, consistent

profitability and a sustainable competitive advantage, where they

can improve operations post-transaction.

Target company criteria

Portfolio company snapshots

D&H United Fueling Solutions –LeadingsupplierofpetroleumfuellingandEVcharging

equipment,installationandserviceacrosstheUnitedStates.SoldinSeptember2022.

Jackson Infrastructure –Leadingutilityandinfrastructureserviceprovidertothe

telecom,power,gasandotherinfrastructuremarkets.

Marek Sawing & Drilling –Leadingfieldservicesproviderofsawing,drilling,

demolitionandconcreteplacementforthemaintenanceandretrofitofcritical

assetsandinfrastructure.

Caledonia’s commitment

CaledoniafirstcommittedtoKLHCapitalin2019andmadeafollow-oncommitmentto

FundVin2022.

CaledoniaservesontheLimitedPartneradvisoryboardforKLHIVandKLHV.

Fund name KLHIV KLHV

Vintage year 2019 2023

Fund size $209m $412m

Caledonia’s Commitment $27.5m $30m

38 Caledonia Investments plc Annual Report 2025

“The lower mid-market is

central to our North America

strategy, and we've cultivated

a successful relationship with

KLH Capital over their last

two funds.”

Eloise Fox

Director,Funds

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Financial review

Rob Memmott

ChiefFinancialOfficer

Caledoniaendedtheyearwithnetassetsof£2,932m

(5,475ppershare)(2024:£2,965m;5,369ppershare),

deliveringareturnof3.3%fortheyear.TheNAV

performancereflectsgenerallygoodoperating

performanceoffsetbyrecentequitymarketvolatility

andforeignexchangemovements.Ourportfolioof

high-qualitycompaniescoupledwithourlong-term

philosophy,positionsuswelltonavigateuncertainty

anddeliverlong-termrealreturns.

OurannualisedNAVTRover10yearsis9.0%,with5.8%

and2.8%respectiveoutperformanceofinflationand

theFTSE-AllShareindexoverthesameperiod.

Change in net assets

Total comprehensive income

Thecompanyseekstogeneratetotalprofitsfromboth

investmentincomeandcapitalgrowth.Fortheyear

ended31March2025,thetotalcomprehensiveincome

was£66.9m(2024:£203.4m),ofwhich£30.9m(2024:

£40.5m)derivedfromrevenueand£36.0m(2024:

£162.9m)fromcapital.

3,100

3,000

2,900

2,800

2,700

3,032.75.5

2,931.6(62.7)

(38.4)

£m

Net

investment

gains

Opening

value

Portfolio

investment

income

FX Management

expenses

Other Dividends

paid

buybacks

Closing

value

NAV

before

dividends

and buybacks

(32.0)

(42.2)

43.7

Total return: £93.9m

92.4

2,965.3

£m

31Mar

2024 Investments Realisations

Investment

income

Total

return

31Mar

2025

Totalinvestmentportfolio 2,696.4 320.3 (336.4) (41.5) 93.9 2,732.7

Otherinvestments

18.0 – (0.8) (9.0) 2.7 10.9

Total investments

2,714.4 320.3 (337.2) (50.5) 96.6 2,743.6

Net cash 227.4 – – 151.3

Othernet(liabilities)/assets 23.5 – – 36.7

Net assets 2,965.3 – – 2,931.6

Summary balance sheet

Our robust balance sheet has no

structural leverage. With total

liquidity of £476m we are well

positioned to take advantage

of investment opportunities.

1.Otherinvestmentscompriselegacyinvestments,cash,receivablesanddeferredtaxliabilityinsubsidiaryinvestmententities.

offinancialpositionandwasrealisedduringtheyearto31March2025.

3.Investmentincomeisnetofthemovementinaccruedincomeof£2.2m.

40 Caledonia Investments plc Annual Report 2025

Revenue performance

Totalcomprehensiveincomewas£30.9m(2024:£40.5m),

adecreaseof£9.6m,drivenbya£5.7mreductionin

investmentincomefromnon-consolidatedintra-group

entities,£2.9mofnon-recurringotherexpenseswhich

includesprofessionalfeesinrelationtotheRule9Waiver

announcedinNovember2024,offsetbyhighernet

financeincome.

Investmentincomeintheyeartotalled£43.7m,£3.4m

lowerthantheprioryear.IncomefromthePublic

Companiespoolremainedstableat£21.8m(2024:

£21.8m).InvestmentincomefromthePrivateCapital

poolwas£17.5m,£4.2mlowerthantheprioryearwhich

includedapre-completiondividendof£5.6mfromthesale

of7IM.InvestmentincomefromtheFundspoolwas

£4.4m(2024:£3.6m).

Investmentincomefromotherinvestmentstotalled

£9.0mrepresentingadistributionpaidbyanintra-group

non-consolidatedentityfromtradingreserves.

Thecompany'srevenuemanagementexpenseswere

£3.0mhigherthanlastyearat£25.9m(2024:£22.9m),

reflectinghigherpersonnelexpensesof£2.5m,largely

duetoanincreaseintheaveragenumberofemployees.

Therewasalsoanincreaseinothercosts,drivenbylegal,

professionalandcommunicationexpenditure,aswellas

anincreaseinnon-recoverableindirecttaxes.

Ongoing charges

Ourongoingchargesratiofortheyearwas0.87%

(2024:0.81%).Theongoingchargesratioiscalculated

onanindustrystandardbasis,comprisingpublished

managementexpensesoverthemonthlyaverage

netassets.

Capital performance

Totalcomprehensiveincomewas£36.0m(2024:£162.9m).

Themovementcomparedtolastyearispredominantly

duetothelowerlevelsofcapitalgainsachievedfrom

ourinvestments.

Netfairvaluegainsfromtheportfoliowere£50.2m(2024:

£185.3m),andtogetherwithportfolioinvestmentincome,

asdescribedabove,of£43.7m(2024:£47.1m)generateda

totalreturnof£93.9m(2024:£232.4m),or3.5%.Foreign

exchangedetractedfromperformance,with53%ofour

NAVdenominatedinUSdollars,predominantlythe2.2%

strengtheningofSterlingagainsttheUSdollarresultedin

a£42.2mlossacrossourinvestmentpools.

Therewasareductionof£1.3monproperty(2024:£3.9m

reduction)reflectinghigheryieldsoncommercialproperties.

Thecompany’scapitalmanagementexpensesrelatingto

performanceawardswere£5.8m(2024:£8.3m).

Transactioncostsof£0.3m(2024:£0.1m)wereincurred,

mainlylinkedtoduediligenceworkonnewprivateequity

andfundinvestments.

31Mar2025 31Mar2024

£m Revenue Capital Total Revenue Capital Total

Investmentincome-portfolio

43.7 - 43.7 47.1 - 47.1

Netgainsonfairvalueinvestments-portfolio

- 50.2 50.2 - 185.3 185.3

Total return 43.7 50.2 93.9 47.1 185.3 232.4

Investmentincome-otherinvestments

9.0 - 9.0 14.7 - 14.7

Netlossesonfairvalueinvestments-otherinvestments

- (6.3) (6.3) - (10.9) (10.9)

Netlossesonfairvalueproperty - (1.3) (1.3) - (3.9) (3.9)

Otherincome 0.9 0.4 1.3 0.9 0.6 1.5

Total net investment income 53.6 43.0 96.6 62.7 171.1 233.8

-ongoingmanagement (25.9) - (25.9) (22.9) - (22.9)

-performanceawards

- (5.8) (5.8) - (8.3) (8.3)

-transactioncosts - (0.3) (0.3) - (0.1) (0.1)

-exchangemovementsandother (1.3) - (1.3) (0.7) - (0.7)

-otherexpenses(non-recurring) (2.9) - (2.9) - - -

-othertransactionswithintra-group(non-consolidated)entities

- - - (0.2) - (0.2)

Net finance costs 6.4 - 6.4 (0.2) - (0.2)

Taxationandother 1.0 (0.9) 0.1 1.8 0.2 2.0

Total comprehensive income 30.9 36.0 66.9 40.5 162.9 203.4

Income statement

1.Totalinvestmentincomefromtheportfolioandotherinvestments£52.7m(2024:£61.8m).

2.Totalnetgains/(losses)onfairvalueinvestmentsfromtheportfolioandotherinvestments£43.9m(2024:£174.4m).

3.Performanceawardsof£5.8mincludes£0.5mofcostsrechargedtoanintra-group(non-consolidated)entity.

4.Othertransactionswithintra-group(non-consolidated)entitiesintheyearto31March2024includesa£7.2mforeignexchangegainonanintra-grouploan

facilityanda£7.2minterestexpenseontheintra-grouploanfacilitywhichisreflectedinfinancecostsintheGroupstatementofcomprehensiveincome.

Theloantothenon-consolidatedsubsidiarywasfullyrepaidat31March2024.

CaledoniaallocatesexpensesbetweenrevenueandcapitalinaccordancewithguidancefromtheAssociationofInvestmentCompaniesandbroadermarket

practice.Inadditiontotransactioncosts,share-basedpaymentexpensesareallocatedtocapital.Caledonia'sshare-basedcompensationisdirectlylinkedto

investmentperformanceandisthereforeviewedasanexpenseagainstgainsoninvestments.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Financial review (continued)

Valuation

Thecompanymaintainsaconsideredvaluationapproach

toallinvestments,applyingcautioninexercising

judgementandmakingthenecessaryestimates.

Alllistedinvestmentsarevaluedbasedontheclosing

bidpriceontherelevantexchangeasat31March2025.

PrivateCapitalinvestmentsarevaluedbiannually,

principallyonanormalisedEBITDA/marketmultiplebasis,

inlinewiththelatestIPEVguidelines.Ourholdingin

Cobepaisderivedfromthevaluationitprepares.The

Fundspoolvaluationsarebasedonthemostrecent

valuationsprovidedbythefundmanagers,subjectto

cashmovementsfromthevaluationdate.Withinour

Fundspool,wealsoreviewedtheunderlyingvaluation

methodologiesadoptedbyourfundmanagersandwere

satisfiedthatthetechniquesutilisedwereappropriate.

TheNAVoftheFundspoolcomprised1.3%basedon

valuationsdated31March2025,1.6%dated28February

2025,67.0%dated31December2024,30.0%,mostly

fundsoffundsholdings,dated30September2024and

0.1%at30June2024.Inaddition,wereviewedthe

valuationstoensureanytrendsorcompanyspecificissues

wereappropriatelyreflected.Thisincludedathorough

reviewofthepotentialimpactoftradetariffs.

Thefollowingtablesummarisesthesourceofvaluations

acrosstheportfolio,illustratingthat75%oftheportfolio

valueissubjecttoeithermarketpricesorindependent

externalvaluation.

Pool assets by valuation method

Quotedprice 35%

FundNAV

 40%

Earnings 25%

Dividend

Werecognisethatareliablesourceofgrowingdividends

isanimportantpartofshareholderreturnoverboththe

shortandlongertermandhaveextendedourrecordof

growingannualdividendsto58consecutiveyears.Wepaid

aninterimdividendof19.69ppershareon9January2025

andhaveproposedafinaldividendof53.91ppershare.

Thetotalannualdividendfortheyearof73.6ppershare

isanincreaseof4.5%onlastyear.

Includingtheproposedfinaldividend,thedividendstobe

paidoutofrevenueearningsfortheyearended31March

2025total£39.0m,whichiscoveredbynetrevenueforthe

yearof£30.9mandthenetcashinflowof£43.8mfrom

ourFundspool.

AsdiscussedintheChair'sandCEO'sstatements,we

willbeincreasingtheinterimdividendto50%ofthe

prioryear'stotalannualdividend,whichwillprovide

shareholderswithamorebalanceddividendpayment

profileandmorepredictableincomestream.

Capital allocation

Prudentanddisciplinedmanagementofourbalancesheet

iskeytoitscontinuedstrengthandtoensureanefficient

allocationofcapital.Toensurethatwemaintaina

balancedportfolio,eachofourinvestmentpoolshas

astrategicallocationrange.At31March2025,allof

ourinvestmentpoolswerewithintheirstrategic

allocationrange.

Alongsideallocationtoourinvestmentstrategies,weare

committedtoourdividendpolicyand,whenappropriate,

sharebuybacks.Followingshareholderapprovalforan

uncappedRule9WaiverinDecember2024,weincreased

ourcapacityforbuybacks.Overthecourseoftheyear,

weallocated£62.7mtosharebuybacks,purchasingand

cancelling1,729,061sharesatanaveragediscountof

33.7%,resultingina59.2paccretiontoNAVpershare.

1. IncludesPrivateCapital

investmentinCobepa

42 Caledonia Investments plc Annual Report 2025

Cash flows, liquidity and facilities

Duringtheyear,weperformedenhancedmodelling

andstresstesting,whichnotonlyinformedourcapital

allocationbutalsosupportedourcreditfacilityrenewal.

InSeptember2024,thecompanyenteredintoanew

revolvingcreditfacilityof£325mwiththreebankson

improvedterms.Thefacilitycomprises£150movera

five-yeartermexpiringinAugust2029and£175mover

athreeyeartermexpiringinAugust2027.Thefacility

increasestheavailableresourcesby£75mandprovides

thecompanywithenhancedliquidityandflexibilityto

supportlongterminvestment.

Movement in net cash £m

At31March2025,totalliquidityofcashandundrawn

facilitieswas£476.3m,comprisingof£151.3mofcash

and£325mofundrawnfacility.Ournetinvestment

cashflowswereaninflowof£18.5m.Investmentinto

ourportfoliototalled£318.9m.Realisationsfromour

portfoliototalled£337.4m.

Afterinvestmentincome,managementexpenses,

dividendpaymentstoourshareholdersandshare

buybacks,netcashoutflowwas£76.1m.At31

March2025ournetcashwas£151.3m(31March

2024:£227.4m).

Uncalled commitments

Ourtotaluncalledcommitmentswere£415.9mor

US$537.3m(2024:£377.0m,US$475.8m),split73%

inNorthAmericaand27%Asia.Duringtheyearwe

committedUS$200m(2024:US$59m).

Uncalled commitments US$m

Foreign exchange

62%ofournetassetvalueisnon-Sterlingdenominated.

Wedonothedgeourforeigncurrencyexposure.

However,thisriskisfullyrecognisedbythe

businessandconsideredcarefullywithinour

riskmanagementframework.

Rob Memmott

ChiefFinancialOfficer

19May2025

300

200

100

-10 0

-200

£m

Opening

value

Investments

- portfolio

Realisations

- portfolio

Investment

income

received

Dividends

paid

buybacks

Closing

value

Management

expenses

& other

227.4

151.3

337.4

38.5

(31.0)

(38.4)

(63.7)

(318.9)

600

500

400

300

200

100

Opening

value

Drawdowns New

commitments

Other Closing

value

475.8

(170.0)

200.0

31.5 537. 3

Strategic report

Corporate governance

Financial statements Other information

Introduction

Sustainability

At Caledonia we are committed to building our

business for the long term.

In this section, as an investment company, we

outline how we approach our investment

decisions responsibly, and manage our

investment portfolio for today and the future.

A healthy and vibrant culture, built around a set

of aligned values is fundamental to success. We

also explore in this section how we manage our

business operations, for the benefit of our

employees and wider stakeholders.

Further information on our stakeholders

in the Section 172 statement

Turn to page 80

44 Caledonia Investments plc Annual Report 2025

“I really appreciate being

able to be more long-term and

accountable for the investment

decisions I make. I want to see

the consequences of my actions

and stand over them.”

Employee

What’s in this section

Our approach

Our investments

Environment – our portfolio and

business operations

TCFD summary

Our people and culture

Equality, diversity and inclusion

The Caledonia Investments

Charitable Foundation

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Our approach

AtCaledoniawebelievethatresponsibleinvestmentand

businesssuccessgohandinhand.Wearecommittedto

buildingbusinessesforthelongtermandconsiderthe

ESGimpactoftheinvestmentsthatwemake.

Throughproactiveandconstructiveengagementwith

ourportfolio,wearecommittedtofosteringcontinuous

improvementanddrivingpositivechange.

Weexpecttoinvestinbusinessesandfundswhich:

•grow,provideemploymentandgenerateeconomic

 benefitinanenvironmentallyandsociallyresponsible

 way,bothduringandafterourownership

•takearesponsibleapproachtowardstheenvironment

andsociety,basedongoodgovernancepractices.

Responsible Investment/Responsible

Corporate Working Group

ChairedbyourChiefExecutiveOfficer,theResponsible

Investment/ResponsibleCorporateWorkingGroup

(‘RI/RCWorkingGroup’)advisesandassistsinthe

developmentandimplementationofCaledonia'sapproach

tosustainabilitymatters,includingclimate-relatedissues.

Thegrouphasmetregularlythroughouttheyear.

Areviewofourapproachandprogressacrosseach

investmentpool,alongsideouroverallbusinessoperations

fortheyearended31March2025canbefoundonpages

47to55.

Members

CEO(Chair)

ChiefFinancialOfficer

CompanySecretary

Seniormembersof–

PublicCompanies

PrivateCapital

Funds

Otherkeycorporate

managers

Function

Advisesandassistsin

thecontinued

developmentand

implementationof

ourapproachtoESG

matters across the

business

Seeks to ensure

that ESG matters

areappropriately

factoredinto

decision-making

processes

Continues to

develop

understandingof

climate-related

matters

Supportsthe

developmentof

ourreporting,

particularlyon

climate-related

matters

Sustainability (continued)

Responsible investment

46 Caledonia Investments plc Annual Report 2025

Our investments – Public Companies

Weaimtoinvestinbusinesseswhichwebelieveareof

highqualityandhavedurablebusinessmodelsthatenable

long-termcompounding.

Ourextensivedue-diligenceprocessensuresthatselection

riskismanagedbyanalysingnumerouscharacteristics

foreachcompanyandthen,throughownership,

ourmonitoringandengagementcontinuestoensure

sustainabilityisembeddedinourportfolio

managementprocess.

Ourapproachmeanswedonottypicallyinvestincapital

intensivebusinessesorcompaniesdirectlyinvolvedinthe

extractionandproductionofcoal,oilornaturalgas.

Further information on Public Companies –

climate change metrics and targets

Turn to page 54

Inlinewithourselective,quality-driveninvestment

approach:

•weexerciseourvotingrightsjudiciously,ensuring

thatwecastvotesonallourholdingsaheadof

shareholdermeetings

•whilewegenerallyvoteinsupportofmanagement’s

recommendations,wewillabstainorvoteagainst

proposalsthatwebelievedonotservethebestinterests

ofourshareholders

•wewilluseinfluencethroughengagementandvoting

toencouragecompaniestoproactivelyplanforand

demonstratethemeasurestheyhaveimplementedto

addressclimaterisksandopportunities.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Sustainability (continued)

Our investments – Private Capital

Welooktoinvestinestablishedbusinesseswithstrong

financialmetricsoperatinginmarketsthatpresent

attractiveopportunitiesforgrowth.Ourlong-term

approachtoworkingwithourportfoliocompaniesaligns

withourresponsibleinvestmentstrategythroughoutthe

investmentcycle–fromorigination,ownershipandexit.

Workingcloselytosupportthemanagementteamsof

portfoliocompanies,welookto:

•elevatecorporategovernancestandardsthroughthe

appointmentofseasoned,non-executivechairsand

byestablishingauditandremunerationcommittees

•embedourteaminnon-executiveroles,fosteringclose

partnershipswithmanagementtodriveperformance

whilst managing risk

•holdregularformalandinformalmeetingswith

managementthatencompassawiderangeoftopics,

includingESGpolicies,andperformancemetricsthat

arereviewedannually

•activelyassessandmanagetheirsocialand

environmentalimpacts,fosteringresponsible

stewardshipoftheirbusinesses

•encourageinvestmentintechnologiestoimprove

energyefficiencyandsupportasuccessfultransition

toalow-carbonfuture.

Progress during the year

•Climaterisksandopportunitiesidentifiedforall

portfoliocompanyinvestments

•Climateriskaggregationmodelandprocesses

formallyestablished

•ReportingsystemtrackingcompanyESGpolicies

andKPIs

•ReportingScope1andScope2emissionsfor

themajorityofthePrivateCapital'spoolnet

assetvalue

Our investments – Funds

WeinvestinfundsoperatinginNorthAmericaandAsia

withabiastowardslowermid-marketbuyouts.Thepool

providesattractivediversification,investingin 80funds

managedby45managerswithanunderlyingportfolio

ofover600companies,acrossarangeofsectors.

•Weexpectourfundmanagerstoconsiderallfactors

includingESGconsiderations,whenseekingtooptimise

returnswhileeffectivelymanagingrisk.

•Wewillencourageourfundmanagerstoconsider

climatechangefactorsintheirselectioncriteria,both

intermsofidentifyingpotentialrisksandcapitalisingon

emergingopportunities,andtoexploreinitiativesthat

helpreduceemissionswithintheunderlyingportfolio.

Progress during the year

•Third-partytrainingcompletedwithafocus

onevolvingmarketpracticesurroundingESG

mattersinfunddocumentationalongsideESG

focusedtrainingwiththeInstitutionalLimited

Partners Association

•UseoftheESGDataConvergenceInitiative(‘EDCI’)

asabenchmarkwithourunderlyingmanagers,

toidentifyareasforimprovementtowardsgreater

consistencyindatareporting

•ESGrelatedquestionnaireembeddedintothe

duediligenceprocessfornewfunds

•Initialanalysiscompletedontheweighted

averagecarbonintensityfortheFundspool,

usingestimationfactorsderivedfrompublic

marketsproxydata

48 Caledonia Investments plc Annual Report 2025

Working with our portfolio –

The Butcombe Group

TheButcombeGroupisahigh-qualitypremiumpub,

brewinganddrinksbusinessthatextendsalltheway

fromLondonthroughtheSouthWestEnglish

countrysideacrossintotheChannelIslands,

employingover1,900people.

ThebusinesshasbeeninCaledonia’sportfoliosince

2016.WecontinuetoworkcloselywithButcombe’s

managementteamtosupportitslongtermESG

strategy.TheCEO,JonathanLawson,hasanambition

tooperateandgrowthebusinessinaninclusiveand

sustainablemannertodeliverapositiveimpacton

regionalandlocalcommunitiesandtheir

environment.

Butcombe’sESGstrategy‘OurAmbition,YourFuture’

isfocusedonthreepillars,asdetailedonpages

50and51,andhasambitiontobecarbonneutral

by2030.

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Sustainability (continued)

OUR AMBITION,

YOUR FUTURE

AND TO BE CARBON NEUTRAL BY 2030

LOVE

LOCAL

EMBRACING

TECHNOLOGY

AND

INNOVATION

ENABLE

COLLEAGUES,

DRIVE POSITIVE

CHANGE

OUR WHY

We want to deliver the best experience for all our customers with outstanding service

and award-winning food and drink. We will raise the spirits and through innovating

and setting the bar high , we will stay ahead of the competition and be talk of the

town . We are passionate about building great teams who work together, we do

everything from the heart.

OUR AMBITION

To operate and grow our business in an inclusive and sustainable manner which has

a positive impact on regional and local communities and their environments.

What are our plans?

As the estate grows, we will continue to innovate our drinks offering

and develop more relationships with local suppliers.

Continue to promote the stories of local food and drink producers,

Where possible, develop kitchen garden locations across our estate

Continue to support and build new relationships with local charities,

sports clubs and groups local to our pubs, to allow us to become a hub

for each individual community, culminating in our annual Community Week.

Accreditation and mark of local excellence schemes including

‘Genuine Jersey’ leading out on promotion and use of Jersey produce

and we intend to enhance our locally sourced produce on both Jersey

and Guernsey

What have we achieved?

Field to Fork approach: Working with high quality and local suppliers

that adopt high welfare standards to reduce the number of deliveries

and miles travelled

We work with local farmers to recycle the spent grain from our

brewing process - the grain is fed to cattle that ultimately produce

the cheese we use in our managed pubs

We brew the beer, we sell the beer: Over half of the beer sold in our

managed pubs is produced by us in our own breweries, helping us to

reduce beer miles

Partnering with Bramley products, an environmentally friendly

and sustainable toiletries company

Supporting local initiatives such as used cooking oil collection in

We always recruit locally where possible, through open day

initiatives and engagement with local colleges and apprenticeships

WE LOVE LOCAL

Our ethos is simple; source quality produce and products that are sustainable,

traceable and local, wherever possible.

We want to know where every ingredient has come from. We want to treat ingredients with the respect

they deserve, and do our bit to reduce food waste through the skill of our chefs and training.

50 Caledonia Investments plc Annual Report 2025

Solar panels have been installed at our distribution centre and

will generate up to 58% of the depot’s electricity going forwards

Electric car charging points have been installed at 5 of our managed pubs,

helping our customers to reduce their emissions

All LPG forklifts have been replaced in our depot with electric equivalents,

reducing emissions and utilising self-generated, clean energy

Our lightweight glass bottles contain 10% less glass and are 70%

recycled. The plastic shrink wrap is made from 50% recycled plastic

We shred and bale the cardboard received on-site to recycle

as packaging for our online deliveries

We measure, monitor and target waste reduction in our sites

and our recycling rates are in excess of 63%

We continue to explore further opportunities for

solar panels at our brewery and across our pub estate

to reduce fuel emissions in the future

A further 15 managed sites will install electric car charging

points by the end of 2025. We also intend to install car

charging points for employees at our depot and breweries

We are in dialogue with our glass suppliers to make

We are planning CO2 capture in the future to reduce

EMBRACING TECHNOLOGY

AND INNOVATION

We are a nimble business that embraces change and utilises technology and innovation

to improve our business performance. By increasing our operational efficiency,

we will reduce our energy usage and waste to the benefit of the enviroment.

What have we achieved?

What are our plans?

What have we achieved?

We invest in the Burnt Chef and Employee Assistance Programmes

to support the mental and physical well-being of all our colleagues

Our colleagues have the opportunity to grow and develop in our business.

Everyone will receive mandatory training applicable to their role and continued

investment in our Butcombe Academy management training programme

We have established an internal network to offer support, guidance & mentors to

women in the business to increase female representation in senior roles. We are

proud that 47% of colleagues are now female

We launched Our Commitment to ensure we have a fully inclusive and

supported culture and a zero tolerance for any form of harassment.

We regularly run employee surveys and have been

recognised as one of the happiest workplaces

We have introduced enhancements to our maternity leave and a new

policy to support returning to the work after a significant life event

We have over 100 colleagues as trained trainers throughout the

business

We have trained mental health first aiders across the teams, and built

mental health awareness training into all of our management

apprenticeships

We prioritise employee wellbeing and offer mental wellbeing

support and financial wellbeing advice and guidance

ENABLING COLLEAGUES,

DRIVE POSITIVE CHANGE

Focusing on our most important asset – our people – is at the centre of our strategy. All our colleagues are as individual as our pubs

with no two being the same and we continue to invest in training and development for all colleagues, ranging from wine champions

to apprenticeships, and our very own internal learning management system.

What are our plans?

All our managers will be trained in how to support the

well-being of our colleagues and support our ED and I agenda

We will provide development opportunities aiming to develop

80% of our new managers internally through our Butcombe

Academy programmes and supported apprenticeships

We will ensure apprenticeship opportunities are at the

forefront of our Learning and Development strategy

We are working towards equal representation across

management roles. Currently 31% of our pub management

colleagues are female

We will engage our pub teams in creating an environment for

their communities that helps tackle loneliness and supports their

communities well-being where their pub is ‘the place to go to

feel at home and welcome’

Strategic report

Corporate governance

Financial statements Other information

Introduction

Our portfolio, the climate and transition to net zero

AtCaledonia,wearecommittedtobuildingasustainable

futurethatunderpinsrobust,longterminvestment

performanceforourshareholders.Werecognisethatour

principalenvironmentalimpactarisesprimarilyfromthe

companiesandfundswithinourportfolio.

Withthisinmind,wehavesetanexpectationforthe

businessesweinvestintotargetnetzeroemissions(Scope

1andScope2,market-based)by2050.Weunderstand

thatthepaceatwhichthesetargetsaremetwillvary

acrossourportfolio;asrisksandopportunitiesarisefrom

evolvingregulatoryframeworks,shiftsinconsumer

preferences,orincreasingpressuretocurbcarbon

emissionsandaddresswiderenvironmentalissues.

Weactivelyengagewithourunderlyingportfolio

companiesandfundmanagerstoevaluatetherobustness

andtransparencyoftheircarbonemissionsdata.We

continuetoenhanceourmonitoringandreporting

systemstoenableustotrackprogressonthisjourney

towardsalow-carbonfutureandweanticipatethat

manywillachievethistargetmoreswiftly.

Sustainability (continued)

Environment

Our business, the climate and

transition to net zero

Ourbusinessoperationsareconsolidatedwithinasingle

centralLondonoffice.Whilstouroperationalfootprint

ismodestincomparisontoourbroaderinvestment

activities,wearecommittedtooperatingourbusiness

inanefficientmannerandtoreducingourclimateimpact

wherefeasible.Weareseekingtoachievenetzero

emissionsforScope1andScope2(market-based)

emissionsby2030.

Toreachthistarget,wearepursuingseveral

initiatives,including:

• maintaining our commitment to sourcing all electricity

fromrenewablesuppliers

•enhancingenergyefficiencyacrosslighting,cooling

systemsandITequipment

•graduallyreducing,withthegoalofultimatelyeliminating

theuseofgasforheating.

In2021,ourswitchtoarenewableenergyprovider

markedlyreducedourmarket-basedScope2emissions.

Wecontinuetorecyclenearlyallwasteandensurethat

wastewaterissafelyreturnedtothesewersystem.

Theresultingemissionsfromwaterandwasteprocesses

arecategorisedunder‘other’Scope3emissionsandare

consideredimmaterial.

Itisworthnotingthatelectricityconsumptionhasrisen

since2020,mainlyduetothereturnofcolleaguestothe

officeaftertheCovid-19pandemicand,morerecently,our

decisiontooperate24-hoursecurityforenhancedsafety.

In2023,we engagedanexternalprovidertoconductan

EnergySavingsOpportunitySchemeauditofouroffice

energyusage.Thisprovideduswithanumberof

recommendationswhichwehaveimplemented.

Lookingahead,ourtransitionstrategywillbetoexplore

theimplementationofinnovative,low-carbonalternatives

toreplaceourtraditionalgasboilerheatingsystem.

Travel

Mostofourcolleaguescommutetoourofficeviapublic

transport.Weactivelyencouragesustainabletravel

throughourcycle-to-workprogramme,supportedby

securebicyclestoragealongwithchangingandshower

facilities.Ourmeetingroomsareequippedwithmodern

audiovisualandteleconferencingfacilities,reducingthe

needfortravelwhereappropriate.

OurScope3emissionsprimarilyrelatetointernational

businesstravel.Since2020,thenetassetvalueofour

portfoliohasincreasedby64%andtheproportionof

ouroverseasinvestmentshasalmostdoubled.Our

PublicCompaniesandFundsinvestmentteamscontinue

todeepentheirdue-diligence,monitoring,governance

andstewardshipactivitiesagainstabackgroundof

continuingmacroeconomicandgeopoliticaluncertainty.

Weremaincommittedtomanagingourbusinesstravelin

aninformedandresponsiblemannerandwillcontinueto

explorewaysinwhichwecanreducetheseemissionsover

themediumterm.

52 Caledonia Investments plc Annual Report 2025

Climate change metrics and targets including greenhouse gas emissions

Thedatainthefollowingtableshasbeenpreparedinaccordancewiththeregulations,TheCompanies(Directors’Report)

andLimitedLiabilityPartnerships(EnergyandCarbonReport)Regulations2018,whichimplementedtheGovernment’s

policyonStreamlinedEnergyandCarbonReporting(‘SECR’).

Emissionsdata TonnesCO

Scope SourceofGHGemissions–yearto31March 2020 2021 2022 2023 2024 2025

Scope 1

(directemissions)

Combustionoffuel&facilitiesoperation 24 19 17 16 14 14

includingcompanycaruse(soldinApril2022) 4 - - -

Scope 2

(indirectemissions)

Electricity(location-based) 57 47 45 52 59 61

Electricity(market-based) 57 47 - - - -

Scopes 1 and 2 - location-based 81 66 66 68 72 75

Scopes 1 and 2 - market-based 81 66 21 15 14 14

Scope 3

(indirectemissions)

Businesstravel 371 7 94 243 375 825

Other - - - 1 1 -

Total – location-based 452 73 160 312 448 900

Total – market-based 452 73 115 259 389 839

KPI – location-based Totalemissionsperaveragenumberofemployees 7.5 1.2 2.6 5 6.3 11.8

KPI – market-based Totalemissionsperaveragenumberofemployees 7.5 1.2 1.9 4.2 5.5 11.0

Per average number of employees 60 61 61 62 71 76

Notes:

1. TheseemissionshavebeencalculatedinaccordancewiththeGHGProtocolCorporateAccountingandReportingStandardguidelinesusingUKGovernment

GHGConversionFactorsforCompanyReporting.

2. Caledoniaconsumesallitswaterfromthemainswhichweunderstandissourcedfromhighstressedareas,withallitswastewatercurrentlybeingreturnedto

thesewer.TheresultantCO

emissionsfromitsuseofwaterare<1tonne.

3. Caledoniahasamixofrecycledandgeneralwaste;therelatedScope3GHGemissiondataisincludedunder‘Other’inthetableabove.

4. Location-basedmethodreflectstheaverageemissionsintensityofgridsonwhichenergyconsumptionoccurs(usingmostlygrid-averageemissionfactordata).

Themarket-basedmethodreflectsemissionsfrom100%renewablesourcedelectricitythatwehavechosentopurchase.

5. 100%ofourreportedemissionsareintheUK,involvingbusinesstravelprimarilydepartingfromorarrivingintheUK.Accordingly,thistabledoesnotinclude

acolumnindicatingtheyearlyUKproportionofglobalemissions.

6. ThesourcesofGHGemissionsshowninthetableabovearefromthecompaniesincludedintheconsolidatedfinancialstatements.UndertheSECRregime

wearenotrequiredtoreportanyemissionsfromcompaniesthatarenotincludedinourconsolidatedfinancialstatements.

7. Caledoniadoesnotreleaseanyhazardousairpollutants.Caledoniaonlyhasmaterialhazardouswasteintheformofbatteriesandprinttoner,bothofwhich

areresponsiblyrecycled.

Othermetrics Unit 2020 2021 2022 2023 2024 2025

Electricity usage KWh(k) 224 199 214 270 286 298

Gas usage KWh(k) 100 93 91 76 67 68

Waterconsumption m

Datanotavailablebutwillbe

trackedgoingforward

798 1,166 1,085

Generalmixedwaste tonnes - - -

Mixedrecycling tonnes - - -

WEEE waste tonnes - - -

Confidentialwaste tonnes 2 2 3

Waste generation tonnes 2 2 3

Wasterecycled % 99% 99% 100%

Strategic report

Corporate governance

Financial statements Other information

Introduction

Our investment portfolio

Sustainability (continued)

Public Companies – climate change metrics

and targets

Wecontinuetomonitorandmanageclimatechange

transitionriskswithinourpubliccompaniesportfolio.

Tothisend,weexpectthatallbusinessesdevelopand

implementrobuststrategiestoachievenetzeroScope1

andScope2emissionsby2050,orsoonerifpossible.

ForourTCFDreporting,weusetheMSCIWorldIndexasa

benchmarkowingtoitssimilarsectorexposuretothe

companieswithinourPublicCompaniespool.Thetable

belowpresentstheprimarymetricsweusetoquantifythe

Scope1andScope2greenhousegas(GHG)emissionsof

thispool,whichformpartoftheaggregateemissions

linkedtoourinvestmentportfolio.

ThePublicCompaniespooldemonstratesbotha

significantlylowertotalcarbonfootprintandareduced

weightedaveragecarbonintensity('WACI')compared

withthebenchmark.Thisisnotableevenwithin

traditionallyhigh-emittingsectorssuchasmaterials,

utilitiesandindustrials.

ThedatawedrawonfromMSCIissubjecttoareporting

lag.Thefiguresfor2024primarilycovertheperiodfrom

1June2023to31May2024,whilethecomparative

datalargelyreflectstheperiodfrom1June2022to

31May2023.

OurPublicCompaniesinvestmentshaveseena33%

decreaseintotalcarbonemissionsoverthepastyear.

Thisispredominantlyduetothesaleofoneholdingthat

waspreviouslyoneofthehighestemittersintheportfolio.

Thefollowingtableshowsotherkeyclimatemetricswe

usetomonitorcompaniesinourPublicCompaniespool

thataremanagingtheirclimateriskexposureandhavea

decarbonisationplan.

Othermetrics

Portfolio

(2025)

Portfolio

(2024)

Companiestargetingnetzerofor

Scopes1and2by2050 82% 93%

Companieswithtopquartilecarbon

management score 60% 68%

Greenrevenueexposure 5% 6%

ThemajorityofthecompaniesinourPublicCompanies

poolhaveplanstoachievenetzeroemissionsby2050or

sooner,givinguscomfortthattheyarealignedtoourgoal.

Thosecompaniesthathaveyettoestablishnetzero

targetscontributec.18%ofthepool’stotalcarbon

emissionsand,basedonourknowledgeandengagement

ofthecompaniesandtheircommitmenttogood

corporategovernance,webelievetheywillestablish

appropriatetargets.

Themajority(60%)ofthecompanieshaveatopquartile

carbonmanagementscore,indicatingthattheyhavethe

capabilityandresourcestomanagetheirclimaterisksand

opportunities.Wewillcontinuetomonitorprogresson

thesemetrics.

Latestannualreporteddata Scope

Portfolio

(2025)

Benchmark

(2025)

Variancevs

benchmark

Portfolio

(2024) Units

Totalcarbonemissions 1and2 12,956 42,840 -70% 19,345 TonnesCO

Carbonfootprint 1and2 13 43 -69% 16 TonnesCO

e/$minvested

WACI 1and2 51 97 -47% 60 TonnesCO

e/$msales

CarbonemissionsdataforourpubliccompanyinvestmentswasobtainedfromtheMSCIOneplatform.MSCIcollectsthedatafrompubliclyavailablesources,

includingannualreports,theCarbonDisclosureProject(‘CDP’)andgovernmentdatabases.AllcarbonemissionsdatacollectedisclassifiedpertheGHGProtocol

methodologytoenableaggregationandcomparabilityacrossinvesteecompaniesandsectors.Wehavenotsoughttoverifythisdataandassumenoresponsibility

foritsaccuracyorcompleteness.

54 Caledonia Investments plc Annual Report 2025

Wecontinuetorecognisetheimportanceofclearly

communicatingbothfinancialandnon-financialESG

performancetoourstakeholders.

Thisisthethirdyearwehaveproducedaseparate

TCFDreport.Thefollowingtable,whichshouldberead

inconjunctionwithourTCFDreport,summarisesour

responsetoeachoftheTCFDrecommendations,and

explainshowweincorporateclimate-relatedrisksand

opportunitiesintoeachofthefourTCFDpillarsof

governance,strategy,riskmanagementandmetrics

andtargets.

AsrequiredbyListingRule6.6.6R(8),weconsiderthese

climate-relateddisclosurestobeconsistentwiththeTCFD

recommendationsandrecommendeddisclosures,other

thanthecompletionofscenarioanalysis(strategypillar

disclosure(c))andthedevelopmentofmetricsandtargets

forallofourinvestmentassets(metricsandtargetspillar

disclosures(a),(b)and(c)).

WehavefullyaddressedtheassetswithinourPublic

Companiespool.Wehavealsoincreasedourdisclosure

forourPrivateCapitalpool.Overtimewewillseekto

developourmetricsandmethodologyfurtherasthe

qualityofdataimprovesandmoreinformationisavailable

forourFundspool.

Task Force on Climate-Related Financial Disclosures (‘TCFD’)

Governance

Disclose the

organisation’s

governancearound

climate-relatedrisks

andopportunities.

ReadmoreinourTCFD

report.

TheboardiscollectivelyresponsibleforCaledonia’ssuccess.Itsetsthecompany’sstrategy,ensuresthatthe

necessaryfinancialandhumanresourcesareinplacetoenablethecompanytomeetitsobjectives,andreviews

managementperformance.

Caledoniahasawell-definedgovernanceframework,appropriateforarelativelysmallbusiness,basedondelegated

authority.TheboardhasdelegatedoverallresponsibilityforthedeliveryofthestrategytotheCEO.Ourgovernanceand

reportingframeworksenabletheboardtohaveoversightoftheclimate-relatedrisksandopportunitieswhichcouldimpact

ourbusiness.

Theboardconductsdeep-divereviewsoftheactivityandperformanceofeachofCaledonia’sthreeinvestmentpools

annually.Toprovideenhancedvisibilityandmonitorprogress,anassessmentofclimate-relatedrisksandopportunities,

togetherwithappropriatemetrics,isincorporatedintoreporting.

Theremunerationstructureforourexecutivedirectorsincludestwovariablepayelements:

a.short-termincentive(bonus)torewardperformanceonanannualbasisagainstkeyfinancialandpersonalobjectives.

b.long-termincentivetomotivatethedeliveryoflong-termshareholdervalue.

Thestructureoftheannualbonusincludesanassessmentofdeliveryagainstpersonalobjectives,whichincludeelements

relatedtoresponsibleinvestmentandbeingaresponsiblecorporate.

Private Capital – climate change metrics

and targets

Thisisthefirstyearweareprovidingemissionsdatafor

ourPrivateCapitalpoolinvestments.Duetothediverse

natureoftheseinvestments,emissionsmayvary

significantlybasedonthetypesofbusinessesweown,as

wellasanyacquisitionsordivestmentswithinagivenyear.

Thesevariationsarenotonlydrivenbychangesinour

portfoliocompositionbutalsobyimprovementsindata

quality.Asourportfoliocompaniesrefinetheirreporting

processesandcollectmorecomprehensiveemissions

data,weexpectthatreportedemissionsmayincrease,

reflectinggreatertransparencyanddataavailability.

Latestannual

reporteddata

Scope

Portfolio

(2025) Units

Totalcarbon

emissions

1and2 6,742.7 TonnesCO

Carbonfootprint 1and2 10.0 TonnesCO

e/£minvested

WACI 1and2 10.0 TonnesCO

e/£msales

1.Sinceeachofourportfoliocompanieshasadifferentfinancialyear-end,

wehaveincludedthemostrecentdataavailable.

2.Themajority(78%ofnetassetvalue)ofourPrivateCapitalpoolhave

providedemissionsdata,withmostreportingthemajorityoralloftheir

Scope1andScope2emissions.

TCFD report

Our third standalone TCFD

report sets out our progress

towards meeting all TCFD

recommendations and can be

found at www.caledonia.com

Strategic report

Corporate governance

Financial statements Other information

Introduction

Sustainability (continued)

Strategy

Disclosetheactualandpotential

impactsofclimate-related

risksandopportunitieson

theorganisation’sbusinesses,

strategyandfinancialplanning

where such information

ismaterial.

ReadmoreinourTCFDreport.

Ourstrategicaimistoachievecapitalappreciationanddividendgrowthforourshareholdersoverthelong

termthroughdisciplinedinvestmentandcarefulstewardshipoftheassetsinourportfolio.Werecogniseour

responsibilitytosupportthetransitiontoalowercarboneconomy.Thisiswhywehavesetanexpectationthatthe

businessesinwhichweinvestshouldtargetnetzeroemissionsby2050(Scope1andScope2,market-based).

Ourinvestmentportfolioiswell-diversifiedacrossthepools,withlimiteddirectexposuretocarbon-intensive

sectorssuchasoilandgasandindustrials.

Eachyearwecarefullyselectasmallnumberofnewinvestmentsinproven,well-managedandsustainable

businessesacrossawiderangeofindustrysectorsandgeographies.Weseektoavoidinvestmentinbusinesses

thatcausematerialharmtotheenvironmentunlesstheyhaveaclearstrategytoreducetheirimpactovertime.

Wehaveconsideredbothphysicalandtransitionrisksoverthreetimehorizons.Theavailabilityofrobustdataand

qualityinformationisaprerequisitetoeffectiveanalysis.Wehaveusedthemostrecentdataandinformationfor

theconstituentbusinessesinthePublicCompaniespoolusingMSCI’sOneplatform.Thisdatahasbeenusedto

supportascenarioanalysisexercise,whichhasprovidedvaluableinsightstoconfirmtheresilienceofthepoolto

bothphysicalandtransitionrisks,undervariousclimatescenarios.

ThescopeoftheanalysisforthePrivateCapitalpoolcoversalleightinvesteecompaniesintheportfolioasat31

March2025.Wehaveimplementedadatacollectionframeworktomeasurecompanyspecifickeyperformance

indicatorsandanannualsurveyhasbeenestablishedtoenableyear-on-yearprogressiontobemeasuredon

carbonemissionsandotherrelatedmetrics.Theanalysisisqualitativeinnature.UnlikethePublicCompaniespool,

thereisnodistinctionbetweenthemethodologyappliedforphysicalandtransitionrisks.Thescenarioanalysiswas

tailoredtothecharacteristicsofeachcompanyintheportfolioandwasperformedwithreferencetoitssectorand

geographicfootprint.

WeanticipatethatsimilarinformationwillbedevelopedfortheconstituentsoftheFundspoolinthecomingyears,

tobroadenourscenarioanalysistocoveragreaterproportionofourinvestmentportfolio.

Ourbusinessoperationshaveamodestcarbonfootprintwhencomparedwiththeimpactofourinvestment

portfolio,withallouremployeesoperatingfromasinglelocationincentralLondon.Weremaincommittedto

minimisingtheimpactofourownoperationsontheenvironmentandmitigatingtherisksposedbyclimatechange.

Weareseekingtoachievenetzeroemissionsby2030(Scope1andScope2,market-based).

Risk

management

Disclose how the organisation

identifies,assesses,andmanages

climate-relatedrisks.

ReadmoreinourTCFDreport.

Thecorporateapproachtoriskmanagementiscoveredonpages63to67ofthisreport.

Risksareassessedandmanagedinaccordancewithourcorporateriskmanagementframeworkwhichincludes

ESGandclimatechangeasoneoftheprincipalrisks.

Assessmentsofclimate-relatedriskscontinuetobeincorporatedintoourstrategyand,indischargingits

responsibilities,theboardisultimatelyaccountablefortheoversightofclimate-relatedrisksthatcouldimpact

thebusiness.Non-executivedirectoroversightoftheriskmanagementframeworkandassociatedprocessesis

exercisedthroughtheAuditandRiskCommittee('ARC').

TheChiefFinancialOfficerhasresponsibilityforensuringthatariskmanagementframeworkisinplaceandeach

areaofthebusinessisresponsibleforusingthistoidentify,assessandreportontheirrisksandcontrols.

Investmentmanagersidentifyclimate-relatedrisksintheportfoliostheymanageandlinemanagementis

supplementedbykeysupportfunctionssuchasFinance,Tax,HumanResources,FacilitiesManagementand

CompanySecretarialwithfurtheroversightfromtheOperationalRiskCommittee.

Riskswithinthecompaniesandfundsinwhichweinvestareidentifiedthroughongoingresearchusingin-house

expertiseandexternaldata,togetherwithreportingfrominvesteebusinesses.Ourbusinessoperationsusethird

partyresourcestoensureagoodpracticeapproachistakentoidentifyingrisksandaddressingtheminatimely

manner.

Metrics and targets

Disclosethemetricsandtargets

usedtoassessandmanage

relevantclimate-relatedrisks

andopportunitieswheresuch

informationismaterial.

ReadmoreinourTCFDreport.

Wearecontinuingtoimproveouranalysisanddisclosefurthermetricsandtargetswhereweconsidertheseto

bematerial.Forthefirsttimethisyear,inadditiontoemissionsdataforourPublicCompaniespoolandourown

businessoperations,wearereportingScope1andScope2emissionsforthemajorityofthePrivateCapitalpool's

netassetvalue.

InformationonspecificmetricsandtargetsareprovidedintheTCFDreport.InlinewithSECRrequirements,we

havealsolistedourGHGdata.

56 Caledonia Investments plc Annual Report 2025

Sustainability (continued)

Our people and culture

Employee engagement

AtCaledoniawearecommittedtobuildingourbusiness

forthelongterm.Weseektocreateathrivingworkplace

culture–builtonshared,consistentvaluesandpurpose

thathelpsustoattract,retainanddevelopexceptional

people.Thisyearwecompletedoursecondemployee

engagementsurveytohelpusunderstandhowwecan

continuetoimproveourworkingenvironment.

Weweredelightedtoreceivea92%responseratetothe

anonymisedsurveyandthat96%ofthosewhoresponded

recommendedCaledoniaasa“greatplacetowork”.We

benchmark our analysis against businesses within the UK’s

financialservicessectorandwerepleasedthatCaledonia

isonceagaininthetopquartileforbothparticipation

andengagement.

Feedbackfromcolleagueshelpsustoshapethefuture

directionofourbusiness.Sinceourinauguralengagement

surveyin2023wehavebeenworkingonanumberof

initiativestohelpensurethatCaledoniaremainsagreat

placetoworkintheyearsahead.

Wearecommittedtocreatinganinclusiveenvironment

whereouremployeescandevelopandcontributefully,

underpinnedbygoodremunerationpackages,favourable

leavepoliciesandhealthandwellbeingsupport,alongside

traininganddevelopmenttosupportprogression.Further

informationonourremunerationpolicycanbefoundin

theDirectors'remunerationreportonpages96to114.

“We're very lucky with the environment

in which we work, the resources that are

made available to us and the colleagues

we work amongst. Caledonia has a

great culture.”

Employee,

Staff engagement survey March 2025

Centred around a collection of values that

shape our approach to every aspect of

investing, our team is key to delivering

long-term performance.

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Intern programme

AtCaledoniawearecommittedtoinvestingtimetoplan

forsuccessinthefuture,tosowtheseedsthatwillflourish

forgenerationstocome.

EveryJuneandJulywewelcomeacohortofsuccessful

applicantswhowebelievewillbenefitthemostfromthe

internprogramme.

Ledbyanindependentfacilitatorbutwithinvolvement

fromacrossCaledonia,theinternsexperienceinsightinto

theinvestmentmanagementindustry,benefittingfroma

detailedprogramme.Thisincludesbuildingsofterskillsina

workplaceenvironment,aswellaslearningfromour

investmentteamsonhowandwhyweconstructour

long-terminvestmentapproach.Theprogramme

culminatesinthegroupworkinginsmallteamstopresent

their‘DragonsDen’styleinvestmentrecommendations.

Aheadoftheprogramme,eachinternisassignedamentor

fromtheCaledoniateam.Theroleofthementorplaysa

keypartinhelpingtheinternthroughtheprogramme.

Asinternsembarkontheirchosencareers,theycan

continuetomaintainalastingrelationshipwithCaledonia,

creatinganimportantnetworkoftalentforthefuture.

“My experience at Caledonia exceeded

all expectations. The culture of

openness and support created learning

opportunities that extended far beyond

the designated workshops, and being

part of an intern class with such

diverse backgrounds made the ongoing

collaboration all the more rewarding.

It was an invaluable experience, shaping

me both personally and professionally.”

2024 Intern alumna

“My internship at Caledonia was an

incredibly rewarding experience

— well-structured, intellectually

stimulating and genuinely welcoming.

From insightful company visits to the

supportive mentorship, every aspect was

thoughtfully planned. I’ve recommended

it to all my finance-minded friends

and still cherish the connections I

made there."

2023 Intern alumna

Sustainability (continued)

58 Caledonia Investments plc Annual Report 2025

The Caledonia Investments

Charitable Foundation

Thecompanymadeagrantof£300,000toTheCaledonia

InvestmentsCharitableFoundation(the‘Foundation’)

duringtheyearthroughwhichweareproudtosupport

causeslinkedtoCaledonia’shistory,values,culture

andteam.

TheFoundationprovidesessentialfundingandsupportto

manygoodcauseseachyearandseekstocreateathriving

legacybysupportingthedevelopmentofasmallnumber

ofcharitiesthroughamulti-yeardonationprogramme.

TheFoundation’smulti-yearawardsseektoprovidea

catalystforfuturedevelopment,enablingthecharitiesto

makeasignificantandlastingimpact.Since2021the

CornwallCommunityFoundation(‘CCF’)hasbenefited

fromthissupport.CCFprovidesfinancialandnon-financial

supportforcommunityprojectsacrossCornwallandthe

IslesofScilly,investinginpeopleandprojectsthatwill

makeadifference.

ThisyeartheFoundationhas:

•providedfundingtosupportaneventsofficertoleadand

developtheCCF’sfundraisingandeventsprogrammes

•providedfinancialassistancetosupportlocalcharities

andcommunityprojectsthataddressissuesrelating

tofinancialplanning,debtmanagementand

financialeducation.

“We are incredibly grateful to the

Caledonia Foundation’s multi-year

donation. We are already benefitting

from the recruitment of an events officer,

particularly at our recent gala dinner

which raised over £150,000. This,

combined with providing vital support,

education and resources to those who

need it most will transform the lives of

many individuals and families across

the county.”

Susie Croft,

Philanthropy Director, Cornwall Community Foundation

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Sustainability (continued)

Fundraising and volunteering

AlongsideoursupporttotheFoundation,weencourageourteamtovolunteertheirtimeandraisefundsforcharities

closetothem.Weprovideourcolleagueswithuptotwoadditionaldaysofleavetosupportthosecausesthattheyfeel

passionatelyabout.

Thisyear,HenryMorris,aDirectorinourPublicCompanies

pool,cycled980milesfromLand’sEndtoJohnO’Groats,

sleepingundercanvasinsomeofthemostbeautifulparts

oftheUK.WiththesupportoftheFoundation,heraised

nearly£10kforTheOutwardBoundTrust.

TheFoundationwasalsoproudtosupportmembersof

ourPrivateCapitalteamtocompletetheButcombeUltra

MarathonraisingfundsforOnlyAPavementAway,a

charitythatsupportspeoplelookingtorebuildtheirlives

throughemploymentopportunitiesinhospitality.

60 Caledonia Investments plc Annual Report 2025

Equality, diversity and inclusion

AtCaledonia,webelievethatadiverseworkforcecreates

theoptimumenvironmentinwhichourbusinesswill

continuetothriveandgrow.

Ourrecruitmentandemploymentpoliciesarecompliant

withrelevantUKlegislation.Recruitment,development

andpromotionarebasedonsuitabilityfortherole.

Wewillnotdiscriminateonthebasisofgender,sexual

orientation,maritalstatus,pregnancy,gender

reassignment,age,race,nationality,ethnicity,disability,

orpoliticalorreligiousbeliefs.

Wearecommittedtoincreasingdiversityandinclusion

overtime.Wearemindfuloftheneedfororderly

successionplanningandensuringthatanappropriatemix

ofskillsandexperienceismaintainedthroughoutour

organisation,fromtheboardtoeveryoperationallevel.

Asat31March2025,thegenderdistributionacrossthe

variouslevelsofourbusinessisasfollows:

Investment and support

employees 2025

Male 69%

Female 31%

Investment employees

Male 30%

Female 70%

Support employees

1.Excludingnon-executivedirectors

Caledoniaoperatesaflattermanagementstructurethanisoftenfoundin

manyothercompaniesand,forinformation,60%(2024:55%)ofdirect

reportstomembersofourInvestmentCommitteearefemale.

Malenumber(%) Femalenumber(%)

2025 2024 2025 2024

Board 7(64%) 7(64%) 4(36%) 4(36%)

Senior managers 14(50%) 15(60%) 14(50%) 10(40%)

Allemployees

(includingboard) 37(44%) 38(46%) 47(56%) 44(54%)

Number of

boardmembers

Percentage of

theboard

Number of

seniorpositions

ontheboard

(CEO,CFO,SID

andChair)

Number in

executive

management

Percentage of

executive

management

Men 7 63.6% 4 6 85.7%

Women 4 36.4% - 1 14.3%

Notspecified/prefernottosay - - - - -

Number of

boardmembers

Percentage of

theboard

Number of

seniorpositions

ontheboard

(CEO,CFO,SID

andChair)

Number in

executive

management

Percentage of

executive

management

WhiteBritishorotherWhite(including

minority-whitegroups) 10 90.9% 4 7 100%

Mixed/MultipleEthnicGroups - - - - -

Asian/Asian British 1 9.1% - - -

Black/African/Caribbean/Black British - - - - -

Otherethnicgroup - - - - -

Notspecified/prefernottosay - - - - -

InaccordancewithListingRule6.6.6R(9)oftheFCA’sListingRules,thetablebelowsetsoutdetailsofthediversityofthe

individualsservingontheboardandexecutivemanagementasat31March2025.Ourexecutivemanagementconsists

ofmembersofourInvestmentCommittee,beingthemostseniorlevelofmanagement.Datawasobtainedona

voluntaryself-reportedbasis.TheboardmettheethnicitydiversitytargetsetoutinLR6.6.6R(9)(a)butnotthetwo

genderdiversitytargets.Thetargetswereintroducedin2022and,giventhegradualchangeinboardmembership,

itwilltaketimetomeetthem.

Investment and support

employees 2024

Male 70%

Female 30%

Investment employees

Male 35%

Female 65%

Support employees

Strategic report

Corporate governance

Financial statements Other information

Introduction

Working environment

AtCaledonia,welooktoestablish,nurtureandmaintain

acultureofhighstandardsinbothbehaviourand

professionalintegrity.Ourcomprehensivepoliciesare

designedtosafeguardemployeesagainstunlawful

discriminationandtofosteraworkingenvironment

wherefairness,considerationandrespectareparamount.

Annualperformanceappraisals,throughwhich

employeesmaybesetobjectivesandagainstwhichtheir

achievementsareassessed,areintendedtoensurethat

employeeshaveaclearviewoftheirperformanceand

toidentifyadditionallearninganddevelopmentneeds

tohelpthemmeettheirfullpotential.

Grievance procedure and whistleblowing

OurstaffhandbookclearlysetsoutCaledonia’sformal

grievanceprocedures,offeringallcolleaguesastructured

yetflexibleframeworktoraiseconcerns,whetherthrough

formalchannelsorinamoreinformalmanner.

Inaddition,thereareestablishedrobustwhistleblowing

arrangementsdesignedtoprovideasafe,confidentialand

impartialchannelforreportinganypotentialmisconduct

inourbusiness.Thesemechanismsenableemployees

toraiseissuesindependentlyoftheirimmediateline

management,ensuringacultureoftransparencyand

accountability.Responsibilityforoversightofour

whistleblowingproceduresitswiththeboard.

Health and safety

AtCaledonia,wearecommittedtocontinuously

enhancinghealthandsafetyacrossourworkplace,

ensuringfullcompliancewithallapplicablelegislation.

Whilethenatureofourbusinessmeansthatoccupational

risksremainlow,weremaindedicatedtoprovidinga

secureworkingenvironmentthroughthesupplyofsafe

equipmentandcomprehensive,ongoingtraining.This

proactiveapproachisdesignedtopreventaccidentsand

mitigateanyrisksofwork-relatedillhealth.

Ourdetailedhealthandsafetypoliciesareoutlinedin

ouremployeehandbook,andstaffareencouragedto

undertakeregularworkstationassessmentstoidentify

andaddressanyrequirements.

Fortheyearended31March2025therewerenoincidents

reportedunderRIDDOR(‘ReportingofInjuries,Diseases

andDangerousOccurrencesRegulations2013’),andno

work-relatedaccidents.

Sustainability (continued)

62 Caledonia Investments plc Annual Report 2025

Risk management

Risk management is an integral part

of the company’s business model and

embedded within its business

operations. Caledonia’s risk

management framework seeks to

ensure that the different parts of the

group operate within strategic risk

appetite parameters and that this is

integrated with its governance and

decision-making processes.

The board has overall responsibility

for setting and monitoring the

company’s risk appetite.

Strategic

Internal control

assurance

The risk framework aligns with and supports business activities

Assessment, management and reporting of principal risk categories

Risk analysis

& reporting

Investment Market Liquidity Operational

ESG/climate

change

Board

Approve strategy, investment decisions and risk appetite

Identify

therangeofrisksweneedtomanagethatare

relevanttoourbusinessactivitiesandstrategy.

Thetop-downrisksthatCaledoniaisexposed

toformourprincipalrisks.

Monitor

theriskexposures,throughregularrisk

reviews,analysisofincidentsandscenario

exercises,allofwhichcouldtriggera

reassessmentoftheoriginalrating.

•Implemented

through RI/RC

WorkingGroup

• Sustainability

criteria in

investment

decisions

•Oversightby

OperationalRisk

Committee

• Robust systems

andcontrolsin

place

•Detailedcash

forecasting

supportedby

scenario analysis

•Creditfacilityin

place

•Risksand

sensitivities

reviewed

regularly

• Market &

portfolio

volatilityreviews

Investment

Committee

•Investment

strategy

•Investment

decisions

Boardreview

investmentpool

strategies & asset

allocation

Measure

andassessthematerialityand

magnitudeoftherisksidentified,and

assignriskratingstoarticulateboth

ourriskprofileandappetiteposition.

Report

keyriskexposures,controlassessments

andactionsforrisksoutsideappetite.

DetailedreportingtotheOperationalRisk

Committeewithaggregatedashboardsto

theInvestmentCommitteeandAuditand

RiskCommittee.

Identify

Measure

Report

Monitor

Manage

Risk

management

process

Theriskframeworksupportsandinformsbusinessactivityanddecisions,managingriskthroughasetofintegratedprocesses.

Manage

therisksaccordingtoourratingand

controlassessments.Theriskmaynotbe

acceptedasassessedandneedremedial

actions(controlstrengthening)tobringit

backwithinappetite.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Risk management reporting

Wemanage,monitorandreportonriskacrosstwocore

risktypes:investmentandoperationalrisks.

Investmentandoperationalriskreportsareconsideredby

theAuditandRiskCommitteeatleastbiannually,withany

majorissuesorchangesarisingfromthesereviews

escalatedtotheboardforfurtherdiscussion.

Theinvestmentriskreportfocusesoninvestmentportfolio

risksarisingfromourinvestmentstrategy.Investment

riskexposuresareconsideredagainstparametersin

placeforassetallocation,performance,investment

volatility,diversification,concentration,liquidityand

currencyexposure.

Operationalriskreporting,includingmoredetailedriskand

controlassessments,isreviewedbytheOperationalRisk

Committee.Itcoverstheentiretyoftheoperationalrisk

universe,includingfinancialcrime,legalandregulatory

exposures,businessoperations,peopleandbusiness

continuity.Relatedrisks,includingcybersecurity,are

closelymonitoredbythecommittee.Summaryreporting,

includingselecteddetailedassessments,areincludedin

AuditandRiskCommitteereporting.

Risk Management Development

Riskframeworkcomponentsandtheirsupporting

processesevolveunderaprogrammeofcontinuous

improvement.Amorecomprehensiveriskandcontrol

assessmentprocesswasimplementedduringtheyear.

Theapproachtooperationalriskappetitealsoevolved.

These,andotherdevelopments,furtherstrengthensthe

controlassuranceprogrammeinadvanceoftheFRC’s

updatedrequirementsforriskandinternalcontrol,

effectivefromApril2026.

Risk governance, structure and responsibilities

Riskmanagementanditsgovernanceistheresponsibilityoftheboard,withspecificcomponentsdelegatedtotheAudit

andRiskCommittee.TheExecutivesaregiventhetaskofmanaginganeffectiveandtransparentprocesstoensurethat

currentandemergingrisksareidentified,measured,managed,monitoredandreportedon.Theboardsetstherisk

appetiteinlinewiththebusinessmodelandstrategy.Thisiscommunicatedthroughtheexecutivetoallthosewith

managerialresponsibilities.Theillustrationbelowdepictstheriskgovernancestructureinplaceandtheresponsibilities

ofeachcommittee.

Risk management (continued)

•Theboardsetstheriskappetiteinlinewiththebusinessmodelandstrategy

•Biannualinvestmentpoolreviews

•Approvesmaterialinvestments

•Opinesontheinternalcontrolenvironment

Board

•Monitorskeyrisksidentifiedinthe

operationalriskuniverseagainstrisk

appetitepreferences

•Reviewsdetailedriskandcontrol

assessmentsandassociatedactions/

remediation

Operational Risk Committee

•Reviewsprincipalrisksanddetailed

assessmentsasrequired

•Monitorstheeffectivenessoftherisk

management framework

•Reviewsthecontrolassuranceprogramme

•Implementsinvestmentstrategy

•Approvesindividualinvestments

•Reviewsvaluationsforthecompany's

investments

•Scrutinyandreviewproportionatetoboth

thecomplexityoftheportfolioandthe

degreeofjudgementinvolved

•Oversightfromexternalaudit

Audit and Risk Committee Investment Committee Valuation Committee

1.TheFinancialReportingCouncilpublishedanupdatedUKCorporateGovernanceCodeinJanuary2024.From1April2026,theboardwillberequiredto

provideadeclarationoftheeffectivenessofthematerialcontrolsasatthebalancesheetdate(31March2027).

64 Caledonia Investments plc Annual Report 2025

Principal Risks

Theprincipalrisksarethoseatthehighestlevelinourrisk

universe.Theyhavethepotentialtoimpactthedelivery

ofourstrategicobjectives,threatenourbusinessmodel,

solvencyorliquidityanddamageourreputation.

TheboardandAuditandRiskCommitteethoroughly

assesstheserisksthroughouttheyearandconsiderany

changesoradditionsinlightoftheexternalenvironment

(market,legalorregulatorychanges)orfollowingchanges

toourownbusinessactivitiesthatmightexposeusto

additionalrisks.Whilstexternalactivityhasheightenedour

exposuretosomerisks,nonewcurrentoremergingrisks

havebeenidentified.

Overall,ourkeyrisksremainlargelystablebutwitha

heightenedoutlookformarketriskgiventhecontinuing

geopoliticaluncertainty,andmarketvolatilitycausedby

theUSapproachtotradetariffs.

OperationalrisksarereviewedbytheOperationalRisk

Committee,mostrecentlyinMarch2025.Cyberrisk

remainsCaledonia'smostmaterialoperationalrisk

exposurebutonewherethereisanongoingcycleof

controlreviewandenhancementtoprovidehighlevels

ofprotectionforoursystems.

Wehavesetoutthesixprincipalrisksonpages66to67,

highlightingdevelopmentsthroughouttheyearandour

assessmentoftheircurrentratingalongsideindicators

reflectingcurrentsentiment.

Risk Appetite Statements

EachyeartheAuditandRiskCommitteeandboardreviewourstatedappetitefortakingonandmanagingourkey

riskexposures.

ThestatementsreflectingourpositionattheendofMarch2025arenotedbelow,withnomaterialchangesfromthe

previousyear.

Risk appetite statements

Thestrategyofthebusinessistoinvestin

equities,acrossavarietyofassetclasses,

sectorsandgeographies.Thenatureofequity

investingleadstoabalanceofriskandreward,

leadingtoameasuredriskappetite.

Individualinvestmentdecisionsrelyon

judgementwhichcanresultinpoororuntimely

investmentsanddivestments.Tomanagethis

thebusinessoperatesacomprehensive

diligenceandreviewprocessensuring

investmentsaremadecarefully,balancingrisk

andreward,allowingourexpertsthetimeto

analyseallaspectsbeforecommittingcapitalor

divesting.Wehaveaverylowappetitefor

non-compliancewithourinvestmentprocess.

Havingsufficientliquiditytomeetbothliabilities

astheybecomedueandfundinvestment

opportunitiesiscriticaltoourstrategyand

viability.Thereisnoappetiteforcircumstances

thatwouldresultinalackofliquidity.

Wedonotseektotakeonoperationalriskbut

thekeysourcesofthisrisktypeareinherent

withinourbusinessprocessesandoperations.

Amaterialoperationalriskfailurecouldharm

ourbusinessandreputation,assuchouroverall

appetiteforanytocrystalliseislow.Incertain

criticalareas,notablyprotectingoursystems

anddatafromcyberthreatsandensuring

compliancewithapplicablelawsandregulations,

weaimtoreduceriskexposuretothelowest

achievablelevel.

WecontinuetoevolvetheintegrationofESG

mattersintoourinvestmentactivity,this

reflectsalowtoleranceforESGrisksthatcould

impactourstakeholders,undermineour

long-termsustainabilityobjectivesordamage

ourreputation.

Asinvestorsinequities,thebusinessis

automaticallyexposedtoanumberofmarket

drivenrisks.Whilstourstrategyandapproach

toriskaimtomitigatetheseriskstheycannot

fullyremovethem.Thenatureofequity

investingleadstoabalanceofriskandreward,

leadingtoameasuredriskappetiteinthisarea.

Strategic risk

Investment risk

Liquidity risk

Operational risk ESG & climate change

Market risk

Strategic report

Corporate governance

Financial statements Other information

Introduction

Risk management (continued)

Principal risks Mitigation and management Key developments

Current risk status

and movement

in year to

March 2025

Strategic

Risks in relation to the

appropriatenessofthebusiness

modeltodeliverlong-term

growthincapitalandincome.

Strategicrisksincludethe

allocationofcapitalbetween

publicandprivateequity,and

inrelationtogeography,sector,

currency,yieldandliquidity.

Thecompany’sbusinessmodelandstrategy

arereviewedperiodically,againstmarket

conditionsandtargetreturns.

Theperformanceofthecompanyanditskey

risksaremonitoredregularlybymanagement

andtheboard.

Allpoolsoperatedwithintheirstrategic

banding.Thecapitalallocationmodelwas

furtherdevelopedtosupportliquidity

management,strengtheningourresilienceto

financialmarketvolatility.AnuncappedRule9

waiverwassuccessfullycompletedallowingthe

companytobuybackshares.

Investorrelationsactivityhasbeendeveloped

introducingspotlightsessionsforeachofthe

investmentpools.ThePrivateCapitalsession

inJanuarywaswellreceivedwithPublic

CompaniesandFundstofollow.

MEDIUM

Investment

Risksinrespectofspecific

investmentandrealisation

decisions.Investmentrisks

includeappropriateresearch

andduediligencefornew

investmentsandthetimely

executionofbothinvestments

andrealisationsforoptimising

value.

Investmentopportunitiesaresubjectto

rigorousappraisalandamulti-stageapproval

process.Investmentmanagershavewell-

developednetworksthroughwhichthey

attractproprietarydealflow.

Opportunitiestoenterorexitinvestments

arereviewedregularly,beinginformedby

marketconditions,pricingandstrategicaims.

TheInvestmentCommitteemetthroughout

theyeartoconsiderinvestmentdecisions.

Theinvestmentteamscontinuetoreview

capacityandcapabilitytoensureappropriate

skillsandresourcesareinplace.Aswellas

newpositions,theteamspromotetalentfrom

within,withanumberofpromotionsapproved

duringtheyear.

MEDIUM

Market

Riskoflossesinthevalueof

investmentsarisingfromsudden

andsignificantmovementsin

publicmarketprices,particularly

inhighlyvolatilemarkets.Private

assetvaluationshaveanelement

ofjudgementandcouldalsobe

impactedbymarketfluctuations.

Caledonia’sprincipalmarket

risksarethereforeequityprice

volatility,foreignexchangerate

movementsandinterestrate

volatility.

Marketrisksandsensitivitiesarereviewed

regularlywithactionstaken,where

appropriate,tobalanceriskandreturn.

Aregularreviewofmarketandportfolio

volatilityisconductedbytheboard.Reviews

alsoconsiderinvestmentconcentration,

currencyexposureandportfolioliquidity.

Portfolioconstruction,includinguseofprivate

assets,providessomemitigation.

Marketvolatilityandgeopoliticalrisksremain

andhaveheightenedoverthepastsixmonths

withimpactsfromtheongoingconflictsin

UkraineandtheMiddleEast.However,recent

marketvolatilityislargelydrivenbyUStrade

tariffsandongoinguncertaintyovertheir

coverageandapplication.

ThePublicCompaniesteammaintaina

long-termhorizon,whichbenefitsusin

volatileperiods,remainingvigilantformarket

opportunitiesthatmaypresentthemselvesin

theshortterm.

Inflation,reducedfromlastyear,isexpectedto

remainabovetheBankofEngland'stargetin

theshortterm.Currentprojectionsindicatea

returntothe2%targetinthemediumterm.

Exchangeratemovements(particularly

£vUS$)impactvaluations.Thisisclosely

monitoredalthoughtherearenoplansto

changeourunhedgedpositiongiventhelong

termnatureofourinvestments.

MEDIUM

66 Caledonia Investments plc Annual Report 2025

Principal risks Mitigation and management Key developments

Current risk status

and movement

in year to

March 2025

Liquidity

Riskthatliabilities,including

privateequityfunddrawdowns,

cannot be met or new

investmentscannotbemade

duetoalackofliquidity.Such

risk can arise from being unable

tosellaninvestmentduetolack

ofamarket,orfromnotholding

cashorbeingabletoraisedebt.

Detailedcashforecastingfortheyear

aheadisupdatedandreviewedquarterly,

includingtheexpecteddrawdownof

capitalcommitments.Aweeklycash

updateisproduced,focusedonthe

short-termcashforecast.Loanfacilities

aremaintainedtoprovideappropriate

liquidityheadroom.

Theliquidityoftheportfolioisreviewed

regularly.

AttheendofMarch2025therewas£151mcash,

inadditiontoa£325mundrawnontherevolving

creditfacility.

Thiswasrenewedandincreased(£250mto

£325m)intheyearwhich,inadditiontocash,

providesasubstantialamountofavailablecapital

forinvestmentinhighqualityopportunities.

Detailedcashforecastingcontinuestobereviewed

quarterly.

LOW

ESG & climate change

Risks in relation to the successful

incorporationofESGmatters

andclimatechangeimpactsinto

ourinvestmentapproach.

Identifyingopportunities

todriveourapproachto

ESGmatters,deliverstrong

returnsandmanagetherisks

tomeetevolvingstakeholder

expectations.

Caledonia’sESGknowledge,processes

andpoliciescontinuetodevelopas

ESGmattersareintegratedintoour

investmentapproach.Thepoolsreporton

ESGandclimatechangeinformationand

developments,totheboardannually.

AnassessmentofthePrivateCapitalportfolio

companies'climatechangerisksandopportunities

wasconductedforthesecondyear,updatingthe

approachtoensurealignmentwiththecorporate

riskframework.Thissupportstheclimatechange

riskandopportunitiesdisclosureswithintheTCFD

report.

DisclosureofcarbonemissionsforthePrivate

Capitalportfoliowasintroducedforthefirsttime.

MEDIUM

Operational

Risksarisingfrominadequate

orfailedprocesses,people

andsystems,orfromexternal

factors.

Operationalrisksarisefrom

failuresaroundtherecruitment,

developmentandretention

ofstaff,systemfailures

andintegrityissues,poor

procedures,businessdisruption

andfailuretoadheretolegal

orregulatoryrequirements.

Processfailurescanimpact

finance,ITandinvestment

teams.

Systemsandcontrolproceduresare

developedandreviewedregularly

ensuringthatdefencesagainstcyber

threatsremainrobustandalignedto

industrystandards.Theyaretestedto

ensureeffectiveoperation.

Appropriateremunerationandother

policiesareinplacetofacilitatethe

retentionofkeystaff.

Businesscontinuityplansaremaintained

andupdatedasthebusinessevolvesand

inresponsetoemergingthreats.This

includesaspecificfocusoncybersecurity.

Caledoniahasinternalresourcesto

considerregulatoryandtaxmatters

astheyarise.Professionaladvisersare

engaged,wherenecessary,toassistin

specialisedareasorwhennewlawsand

regulationsareintroduced.

Cybersecurityremainsamaterialriskexposure,

withfocusedactivityduringtheyeartoaugment

andstrengthenourtechnicalcontrols.Aspartof

ongoingcontrolsassurance,athirdpartyexpert

wasengagedtoreviewoursystemcontrols

againstNISTstandards(NationalInstituteof

Standards&Technology)withactionsbeing

progressed.Asystemsecurityfocusedsimulation

wasfacilitatedbyathirdpartywhichstressedthe

controlenvironment,indicatingareasofcontrol

improvementwhicharebeingprogressed.Annual

cybersecuritytrainingwasconducted,alongside

targetedphishingsimulationcampaigns.

Anewexpensessystemwasintroducedincreasing

efficiencyandsystemisingcontrols.

MEDIUM

Strategic report

Corporate governance

Financial statements Other information

Introduction

Going concern and viability

Thereviewofgoingconcernandviabilitywasconsidered

andapprovedbytheboard,followingfullscrutinybythe

AuditandRiskCommittee.Thisreviewconsideredthe

keyriskstothegroup,theirpotentialfinancialimpactand

mitigatingactions.Anumberofscenarioswereconsidered

tostress-testtherobustnessofthegroup’spositionto

adverseevents.Thesescenarioswereappliedtoadetailed

three-yearfinancialplanthatwasapprovedbytheboard

inMarch2025.

Going concern

Theboardhasundertakenanassessmentofthe

appropriatenessofpreparingitsfinancialstatementson

agoingconcernbasis,takingintoconsiderationfuture

cashflows,currentcashholdingsof£151m,undrawn

bankingfacilitiesof£325mandreadilyrealisableassets

of£965maspartofawiderprocessinconnectionwith

itsviabilityassessment.Ithasbeenconcludedthatthe

grouphassufficientcash,otherliquidresourcesand

committedbankfacilitiestomeetexistingandnew

investmentcommitments.

Thedirectorshaveconcludedthatthegrouphasadequate

resourcestocontinueinoperationalexistenceforaperiod

ofatleast12monthsfromthedateofapprovalofthe

financialstatements.Accordingly,theycontinueto

consideritappropriatetoadoptthegoingconcernbasis

inpreparingthefinancialstatements.

Viability statement

Thedirectorshaveassessedtheviabilityofthegroupover

theperiodtoMay2028(threeyearsfromthedateof

signingthefinancialstatements),havingdeterminedthat

thisisanappropriateperiodforwhichtoprovidethis

statementgiventhegroup’slong-terminvestment

objective,theresiliencedemonstratedbythestress

testingandtherelativelylowworkingcapitalrequirements

ofthegroup.

Theviabilityassessmenttakesintoaccountthegroup’s

position,itsinvestmentstrategyandthepotentialimpact

oftherelevantriskssetoutinthisstrategicreport.In

makingthisstatement,theboardissatisfiedthatthe

groupoperatesaneffectiveriskmanagementprocess

andconfirmsthatithasconductedarobustassessment

oftheprincipalandemergingrisksfacingthegroup.

Thisincludesthosethatwouldthreatenitsstrategic

objectives,itsbusinessmodel,itsabilitytooperateandits

futureperformance,solvencyorliquidity.Basedonthis

assessment,thedirectorshaveconcludedthatthegroup

willbeabletocontinueinoperationandmeetitsliabilities

astheyfalldueovertheperiodtoMay2028.

Inmakingthisassessment,thedirectorstookcomfort

fromtheresultsoftwostresstests,whichextendedthe

three-yearviabilityassessmenttoalongerperiodto

31March2030.Thisconsideredtheimpactofsignificant

marketdownturnconditions.

Thefirststresstestaddressedtwodiscretescenarios:

a5%reductioninthevalueofSterlingversustheUSdollar

comparedtotherateon31March2025anda12-month

delaytoPrivateCapitalrealisations.

Thesecondstresstestmodelledamarketdownturnevent

overatwo-yearperiodreflectingafallinPublicCompanies

investmentincomeof20%,reductionofPrivateCapital

investmentincomeby100%,aninabilitytorealisethe

PrivateCapitalportfolioanda50%reductionin

distributionsfromthegroup’sfundsportfolio.Tosimulate

anextremedownsidescenariotheimpactofamarket

downturneventandallfundcommitmentsfallingduewas

alsoassessed.Thedirectorsdonotbelievetheextreme

downsidescenarioislikelybutfactorsthisintothe

viabilityassessment.

Itwasconcludedthateveninasimulatedmarket

downturnandallfundcommitmentsfallingdue,thegroup

hassufficientliquidityonthebalancesheettomeetits

obligationsastheyfalldue.

Overall,throughthestresstestingdescribedabove,the

directorsdemonstratedthestrengthofthegroup’s

financialpositionand,inparticular,itsabilitytosettle

projectedliabilitiesastheyfalldue,evenunderextremely

adversecircumstances.

TheStrategicreportwasapprovedbytheboardon

19May2025andsignedonitsbehalfby:

Mat Masters

ChiefExecutiveOfficer

19May2025

68 Caledonia Investments plc Annual Report 2025

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Flexible

& responsible

We invest from the balance sheet,

which allows us to be flexible. It also

means that our own and our shareholders’

interests are absolutely aligned.

Maritime Volunteer Service

The Caledonia Investments Charitable Foundation supported MVS. They

educate members in all aspects of maritime and communication skills and

knowledge, promote the preservation of life and property within the maritime

environment, help local organisations and events with skilled support,

stimulate interest in maritime affairs, and excite members to achieve

through training and helping their local community.

70 Caledonia Investments plc Annual Report 2025

Corporate

governance

Board of directors

Governance framework

Corporate governance report

Section 172 statement

Nomination Committee report

Audit and Risk Committee report

Directors’ remuneration report

Governance Committee report

Directors’ report

115

Responsibility statements

119

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Board of directors

David Stewart

Chair

Jamie Cayzer-Colvin

Executive Director

Date of appointment:17March2015

Tenure:10years2months.Appointedtothe

boardofdirectorson17March2015andas

Chairon20July2017

External appointments:

•Chairmanandco-founderofIMMAssociates

•Non-executivedirectorofLongviewPartners

Skills and experiences:

•Extensiveexperienceofinternationalbusiness

andassetmanagementintheUK,Asiaand

emerging markets

•EffectiveleadershipofCaledonia’sboard

•Providesvaluableinsightandadviceinrelation

tothecompany’sglobalportfolio

Date of appointment:4April2005

Tenure:20years1month

External appointments:

•Memberoftheadvisorycommitteesofa

numberofCaledonia’sfundinvestments

•ChairofTheCaledoniaInvestments

CharitableFoundation

•DirectorofTheCayzerTrustCompany

Skills and experiences:

•PreviouslyservedasChairmanofThe

HendersonSmallerCompaniesInvestment

Trustandasanon-executivedirectorofPolar

CapitalHoldings,PolarCapitalFunds,Close

BrothersandRathbones

•Seniormanagementexperienceand

investmentexpertise

•Specificallycontributestothelong-term

sustainablesuccessofthecompanythrough

hisleadershipofCaledonia’sfundsinvestment

strategy

Date of appointment:1April2022

Tenure:3years1month.Appointedtothe

boardofdirectorsandasChiefExecutiveOfficer

Designateon1April2022,becomingChief

ExecutiveOfficeron27July2022

Skills and experiences:

•Qualifiedaccountant

•Specialisedincorporatefinancebeforejoining

Caledonia,helpingsmallandmid-sized

companiesaccessprivateequityfinance

•Investmentexpertise,seniormanagement,

internationalbusinessexperienceand

leadershipskillstoenablehimtoexecutethe

board’sstrategy

Date of appointment:28March2023

Tenure:2year1month

External appointments:

•Non-executivedirectorandChairoftheAudit

CommitteeatAuroraInvestmentTrust

•Non-executivedirectorandChairoftheAudit

CommitteeofLeedsBuildingSociety

•Non-ExecutivedirectorofApolloSyndicate

ManagementLimited

Skills and experiences:

•Qualifiedcharteredaccountant

•Over20yearsworkinginfinancialservices

acrossaudit,mergersandacquisitionsand

privateequity

•Workedonnumeroustransactionswithinthe

retail,consumerandleisuresectorsat

boutiquecorporatefinancehouseMcQueen

•Bringsextensiveinnovationandstrategy

experiencetotheboard,withaparticularfocus

ontechnologyandenvironmental,socialand

governancematters

Date of appointment:1September2023

Tenure:1year8months

External appointments:

•TreasurerandProChancelloroftheUniversity

ofSheffield

Skills and experiences:

•Qualifiedcharteredaccountant

•Significantlistedcompanyexperience,having

previouslyservedasCFOofArrowGlobal

Group,whichincludeditssuccessfulIPO,

andJohnLaingGroup,beforeitstakeprivate

transaction with KKR

•Extensivecommercialandfinancialexperience,

withover20years’experienceinsenior

financialleadershiproles

Date of appointment:18July1985

Tenure:39years10months

External appointments:

•ChairmanofTheCayzerTrustCompanyand

BedfordEstates

Skills and experiences:

•Experienceofmerchantbanking,commercial

bankingandcorporateandprojectfinance

withBaringBrothers,CayzerIrvineand

CayzerLtd

•Responsibleforalargenumberofinvestment

acquisitionsanddisposalsasanexecutive

directorofCaledonia

•Extensiveknowledgeofthecommercial

propertysectorandbroadcommercial

managementexperience,whichenablehim

toprovideinsightandconstructivechallenge

acrossthebreadthofCaledonia’sinvestment

activities

N R

Mat Masters

Chief Executive Officer

Farah Buckley

Independent Non-Executive Director

Rob Memmott

Chief Financial Officer

The Hon Charles Cayzer

Non-independent Non-Executive Director

RG N N

72 Caledonia Investments plc Annual Report 2025

Guy Davison

Senior Independent Non-Executive Director

Lynn Fordham

Independent Non-Executive Director

Date of appointment:1January2018

Tenure:7years4months

External appointments:

•TrusteeoftheSussexCommunityFoundation

Skills and experiences:

•Qualifiedaccountant

•FoundingpartnerofCinven,centraltothe

developmentandexpansionofthebusiness.

Duringhis29years,herepresentedthefirm

asChairmanornon-executivedirectoratsome

25ofitsportfoliocompanies

•30years’knowledgeandexperienceofprivate

equityinvesting,bothintheUKandEurope,

whichisofparticularbenefittotheboardand

Caledonia’sPrivateCapitalteaminevaluating

newunquotedinvestmentopportunitiesand

managingitsexistingunquotedportfolio

Date of appointment:1January2022

Tenure:3years4months

External appointments:

•ChairofRMA-TheRoyalMarinesCharityand

NewRiverReit

•Non-executivedirectorofDomino'sPizza

Group,NCCGroupandEnfinium

Skills and experiences:

•Qualifiedcharteredaccountant

•FormerlytheManagingPartnerofLarchpoint

Capital,CEOofSVGCapital,non-executive

directorofFuller,Smith&Turner

•Previouslyheldseniorfinance,riskandstrategy

positionsatBarrattDevelopments,BAA,Boots,

ED&FMan,BATandMobilOil

•Wideranginglistedcompany,privateequity

andfinanceexperienceacrossarangeof

sectors,thelatterbeingofparticular

importancetoherroleasChairoftheAudit

andRiskCommittee

Date of appointment:28March2022

Tenure:3years1month

Skills and experiences:

•FormerdirectorofElectraPartnersand

ProvidenceEquityPartnersandformer

non-executivechairofPershingSquare

Holdings

•Workedwithbothestablishedandearly-stage

companiesduringherprivateequityand

investmentcareeracrossarangeofdifferent

sectorsandjurisdictions

•Extensiveprivateequityandinvestment

experienceinEurope,NorthAmericaandAsia,

enablinghertoprovideconstructivechallenge

acrossabroadrangeofthecompany’s

investments

Date of appointment:4April2005

Tenure:20years1month

External appointments:

•Non-executivedirectorofCobehold

•ChairmanoftheRankFoundationandReal

EstateInvestors

•DirectorofTheCayzerTrustCompany

Skills and experiences:

•JoinedtheCaledoniagroupin1997fromClose

BrothersCorporateFinance,workingat

SterlingIndustriesbeforetransferringto

Caledonia’sheadofficein1999asan

investmentexecutive

•AppointedadirectorofCaledoniain2005,

servingasChiefExecutivefrom2010until

becominganon-executivedirectorin2022

•HeldboardpositionsatnumerousCaledonia

investeecompanies,bothlistedandprivate

•Corporatefinanceandinvestmentexpertise,

broadseniormanagementexperienceand

teamleadershipskills,whichbenefitthe

successfuldeliveryoftheboard’sstrategy

Date of appointment:22July2019

Tenure:5years9months

External appointments:

•Non-executivedirectorofSchroders

•Involvedinanumberofcharitabletrustsand

foundations,includingasadirectorofthe

SchroderCharityTrustandasatrusteeof

theSchroderFoundation

Skills and experiences:

•FormerexecutivedirectorofGauntlet

InsuranceServicesbeforebecoming

non-executivein2004until2019

•Broadexperienceinboththefinancialservices

andcharitablesectors,aswellasadeep

experienceofpublicandprivatebusinesses

withsignificantfamilyshareholdings

Anne Farlow

Independent Non-Executive Director

Will Wyatt

Non-independent Non-Executive Director

Claire Fitzalan Howard

Independent Non-Executive Director

RG N

A G N A G N R

A G N

AuditandRisk

Governance

Nomination

Remuneration

Committee chair

Committee membership key

Board diversity

Male 7 64%

Female 4 36%

White 10 91%

Asian/AsianBritish 1 9%

Strategic report

Corporate governance

Financial statements Other information

Introduction

Governance framework

The board as a whole is collectively responsible for the success of the company and for supervising its affairs. It sets the

company’s strategy, ensures that the necessary financial and human resources are in place to enable the company to meet its

objectives and reviews management performance. It also defines the company’s purpose and culture, and sets the company’s

values and standards to ensure that its obligations to its shareholders and other stakeholders are understood and met. It aims

to provide leadership of the company within a framework of prudent and effective controls, which enables risk to be assessed

and appropriately managed.

Chair

TheChairisprimarilyresponsibleforthe

leadershipoftheboardtoensurethatit

carriesoutitsroleeffectivelyandfor

successionplanning.

Senior Independent Director

TheSeniorIndependentDirectoris

responsibleforprovidingasoundingboard

fortheChairand,ifnecessary,toserve

asanintermediaryfortheotherdirectors

andshareholders.

Chief Executive Officer

TheChiefExecutiveOfficerisresponsible

fortheimplementationoftheboard’s

strategy,policiesandthemanagementof

thecompany’sactivities,otherthanthose

mattersspecificallyreservedfortheboard.

Audit and Risk

Committee

Governance

Committee

Nomination

Committee

Remuneration

Committee

Disclosure and

Delegation

Committee

Dealswithroutine

administrativematters

ormattersforwhich

boardapprovalhas

alreadybeengivenin

principle.Italsoconsiders

potentialdisclosure

mattersasrequired.

Further detail

See page 88

Further detail

See page 94

Further detail

See page 86

Further detail

See page 96

BOARD COMMITTEES

THE BOARD

Responsible

Investment /

Corporate

Working Group

Advisesandassistsin

thedevelopmentand

implementationof

Caledonia’sapproach

to sustainability

matters,including

climate-relatedissues.

IT/AI Working

Group

Crossfunctional

workinggroup

establishedtoreview,

adviseandassistinthe

developmentand

implementationofIT

andAIpolicyandnew

technology.

Operational Risk

Committee

Considersthe

company’soverallrisk

strategy,reviewsthe

internalfinancial

controlsystems,and

developsand

implementsthe

proceduresfor

detectingfraudand

preventingbribery.

Investment

Committee

Considersandformally

approvesnew

investmentsand

proposedrealisations.

Othermatters

consideredincludethe

daytodaymanagement

ofthecompany’s

business where not

delegated

elsewhere.

Valuation

Committee

Formallyreviews

valuationsofallofthe

company’sinvestments

ateachhalf-yearand

full-yearend.Meetings

areobservedby

representativesfrom

theexternalauditor.

Investment

Management

Committee

Considersmatters

relatingtothe

company’sinvestment

portfolio.

Private Capital

Investment

Committee

Reviewsthe

management of

investmentsheldwithin

thePrivateCapitalpool

andconsiderspotential

PrivateCapital

transactions.

MANAGEMENT COMMITTEES

INVESTMENT TEAM

74 Caledonia Investments plc Annual Report 2025

Strategic report

Corporate governance

Financial statements

Other information

Introduction

Corporate governance report

Membership and attendance

Theboardheldsixscheduledmeetingsduringtheyear,together

withtwoadditionalmeetingsconvenedatshortnotice.Attendance

ofthedirectorswasasfollows:

Director

Meetings

attended

Meetings

eligible

toattend

D C Stewart 8 8

M S D Masters 8 8

R W Memmott 8 8

JMBCayzer-Colvin

7 8

F A Buckley 8 8

HonCWCayzer 8 8

GBDavison 8 8

M A Farlow

7 8

CLFitzalanHoward

7 8

LRFordham 8 8

W P Wyatt

7 8

1. JamieCayzer-Colvin,AnneFarlow,ClaireFitzalanHowardandWillWyatt

wereeachunabletoattendoneofthemeetingswhichwerecalledat

shortnotice,duetopre-existingcommitments.

Further information on the matters

reserved for the board

Statement of compliance

TheboardconsidersthatthecompanyhascompliedwiththeUK

CorporateGovernanceCode(‘Code’)publishedinJuly2018for

thedurationofthereportingperiod.Inmakingthisassessment,

theboardgaveparticularconsiderationtoProvision19ofthe

CodeasexplainedinBoardcompositiononpage77.

AcopyoftheCodeisavailableonthewebsiteoftheFinancial

ReportingCouncilatwww.frc.org.uk.

Pages76to118comprisethecompany’scorporate

governancestatement.

Theboardand,whererelevant,itscommitteesmadeappropriate

preparationsinresponsetotheupdatedprinciplesandprovisions

containedinthenewCodepublishedinJanuary2024,whichwill

applytothecompany’sfinancialyearending31March2026apart

fromProvision29whichwillapplytothecompany'sfinancialyear

ending31March2027.

The board

Overall responsibility and operation

Aspartofthecompany’sgovernanceframework,whichis

summarisedonpage74,theboardhasadoptedaformalschedule

thatsetsoutthosematterswhichitspecificallyreservesforitsown

decisionandthosewhicharedelegatedtoboardcommitteesand

toexecutivemanagement.Mattersreservedfortheboard’sown

decisionincludethefollowing:

• responsibilityforthecompany’sstrategy,valuesandculture

• approvalofthecompany’shalf-yearresults,full-yearresultsand

annualreport

• approvalofthecompany’sdividendpolicyanddividend

distributions

• theappointment,re-appointmentandremovalofthe

externalauditor

• theappointmentandremovalofdirectorsofthecompany,

asprescribedbythecompany’sarticlesofassociation,andof

certainotherexecutives,includingtheCompanySecretary

• thetermsofreferenceofboardcommitteesandthe

membershipthereof

• directors’remunerationandtermsofappointment

• settingannualbudgets

• thecompany’ssystemsofriskmanagementandinternalcontrol,

includingproceduresfordetectionoffraudandprevention

of bribery

• responsibilityforthecompany’sarrangementstoenableits

employeestoraiseanymattersofconcern

• treasurypolicies,bankingcounterpartiesandcounterparty

exposurelimits

• significantcapitaltransactions

• politicaldonations.

Caledonia recognises the value of

good corporate governance to deliver

long-term sustainable success.

76 Caledonia Investments plc Annual Report 2025

TherolesoftheChair,theChiefExecutiveOfficerandtheSenior

IndependentDirectorareseparatedandclearlydefinedin

separatestatementsofresponsibilities.Theseresponsibilities

aresummarisedinthegovernanceframeworkonpage74.

Themattersreservedfortheboardandthestatementsof

responsibilitiesoftheChair,theChiefExecutiveOfficerandthe

SeniorIndependentDirectorarereviewedbytheboardannually

andpublishedonthecompany’swebsite.

Appointment, induction and training

ThecompanycomplieswiththerecommendationoftheCodethat

alldirectorsofFTSE350companiesshouldbesubjecttoannual

re-electionbyshareholders.

Onappointment,newdirectorsareofferedinductionand

trainingconsideredappropriatebytheboard,andsubsequently

asnecessary.Theannualperformanceevaluationoftheboard

encompassestheidentificationofanyindividualtrainingneedsof

boardmemberssothat,ifnecessary,thesecanbereviewedbythe

Chairwiththedirectorsconcerned.Thedirectorsreceivebriefings

atboardmeetingsonregulatoryandotherissuesrelevanttothe

companyanditsbusinesssectorand,inaddition,mayattend

externalcoursestoassistintheirprofessionaldevelopment.

Board composition

Theboardcurrentlycomprises11directors.ExcludingtheChair,

threeofthedirectorsareexecutiveandsevenarenon-executive.

Theboardconsidersallofthenon-executivedirectorstobe

independentotherthanWillWyattandTheHonCWCayzer

whowereexecutivedirectorspriortobecomingnon-executive

directorsandarealsomembersoftheCayzerfamilyconcertparty

(‘CayzerConcertParty’).

DavidStewartwasappointedtotheboardasanindependent

non-executivedirectorinMarch2015,beforetakingontherole

ofcompanyChairinJuly2017.Theboard,ontherecommendation

oftheNominationCommittee,whichwaschairedbyGuyDavison,

Caledonia’sSeniorIndependentDirector,furtherextendedDavid’s

tenureasChairinMay2025untilnolaterthanthecompany’s

annualgeneralmeetingin2026,subjecttohisannualre-election

byshareholders.Thisfollowedaninitialextensionofoneyearto

July2025andlengthenedDavid’santicipatedservice

ontheboardbyalittleovertwoyears.Whilstthisisbeyondthe

nineyearsrecommendedinProvision19oftheCodehistenure

ascompanyChairwillnotexceednineyears.Aspreviously

reported,theextensionswereconsideredappropriatefollowing

aperiodofnotableboarddevelopmentwhichincludedthe

appointmentofthreenewnon-executivedirectorsandtwo

executivedirectorsin2022and2023.Inconsideringthefurther

extensionofDavid’stenureforalimitedperiod,theNomination

Committeetookintoaccounttheongoingsuccessionplanning

activitytoidentifyanewChairandtheneedtoreplacetheskills

andexperienceDavidbringstotheboard.Followingacareful

assessmentincludingfeedbackobtainedaspartoftheboard

evaluation,theboardconcludedthathecontinuestobean

independentandeffectivechair.

AsexpectedintheCode,atleasthalfoftheboard’s

membersthroughouttheyear,excludingtheChair,

wereconsideredindependent.

Board committees

Asidentifiedinthegovernanceframework,whichissummarised

onpage74,theboardhasdelegatedcertainspecificareasof

responsibilitytothefollowingstandingcommittees:the

NominationCommittee,theAuditandRiskCommittee,the

GovernanceCommitteeandtheRemunerationCommittee.

Furtherdetailsoftheworkofeachofthesecommitteesandtheir

membershipduringtheyeararesetoutintheirrespectivereports

onpages86to114.

Thetermsofreferenceofeachcommitteearereviewedannually

andareavailableonthecompany’swebsite.

Board performance evaluation

Theboardconductsanannualevaluationofitsperformance

andthatofitscommitteesand,inaccordancewithgoodpractice,

engagesanindependentthirdpartyfacilitatortoassistinthis

processeverythreeyears.Fortheyearended31March2024,

BoardLevelPartners(‘BLP’)wasengagedtoconductanexternally

facilitatedevaluationoftheboard,itscommitteesandindividual

directorsasreportedinthe2024annualreport.

Fortheyearended31March2025,theevaluationoftheboard

asawholeandofitscommitteeswasundertakeninternally,led

bytheChair,andwasconductedbyinvitingindividualboard

memberstocompletequestionnairesregardingtheoperation

andeffectivenessoftheboardanditscommittees.Theanalysis

wascollatedbytheCompanySecretaryanddiscussedbytheChair

witheachdirectorseparately.

TheevaluationoftheperformanceoftheChairwasledbythe

SeniorIndependentDirectorandwasdiscussedinameeting

ofthenon-executivedirectors.Theperformanceofthe

executivedirectorswasreviewedbytheChairandthenon-

executivedirectors.

Theresultsofthe2025evaluationprocesswereconsideredbythe

board.Theconclusionwasthattheboardcontinuedtofunction

wellinanatmosphereofopenandconstructivedebatewitha

goodbreadthofskills,experienceandviewpoints.Areasidentified

fordevelopmentincluded:

• long-termsuccessionplanning

• embeddingtheupdatedriskmanagementframework

• ongoingtraininganddevelopment.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Corporate governance report (continued)

Key stakeholders, engagement and board decision making

Detailsinrespectofthecompany’skeystakeholders,together

withcommentaryonhowthedirectorsaddressedthematters

setoutinsection172(1)(a)to(f)oftheCompaniesAct2006

(the‘CompaniesAct’)astheymadedecisionsduringtheyear,

aresetoutintheSection172statementonpages80to85.

Shareholders

Annual general meeting

AsnotedintheSection172statement,thecompany’sannual

generalmeetingremainsanimportantpartofCaledonia’s

shareholdercommunicationsprogramme.Allresolutions

proposedatthe2024annualgeneralmeetingwerepassed.

Theninety-sixthannualgeneralmeetingofthecompanywillbe

heldat6ParkPlace,St.James’s,LondonSW1A1LRonWednesday,

16July2025at11.30am.Thenoticeoftheannualgeneralmeeting

anddetailsofalloftheresolutionstobeputtoshareholdersare

setoutinaseparatecircularpublishedatthesametimeasthis

annualreport.

General meeting

On18December2024,ageneralmeetingwasheldforthe

considerationbyshareholdersofaproposaltorefreshthe

company’sthenexistingauthoritytomakemarketpurchases

ofordinarysharesandatthesametimetoseekapprovalfrom

independentshareholdersofawaiverofthemandatoryoffer

provisionssetoutinRule9ofTheCityCodeonTakeoversand

Mergers(‘Rule9WaiverResolution’)inrelationtotheCayzer

ConcertParty,whichdidnotincludeacaponthepercentageof

theordinarysharesthattheCayzerConcertPartycanhold

followingmarketpurchases.Thebackgroundtoandadetailed

explanationoftheproposalswasprovidedinthecircularcontaining

anoticeofgeneralmeetingmadeavailabletoshareholderson

26November2024.

Bothresolutionsproposedatthegeneralmeetingwerepassed.

Thecompanyisgratefultothoseshareholderswhotookthe

timetoengageinadvanceofthegeneralmeetingandtoall

shareholderswhovotedinfavouroftheresolutionsfor

theirsupport.

Relations with controlling shareholders

Asat19May2025,beingthelatestpracticabledatepriortothe

publicationofthisannualreport,theCayzerConcertPartyheld

50.4%ofCaledonia’svotingrights.

PreviouslyundertheFinancialConductAuthority’sListingRules,

whereapremiumlistedcompanyhadacontrollingshareholder

orshareholders(beingapersonorpersonsactinginconcertwho

exerciseorcontrol30%ormoreofthecompany’svotingrights),

thecompanywasrequiredtoenterintoawrittenandlegally

bindingagreementwhichwasintendedtoensurethatthe

controllingshareholderundertooktocomplywithcertain

independenceprovisions.Theagreementsspecifiedunderthe

ListingRulesdescribedabove(whichwererequiredtobeinplace

by17November2014)wereenteredintobythecompanyon

30October2014withTheCayzerTrustCompanyLimited(‘Cayzer

Trust’)andseparatelywiththeTrusteeofTheCaledonia

InvestmentsplcEmployeeShareTrust(‘EmployeeShareTrust’),

whichisdeemedbyThePanelonTakeoversandMergerstoform

partoftheCayzerConcertParty.

TherequirementspecifiedundertheListingRulesdescribedabove

wasremovedinJuly2024.Followingthischange,therelationship

agreementsenteredintobythecompanyin2014withCayzer

TrustandtheEmployeeShareTrustautomaticallyterminated.

ThecompanyandCayzerTrustagreedtoenterintoarevised

relationshipagreementon26November2024,conditionalonthe

Rule9WaiverResolutionbeingpassed.Underthisnewagreement,

CayzerTrustagreedto,andwilluseitsreasonableendeavoursto

procurethatothermembersoftheCayzerConcertPartywill:

• conductalltransactionsandarrangementswiththecompany

andothergroupmembersatarm’slengthandonnormal

commercial terms

• notundertakeanyaction,includingproposingashareholders’

resolution,thatwouldhavetheeffectofpreventingthe

companycomplyingwithitsobligationsundertheListingRules

• maintainalistofthemembersoftheCayzerConcertPartyfrom

timetotimeandworkwiththecompanytoprovideinformation

tosupportthecompany’sassessmentofitscompliancewiththe

requirementstomaintaininvestmenttruststatus

• ifnecessary,discussingoodfaithwiththecompanyanyactions

thatthecompanyconsidersmaybereasonablynecessaryto

protectthecompany’sinvestmenttrusttaxstatus.

Theboardconfirmsthat,duringtheperiodunderreviewandup

to19May2025,beingthelatestpracticabledatepriortothe

publicationofthisannualreport,thecompanyhastheability

tocarryonitsbusinessindependentlyoftheCayzerTrust.

78 Caledonia Investments plc Annual Report 2025

Directors’ conflicts of interest

EachdirectorhasadutyundertheCompaniesActtoavoida

situationwheretheyhave,orcouldhave,adirectorindirect

interestwhichconflicts,ormaypossiblyconflict,withthe

company’sinterests.TheCompaniesAct,however,allowsdirectors

ofpubliccompaniestoauthoriseconflictsandpotentialconflicts

wherethearticlesofassociationcontainaprovisiontothiseffect.

TheCompaniesActalsoallowsthearticlestocontainother

provisionsfordealingwithdirectors’conflictsofinteresttoavoid

abreachofduty.

Therearesafeguardsinthecompany’sarticlesofassociationwhich

applywhenthedirectorsdecidewhethertoauthoriseaconflict

orpotentialconflictofinterest.First,onlyindependentdirectors,

beingthosewhohavenointerestinthematterbeingconsidered,

areabletotaketherelevantdecisionand,second,intakingthe

decision,thedirectorsmustactinawaywhichtheyconsider,in

goodfaith,willbemostlikelytopromotethesuccessofthe

company.Thedirectorsareabletoimposelimitsorconditions

whengivingauthorisationsiftheythinkthisisappropriate.

Theboardhasadoptedprocedurestoaddresstherequirements

oftheCompaniesActinrelationtodirectors’conflictsofinterest.

Eachnewdirectoronappointmentisrequiredtodeclareany

potentialconflictsituations,whichmayrelatetothemortheir

connectedpersons.Thesearereviewedbytheboardand,if

necessary,alsobytheGovernanceCommittee,whichthen

considerswhetherthesesituationsshouldbeauthorisedand,

ifso,whetheranyconditionstosuchauthorityshouldbeattached.

Eachboardmeetingincludesastandingagendaitemonconflicts

ofinteresttoensurethatalldirectorsdiscloseanynewpotential

conflictsituations.Thesearethenreviewed,againifnecessary

bytheGovernanceCommittee,andauthorisedbytheboardas

appropriate.Aregisterofdirectors’conflictsofinterestis

maintainedbytheCompanySecretaryandisreviewedannually

bytheGovernanceCommittee.

TheCorporategovernancereportwasapprovedbytheboardon

19May2025andsignedonitsbehalfby:

David Stewart

Chairoftheboard

19May2025

Thetablebelowhighlightswherekeycontentcanbelocated

elsewhereinthisannualreporttoenableshareholdersto

evaluatehowthecompanyhasappliedtheprinciplessetout

intheUKCorporateGovernanceCode.

Page

Board leadership and company purpose

Chair’s statement 14

ChiefExecutiveOfficer’sreport 16

Section172statement 80

Keyperformanceindicators 22

Sustainability 44

Keystakeholders 81

Division of responsibilities

Theboard 76

Boardcommittees 77

Membershipandattendance 76

Composition, succession and evaluation

Boardofdirectors 72

Boardcomposition 77

Boardperformanceevaluation 77

NominationCommitteereport 86

Boardandcommitteediversitypolicy 86

Audit, risk and internal control

AuditandRiskCommitteereport 88

Responsibilitystatements 119

Risk management 63

Goingconcernandviability 68

Internal control systems 91

Remuneration

Annual statement by the Chair of the

Remuneration Committee 96

Remunerationpolicy 99

Annualreportondirectors’remuneration 105

Strategic report

Corporate governance

Financial statements Other information

Introduction

Section172oftheCompaniesAct2006(the‘CompaniesAct’)

requireseachofourboarddirectors,individuallyandcollectively,

toactinthewaytheyconsider,ingoodfaith,wouldmostlikely

promotethelong-termsuccessofthecompanyforthebenefitof

itsmembersasawhole.Indoingthistheyarerequiredtohave

regard,amongstotherrelevantmatters,tothe:

a. likelyconsequencesofanydecisionsinthelongterm

b. interestsofthecompany’semployees

c. needtofosterthecompany’sbusinessrelationships 

withsuppliers,customersandothers

d. impactofthecompany’soperationsonthecommunityand

environment

e. desirabilityofthecompanymaintainingareputationforhigh

standardsofbusinessconduct

f. needtoactfairlyasbetweenmembersofthecompany.

Indischargingtheirduties,eachdirectorwillseektobalance

theinterests,viewsandexpectationsofCaledonia’sstakeholders,

whilstrecognisingthateverydecisiontheboardmakeswillnot

necessarilyresultinapositiveoutcomeforall.However,the

board’saimistomakesurethatdecisionsareconsistent

andpredictable.Insodoing,itseekstogeneratelong-term

compoundingrealreturnsthatoutperforminflationby3%-6%

overthemediumtolongterm,andtheFTSEAll-Shareindex

over10years.Thecompanydoesnothavecustomers.Rather,

itsshareholdersarethestakeholderswhomostclosely

resemblecustomers.

Inthissection,wedescribeeachofourkeystakeholdergroups,

theirimportanceandhowweengagedwiththemduringtheyear.

Alsoprovidedareexamplesofthewaysinwhichtheboard

consideredtheinterestsofthesestakeholdersandhadregardto

thematterssetoutinsection172(a)to(f)oftheCompaniesAct

whenmakingitsdecisions.

Furtherdetailsonhowtheboardoperatescanalsobefoundin

theCorporategovernancereportonpage76andat

www.caledonia.com.

Section 172 statement

How we engage with stakeholders and make decisions

80 Caledonia Investments plc Annual Report 2025

Our stakeholders and their importance

Centred around a collection of values

that shape our approach to every

aspect of investing, our team is key

to delivering long-term performance.

We seek to create an environment that

enables us to attract, retain and

develop exceptional people

Our people

The Caledonia Investments Charitable

Foundation - we look to support

communities which resonate with

our history, values, culture and team

Caledonia intern programme - we

remain committed to advancing new

talent in our industry

Community

Our portfolio companies, both public

and private, and private equity funds

provide the source of returns to our

shareholders. We build rewarding

relationships with, and a deep

understanding of, our investments

Our portfolio

companies and

funds

We build and value long-term

supplier relationships built on

transparency, reliability and

quality to support our

investment activities

Suppliers

Our shareholders provide Caledonia’s

permanent capital and it is for their

benefit that the directors are required

to promote the company’s success

Our shareholders

Stakeholders

Strategic report

Corporate governance

Financial statements Other information

Introduction

Why we engage How we engage How the board engages Outcomes

Shareholdersprovide

Caledonia’spermanentcapital

anditisfortheirbenefitthat

thedirectorsarerequired

topromotethecompany’s

success.

Weremaincommittedtoa

proactiveandconstructive

dialoguewithshareholders

toensure:

•thereisagoodunderstanding

ofthecompany’spurpose,

performanceandapproach

toenvironmental,socialand

governancematters

•theboardisawareofissues

thatareimportanttothem.

Wecommunicatewithinvestors

throughnumerouschannels:

•ourChiefExecutiveOfficer

andChiefFinancialOfficer

holdregularmeetingswith

institutionalinvestors,private

clientstockbrokersandfund

managers,particularlyfollowing

thepublicationofourhalf-yearand

annual results

•anewprogrammeofspotlight

eventsforinvestorsandanalysts

oneachofourthreepools

providinginsightontheinvestment

philosophy,strategyandportfolio,

thefirstofwhichwasheldonthe

PrivateCapitalpoolinJanuary2025

•investorconferencesattendedby

retailinvestorsandfundmanagers

•regularmarketannouncements,

includingmonthlyNAV

announcements,half-year

andannualresultswebcasts

keepshareholdersapprisedof

performance.

Furtherdetailsonrelationswith

controllingshareholderscanbe

foundonpage78.

•TheChairandother

non-executivedirectorsare

availabletoattendshareholder

meetingsifrequested.

•Caledonia’sannualgeneral

meetingisanimportant

partofourcommunications

programme,providingdirectors

withtheopportunitytomeet

shareholdersinpersonandto

heartheiropinions.

•Duringthethirdquarterof

theyear,ourChairandChief

ExecutiveOfficermetwith

independentshareholdersto

seektheirviewsonarangeof

mattersincludingthepossibility

oftakingstepstoensurethat

thecompanycouldcontinueto

makesharebuybacks.

•Viewsputforwardby

shareholdersandanalysts

arereportedbacktothe

board,withperiodicreports

andpresentationsfrom

thecompany’sbrokersand

managementonshareholder

feedbackandgeneralmarket

perceptionofthecompany.

•Shareholderperspectivesandongoing

engagementareconsideredaspartof

strategyandotherdiscussions.

•Duringtheyear,worktoimplement

changestoourinvestorrelationsand

communicationsactivitiescontinued,

tofurtherrefineourdisclosuresand

ensureourinvestmentpropositionis

wellunderstoodandrecognisedbythe

market.

•Shareholderapprovalatthegeneral

meetingheldon18December2024

allowedustocontinuerepurchasing

shareswithoutacaprestrictingthe

percentageoftheordinaryshares

thatthemembersoftheCayzerfamily

concertpartyareabletohold.

•Sentimenttowardsinvestment

companies,andinparticularthose

investinginprivateassets,continues

toweighondiscountsacrossthe

sector.Webelievethattheshareprice

fundamentallyundervaluesthequality

oftheinvestmentportfolioanditslong

termperformance.Duringtheyear,

werepurchased1,729,061sharesatan

averagediscountof33.7%,resultingina

59.2paccretiontoNAVpershare.

•Inmakingitsdecisionregardingthe

2025interimandfinaldividends,

theboardconsideredshareholders’

expectations,thenetrevenuegenerated

bythecompanyandthecapacityofthe

companytopaydividendsoutoffree

cashflow,takingintoaccountfuture

dividendliquidityrequirementsand

availability.

•Theboardintendstoincreasefuture

interimdividendsto50%oftheprior

year'stotalannualdividend,ensuring

amorebalanceddividendprofileand

providingamorepredictableincome

streamtoourshareholders.

•Theboardisrecommendinga10:1share

splittoshareholdersforapprovalatthe

2025annualgeneralmeeting.Thiswill

reducethenominalvalueofordinary

sharesfrom5pto0.5pandisexpected

toimproveaffordabilityandflexibilityfor

smallershareholders.

Section 172 statement (continued)

Our shareholders

82 Caledonia Investments plc Annual Report 2025

Why we engage How we engage How the board engages Outcomes

Ourteamiskeytodelivering

long-termperformance.

Recruiting,retainingand

developingengagedand

experiencedemployeeswho

shareourvaluesandcultureis

centraltodeliveringCaledonia’s

purpose.

Weencouragehonestandopen

communication,bothformallyand

informally,toensureemployees

remaincloselyinvolvedwiththe

successofthebusiness.

Furtherdetailsonourworkplacecan

befoundonpage62.

•Caledoniahasasmallnumber

ofemployeeswhichenables

regularformalandinformal

accesstoboarddirectors,

irrespectiveofseniority,

togetherwithfrequent

colleagueinvolvementinboard

andcommitteemeetings.As

such,theboardbelievesthat

these existing arrangements

areeffectiveandtherefore

themethodsforworkforce

engagementsuggestedbythe

UKCorporateGovernanceCode

arenotnecessary.

•Formalperiodicreports

onstaff-relatedmatters,

includinganyinstancesof

concernsorgrievancesraised

andsuggestionsreceivedfor

improvementstotheworkplace

culture,assisttheboardin

understandingtheviewsof

employees.

•Thisyearwelaunchedoursecond

colleagueengagementsurveytohelp

usbetterunderstandtheviewsofour

employeesandhowwecancontinueto

developandimprove.Wearepleased

that92%ofcolleaguesrespondedtothe

surveyandtheirfeedbackwillhelpshape

ourplansoverthenexttwoyears.

•Followingshareholderapprovalat

the2024annualgeneralmeeting,we

willlaunchourallemployeeShare

IncentivePlaninSummer2025.Thisis

anHMRCapprovedplanandwillofferall

employees,irrespectiveofseniority,the

opportunitytobuildupataxefficient

equitystakeinthecompany.

Our people

Strategic report

Corporate governance

Financial statements Other information

Introduction

Section 172 statement (continued)

Why we engage How we engage How the board engages Outcomes

Ourportfoliocompanies,both

publicandprivate,andprivate

equityfundsprovidethesource

ofreturnstoourshareholders.

Ourfocusremainsonlongterm

carefulstewardshiptocreatevalue

forourshareholders.

Weseektobuildrewarding

relationshipswith,andadeep

understandingof,ourinvestments.

Public Companies

•Weusein-houseandthirdparty

research to closely monitor the

performanceofcompaniesinthe

IncomeandCapitalportfolios.

• Meetings with management

teamsareanimportantpartofour

ongoingstewardshipactivities.

•Wemakeconsidereduseofour

votingrightsatallshareholder

meetings.

Private Capital

•Ouremployeesserveas

non-executivedirectorsonthe

boardsofportfoliocompanies

inwhichweholdasignificant

investment,providingoversight

andhelpingtoensurethatour

boardiskeptapprisedofkey

developmentsandtheviewsof

abroadergroupofstakeholders.

Funds

•Alongsideproactivemonitoring

offundperformance,weare

representedbyemployeeson

numerousadvisorycommittees

establishedbythemanagersofthe

fundsinwhichweinvest.

•Aregularprogrammeofmeetings

withfundgeneralpartners,other

limitedpartnersandinvestee

businesses enables us to gain

real insight into the ongoing

managementofourportfolio.

Furtherdetailsonourstewardship

activitiescanbefoundonpage46.

Decisionmakingissupported

bycomprehensiveregular

reportingtotheboardbythe

HeadsofPublicCompanies,

PrivateCapitalandFunds,

supportedbymembersoftheir

respectiveteams.

Private Capital

•Ourprogrammeof

presentationsfromthe

leadershipofportfolio

companiesprovidesdirectors

additionalinsighttoassistwith

investmentdecision-making.

•InJanuary2025,thedirectors

attendedaconferenceand

dinnerwithportfoliocompany

management,whichincluded

businesspresentationsand

providedtheopportunityto

meetabroadergroupofsenior

management.

•Followingtheacquisition

ofAIR-servEurope,the

boardreceivedaseries

ofpresentationsfrom

managementprovidingan

overviewofthebusinessand

attendedatourofitsWigansite,

providingfirsthandinsightinto

thedaytodayoperationsof

thebusiness.

Public Companies

•Overthecourseoftheyear,theteam

attendedover30meetingswithportfolio

companymanagementandusedtheir

votingrightsatallshareholdermeetings.

Private Capital

•Aspartofourlong-termapproachto

investment,closeengagementwithour

PrivateCapitalcompaniescontributes

toastronggovernanceframeworkto

supportgrowthandcreatevalue.

•Caledoniaacquiredamajoritystakein

DirectTyreManagementLimited,the

UK’sleadingindependentproviderof

outsourcedtyremanagementservices

tofleetoperatorsduringtheyear.

Theacquisitionwasconsistentwith

Caledonia’sstrategyofinvestingin

quality,robust,wellestablishedprivate

companies,withprovenmanagement

teams,andseekingalong-term

supportiveshareholder.

Funds

•Overthecourseoftheyear,theteam

hasattendedinexcessof150meetings

withourportfoliofundmanagers,

includingannualmeetings,advisory

boardmeetings,in-personmeetingsin

theUK,AsiaorNorthAmericaandvirtual

meetingsheldonline.

Our portfolio companies

and funds

84 Caledonia Investments plc Annual Report 2025

Why we engage How we engage How the board engages Outcomes

Welooktosupportthe

communities in which the

companyandourinvestee

companiesoperateand

charities which resonate

withourhistory,values,

cultureandteam.

Wesupportadvancingnew

talentandsocialmobility

withintheinvestment

managementindustry.

Charitable giving

TheCaledoniaInvestments

CharitableFoundation

(‘Foundation’)isthefocusfor

Caledonia’scharitableactivity,

providingsupporttomanygood

causeseachyear.Thecompany

madeagrantof£300,000tothe

Foundationduringtheyear.

Volunteering

Aspartofourongoingcharitable

commitmentandtofurther

encourageemployeestosupport

theFoundation,togetherwith

othercharitiesandgoodcauses,we

provideuptotwoadditionaldays

ofleaveeachyeartoemployeesso

theycanvolunteertheirtime.

Intern and alumni programme

Withsupportfromanindependent

facilitatorandinvolvementfrom

employeesacrossthebusiness,the

programmeprovidesinternswith

aninvaluableinsightintoCaledonia,

theinvestmentmanagement

industryandhelpsbuildskillsfor

theirfuturecareers.

Furtherdetailsonourcommunity

activitiescanbefoundonpages

58to60.

Charitable giving

TheFoundationreports

formallyonitsactivitiestothe

boardeachyear.

Intern and alumni programme

Eachyear,oneofour

non-executivedirectors

isinvitedtoparticipatein

aneventinwhichourinterns

pitchtheirinvestmentideas

attheendoftheirmonth

longprogramme.

Charitable giving

Numerouscharitiesreceivedvaryinglevelsof

supportovertheyear.

Notablemulti-yeardonationswereprovidedto:

•theCornwallCommunityFoundationwhichseeks

toimprovethelivesofindividualswithinCornwall

•theMaritimeVolunteerServicetopurchase

equipmentandtotrainitsmembersinmaritime,

engineering,operationsandcommunications

skills.

AdonationwasalsoprovidedtoHoratio’sGarden

forthecontinueddevelopmentofgardensinNHS

spinalinjurywards,whichmarkedtheendofthe

Foundation’smulti-yearcommitment.

Othernotabledonationsincludedthoseto

JoshuaOrphanandCommunityCare,supporting

community-drivensustainableprojectsinMalawi,

andThePassage,aUKcharityworkingtoprevent

andendstreethomelessness.

Volunteering

EmployeessupporttheFoundation,charitiesand

othergoodcausesbyvolunteeringtheirtime,

alongsidefundraisingandparticipatingincharitable

events.

Intern and alumni programme

•12successfulcandidateswhoaspiretohavea

careerininvestmentmanagementwereoffered

placesonourannualinternshipprogramme.

•Ourinternalumniprogrammehelpstofoster

enduringrelationshipswithourinternsasthey

begintheircareersandprovidesuswithaccessto

potentialfuturetalentandnetworks.

Community

Why we engage How we engage How the board engages Outcomes

Wevaluelong-term

supplierrelationshipsbuilt

ontransparency,reliability

andqualitytosupportour

investmentactivities.

Webenefitfromgoodrelationships,

oftenbuiltovermanyyears,with

suppliersandadviserswhoshare

ourvalues.

Theboardisinformedon

keysuppliermatterswhere

relevant.

Weoperateclearpaymentpracticestoensurefair

andpromptpaymentforthegoodsandservices

wereceive.Weagreepaymenttermswhen

contractingwithsuppliersandabidebythemwhen

wearesatisfiedthatwehavereceivedthegoodsor

servicesinaccordancewiththeagreedtermsand

conditions.WhilstwearenotasignatoryoftheUK

PromptPaymentCode,wepaidmorethan82%of

oursupplierinvoiceswithin30daysduringtheyear,

with94%paidwithin60days.

Suppliers

Strategic report

Corporate governance

Financial statements Other information

Introduction

Nomination Committee report

Membership and attendance

ThemembershipandattendancerecordoftheCommitteeduring

theyearwasasfollows:

Meetings

attended

Meetings

eligible

toattend

DCStewart(Chair) 3 3

F A Buckley 3 3

HonCWCayzer 3 3

GBDavison 3 3

M A Farlow 3 3

CLFitzalanHoward 3 3

LRFordham 3 3

W P Wyatt 3 3

Responsibilities

TheCommitteeisresponsiblefor:

• regularlyreviewingthestructure,sizeandcompositionofthe

board,includingitsskills,knowledge,experienceanddiversity

• consideringsuccessionplanningfordirectorsand,ifrequested

bytheboard,otherseniorexecutives

• identifyingandrecommendingtotheboardcandidatesto

fillboardvacancies,usingexternalsearchconsultants

where necessary

• keepingunderreviewtheleadershipneedsofthecompany,both

executiveandnon-executive

• reviewingthetimecommitmentrequiredfromnon-executive

directors,ensuringtheyreceiveformallettersofappointment

thatsetoutclearlythecompany’sexpectations.

Diversity and inclusion

Caledonia’spolicyistoappointcandidatestorolesbasedonmerit

andagainstobjectivecriteria.TheCommitteeseekstoensurethat

theboardanditscommitteeshaveadiversemixofskills,

experience,perspectives,opinionandknowledge,whichfacilitates

discussionanddebatetoenablethesuccessfuldeliveryofthe

company’sstrategy.Itremainscommittedtoincreasingdiversity

andinclusionovertime.

WhilstCaledoniahasnotadoptedanymeasurablediversityand

inclusionobjectivestodate,externalsearchconsultantsare

requiredtoputforwarddiversecandidatesfornewpositions.The

Committeecontinuedtofocusonachievingtheboardcomposition

targetssetbytheFTSEWomenLeadersReview,theParkerReview

andtheListingRulesduringtheyear.

Detailedgenderandethnicitydiversityanalysisinrespectofthe

board,includingprogressagainstthetargetssetoutintheListing

Rules,andCaledoniamorebroadly,isprovidedonpage61.

Company Chair

Iwasappointedtotheboardasanindependentnon-executive

directorinMarch2015,beforetakingontheroleofChairinJuly

2017.Theboard,ontherecommendationoftheCommittee,which

waschairedbyGuyDavison,Caledonia’sSeniorIndependent

Director,hasfurtherextendedmytenureuntilnolaterthanthe

company’sannualgeneralmeetingin2026,subjecttomyannual

re-electionbyshareholders.Thisfollowedaninitialextensionof

oneyeartoJuly2025andhaslengthenedmyanticipatedservice

ontheboardbyalittleovertwoyears.Whilstthisisbeyondthe

nineyearsrecommendedinProvision19oftheUKCorporate

GovernanceCode(the‘Code’),mytenureascompanyChairwill

notexceednineyears.Aspreviouslyreported,theseextensions

wereconsideredappropriatefollowingaperiodofnotableboard

developmentwhichincludedtheappointmentofthreenew

non-executivedirectorsandtwoexecutivedirectorsinthepast

threeyears.Inconsideringthefurtherextensionofmytenurefor

alimitedperiod,theCommitteetookintoaccounttheongoing

successionplanningactivitytoidentifyanewChair,whichisbeing

ledbyGuy,andthebalanceofskillsandexperienceontheboard.

The Nomination Committee focuses

on evaluating the directors,

considering the skills and attributes

needed for the long term. It identifies

suitable board candidates and assists

with succession planning.

Further information on the Nomination

Committee’s terms of reference

86 Caledonia Investments plc Annual Report 2025

Work of the Nomination Committee

TheCommitteemetonthreeoccasionsduringtheyear.Areasof

focusincluded:

• considerationofthetenure,independence,balanceofexecutive,

non-executiveandindependentnon-executivedirectorsand

thegenderbalanceoftheboard,particularlyagainsttargets

includingthosesetbytheFTSEWomenLeadersReview,

theParkerReviewandtheListingRules,togetherwiththe

expectationssetoutintheCode

• considerationofadetailedskills,experienceanddiversitymatrix,

whichsoughttoidentifyfuturerecruitmentprioritiesbasedon

identifiedgaps,industryandstakeholderexpectationsand

goodpractice

• considerationofthecontributionsandeffectivenessofthe

non-executivedirectorsseekingre-electionatthe2024annual

generalmeeting,priortogivingrecommendationstotheboard

andshareholdersfortheirre-election

• considerationofthecompany’sinternalsuccessionplanoverthe

short,mediumandlongterm

• therenewalofGuyDavison’sletterofappointment,extending

histermofofficeto2027.

Committee evaluation

TheactivitiesoftheCommitteewereconsideredaspartofan

internaleffectivenessreviewwhichissummarisedonpage77.

TheboardfoundthattheCommitteefunctionedwell,withthe

appropriatebalanceofmembership,skillsandexperience.

David Stewart

Chair of the Nomination Committee

19May2025

Strategic report

Corporate governance

Financial statements Other information

Introduction

Audit and Risk Committee report

Membership and attendance

ThemembershipandattendancerecordoftheAuditandRisk

Committeeduringtheyearwasasfollows:

Member

since

Meetings

attended

Meetings

eligible

toattend

LRFordham(Chair) January2022 3 3

GBDavison January2018 3 3

M A Farlow March2022 3 3

Dear Shareholder

IampleasedtopresenttheAuditandRiskCommittee’sreport

onceagain.

TheCommittee’sresponsibilitiesinclude:

• monitoringtheintegrityofthecompany’sfinancialstatements

andreviewinganysignificantfinancialreportingjudgements

theycontain,togetherwithassociatedcompanyannouncements

• reviewingthecompany’ssystemsofinternalcontrol

• consideringCaledonia’sapproachtorisk,includingstrategy,

riskappetiteandtheidentificationofprincipalandemerging

risks,togetherwiththemonitoring,managementandmitigation

of such risks

• overseeingtherelationshipwiththeexternalauditor

• consideringannuallywhetheraninternalauditfunction

isrequired.

TheCommitteecomprisedexclusivelyofindependentnon-

executivedirectorswithsignificantfinancialandsectorexperience

andmetthreetimesintheyearended31March2025,inMay

andNovember2024andinMarch2025.Sincetheyearend,the

CommitteemetagaininMay2025toconsidermattersrelating

tothe2025annualreportandfinancialstatements.

TheChiefExecutiveOfficer,theChiefFinancialOfficer,theCompany

SecretaryandmembersofCaledonia’sfinanceteamattendedall

meetings,togetherwiththecompany’sexternalauditor,BDOLLP

(‘BDO’).Fromtimetotime,otherboardmembersand/orsenior

executivesmayalsobeinvitedtojoinallorpartofameeting.The

CommitteealsoheldseparatediscussionswithBDO’sauditpartner

withoutmanagementparticipationwhereappropriate.

TheareasoffocusfortheCommitteeduringtheyearincluded:

• thevaluationofunlistedassets

• thecompany’sfinancialreporting,togetherwithBDO’saudit

findingsandviabilityandgoingconcernreviews

• thecompany’sTaskForceonClimate-relatedFinancial

Disclosures(‘TCFD’)reporting

• thedevelopmentofCaledonia’sriskmanagementframework

• thecompany’sriskdashboardandcontrolsassurancereports.

Intheyearahead,amongsttheusualareasoffocus,the

Committeewillcontinuetoconsidermanagement’sproposed

approachtothechangestoaudit,riskandinternalcontrolsetout

inthe2024editionoftheUKCorporateGovernanceCode(the

‘2024Code’).Itisintendedthatadeclarationoftheeffectiveness

ofCaledonia’smaterialcontrolswillbemadeinthe2027annual

report,assetoutinthe2024Code.Worktosupportthis

declarationiswellprogressed.

Iwouldliketoexpressmythankstomycolleaguesonthe

Committeefortheirdiligenceoverthepastyear.Wewillonce

againbeavailableatthisyear’sannualgeneralmeetingtoanswer

anyquestionsontheworkoftheCommittee.

Lynn Fordham

ChairoftheAuditandRiskCommittee

19May2025

The Audit and Risk Committee plays

a significant role in ensuring that the

company’s financial statements are

properly prepared and the system

of controls that is in place is effective

and appropriate to manage and

mitigate risk.

Further information on the Audit and Risk

Committee’s terms of reference

88 Caledonia Investments plc Annual Report 2025

Area of

responsibility

Activity

Meetings considered at

May Nov Mar

Reporting

•Revieweddraftresultsandannualreportforthefinancialyearended31March2024,includingkey

accountingjudgements,goingconcernandviability,andconsideredwhetherthereportwasfair,

balancedandunderstandable

•Revieweddrafthalf-yearresultsandreportingforthesixmonthsended30September2024,

includingkeyaccountingjudgements,goingconcernandviability

•Reviewedaccountingstandardamendments,togetherwithlikelyimpact(ifany)

•ReviewedTCFDreportingfortheyearended31March2024

•ReviewedapproachtoTFCDreportingfortheyearended31March2025

Valuations

•Consideredvaluationsofunlistedinvestmentsasat31March2024and30September2024,

includingassessmentsundertakenbytheValuationCommittee

Internal control

•ConsideredcontrolenvironmentreportingforcompanieswithinthePrivateCapitalpool

•Consideredcontrolsassurancereportsforhumanresources,theEnterpriseResourcePlanning

(‘ERP’)systemandinvestmentcustodyservices

•Consideredapproachtoidentifyingkeycontrolsandproposedassurancemap

Risk

•Reviewedthecompany’sinvestmentandoperationalriskdashboards

•Consideredthecompany’sinvestmentriskreport

•Receivedacomprehensiveupdateoncybersecurity,disasterrecoveryandinformation

technology matters

•Consideredprincipalrisks,riskappetiteanddevelopmentstoriskmanagementframework

External audit

•ReviewedBDO’sexternalauditreportonthedraftresultsandannualreportforthefinancialyear

ended31March2024,togetherwiththemanagementrepresentationletter

•ConsideredBDO’sreviewoftheresultsforthesixmonthsended30September2024

•ApprovedBDO’sfeeproposalsfortheyearended31March2025andengagementletters

•ReviewedBDO’sexternalauditplanandstrategy

•ConsideredtheFRC’sAuditQualityInspectionandSupervisionReportinrespectofBDO,together

withtheFRC’soverviewoftheauditqualityofthelargestauditfirms,andBDO’sresponsetothe

FRC’sfindings

Internal audit

•Consideredtheneedforaninternalauditfunction

Governance

•ReviewedtheCommittee’stermsofreference

•Reviewedandapprovedthepolicyfortheprovisionofnon-auditservicesbytheindependent

auditor

•Reviewedandapprovedthepolicyforexternalauditservicesprocuredbyinvesteecompanies

Other matters

•Consideredongoinginvestmenttruststatuscompliance

1. SinceMarch,theCommitteeconsideredmattersregardingtheyearended31March2025,whichincluded:

•consideringvaluationsofunlistedinvestments,includingassessmentsundertakenbytheValuationCommittee

•reviewingtheresultsandannualreport,accountingjudgements,goingconcernandviabilityandconsiderationofwhethertheannualreportwasfair,

balancedandunderstandable

•reviewingBDO’sexternalauditreportontheresultsandannualreportforthefinancialyearended31March2025

•approvalofthisreport.

Work of the Committee

TheCommitteeundertookthefollowingactivitiesduringtheyear

Strategic report

Corporate governance

Financial statements Other information

Introduction

Audit and Risk Committee report (continued)

Topic Description of the matter Committee considerations

Financial

statements

TheCommitteereviewedtheformandcontentofthe2025annualreport

andfinancialstatements,includingTCFDreporting.Inconductingits

review,theCommitteeconsideredreportspreparedbymanagementand

theexternalauditor.Management’sreportsprovidedananalyticalreview

ofthefinancialstatements,comparingthecurrenttoprioryearfinancial

positionandresults,anddetailedthejudgementsandsourcesofestimation

uncertaintyinvolvedinapplyingtheaccountingpoliciestothefinancial

statements.TheCommitteealsonotedthattherewerenonewaccounting

standardsapplicableforthecurrentyear.Inaddition,theCommittee

reviewedreportspreparedbymanagementtosupportthegoingconcern

andviabilitystatementsand,asrequestedbytheboard,compliancewith

theannualreport’s‘fair,balancedandunderstandable’provisionsofthe

2018editionoftheUKCorporateGovernanceCode(the‘2018Code’).

TheCommitteerecommendedapprovalofthe2025annualreportand

financialstatementstotheboard.

ThesignificantissuetheCommitteeconsideredinrelationto

the2025financialstatementswasthevaluationofunlisted

investmentsasdescribedbelow.

Valuations of

unlisted

investments

TheCommitteerecognisesthatunlistedinvestmentsinthePrivateCapital

andFundspoolsareasignificantcomponentofthecompany’sassetsand

thattheirvaluationissubjecttoconsiderablejudgementanduncertainty.

TheChairoftheCommitteealsochairsmeetingsoftheValuation

Committee,whichscrutinisesthevaluationofunlistedinvestments,

adherencetothecompany’svaluationpolicyandconsistencyofvaluation

methodologiesovertime.ReportingisprovidedtotheCommitteeonthe

assessmentsundertaken,includingthequalityofreviewandchallenge.

TheCommittee,supportedbytheworkoftheValuation

Committee,wasconsciousthatFundspoolvaluationsare

basedonthelatestNAVsprovidedbytheunderlyingmanagers,

generallyeitherbasedon30September2024or31December

2024valuations,adjustedforcashmovements(distributions

anddrawdowns).TheCommitteeconsideredmarket

movementssincethelastNAVswereprovided,includingthose

whichoccurredaftertheyearendandthevolatilitycaused

byUSglobaltradepolicyandtariffannouncements.The

Committeetookcomfortfrommanagementhavingconsidered

allavailablesourcesofinformationandperformeditsown

analysis,withtheconclusionthatmarketindexmovements

priortoCaledonia’syearenddidnot,inisolation,providea

compellingreasontoadjustmanagerNAVs.

ThekeyinputsintothevaluationofPrivateCapitalbusinesses

wereconsidered,includingthebroadrangeoffactorsimpacting

marketmultiplesutilisedinthevaluationprocess.Anadditional

exerciseconductedbymanagementtoconsidertheimpactof

UStradepolicyandtariffsontheportfoliocompanies,both

fromadirectandindirectperspective,concludedthat,atthe

timeoftheassessment,theoverallimpactwasexpectedtobe

minimal.Thisconclusionalsoprovidedcomfort.

BDO’sauditpartnerattendsValuationCommitteemeetings,

withothermembersoftheAuditandRiskCommitteeinvitedto

participate.

Going

concern and

viability

Thedirectorsarerequiredtomakeastatementintheannualreportas

togoingconcernandCaledonia’slonger-termviability.TheCommittee

providesadvicetotheboardontheformandcontentofthisstatement,

includingtheunderlyingassumptions.TheCommitteeevaluatedareport

frommanagementsettingoutitsviewofCaledonia’slonger-termviability

andthecontentoftheproposedgoingconcernandviabilitystatements.

Thisreportwasbasedonthegroup’sbasecaseofforecastliquidityover

threeyearstoMay2028,developedfromthecorporatefinancialplan.In

makingthisassessment,thedirectorstookcomfortfromtheresultsoftwo

stresstestsoverthefive-yearperiodto31March2030thatconsideredthe

potentialimpactofsignificantmarketdownturnconditions.

Thefirststresstestaddressedtwodiscretescenarios:a5%reductionin

thevalueofSterlingversustheUSdollarcomparedtotherateon31March

2025anda12-monthdelaytoPrivateCapitalpoolrealisations.

Thesecondstresstestmodelledamarketdownturneventoveratwo-year

periodreflecting:afallininvestmentincomefromthePublicCompanies

andPrivateCapitalpoolsof20%and100%respectively,aninabilityto

realisethePrivateCapitalportfolioanda50%reductionindistributions

fromtheFundspool.Tosimulateanextremedownsidescenario,theimpact

ofamarketdownturneventandallfundcommitmentsfallingduewasalso

assessed.

Athree-yearperiodwaschosengiventhegroup’slong-terminvestment

objective,theresiliencedemonstratedbythestresstestingandthe

relativelylowworkingcapitalrequirementsofthegroup.

Takingintoaccounttheassessmentofthegroup’sstresstesting

results,theCommitteeagreedtorecommendthegoing

concernandviabilitystatementsandthree-yearviabilityperiod

totheboardforapproval.

TheoutcomeofthisactivityledtheCommitteetorecommend

totheboardtomakethestatementonpage68.

Significant matters considered

90 Caledonia Investments plc Annual Report 2025

Financial reporting

Fair, balanced and understandable statement

TheCommitteereviewedthedraftannualreportand,takenas

awhole,consideredittobefair,balancedandunderstandable.

Toassistinreachingthisview,theCommitteeconsideredareport

preparedbymanagementhighlightingthepositiveandnegative

statementsitincludedtoensurethattheyfairlyreflectedthe

resultsfortheyear.TheCommitteerecommendedtotheboard

thatthestatementofdirectors’responsibilitiesinrespectofthe

annualreportandthefinancialstatements,setoutonpage119,

shouldbesignedaccordingly.

Assurance

TheCommitteeobtainsarangeofassurancetoprovidecomfort

thatthecompany’scontrolsareprovidingadequateprotection

fromrisk.Theseincludecontrolsassurancereportsfrom

management.TheCommitteealsoreceivesinputfromtheexternal

auditorwhenevaluatingtheeffectivenessofinternalcontrols.Use

isalsomadeofexternalbenchmarkingandframeworkstoprovide

additionalassuranceincertainareasofthecompany’soperations.

Forexample,theNationalInstituteofStandardsandTechnology

(‘NIST’)CybersecurityFramework(CSF)2.0hasbeenusedtoassess

Caledonia’sabilitytoprevent,detectandrespondtocyberattacks

andalsotoidentifyareasforimprovement.

Internal control and risk management

Theboardofdirectorsisresponsibleforthecompany’ssystemof

internalcontrolandforreviewingitseffectiveness.Thesystemis

designedtomanage,ratherthaneliminate,theriskoffailureto

achievebusinessobjectivesandcanonlyprovidereasonableand

notabsoluteassuranceagainstmaterialmisstatementorloss.

TheCommitteecompletedareviewoftheinvestmentand

operationalriskdashboardspreparedbymanagement,identifying

theprincipalbusinessrisksimpactingthecompany,togetherwith

themitigatingcontrolsinoperationandactionsidentifiedfor

continuousimprovement.Followingthepublicationofthe2024

Code,theCommitteealsoconsideredpreparationstosupportthe

board’sdeclarationoftheeffectivenessofthecompany’smaterial

controlsinthe2027annualreport.

TheCommitteeconsideredtheeffectivenessofthecompany’s

internalcontrolenvironmentandthestructureinplacetoresolve

identifiedweaknesses.Itreviewedcontrolsassurancereportson

humanresources,theERPsystemandtheinvestmentcustody

servicesprovidedtoCaledoniabyitsexternalcustodian.The

approachtogovernanceandthecontrolenvironmentofinvestee

companieswithinthePrivateCapitalpoolwasalsosubjectto

review.Ongoingcompliancewithrequirementsforinvestment

truststatuswasalsoconsidered.

Acomprehensiveupdateoncybersecurity,disasterrecoveryand

informationtechnologymatterswasonceagainprovidedtothe

Committee.Thisincluded:

• anoverviewofthecyberthreatlandscape

• anupdateonrecentmarketincidents

• asummaryofemployeetrainingandregularphishingsimulations

• anexplanationofCaledonia’smaturityagainsttheNIST

Cybersecurity Framework

• technologyimprovementsmadeduringtheyearandthe

plannedroadmapforfurtherdevelopmentsduringthenext

12monthsandbeyond

• theongoingevolutionofcyberresilienceanddisasterrecovery

preparedness.

Internal audit

Asthecompanydoesnothaveaninternalauditfunction,the

Committeeconsidersannuallywhetherthereisaneedforone.The

companyisaninvestmenttrustandmanagesitsnon-consolidated

subsidiariesasotherprivatecompanyinvestments,witheach

businessoperatingitsownriskmanagementprocesses.The

companycloselymonitorsitscontrolenvironmentandthoseofits

privatecompanyinvestments.Specialistexternalresourcesarealso

usedwhenappropriate,forexampleintestingkeycybersecurity

controls.TheCommitteerecommendedtotheboardthatan

internalauditfunctionwasnotrequiredatthepresenttime.

External auditor

Externalauditor BDOLLP

Appointed July2021

Re-appointment Tobeproposedatthe2025annual

general meeting

Leadpartner Peter Smith

Leadpartnerappointed July2021

Leadpartnerrotation Followingtheconclusionoftheauditforthe

yearending31March2026

Strategic report

Corporate governance

Financial statements Other information

Introduction

Audit and Risk Committee report (continued)

Audit effectiveness

Auditqualityisreviewedcontinuouslythroughouttheyearbyboth

theChiefFinancialOfficerandtheCommittee.Thefocusiscentred

onthefollowing:

• thequalityandseniorityoftheexternalauditor’sstaff

• theuseofspecialiststaffinareasincludingthevaluationof

unlistedassetsandpensions

• theappropriatenessoftheplannedauditmethodologyas

appliedtoCaledonia’sbusinessactivity

• thelevelofchallengeonkeyareasofjudgementandprofessional

scepticismdisplayed,togetherwiththequalityofreportingto

the Committee

• thequalityofdelivery,includingachievingkeyauditproject

milestonesandreportingtotheCommittee.

Thefollowingseriesofindicatorshavebeenestablishedtoassess

BDO’sauditquality:

• FRCqualityinspectionsresults,whenavailable

• thepercentageofhoursofcontinuityacrosstheengagement

team

• partnerandmanagerhours,includingindependentpartner

reviews,asapercentageofthetotalhoursontheengagement

• hoursofspecialisttime

• percentageofhoursspentaheadofyearendcomparedto

thoseplanned

• percentageofkeymilestonesachieved.

Duringtheyear,theCommitteeconsideredtheFRC’sAuditQuality

InspectionandSupervisionReportofBDO,publishedinJuly2024,

andsoughtassurancefromtheauditpartnerregardingBDO’s

responsetotheFRC’sfindings.Inparticular,theCommitteesought

comfortthatBDO’sincreasedmarketsharehadnotnegatively

impactedauditquality,thechangesmadetoprocessesinlightof

theFRC’sreportandwhatimpactthesemayhaveonrecruitment

andstaffmorale.RegularupdatesontheprogressofBDO’s

responsehavebeensoughtbytheCommittee.

TheCommitteeconsideredthefollowingsituationswherethe

auditorshadchallengedmanagement’sassumptions,including:

• thevaluationofunquotedinvestments,specificallythevaluation

ofPrivateCapitalandFundinvestmentsandtheriskposedby

stalepricing,includingtheriskofmanagementoverrideof

controls

• thevaluationofdefinedbenefitpensionschemeassetsand

liabilities,includinganexpertreview.

Independence, objectivity and non-audit work

Tosafeguardtheauditor’sindependenceandobjectivity,the

Committeemaintainsascheduleofspecificnon-auditactivities

whichmaynotbeundertakenbytheexternalauditor,withinthe

broadprinciplesthattheexternalauditorshouldnotaudititsown

work,shouldnotmakemanagementdecisionsonbehalfofthe

company,shouldnotbeputintotheroleofadvocateforthe

companyandthatnomutualityofinterestshouldbecreated

betweenthecompanyandtheexternalauditor.Asaresultofthe

rigorousreviewbytheCommitteeonnon-auditservicescarried

outbyBDO,relianceontheauditor’sinternalindependence

controlsislimited.

TheCommitteehasinplaceapolicyfortheprovisionofnon-audit

services,meetingtherequirementsoftheFRC’sRevisedEthical

Standard2024,whichwaslastreviewedinMarch2025.Certain

non-auditservicesareprohibited.Permittedservicesaresubjectto

approvalbytheChiefFinancialOfficerandtheCommittee.Total

feespayablefornon-auditworkcarriedoutbythecompany’s

auditoraresubjecttolimits.

Theleadauditpartnerisrequiredtorotateeveryfiveyearsand

otherkeyauditengagementpartnerseverysevenyears.Thelead

auditpartnerwillthereforebereplacedfollowingtheconclusion

oftheauditfortheyearending31March2026.Nocontractual

obligationsrestricttheCommittee’schoiceofexternalauditor.

Forthefinancialyearended31March2025,thetotalfeesfor

non-auditserviceswere£114,900,25%ofthetotalauditfees

(2024:£188,500,18%).For2025,non-auditfeesrepresented14%

oftheaverageauditfeespaidinthepreviousthreefinancialyears

andweresolelyrelatedtoBDO’sindependentreviewofthe

company’shalf-yearreport.For2024,themajorityofnon-audit

feeswererelatedtoBDO’sindependentreviewofthecompany’s

half-yearreportandthebalancewasincurredbySevenInvestment

Management,aformerinvesteecompany,inconnectionwith

CASSassuranceactivities.Theseserviceswerecloselyrelatedto

theworkperformancebyBDOduringtheauditorrequiredbylaw

orregulation.Analysisisprovidedinnote2tothefinancial

statementsonpage139.

Duringtheyear,BDOprovidednon-auditservicestoassociated

companyStonehageFleming.Asthecompanydoesnotcontrol

StonehageFleming,theCommitteehaslimitedoversightover

thefeesincurred.However,BDOconfirmedthatappropriate

safeguardsareinplaceandanassessmenttopossiblethreats

toindependencefromnon-controlledaffiliateswasperformed.

TheCommitteeconcludedthatBDOremainsindependent

andobjective,andthatthelevelofnon-audittoauditfees

remainsacceptable.

92 Caledonia Investments plc Annual Report 2025

Key audit matters raised by the external auditor

Thefollowingkeyauditmatterswereraisedbythe

externalauditor:

• valuationofunquotedPrivateCapitalinvestments

• valuationofFundinvestments.

Areas reviewed by the external auditor at the

Committee’s request

TheCommitteedidnotrequestanyspecificareasforreview

byBDObeyondthenormalcycleofauditactivity.

Private meetings

Duringtheyear,theChairoftheCommitteemetseparatelyand

privatelywiththeChiefFinancialOfficerandBDO.TheCommittee

alsometBDOwithoutmanagementpresent.

Committee evaluation

TheactivitiesoftheCommitteewereconsideredaspartofan

internaleffectivenessreviewwhichissummarisedonpage77.

TheboardfoundthattheCommitteefunctionedwell,withthe

appropriatebalanceofmembership,skillsandexperience.

Statement of compliance

ThisreporthasbeenpreparedincompliancewiththeCompetition

andMarketsAuthority2014Orderonstatutoryauditservicesfor

largecompanies.

Lynn Fordham

ChairoftheAuditandRiskCommittee

19May2025

Strategic report

Corporate governance

Financial statements Other information

Introduction

Governance Committee report

Membership and attendance

ThemembershipandattendancerecordoftheCommitteeduring

theyearwasasfollows:

Meetings

attended

Meetings

eligible

toattend

GBDavison(Chair) 5 5

F A Buckley 5 5

M A Farlow 5 5

CLFitzalanHoward 5 5

LRFordham 5 5

Responsibilities

TheCommitteeisresponsiblefor:

• keepingunderreviewcorporategovernancemattersrelatingto

thecompany

• monitoringandreviewingthecompany’scompliancewiththe

ListingRulesrelatingtocompanieswithcontrollingshareholders

• consideringtheabilityofeachdirectortoactintheinterestsof

shareholdersasawholeandtoexerciseindependenceof

judgementfreefromrelationshipsorcircumstancesthatare

likelyto,orcouldappearto,affecttheirjudgement

• reviewingactualorpotentialconflictsituationsrelatingto

directors,whichmayrequirethepriorauthorisationoftheboard

undertheCompaniesAct2006,andmakingrecommendations

totheboardastowhethersuchsituationsshouldbeauthorised

and,ifso,whetheranyconditions,suchasdurationorscope,

shouldbeattached

• anannualreviewofallactualorpotentialconflictsituations

previouslyauthorisedbytheboardtoensuretheyremain

appropriate

• makingrecommendationstotheboardincircumstanceswhere

itbelievesthatadirectormaybesubjecttoaconflictofinterest

thatmayprejudicetheirabilitytoexerciseindependenceof

judgement,includingthatthedirectorabstainsfrom

participatinginanydecisionoftheboardoranyofits

committeesonthematterconcerned.

Work of the Committee

TheCommitteemetfivetimesduringtheyear.Particularfocuswas

giventothegovernancerelatedmattersarisingfromthecompany

seekingfromindependentshareholdersanuncappedwaiverofthe

mandatoryofferprovisionssetoutinRule9ofTheCityCodeon

TakeoversandMergersinrelationtotheCayzerfamilyconcert

party(‘CayzerConcertParty’).Theseprovisionsconcernedthe

obligationthatcouldariseontheCayzerConcertPartytomakea

generalofferfortheentireissuedsharecapitalofthecompanyasa

resultofpurchasesbythecompanyofordinaryshares.This

included,forexample,receivingupdatesonconsultationand

engagementwithindependentshareholders,consideringthe

implicationsforthecompanyandtheindependentshareholdersof

seekingthewaiverandundertakingacomprehensivereview,and

associatednegotiationsofanewrelationshipagreementbetween

thecompanyandTheCayzerTrustCompanyLimited(‘Cayzer

Trust’),asdescribedonpage78,withthesupportofouradvisers.

Thisagreementwassubsequentlyrecommendedtotheboard

forapproval.

The Governance Committee monitors

and reviews the ability of each

director to act in the interests of

shareholders as a whole and to

exercise independence of judgement.

Further information on the Governance

Committee’s terms of reference

94 Caledonia Investments plc Annual Report 2025

OtherprincipalmattersconsideredbytheCommitteeincluded:

• thereviewandapprovaloftheCorporategovernance

andGovernanceCommitteereportsfortheyearended

31March2024

• theinfluenceoftheCayzerConcertPartyonCaledonia’sboard

andwhetheritwasinthegeneralinterestofthenon-Cayzer

ConcertPartyshareholders,withtheconclusionthatitwas

• consideringpotentialgovernancerelatedmattersemergingfrom

successionplanningforthecompany'sChair

• thereviewandapproval,onbehalfoftheboard,ofstatements

ofcompliancewiththeindependenceprovisionsoftheListing

Rulesrelatingtolistedcompanieswithcontrollingshareholders

• thereviewofpotentialconflictsituationsnotifiedbydirectorsin

accordancewiththeCompaniesAct2006andthemakingof

recommendationstotheboardinrelationthereto

• proposedchangestotheUKCorporateGovernanceCodeand

ListingRules.

Committee evaluation

TheactivitiesoftheCommitteewereconsideredaspartofan

internaleffectivenessreviewwhichissummarisedonpage77.

TheboardfoundthattheCommitteefunctionedwell,withthe

appropriatebalanceofmembership,skillsandexperience.

Guy Davison

ChairoftheGovernanceCommittee

19May2025

Strategic report

Corporate governance

Financial statements Other information

Introduction

Directors’ remuneration report

Annual statement by the Chair of the Remuneration Committee

Membership and attendance

ThemembershipandattendancerecordoftheRemuneration

Committeeduringtheyearwasasfollows:

Member

since

Meetings

attended

Meetings

eligible

toattend

MAFarlow(Chair) March2022 3 3

F A Buckley March2023 3 3

CLFitzalanHoward July2019 3 3

D C Stewart July2015 3 3

Dear Shareholder

Onbehalfoftheboard,IampleasedtointroduceCaledonia’s

Directors’remunerationreportfortheyearended31March2025.

Remuneration policy

Ourremunerationpolicywasapprovedbyshareholdersatthe2023

annualgeneralmeetingbyamajorityofalmost99%,following

consultationwiththecompany’slargestshareholders.Theprincipal

elementsofthispolicyarereproducedonpages99to104forease

ofreference.Duringtheyear,thepolicyoperatedasintendedwith

respecttocompanyperformance,paystructureandquantum.

Nochangestothepolicyareproposedthisyear.

Ourremunerationpolicyisdesignedtoaligntheremunerationof

Caledonia’sleadershipteamwiththeexperienceofourshareholders

throughthemeasurementofNAVTRgrowthandexposuretoshare

priceperformanceanddividends.Thepolicythereforeincludes

equity-basedremunerationintheformofdeferralofbonusinto

shares,long-termperformanceshareschemeawardsand

shareholdingrequirements.TheCommitteeaimstoensurethat

theoverallquantumandstructureofpayarecompetitive,butnot

excessive.Remunerationislinkedtothecompany’slong-term

strategyandperformanceandthepolicyseekstomotivate

Caledonia’sleadershipteamtogeneratesustainablelong-term

returns.TheCommitteebelievesthatthecurrentpolicyalignsthe

interestsofthecompany’sleadershipwiththoseofshareholders.

Forexample,MatMasters,ourChiefExecutiveOfficer,holdsaround

eleventimeshisbasicsalaryinthecompany’sequityviaPerformance

SharePlanawards,mandatorybonusdeferralandcompliancewith

ourshareholdingrequirements.

TheCommitteecontinuestokeepabreastofdevelopments

impactingexecutivepayincluding,forexample,thenewUK

CorporateGovernanceCodepublishedbytheFinancialReporting

CouncilinJanuary2024.Smalladjustmentsweremadeintheyear

toensurethatthecompanywillcomplyinfullinthecurrentfinancial

year.Thisincludedtheapprovalofanew,standalonemalusand

clawbackpolicy,coveringallofthecompany’sdiscretionary

shareplans.

Caledoniahasasmallnumberofemployeesbasedinasingleoffice.

ThisenablestheCommitteetosettheremunerationofboth

executivedirectorsandseniormanagementincontext.Regular

reportingprovidesuswithwide-rangingdata,includingemployee

attritionrates,promotiondecisionsandtraininganddevelopment,

togetherwithgenderpaygapanalysistoensureCaledoniamaintains

equalpayforworkofequalvalue.

NotwithstandingthatCaledoniaisnotlegallyrequiredtodoso,we

haveonceagainreportedpayratioinformationinrelationtotheChief

ExecutiveOfficer,inaccordancewithTheCompanies(Miscellaneous

Reporting)Regulations2018.Thisinformationissetoutonpage113.

Remuneration for the year ended 31 March 2025

TheAnnualreportondirectors’remunerationsetoutonpages105

to114describesindetailhowourremunerationpolicyhasbeen

appliedfortheyearended31March2025.Itisalsosummarisedin

Remunerationataglanceonpage98.However,Iwouldliketo

highlightthefollowingpoints.

The Remuneration Committee ensures

that remuneration arrangements

remain closely aligned to Caledonia’s

business model and strategy, the

ultimate aim of which is to generate

long-term compounding real returns

that outperform inflation over the

medium to long term, and the FTSE

All-Share index over 10 years.

TheCompaniesAct2006requiresthecompany’sauditortoreportto

theshareholdersoncertainpartsoftheDirectors’remuneration

reportandtostatewhether,initsopinion,thosepartsofthereport

havebeenproperlypreparedinaccordancewiththeLargeand

Medium-sizedCompaniesandGroups(AccountsandReports)

(Amendment)Regulations2013.ThepartsoftheAnnualreporton

directors’remunerationthathavebeenauditedareindicatedinthe

report.TheAnnualstatementbytheChairoftheRemuneration

CommitteeandtheRemunerationpolicyarenotsubjecttoaudit.

Further information on the Remuneration

Committee’s terms of reference

96 Caledonia Investments plc Annual Report 2025

Annual bonus

HalfofthebonusforMatMastersandRobMemmottwasdetermined

byreferencetocompanyperformanceandhalfsubjecttothedelivery

ofindividualperformanceobjectives.ForJamieCayzer-Colvin,whohas

specificresponsibilityfortheFundspool,25%ofhisbonuswas

determinedbyreferencetocompanyperformance,25%tohispool’s

performance,35%tohispool’sobjectivesand15%toindividual

performanceobjectives.

Forthe2025financialyear,thecompanyperformanceelementof

theannualbonuswasassessedbyreferencetotherelative

performanceofthecompany’sNAVTRagainstinflation,whichfor

bonuspurposeswastakenas3%,oractualinflationifgreater,witha

10%pay-outifthecompany’sNAVTRmatchedinflation,increasing

incrementallytothemaximumentitlementpayableifoutperformance

of7%ormorewasachieved.Asdescribedintheremunerationpolicy,

thephasedtransitionfromtheRetailPricesIndex(‘RPI’)tothe

ConsumerPricesIndexincludingowneroccupiers’housingcosts

(‘CPIH’)asthemeasureofinflationforbonuspurposesoverthethree

yearpolicyperiodhascontinued,weighted50:50onRPI:CPIHforthe

yearended31March2025.

CaledoniadeliveredNAVTRfortheyearof3.3%,matchingtheincrease

ininflation(forbonuspurposes)of3.3%,resultinginapaymentof10%

forthiselement.TheFundspoolachievedatotalreturnovertheyear

onaconstantcurrencybasisof4.6%which,forJamie,resultedinno

paymentforthiselement.TheCommitteeconsideredtheformulaic

outcometobeappropriateandthatnoexerciseofdiscretionwas

necessary.Afterassessingtheirindividualperformanceand,forJamie,

theattainmentofpoolobjectives,theCommitteeawardedoverall

bonusestoMatandRobof55%ofbasicsalaryand52.5%ofbasic

salarytoJamie.

Performance share scheme awards

Theremainingtwo-thirdsoftheperformanceshareschemeawards

grantedin2020(measuredoverfiveyears)andthefirstone-thirdof

theawardsgrantedin2022(measuredoverthreeyears)reachedthe

endoftheirperformanceperiodsinMarchthisyear.Ineachcase,the

awardsweremeasuredbyreferencetoCaledonia’sannualisedNAVTR

overtherelevantperiods,whichwas13.5%forthe2020awardsand

5.4%forthe2022awards.ThisledtofullvestingofthisportionofMat

Masters’andJamieCayzer-Colvin’s2020awardsandpartialvestingof

the2022awards.

MatwaspreviouslyHeadoftheCapitalportfoliobeforetakingon

broaderresponsibilityfortheIncomestrategyin2019andhis

appointmentasChiefExecutiveOfficerin2022.TheCapitalportfolio’s

annualisedtotalreturn(relevantfor53.3%ofhis2020award)was

13.1%(excludingPolarCapital)andtheIncomeportfolio’sannualised

return(relevantfor26.7%ofhis2020award)was8.5%.Thismeant

thatthisportionofhis2020awardsvestedinfull.TheFundspool’s

annualisedtotalreturn,relevantfor60%ofJamie’s2020and2022

awards,was18%and5.7%respectively,whichresultedinthiselement

ofhis2020awardsvestinginfullandwasbelowthereturnneeded

foranyofthiselementofhis2022awardstovest.

TheCommitteeonceagainconductedanalysisbeforeconcludingthat

nowindfallgainshaveariseninconnectionwiththevestingofthe

performanceshareschemeawardsgrantedin2020and2022.Further

analysisissetoutonpage106.

Thedetailsofthevestingscalesfortheseawardscanbefoundonpage

106.TheCommitteeconsidersthattheseperformanceoutcomes

areappropriate.

Theremainingtwo-thirdsofthe2022performancesharescheme

awardswillbetestedinMarch2027attheendofthefive-year

performanceperiod.

Remuneration for the year ending 31 March 2026

Lookingaheadtothe2026financialyear,thebasicsalariesof

RobMemmottandJamieCayzer-Colvinhavebeenincreasedwith

effectfrom1April2025by3.5%,broadlyinlinewithinflation,

whichwasthesamestandardincreaseappliedtothecompany’s

otheremployees.

MatMasters’basicsalaryhasbeenincreasedwitheffectfrom1April

2025by6.8%to£525,000torecogniseprogressioninhisrolesince

appointmentasChiefExecutiveOfficerin2022andthesuccessful

deliveryofseveralstrategicinitiatives.TheCommitteealsotookinto

account,amongstotherfactors,thehighersalaryofMat’s

predecessorintherolewhich,at£540,000,hadbeenunchanged

since2019.

Thenon-executivedirectorbasicfeehasbeenincreasedby3.1%.

Nochangeshavebeenmadetothefeespaidtothechairsand

membersoftheAuditandRiskandRemunerationCommittees

ortothefeepaidtothecompany’sChair.

Weplantograntperformanceshareschemeawardstotheexecutive

directorsfollowingthereleaseofour2025full-yearresultsinline

withournormalgrantcycle.Theseawardswillbesubjecttothe

sameperformancemeasuresusedfortheawardsmadeduring2024,

whicharesummarisedinthenotestotheremunerationpolicytable

onpage101.

Inthecomingyear,theRemunerationCommitteewillbe

undertakingthetriennialreviewoftheremunerationpolicyin

preparationforseekingshareholderapprovalforarevisedpolicy

atthe2026annualgeneralmeeting.

TheCommitteehassoughttoaddresseachofthefollowing

sixfactorssetoutintheUKCorporateGovernanceCode

whendeterminingremunerationpolicyandpractice:

Clarity–ourpolicyisunderstoodbydirectorsandsenior

managementandhasbeenclearlyarticulatedtoshareholders

andinvestorbodies.

Simplicity–webelievethecurrentremunerationstructureis

simpleandhavesoughttoavoidcomplexstructureswhich

mayhavethepotentialtodeliverunintendedoutcomes.

Risk–ourpolicyandapproachtotargetsettingseeksto

discourageinappropriaterisk-taking.Wehavealsoembedded

malusandclawbackprovisionswhereappropriate.

Predictability–incentivearrangementsareclearlysetout

andaresubjecttoindividualparticipationcaps.

Proportionality–thereisaclearlinkbetweentheoutcome

ofindividualawards,deliveryofCaledonia’sstrategyand

long-termperformance.

Alignment to culture–payandpoliciesarecascadedto

CaledoniaemployeesandareconsistentwithCaledonia’s

purpose,valuesandstrategy.

Strategic report

Corporate governance

Financial statements Other information

Introduction

Remuneration at a glance

Element Year 1 Year 2 Year 3 Year 4 Year 5 Year 5+

Application in the year

ended 31 March 2025

Application in the year

ending 31 March 2026

Salary

MatMasters:

£491,500

RobMemmott:

£437,000

JamieCayzer-Colvin:

£400,500

Salary

MatMasters:

£525,000

RobMemmott:

£452,300

JamieCayzer-Colvin:

£414,600

Pension

Pension entitlement

15%ofsalary

Other

benefits

Other benefits

Familyprivatemedicalinsurance,death-in-service

insurance,permanenthealthinsurance

Directors’andofficers’liabilityinsurance

MatMastersandJamieCayzer-Colvin:alegacycash

allowanceinlieuofacompanycar

Bonus

Malusand

clawback

provisionsapply

Upto50%

of salary in

cash

Mandatorydeferralin

shares of any bonus

exceeding50%

Annual bonus

MatMasters:

£270,325

RobMemmott:

£240,350

JamieCayzer-Colvin:

£210,263

Annual bonus

Maximumbonuspotential:

100%ofsalary

Performance

share scheme

Malusand

clawback

provisionsapply

1/3ofaward:

performancemeasuredover

three years

Post-vestingholding

period

PSS award

150%ofsalary

MatMasters:

21,620shares

RobMemmott:

19,223shares

JamieCayzer-Colvin:

17,617shares

PSS award

150%ofsalary

2/3ofaward:

performancemeasuredoverfiveyears

Shareholding

requirement

Shareholding requirement

MatMasters:200%ofsalary

RobMemmottandJamieCayzer-Colvin:150%ofsalary

Share Incentive Plan

Followingshareholderapprovalatlastyear’sannualgeneralmeeting,

ourall-employeeShareIncentivePlanwillbelaunchedduringthe

2026financialyear.TheShareIncentivePlanisanHMRCapproved

planandwillofferallemployees,irrespectiveofseniority,the

opportunitytobuildupatax-efficientequitystakeinthecompany.

Thisisinlinewithourlong-termapproachandwillfurtherencourage

ashareownershipcultureamongstemployees.

Committee evaluation

TheactivitiesoftheCommitteewereconsideredaspartofan

internaleffectivenessreviewwhichissummarisedonpage77.

TheboardfoundthattheCommitteefunctionedwell,withthe

appropriatebalanceofmembership,skillsandexperience.

Finally,Iwouldliketotakethisopportunityonceagaintothankmy

colleaguesontheCommitteefortheircontinueddiligenceand

supportoverthepastyear.

Anne Farlow

Chair of the Remuneration Committee

19May2025

Directors’ remuneration report (continued)

Annual statement by the Chair of the Remuneration Committee

98 Caledonia Investments plc Annual Report 2025

Introduction

Setoutbelowarethematerialelementsofthedirectors’

remunerationpolicyapprovedbyshareholdersattheannualgeneral

meetingheldon19July2023.Thispolicycameintoeffectfromthat

dateandwillapplyuntilarevisedremunerationpolicyisapproved

byshareholders,whichitisexpectedwillbeproposedattheannual

generalmeetingin2026.

Implementation of the policy

Therehavebeennochangestothecurrentpolicysinceits

implementationandtheextractsincludedbelowareforinformation

onlyandtoprovidecontextforthe2025Annualreportondirectors’

remunerationwhichfollows.Executivedirectors’servicecontract

informationhasbeenupdated.

Thefulldirectors’remunerationpolicyiscontainedonpages75to82

ofthecompany’s2023annualreport,whichisavailableinthe

‘Results&reports’sectionofCaledonia’swebsiteat

www.caledonia.com.

Underthecurrentstatutoryregime,acompanymaymakea

remunerationpaymenttoadirectororapaymentforlossofoffice

onlyifitisconsistentwiththemostrecentlyapprovedremuneration

policyor,ifnot,anamendmenttothepolicytoallowthepayment

mustbeseparatelyapprovedbyshareholders.TheRemuneration

Committeeconsidersthataneffectiveremunerationpolicyneeds

to be sufficiently flexible to take account of future changes in the

company’sbusinessenvironment,andinremunerationpractice

generally.Inframingitspolicy,theRemunerationCommitteehas

thereforesoughttocombinealevelofbreadthandflexibilityto

enableittoreacttochangedcircumstanceswithouttheneedfor

aspecificshareholderapproval,whilstatthesametime

incorporatingsufficientdetailandtransparencytoenable

shareholderstounderstandhowitwilloperateindifferentscenarios

andfeelcomfortablethatpaymentsmadeunderitarejustified.

ComponentsofremunerationwheretheRemunerationCommittee

wishestoretainalevelofdiscretionareidentifiedintherelevant

sectionsofthepolicy.TheRemunerationCommitteemayalsomake

minoramendmentstotheremunerationpolicytoaiditsoperation

orimplementationwithoutseekingshareholderapproval,for

exampletotakeaccountofachangeinlegislationorforregulatory,

exchangecontrol,taxoradministrativepurposes,providedthatany

suchchangeisnottothematerialadvantageofthedirectors.

Legacy arrangements

Thepolicyisessentiallyforward-lookinginnature.Inviewofthe

long-termnatureofthecompany’sremunerationstructures—

includingobligationsunderservicecontracts,pensionarrangements

andincentiveschemes—asubstantialnumberofpre-existing

obligationswillremainoutstandingatthetimethatthenewpolicyis

approved,includingobligationsthatare‘grandfathered’byvirtueof

beinginforcepriortotheintroductionofthebindingremuneration

policyregimeintheUKon27June2012orwhichwereincurred

underthepreviousremunerationpoliciesapprovedbyshareholders.

Itisthecompany’spolicytohonourinfullanypre-existingobligations

thathavebeenenteredintopriortotheeffectivedateofthispolicy.

Objectives

ThekeyobjectivesoftheRemunerationCommitteeinsetting

thecompany’sremunerationpolicyareasfollows:

• remunerationofexecutivedirectorsshouldbelinkedtothe

company’slong-termperformanceanditsbusinessstrategy

• performance-relatedremunerationshouldseektoalignthe

interestsofexecutivedirectorswiththoseoftheshareholders

• asignificantproportionofexecutivedirectors’remuneration

shouldbelinkedtotheperformanceofthecompanyand

receivableonlyifdemandingperformancetargetsareachieved

• remunerationpackagesforexecutivedirectorsshouldbe

competitive,butnotexcessive,intermsofmarketpractice,in

ordertoattract,retainandmotivateexecutivedirectorsofthe

qualityneededtomanageandgrowthecompanysuccessfully.

Remuneration structure

Executive directors

ThetablebelowsetsoutCaledonia’spolicyinrelationtoeachcomponentofexecutivedirectorremuneration,withfurtherexplanations

inthenotesthatfollow.

Salary (fixed pay)

Purposeandlinktostrategic

objectives

Tosupporttherecruitmentandretentionofexecutivedirectorsofthecalibrerequiredtomanageandgrow

thecompanysuccessfully.

Operation Reviewedannually.

Opportunityandrecoveryor

withholdingprovisions

SalaryincreasesarenormallyawardedbyreferencetoanyincreaseinthesalariesofotherCaledoniastaff/thecostofliving,

butmaytakeintoaccountotherfactorssuchasexternalmarketpositioning,changeinthescopeoftheindividual’s

responsibilitiesorlevelofexperience,developmentintheroleandlevelsofpayelsewhereinthecompany.

Normallyyearonyearincreasesinbasicsalarieswillnotexceedinflationbymorethan5%,otherthanwherethereisa

significantchangeinroleorresponsibilitiesorinsuchothercircumstancesastheRemunerationCommitteemaydetermine.

Norecoveryorwithholdingprovisions.

Performance measurement

framework

Notapplicable.

Directors’ remuneration report

Remuneration policy

Strategic report

Corporate governance

Financial statements Other information

Introduction

Directors’ remuneration report (continued)

Remuneration policy

Benefits (fixed pay)

Purposeandlinkto

strategicobjectives

Toprovidearangeofbenefitsalongsidebasicsalarytorecruitandretainhighcalibreexecutivedirectors.

Operation Executivedirectorsareprovidedwithfamilyprivatemedicalinsurancecover,death-in-serviceinsurance,andpermanenthealth

insuranceand,inthecaseofMrMastersandMrCayzer-Colvin,alegacycashallowanceinlieuofacompanycar.Theyarealsoentitled

toreceiveminorbenefitsthatareavailabletootherCaledoniastaff.

Theexecutivedirectorsarealsocoveredbythecompany’sdirectors’andofficers’liabilityinsurancepolicyandhavethebenefitofan

indemnityunderthecompany’sarticlesofassociation.

Wherethereisavalidbusinessreasonfordoingso,thecompanymaypayforthecostofspousesorpartnersaccompanyingdirectors

onbusinesstripsandreimbursedirectorsforhotelaccommodationandtravelexpenses(includingpaymentofanytaxthereon).

Executivedirectorsarealsoeligibletoreceiveotherminorbenefitsandexpensespayments(againincludingpaymentofanytax

thereon).

Executivedirectorswillbeeligibletoparticipateinanyall-employeeshareschemesofthecompanyonthesamebasisasother

employees.

Opportunityand

recoveryorwithholding

provisions

Ataxablebenefitspackagethatiscompetitivewiththemarketplace.

Thevalueoftaxablebenefitsprovided,otherthanadhocitemsincurredinconnectionwithCaledonia’sbusinessthatmaybedeemed

taxablebenefitssuchastravelandotherexpenses,willnotinaggregateexceed10%ofbasicsalary.

Norecoveryorwithholdingprovisions.

Performance

measurement

framework

Notapplicable.

Short-term incentives (variable pay)

Purposeandlinkto

strategicobjectives

Torewardperformanceonanannualbasisagainstkeyfinancial,operationalandindividualobjectives.

Operation Discretionaryannualbonusschemeanddeferredbonusplanunderwhichaproportionofbonusmaybecompulsorilydeferredinto

shares.

Bonusisnotpensionable.

Opportunityand

recoveryorwithholding

provisions

Themaximumpotentialbonusis100%ofbasicsalary.Anybonusover50%ofbasicsalaryiscompulsorilydeferredintosharesfora

periodofthreeyears.

Participantswillalsoreceiveanamountoradditionalnumberofsharesequaltothevalueofthedividendsthatwouldhaveaccruedon

thedeferredshares.

AllbonuspaymentsaresubjecttotheoverridingdiscretionoftheRemunerationCommittee,whichalsoretainsdiscretiontoamendthe

proportionsofbonussubjecttocompulsorydeferralornottorequireanydeferralinexceptionalcircumstances.

Inordertobeentitledtoanannualbonus,anexecutivedirectormustnormallybeinthegroup’semploymentandnotundernoticeof

termination(eithergivenorreceived)atthetimethebonusispaid.

TheRemunerationCommitteehastherighttocancelorreduceanycashbonusordeferredbonussharesgrantedaftertheeffective

dateofthispolicywhichhavenotyetbeenpaidorvested.

TheRemunerationCommitteealsohastherighttorecoverallorpartofcashbonuspaidordeferredbonussharesanddividendshares

orequivalentamountsawardedafter29July2020withinthetwoyearsfollowingdateofpaymentorvestingasapplicable.

Performance

measurement

framework

Byreferencetoacombinationofcompanyperformanceagainstexternalbenchmarksandindividualperformanceagainstpersonal

objectives.Executivedirectorswithresponsibilityforpoolsofcapitalwillhaveaproportionofbonusdeterminedbyreferencetopool

performanceandobjectives.

Long-term incentives (variable pay)

Purposeandlinkto

strategicobjectives

Tomotivateexecutivedirectorstodeliverlong-termshareholdervalue,therebyaligningtheinterestsofmanagementwiththose

ofshareholders.

Toencouragelong-termretentionofkeyexecutives.

Operation Aperformanceshareschemeunderwhichparticipantsaregrantedawards(normallyintheformofnil-costoptions)overthecompany’s

shares.

Opportunityand

recoveryorwithholding

provisions

Themaximumvalueofawardsthatmaybegrantedinanyyearis200%ofbasicsalary,althoughthecompany’scurrentintentionisto

grantannualawardsofnomorethan150%ofbasicsalary.

Participantswillalsoreceiveanamountoradditionalnumberofsharesequaltothevalueofthedividendsthatwouldhaveaccruedon

thesharesawarded.

Performanceismeasuredoverthreeyearsforone-thirdofawardswhichissubjecttoapost-vestingholdingperiod,onanafter-tax

basis,oftwoyears.Theremainingtwo-thirdsofawardsissubjecttoperformanceoverfiveyears,withnopost-vestingholding

requirement.

TheRemunerationCommitteehastherighttocancelorreducelong-termincentiveawardswhichhavenotyetvested.

TheRemunerationCommitteealsohastherighttorecoverallorpartofthevalueoflong-termincentiveawardsanddividend

equivalentsreceivedwithintwoyearsofthedatethatsuchawardsvestedandbecameexercisable.

Performance

measurement

framework

Forexecutivedirectorswhoarenotdirectlyresponsibleforapoolofcapital,awardsundertheperformanceshareschemearesubject

totheperformanceofthecompany’sannualiseddilutednetassetvaluepersharetotalreturn(‘NAVTR’)measuredoverthreeorfive

years.Forexecutivedirectorsdirectlyresponsibleforapoolofcapital,theawardsaresubjecttoacombinationoftheperformanceof

thecompany’sannualisedNAVTRasaboveandtheannualisedtotalreturnsachievedbytherelevantpoolforwhichheorsheis

responsible,againmeasuredoverthreeorfiveyears.

TherulesoftheschemeprovidediscretiontotheRemunerationCommitteetoamendtheperformancetargetsorimposedifferent

performancetargetsandtodeterminetheappropriateproportionofanyawardsubjecttoeachperformancemeasure.

100 Caledonia Investments plc Annual Report 2025

Pension related benefits (fixed pay)

Purposeandlinktostrategic

objectives

Toprovideameansofretirementsavingaspartofarangeofbenefitsalongsidebasicsalarytorecruitandretainhigh

calibreexecutivedirectors.

Operation Executivedirectorsareoffereddefinedcontributionfunding,basedonapercentageofsalary,toapersonalpensionschemeor

acashsalarysupplement(oracombinationofboth)attheirchoice.

Opportunityand

recoveryorwithholding

provisions

ExecutivedirectorsreceivethesamepercentageofbasicsalaryasapensioncontributionasallCaledonia’sstaff,currently15%.

Ifadirectorchoosestotakeacashsupplementinlieuofsomeoralloftheirpensionentitlement,thepaymentisreducedby

suchamountasisnecessarytomakethecashsupplementcostneutralforthecompanyaftertakingintoaccountNational

Insurancecontributions.

Norecoveryorwithholdingprovisions.

Performance measurement

framework

Notapplicable.

Notes to the policy table

1. Performance measures and targets

Annual bonus

FortheChiefExecutiveOfficerandtheChiefFinancialOfficer,amaximumof

50%ofbonusisdeterminedbyreferencetocompanyperformanceand50%

byreferencetoindividualperformanceobjectives.Forexecutivedirectors

responsibleforaspecificpoolofcapital,25%ofbonusisdeterminedby

referencetothecompany’sperformance,25%topoolperformance,35%to

poolobjectivesand15%toindividualperformanceobjectives.Inallcases,

thecompanyperformanceelementisdeterminedbyreferencetothe

relativeperformanceofthecompany’sNAVTRagainstinflation.Theinflation

benchmarkwilltransitionfromRPItoCPIHoverthethree-yearpolicyperiod,

weighted67:33onRPI:CPIHforthe2024financialyear,movingto50:50for

2025,33:67for2026and100%onCPIHfor2027.

InflationistakenasthehigheroftheweightedRPI/CPIHbenchmarkoverthe

bonusyearor3%,beingbroadlyinlinewithitshistoriclong-termaverage.

Bonuspaymentsforthiselementcurrentlycommencewitha10%pay-outif

NAVTRmatchestheinflationbenchmark,increasingincrementallytothe

maximumentitlementpayableifoutperformanceof7%ormoreisachieved.

PoolperformanceisjudgedbytheRemunerationCommitteebyreference

tothereturnachievedbythepoolagainstasettargetreturnandby

objectivessuchasdealflowanddeliveryofportfoliostrategy.Individual

performanceisassessedbyreferencetopersonalobjectivessetatthestart

oftheyear,includingnon-financialmeasuressuchasriskmanagement,

environmental,socialandgovernancematters,marketingofthecompany,

teamleadershipandengagement,managementskillsandpromotionof

Caledonia’scorporatecultureandprofilebothinternallyandexternally.

TheRemunerationCommitteeretainsdiscretiontoamendoradopt

alternativeannualbonustargetsand/orlevelsinfutureyearsinorderto

achievebetteralignmentwiththecompany’sstrategicobjectives.

Compulsory deferral of bonus

Deferred bonus plan

Sharessubjecttocompulsorydeferralwillnormallyonlyvestifthe

directorremainsanemployeeoftheCaledoniagroupforathree-year

periodcommencingonthefirstdayofthefinancialyearinwhichtheaward

ismade.

Long-term incentive plans

Performance share scheme

One-thirdofawardsgrantedwillbemeasuredoverthreeyearsandtwo-thirds

overfiveyears.Inallcases,sharesthatvestwillbecomeimmediately

exercisable/transferableand,iftheawardisstructuredtograntnil-cost

options,willlapseifnotexercisedwithintenyearsofgrant.

AwardsgrantedtotheChiefExecutiveOfficerandChiefFinancialOfficerwill

vestonagraduatedbasis,withvestingcurrentlycommencingat10%onthe

achievementofanannualisedNAVTRof3%,risingincrementallyto100%

vestingonachievementofanannualisedNAVTRof10%,measuredoverthree

andfiveyears.ForMrCayzer-Colvin,whoisheadoftheFundspool,60%ofhis

performanceshareschemeawardswillbemeasuredagainsttheannualised

totalreturnsachievedbytheFundspool,measuredoverthreeandfiveyears.

Awardswillsimilarlyvestonagraduatedbasis,withvestingcommencingat

10%onachievementofanannualisedFundspooltotalreturnof6%,rising

incrementallyto100%vestingonachievementofanannualisedtotalreturnof

13.5%.Theremaining40%ofMrCayzer-Colvin’sperformancesharescheme

awardswillbemeasuredagainstCaledonia’sannualisedNAVTRasabove.

Malus and clawback provisions

TheRemunerationCommitteehastherighttocancelorreduceanycashbonus

ordeferredbonussharesgrantedwhichhavenotyetbeenpaidorvestedand

long-termincentiveawardswhichhavenotyetvested,intheeventofa

materialmisstatementofthecompany’sfinancialresults,miscalculationofa

participant’sentitlement,individualmisconductoraneventresultingin

materiallossorreputationaldamagetothecompanyoranymemberofthe

group.TheRemunerationCommitteemay,actingfairlyandreasonably,reduce

thelevelofvestingtotakeaccountofanymatterwhichitconsiders

appropriateincludingthebroaderperformanceofthecompany,the

shareholderexperienceandtheconductoftheparticipant.

TheRemunerationCommitteealsohastherighttorecoverallorpartofcash

bonuspaidordeferredbonussharesanddividendsharesorequivalent

amountsawardedafter29July2020withinthetwoyearsfollowingdateof

paymentorvestingasapplicableandthevalueoflong-termincentiveawards

anddividendequivalentsreceivedwithintwoyearsofthedatethatsuch

awardsvestedandbecameexercisable,intheeventofamaterial

miscalculationofaparticipant’sentitlement,amaterialmisstatementor

restatementofthecompany’sfinancialresultsfortheyearstowhichthe

performanceperiodsrelate,ormaterialpersonalmisconductthatwouldjustify

summarydismissal,resultinsignificantreputationaldamagetothecompany,

haveamaterialadverseeffectonthecompany’sfinancialposition,orreflecta

significantfailureofthecompany’sriskmanagementorcontrol.

Rationale for choice of performance measures for the short and long-term

incentive plans

TheRemunerationCommitteehaschosenNAVTRasthebasisofperformance

measurementforthecompanyforbothitsshort-termandlong-termincentive

arrangementsasitregardsthisasthebestindicatorofthesuccessorfailureof

managementdecisionsintermsofcreatingvalueforthecompany.

Forthecompanyperformanceelementoftheannualbonusscheme,the

boardhastakentheviewthatbenchmarkingagainstastockmarketindexor

indicesoverashortperiodisnotrelevantgivenCaledonia’slong-term

investmenthorizonandthenatureofitsportfolio.TheRemuneration

CommitteehasthereforeinsteadchosenUKinflation,subjecttoaminimumof

3%,asthecomparator,asonthisbasisexecutiveswillonlyberewardedtothe

extentthattheyareabletodeliverpositiverealreturnsforshareholders.The

RemunerationCommitteewillreviewtherateofincreaseinUKinflationatthe

startofeachfinancialyearandmayadjustthelevelofoutperformance

requiredfortheincrementalandmaximumbonuspaymentsinorderto

ensurethattheyremainafairmeasureofperformance.

Forawardsundertheperformancesharescheme,theRemuneration

CommitteehaschosenCaledonia’sannualisedNAVTRastheperformance

measurement,asitbelievesthatthisisthemosteffectivemethodofaligning

directors’rewardswiththelong-termstrategicobjectiveofthecompanyof

deliveringannualisedreturnsoverrollingten-yearperiodsofbetweeninflation

+3%andinflation+6%overthemediumandlongerterm.ForMrCayzer-

Colvin,theRemunerationCommitteebelievesthatasignificantproportionof

hisvariablepayshouldbeweightedtowardstheannualisedtotalreturn

performanceoftheFundspoolofcapitalforwhichheisresponsibleandhas

thereforedeterminedthat60%ofhisperformanceshareschemeawards

shouldbetestedbyreferencetothis.

Thetargetsforeachcomponentofthelong-termincentiveplanshavebeen

setbytheRemunerationCommitteewiththeaimofdeliveringincreasing

rewardforgreateroutperformance.TheRemunerationCommitteekeeps

theseunderreviewandmayadjustthemeasuresandlevelsatwhich

incrementalandmaximumentitlementsareearnedinordertoensurethat

theyremainsufficientlychallengingandalignedwiththecompany’sstrategy

andkeyperformanceindicators.

2. How the remuneration policy for executive directors relates to

remuneration of Caledonia group employees generally

Caledoniaappliesasimilarrewardphilosophyforgroupemployees.

Executivedirectors’remunerationpackagestendtobehigherthanthoseof

otheremployees,butalsoincludeahigherproportionofvariablepay.

Strategic report

Corporate governance

Financial statements Other information

Introduction

101

Directors’ remuneration report (continued)

Remuneration policy

Chair and non-executive directors

ThetablebelowsetsouteachcomponentoftheChair’sandthenon-executivedirectors’remunerationandtheapproachtakenbythe

companyinrelationthereto.

Component Approach

Chair’sandnon-executive

directors’fees

TheChair’sfeeisdeterminedbytheRemunerationCommitteeandthenon-executivedirectors’feesare

setbytheboard(excludingthenon-executivedirectors).Thesearereviewedperiodicallytakinginto

accounttheresponsibilitiesandtimecommitmentsrequiredandnon-executivedirectorfeelevels

generally.

TheChairreceivesanannualfee,whichincludestheirbasicnon-executivedirector’sfee,butdoesnot

receiveanyotherremuneration.

Non-executivedirectorsreceivebasicfees,whicharesubjecttoanaggregateannuallimitfornon-

executivedirectors’ordinaryremunerationcontainedinthearticlesofassociation,currently£600,000.

Inaddition,specialfeesarepaidtothechairandmembersoftheAuditandRiskandRemuneration

CommitteesandalsofortheroleofSeniorIndependentNon-ExecutiveDirectorandChairofthe

GovernanceCommittee.Additionalfeesmaybepayableforotheradditionalboardresponsibilitiesand/or

timecommitment.

Additionalfeespayable

forservicestoother

groupcompanies

Exceptionally,non-executivedirectorsmayreceivefeesinconnectionwithsubsidiaryandinvestee

companiesforservicesprovidedtothem.Feesforservicesprovidedtosuchcompaniesaresetand

reviewedbytheboardsofthosecompanies,butwillnotexceed£100,000perannuminaggregateforany

non-executivedirector.

Otherbenefits TheChairandthenon-executivedirectorsareallcoveredunderthecompany’sdirectors’andofficers’

liabilityinsurancepolicyandhavethebenefitofanindemnityunderthecompany’sarticlesofassociation.

TheChairisalsoprovidedwithanofficeandsecretarialsupport.

Thecompanymay,whereappropriate,payforthecostofspousesorpartnersaccompanyingnon-

executivedirectorsontripswherethereisabusinessreasonfordoingsoandreimbursenon-executive

directorsforhotelaccommodationandtravelexpenses(ineachcaseincludingpaymentofanytax

thereon).

Remuneration policy for new appointments

Executive directors

Inthecaseoftheappointmentofanewexecutivedirector,the

RemunerationCommitteewouldtypicallyseektoalignthe

remunerationpackagewiththeaboveremunerationpolicy.

TheRemunerationCommitteehoweverretainsthediscretionto

makespecialremunerationcommitmentsontheappointmentofa

newexecutivedirector,includingtheuseofawardsmadeunder

Rule9.3.2oftheUKListingRules(formerlyRule9.4.2),ifsuchwere

necessarytoensuretherecruitmentofacandidate.Indoingso,the

RemunerationCommitteewouldtakeintoconsiderationall

relevantfactors,including,butnotlimitedto,overallquantum,type

ofremunerationofferedandcomparabilitywiththepackagesof

otherCaledoniaseniorexecutivesandthetotalvariablepaywould

notexceedthemaximastatedinthepolicytableforexecutive

directorremunerationabove.

TheRemunerationCommitteemayinadditionmakebonus

commitmentsorshareawardsontheappointmentofanexternal

candidatetocompensateforremunerationarrangementsforfeited

orforegoneonleavingapreviousemployer,takingintoaccount

factorssuchasanyperformanceconditionsattachedtothese

awards,theforminwhichtheyweregranted,forexamplecashor

shares,andthetimeoverwhichtheywouldhavevested.Theaim

wouldbetoensurethatreplacementawardswouldbemadeonno

greaterthanacomparablebasis.

Inordertoattractandretainsuitableexecutives,theRemuneration

Committeeretainsdiscretion,inexceptionalcircumstances,tooffer

servicecontractswithuptoaninitial24monthnoticeperiod,

whichthenreducesto12monthsattheendofthisinitialperiod.

Ifitconsidersitappropriate,theRemunerationCommitteemay

alsoofferalowersalaryinitially,butwithaseriesofincreasesto

achievethedesiredsalarypositioningoveraperiodoftime,asthe

individualdevelopsintotherole.

Ifanewappointmentistheresultofaninternalpromotion,the

RemunerationCommitteewouldexpecttohonouranypre-existing

contractualarrangementsorbenefitspackageagreedwiththe

relevantindividual.Intheeventthatanewdirectorneedsto

relocatetotakeuptherole,theRemunerationCommitteemay

agreeareasonablerelocationpackageandtaxequalisation

arrangements.

Inrecruitinganynewexecutivedirector,theRemuneration

Committeewouldapplytheoverallpolicyobjectivethatexecutive

directors’remunerationshouldbecompetitive,butnotexcessive.

IntheeventthattheRemunerationCommitteedeterminesthatitis

necessaryforspecialcommitmentsorsign-onarrangementstobe

offeredtosecuretherecruitmentofanewexecutivedirector,an

explanationofwhythesearerequiredanddetailsthereofwouldbe

announcedatthetimeofappointment.

102 Caledonia Investments plc Annual Report 2025

Chair and non-executive directors

TermsfortheappointmentofanynewChairornon-executive

directorwouldalsobedeterminedbytheRemuneration

Committeeortheboardwithintheaboveremunerationpolicy.

Executive directors’ service contracts and the Chair’s and

non-executive directors’ letters of appointment

Executive directors

ExecutivedirectorshaveservicecontractswithCaledoniaGroup

ServicesLtd,awholly-ownedsubsidiaryofthecompany,detailsof

whicharesummarisedbelow:

Date of

contract

Noticeperiod

forcompany

anddirector Unexpiredterm

M S D Masters 15May2008 12months 12months

R W Memmott 22May2023 12months 12months

JMBCayzer-Colvin 19Apr2005 12months 12months

Ifnoticeisservedbyeitherparty,thedirectorcancontinueto

receivebasicsalary,benefitsandpensionpaymentsforthe

durationofthenoticeperiod,duringwhichtimethecompany

mayrequiretheindividualtocontinuetofulfiltheircurrentduties

ormayassignaperiodofgardeningleave.Alternatively,the

companymay,initsdiscretion,terminatethecontractwithout

noticeandmakealumpsumpaymentinlieuofnotice.Thislump

sumwouldincludeanamountequivalenttothebasicsalaryand

benefits(basedonafixedpercentageofsalaryspecifiedinthe

servicecontract)fortheunexpiredperiodofnoticetowhichthe

paymentrelates.MrMasters’andMrCayzer-Colvin’sservice

contractsprovidethatanamountequivalentto80%oftheaverage

oftheannualbonusespaidforthepreviousthreefinancialyears

wouldalsobeincludedinthepaymentinlieuofnotice.MrMasters’

andMrCayzer-Colvin’sservicecontractsalsoincludeprovisions

wherebyaliquidatedsumispayableintheeventoftermination

withinoneyearfollowingachangeofcontrol.Thepaymentwould

becalculatedonthesamebasisasapaymentinlieuofnotice,

exceptthatanamountequivalentto100%oftheaverageofthe

annualbonusespaidforthepreviousthreefinancialyearswould

beincluded.

MrMemmott’sservicecontractcontainsprovisionswhereby,as

analternativetothepaymentofalumpsuminlieuofnotice,the

companymayelecttopaytheequivalentamountinequalmonthly

instalments,suchinstalmentstobereducedby50%ofone-twelfth

ofthebasicsalaryinexcessof£20,000perannumthatMr

Memmottreceivesfromanyalternativeemploymentthathetakes

upduringthenoticeperiod.

Executivedirectors’servicecontractsmaybeterminatedwithout

noticeandwithoutanyfurtherpayment(otherthaninrespectof

amountsdueatthedateoftermination)ontheoccurrenceof

certaineventssuchasgrossmisconduct.

Chair and non-executive directors

TheChairandthenon-executivedirectorsdonothaveservice

contracts,butareappointedunderlettersofappointment,which

provideforterminationwithoutnoticeorcompensation.

Inspection

Executivedirectors’servicecontractsandtheChair’sandnon-

executivedirectors’lettersofappointmentareavailablefor

inspectionattheregisteredofficeofthecompany.

Policy on external non-executive directorships held by

executive directors

Itisthecompany’spolicytoallowexecutivedirectorstohold

non-executivedirectorshipsunrelatedtothecompany’sbusiness

tobroadentheircommercialexperience,providedthatthetime

requiredisnotmaterial.Normallythecompanywillretainanyfees

arisingfromsuchnon-executivedirectorships,butmaypermitthe

executivedirectortoretainfeesonacase-by-casebasis.

Policy on payments for loss of office

Executive directors

Itisthepolicyofthecompanythat,otherthaninexceptional

circumstancesonrecruitmentasstatedabove,noexecutive

directorshouldbeofferedaservicecontractthatrequiresmore

thanoneyear’snoticeofterminationorwhichcontainsprovision

forpredeterminedcompensationinexcessofoneyear’stotal

emoluments.Intheeventofatermination,theRemuneration

Committeewillconsideradirector’spastperformanceandthe

circumstancesofthedepartureinexercisinganydiscretionsrelating

tothearrangementsforlossofoffice,includingcontractual

obligations,prevailingbestpractice,thereasonforthedeparture

andanytransitionorhandoverrequired.

Theterminationprovisionsinexecutivedirectors’currentservice

contractsaredescribedaboveinthesectiononexecutivedirectors’

servicecontracts.ItistheRemunerationCommittee’sintention

thatallfutureexecutivedirectors’servicecontractsshouldinclude

provisionsenablingthecompanytoreducecompensation

paymentsintheeventthatthedirectortakesupalternative

employmentwithinthenoticeperiod.However,ifanewdirector

isappointedinternally,theRemunerationCommitteewouldexpect

tohonouranyexistingcontractualarrangementsagreedwiththe

relevantindividualbeforeheorshebecomesadirector.

Inapplyingthecompany’srighttomakealumpsumpaymentin

lieuofnotice,theRemunerationCommitteewouldnormallyexpect

toproratethelumpsumfortheunexpiredperiodofnoticeto

whichthepaymentrelates.

Thecompany’sannualbonusschemeprovidesthatanemployee

mustbeinthegroup’semploymentandnotundernoticeof

termination(eithergivenorreceived)inordertobeentitledto

receiveabonusfortherelevantfinancialyear.TheRemuneration

Committeewouldexpecttoapplythisprincipletoexecutive

directorterminations,butretainsdiscretiontomakebonus

paymentsonterminationifitbelievesitappropriatetodoso.Ifany

bonuspaymentismade,theRemunerationCommitteealsoretains

discretionastowhetheritwillrequireanypartofthebonustobe

deferredintosharesunderthedeferredbonusplan.

Strategic report

Corporate governance

Financial statements Other information

Introduction

103

Directors’ remuneration report (continued)

Remuneration policy

Executivedirectorswouldalsobeentitledundertheirservice

contractstobepaidonterminationforanyaccrued,butuntaken,

holidayentitlement.TheRemunerationCommitteemay,whereit

considersitappropriateinthecircumstances,makepaymentsfor

lossofstatutoryrightsorwaiverthereofandacontribution

towardslegalandoutplacementfees.TheRemuneration

Committeemayalsomakeapaymenttoensurethatany

restrictivecovenantsremainenforceable.

Wherethedirectorholdsunvestedawardsunderthecompany’s

long-termincentiveschemes,theRemunerationCommitteemay

exerciseitsdiscretionsastovestinginaccordancewiththerelevant

schemerules.Ingoodleavercircumstances,forexamplewhere

cessationofemploymentisbyreasonofdeath,retirement,injury,

disability,ill-health,redundancy,orsuchotherreasonasthe

RemunerationCommitteemaydecide,theRemuneration

Committeewillnormallydeterminethelevelofvestingbasedon

theattainmentoftheperformancetargets,eitheratthetimeof

cessationoratthenormaltestdateifpermittedbythescheme

rules,butinthecaseoftheformermaydecreaseorincreasethe

levelofvestingiftheRemunerationCommitteeconsidersthatthe

targetswouldhavebeenmettoalesserorgreaterextentatthe

endoftheperformanceperiod.Thenumberofsharesthatvestwill

normallybereducedtoreflecttheproportionoftheperformance

periodthatthedirectorwasinemployment,althoughthe

RemunerationCommitteehasdiscretionnottoscaledownthe

numberofsharesifitbelievesitappropriateinthecircumstances.

TheRemunerationCommitteehasthediscretiontoassessgood

leavertreatmentforparticipantsshouldcircumstanceschange

afterthedatetheyleavebutpriortovesting.Anyholdingperiod

willcontinuetoapplyinrespectofsharesheldbyaleaver,unless

otherwisedeterminedbytheRemunerationCommittee.

Wherethedirectorholdsunvestedawardsunderthecompany’s

deferredbonusplan,theRemunerationCommitteemayexercise

itsdiscretionastovestinginaccordancewiththerelevantscheme

rules.Ingoodleavercircumstances,awardswillvestonleaving

employment.

Followingtermination,thecompanymaycontinueinsurance

relatedbenefitsfortheformeremployeeuntiltheendofthe

insurancepolicyperiod.Thecompany’sdirectors’andofficers’

liabilityinsurancepolicyalsoprovidesforasix-yearperiodof

run-offcoverforformerdirectors.Adirectormayremainin

employmentafterceasingtobeadirectorforalimitedperiod

toallowtimeforaneffectivehandoverorforasuccessorto

beappointed.

Intheeventofachangeofcontrolbeforetheexpiryofthe

performancemeasurementperiodofalong-termincentive

award,thevestingleveloftheawardwillbedeterminedbythe

RemunerationCommitteebasedontheextenttowhichthe

RemunerationCommitteeconsidersthattheperformancetargets

havebeenachievedandvestedshareswillthenbescaleddown

toreflecttheshortenedmeasurementperiod.TheRemuneration

Committeemaymodifysuchvestinglevelsifitconsidersthatthe

performancetargetwouldbemettoagreaterorlesserdegreeat

thetestingdateand/oriftheapplicationoftimeproratingwould

beinappropriateinthecircumstances.

Chair and non-executive directors

TheChairandthenon-executivedirectorshavenoentitlementto

anycompensationonterminationoftheirappointments,although

theywouldhavethebenefitofrun-offcoverunderthedirectors’

andofficers’liabilityinsurancepolicyasdescribedabove.However,

inappropriatecircumstancestheymayreceivedeminimis

retirementgiftsfromthecompany.

Executive directors’ minimum shareholding guidelines

Inordertoaligntheinterestsofexecutivedirectorswiththoseof

shareholders,theRemunerationCommitteehasadopted

guidelinesforminimumshareholdings,whichexecutivedirectors

willbeexpectedtoattainthroughtheretentionofallpost-tax

shareawardsvestingunderthecompany’slong-termincentive

plansuntiltheminimumshareholdingismet.Forthesepurposes,

shareholdingsincludethoseofconnectedpersonsandalsothe

value,netofanyexercisecosts,incometaxandNationalInsurance

contributions,ofunexercisedawardsgrantedunderits

performanceshareschemeforwhichtheperformancetargets

havebeenmet.Alsoincludedarebonusesdeferredcompulsorily

underthecompany’sdeferredbonusplan,againnetofincometax

andNationalInsurancecontributions.

Inaddition,executivedirectorsaresubjecttoapost-cessation

shareholdingrequirementoftwoyears,withtheCommittee

retainingdiscretiontooverridethisarrangement,forexample,

forregulatoryreasons,oncompassionategroundsorwherean

executiveexperiencesfinancialhardship.

FortheChiefExecutiveOfficer,theminimumguideline

shareholdinghasbeensetat200%ofbasicsalaryandforother

executivedirectors150%ofbasicsalary.

104 Caledonia Investments plc Annual Report 2025

Thefollowingreportsetsoutdetailsandexplanationsofremunerationpaidtodirectorsoverthefinancialyearended31March2025and

describeshowCaledonia’sremunerationpolicywillbeimplementedforthe2026financialyear.

Single total figure of remuneration for each director (audited)

Executive directors

Thetablebelowprovidesananalysisoftotalremunerationofeachexecutivedirectorforthefinancialyearended31March2025anda

comparisonwiththepreviousfinancialyear.

M S D Masters R W Memmott

JMBCayzer-Colvin W P Wyatt

2025

£’000

2024

£’000

2025

£’000

2024

£’000

2025

£’000

2024

£’000

2025

£’000

2024

£’000

Fixed remuneration and benefits

Salary 492 473 437 245 401 385 n/a n/a

Taxablebenefits

19 25 10 4 28 29 n/a n/a

Pensionrelatedbenefits 66 63 58 32 53 51 n/a n/a

Totalfixedremuneration 576 561 505 281 481 465 n/a n/a

Variable remuneration

Short-termincentives

270 338 240 175 210 234 n/a n/a

Long-termincentives

578 477 – – 592 681 391 624

Totalvariableremuneration 848 815 240 175 802 915 391 624

Total 1,424 1,376 745 456 1,284 1,380 391 624

Duetorounding,individualcolumnsdonotnecessarilyadduptothetotal.

a. RobMemmottwasappointedtotheboardasChiefFinancialOfficeron1September2023.

b. WillWyattceasedtobeanexecutivedirectoron27July2022.Thefiguresrelatingtolong-termincentivesreflectcertainawardsheretainedfromhis

employment.Thefeeshereceivedasanon-executivedirectorafterthatdateareexcludedfromthetableaboveandareshowninthetableofnon-

executivedirectorfeesonpage107.

1. Taxable benefits

Taxablebenefitsprincipallycomprisedprivatemedicalinsurancecover,a

smallChristmassupplementpaidtoallCaledonia’semployeesand

business-relatedexpensereimbursementsdeemedtobetaxableby

HMRC.ThetaxablebenefitsforMatMastersandJamieCayzer-Colvinalso

includedlegacycashallowancesof£7,776and£15,024respectivelyinlieu

ofacompanycar.

Inadditiontotaxablebenefits,othernon-taxablebenefitswereprovided

toexecutivedirectors,includingdeath-in-serviceinsurance(4xbasic

salary),permanenthealthandincomeprotectioninsurance,directors’

andofficers’liabilityinsuranceandcertainotherbenefitsofminorvalue

providedtoallofCaledonia’semployees.

2. Short-term incentives

Bonus metrics

ForMatMastersandRobMemmott,amaximumof50%ofbonuswas

determinedbyreferencetocompanyperformanceand50%byreference

toindividualperformanceobjectives.ForJamieCayzer-Colvin,whohas

specificresponsibilityfortheFundspool,25%ofhisbonuswas

determinedbyreferencetothecompany’sperformance,25%tohispool’s

performance,35%tohispool’sobjectivesand15%toindividual

performanceobjectives.

Company performance

Forthe2025financialyear,thecompanyperformanceelementwas

determinedbyreferencetotherelativeperformanceofthecompany’s

NAVTRagainstinflation,whichforbonuspurposeswastakenas3%,or

actualinflationifgreater(weighted50:50onRPI:CPIH),withbonus

paymentsforthiselementcommencingwitha10%pay-outifthe

company’sNAVTRmatchedinflation,increasingincrementallytothe

maximumentitlementpayableifoutperformanceof7%ormorewas

achieved.Thecompany’sNAVTRwas3.3%overtheyearagainstanincrease

ininflation(forbonuspurposes)of3.3%,givingapaymentof10%forthis

element.

Funds performance

JamieCayzer-Colvin’spoolperformancewasassessedbyreferencetothe

returnachievedbytheFundspoolovertheyearonaconstantcurrency

basis,withpaymentscommencingonachievementofatotalreturnof6%,

risingtoamaximumpay-outagainstatotalreturnof13.5%.TheFunds

pool’sreturnovertheyearwas4.6%,givingnopaymentforthiselement.

Individual performance objectives

TheCommitteeassessedperformanceagainsttheindividualobjectives

whichincludedthefollowing:

Name Objective

M S D

Masters

•SupportingevolutionofFundspoolstrategy

•Provideleadershiptoinvestorrelationsstrategy

•Evaluationofsharebuybackprogramme

R W

Memmott

•Oversightoffinanceteamchangesincludingonboarding

of new team members

•Implementationofimprovementstotheprovisionof

systemised,integratedandstrategicallyfocused

management information

•EstablishmentofnewRevolvingCreditFacility

arrangements

•Planningandexecutionofthefirstinaseriesof

“spotlight”eventsforinvestorsandanalysts

•Continueddevelopmentofinvestorrelationscapability

andactivity

JMB

Cayzer-Colvin

•Supportingsuccessionplanningandteamdevelopment

•Supportingtheintegrationofdatamanagementacross

companyfunctions

•OversightofenhancementtoCayzerHousefacilities

•DrivingCaledonia’scharitableactivitiesandinternship

programme

TheCommitteedecidedtoawardthemaximumbonusforindividual

performanceforMatMasters,RobMemmottandJamieCayzer-Colvin.

Funds pool objectives

InassessingJamieCayzer-Colvin’sachievementofhispoolobjectives,the

Committeetookaccountof:

• evolutionoftheFundspoolstrategy

• assessmentofsecondarymarketopportunities

• developmentofcollaborationinrelationtodatamanagementacross

companyfunctions

• engagementwithgeneralandlimitedpartners

• developmentofportfoliomanagementprocesses.

ItwasconcludedthatJamieCayzer-Colvinshouldbeawardedabonusof

35%ofsalaryforattainmentofpoolobjectives.

Directors’ remuneration report

Annual report on directors’ remuneration

Strategic report

Corporate governance

Financial statements Other information

Introduction

105

Directors’ remuneration report

Annual report on directors’ remuneration (continued)

Total bonuses

Thetotalbonusesawardedtotheexecutivedirectorsfortheyearwere

thereforedeterminedasfollows:

M S D

Masters

R W

Memmott

JMB

Cayzer-Colvin

Award

%

Max

Award

%

Max

Award

%

Max

Performance

Company 5 50 5 50 2.5 25

Pool n/a n/a n/a n/a – 25

Objectives

Pool n/a n/a n/a n/a 35 35

Individual 50 50 50 50 15 15

Total 55 100 55 100 52.5 100

Inaccordancewiththecompany’sremunerationpolicy,thefollowing

amountsincludedintheshort-termincentivesrowfor2025willbe

compulsorilydeferredviathedeferredbonusplanforaperiodofthree

yearsintheformofnil-costoptions:

M S D Masters

Memmott

JMB

Cayzer-Colvin

2025

£,000

2024

£,000

2025

£,000

2024

£,000

2025

£,000

2024

£,000

Compulsorily

deferred 25 102 22 – 10 41

Cash 246 236 219 175 200 193

Total

270 338 240 175 210 234

 a. Duetorounding,individualcolumnsdonotnecessarilyaddupto

thetotal.

3. Long-term incentives

Thelong-termincentiveawardsforwhichperformancemeasurement

periodsendedduringtheyearweretwo-thirdsoftheawardsgrantedin

2020undertheperformanceshareschemeandone-thirdoftheawards

grantedunderthatschemein2022.Allsuchawardswerenil-costoptions.

Theperformancemeasuresandoutturnfollowingtestingfortheawards

madetotheexecutivedirectorswere:

Yearof

award

Performance

measure

%of

award

Performance

outturn% %vested

M S D Masters 2020 NAVTR

20 13.5 100

Capital

portfolioTR

53.3 13.1 100

Income

portfolioTR

26.7 8.5 100

2022 NAVTR

100 5.4 48

W P Wyatt 2020 NAVTR

100 13.5 100

JMB

Cayzer-Colvin

2020 NAVTR

40 13.5 100

Fundspool

60 18.0 100

2022 NAVTR

40 5.4 48

Fundspool

60 5.7 –

a. Vestingonagraduatedbasis,commencingat10%onachievementof

anannualisedNAVTRof3%,risingincrementallyto100%vestingonan

annualisedNAVTRof10%overfiveyearsforthe2020awardsandover

threeyearsforthe2022awards.

b. Vestingonagraduatedbasis,commencingat10%onachievementof

anannualisedtotalreturnof4%,risingincrementallyto100%vesting

onachievementofanannualisedtotalreturnof11%overfiveyearsfor

the2020awards.TheperformancemetricexcludedPolarCapital

which,ifincluded,increasedtheoutturnforthe2020awardsto13.2%.

c. Vestingonagraduatedbasis,commencingat10%onachievementof

anannualisedtotalreturnof3.5%,risingincrementallyto100%vesting

onachievementofanannualisedtotalreturnof7%overthreeyears.

d. Vestingonagraduatedvestingbasis,commencingat10%on

achievementofanannualisedtotalreturnof6%,risingincrementallyto

100%vestingonachievementofanannualisedtotalreturnof13.5%

overfiveyearsforthe2020awardsandoverthreeyearsforthe2022

awards.Theperformancemetricforthe2020and2022awardswas

measuredonaconstantcurrencybasis(17.1%and5.8%respectivelyon

aSterlingbasis).

Theremainingtwo-thirdsoftheawardsgrantedin2020willveston4

August2025.Thefirstone-thirdoftheawardsgrantedin2022willveston

30May2025andwillbesubjecttoapost-vestingholdingperiodoftwo

years.Thevalues,asreflectedinthe2025long-termincentivesrow

above,arecalculatedusingthethree-monthaveragesharepriceto31

March2025of3737.23p,togetherwiththevalueofdividendsthatwill

haveaccruedonthesharesatvesting.Theoverallvalueofthelong-term

incentivesshowninthetableabovearethereforeanalysedasfollows:

Estimated

valueof

long-term

incentive

awardsat

vesting

£

Value of

dividend

equivalents

atvesting

£

Estimated

total

atvesting

£

M S D Masters 511,365 66,465 577,831

JMBCayzer-Colvin 521,680 70,499 592,179

W P Wyatt 344,012 47,323 391,335

a. Duetorounding,individualrowsdonotnecessarilyadduptothetotal.

Theestimatedvalueattributabletosharepriceappreciationsincegrantin

2020and2022,basedonthethree-monthaveragesharepriceto31March

2025,forMatMasters,JamieCayzer-ColvinandWillWyattwas£270,510,

£142,811and£101,000respectively.Nodiscretionwasexercisedbythe

Committeeinrespectofsharepriceappreciation.

TheCommitteewassatisfiedthatnowindfallgainshavearisenin

connectionwiththevestingoftheperformanceshareschemeawards

grantedin2020and2022,takingintoaccountthesharepriceatthetimeof

grantandprogressioninthesharepriceovertheperiodrelativetoNAVTR

andtypicalmarketreturns.

106 Caledonia Investments plc Annual Report 2025

The2024figuresshowninthelong-termincentivesandtotalrowsonpage

105havebeenrestatedtoreplaceestimatedvaluesforperformanceshare

schemeawardsincludedinlastyear’sreport.Theestimatedvalues,which

includeddividendequivalents,were£452,892forMatMasters,£647,012

forJamieCayzer-Colvinand£593,873forWillWyatt.Therestatedfigures,

whichreflectthevaluesonthevestingdates,areasfollows:

Value of

long-term

incentive

awardsat

vesting

£

Value of

dividend

equivalents

atvesting

£

Totalvalue

atvesting

£

M S D Masters 422,427

54,132 476,559

JMBCayzer-Colvin 602,901

77,758 680,659

W P Wyatt 551,134

72,995 624,129

a. 7,792sharesgrantedin2019vestedon30May2024.Themidclosing

pricewas3505ppershare.4,218sharesgrantedin2021vestedon4

June2024.Themidclosingpricewas3540ppershare.

b. 11,520sharesgrantedin2019vestedon30May2024.Themidclosing

pricewas3505ppershare.5,625sharesgrantedin2021vestedon4

June2024.Themidclosingpricewas3540ppershare.

c. 12,062sharesgrantedin2019vestedon30May2024.Themidclosing

pricewas3505ppershare.3,626sharesgrantedin2021vestedon4

June2024.Themidclosingpricewas3540ppershare.

Chair and non-executive directors

FeesandotherremunerationpaidtotheChairandthenon-

executivedirectorsduringtheyearended31March2025andthe

previousyearwereasfollows:

Fees

Taxable

expenses

Total

2025

£’000

2024

£’000

2025

£’000

2024

£’000

2025

£’000

2024

£’000

D C Stewart 165 165 – – 165 165

F A Buckley 51 49 –

– 51 49

HonCWCayzer

54 52 1

– 55 52

GBDavison 58 56 – – 58 56

M A Farlow 60 58 – – 60 58

CLFitzalanHoward 51 49 – – 51 49

LRFordham 59 57 – – 59 57

W P Wyatt

49 47 –

3 50 50

1.TheHonCWCayzerreceivedanadditionalfeeof£5,000perannumin

respectofhisservicesasatrusteeoftheCaledoniaPensionScheme.

2.WillWyattbecameanon-executivedirectoron27July2022.Thistable

reflectsthefeereceivedinrespectofhisnon-executiverole.Thefigures

relatingtolong-termincentivesreflectingcertainawardsretainedfromhis

employmentareshowninthesingletotalfigureofremunerationtableon

page105.

3.Taxableexpensesincludeexpensereimbursementsrelatingtotravel,

accommodationandsubsistenceinconnectionwithboardandcommittee

attendanceduringtheyear,whicharedeemedbyHMRCtobetaxablein

theUK.Amountsarethevalueoftheexpenseplusthegrossed-uptaxpaid

bythecompany.Non-taxableexpensereimbursementshavenotbeen

includedinthetable.

4.FarahBuckleyincurredtaxableexpensesduring2025atatotalcost,

includingtax,of£154.

5.TheHonCWCayzerincurredtaxableexpensesduring2025atatotalcost,

includingtax,of£905.

6.WillWyattincurredtaxableexpensesduring2025atatotalcost,including

tax,of£498.

7.Duetorounding,amountsstateddonotnecessarilyadduptothetotal

column.

TheChairandthenon-executivedirectorsdidnotreceiveany

short-termincentives,long-termincentivesorpensionrelated

benefits.

Total pension entitlements (audited)

Defined contribution

Pensionbenefitspaidtoexecutivedirectorsduringtheyear,either

ascontributionstopersonalpensionarrangementsorascash

supplements,wereasfollows:

Pension

contribution Cashsupplement Total

2025

£

2024

£

2025

£

2024

£

2025

£

2024

£

M S D Masters 6,758 7,383 58,846 55,793 65,604 63,176

R W Memmott – – 57,601 32,294 57,601 32,294

JMBCayzer-

Colvin – – 52,790 50,747 52,790 50,747

Defined benefit

On26April2017,TheHonCWCayzerreachedhisretirementage

of60andnowreceivesanannualpensionundertheCaledonia

PensionScheme,afinalsalarydefinedbenefitscheme.

Strategic report

Corporate governance

Financial statements Other information

Introduction

107

Scheme interests awarded during the financial year (audited)

Thetablebelowsetsouttheawardsmadetoeachexecutivedirectorduringtheyearundertheperformanceshareschemeanddeferred

bonusplan.

Scheme Typeofaward Basisofaward

Date of

grant

Face

valueof

award

£’000

priceat

grant

comprised

inaward

number

Receivableif

minimum

performance

achieved

Endof

performance/

retention

period

M S D Masters

Performance share scheme Nil-costoption 150%ofsalary 28.05.24 737 3410p 21,620 10% 31.03.29

Deferredbonusplan Compulsory

award,nil-cost

option

%ofbonusinexcessof

50%ofsalary

28.05.24 102 3410p 2,979 100% 31.03.27

Total scheme interests awarded 839 24,599

R W Memmott

Performance share scheme Nil-costoption 150%ofsalary 28.05.24 656 3410p 19,223 10% 31.03.29

Total scheme interests awarded 656 19,223

J M B Cayzer-Colvin

Performance share scheme Nil-costoption 150%ofsalary 28.05.24 601 3410p 17,617 10% 31.03.29

Deferredbonusplan Compulsory

award,nil-cost

option

%ofbonusinexcessof

50%ofsalary

28.05.24 41 3410p 1,214 100% 31.03.27

Total scheme interests awarded 642 18,831

1. Basedonthemid-marketclosingpriceonthedealingdayimmediatelyprecedingthegrantdate.

2. Thenumberofsharescomprisedintheawardsundertheperformanceshareschemeandthedeferredbonusplanwasdeterminedbyreferencetothe

company’ssharepriceatthetimethattheawardsweremade.

3. 

Theperformancetargetsforawardsundertheperformanceshareschemearesetoutunderthestatementofdirectors’shareschemeinterestsonpage106.

Compulsoryawardsunderthedeferredbonusplanaresubjecttoacontinuedserviceconditiononly.

4. One-thirdoftheawardsundertheperformanceshareschemearesubjecttoperformancetestingat31March2027,followedbyatwo-yearholdingperiod,

withtheremainingtwo-thirdssubjecttoperformancetestingat31March2029.

External directorships

Theexecutivedirectorsdonotreceiveanyfeesfor

externaldirectorships.

Payments to past executive directors (audited)

W P Wyatt

WillWyattretiredasCaledonia’sChiefExecutiveandceased

employmentwiththeCaledoniagroupon27July2022.

Hecontinuestoserveontheboardasanon-independent

non-executivedirector.

Willexercisedallofthevested2019performancesharescheme

awardover12,062sharesandallofthevestedpartofhis2021

performanceshareschemeawardover3,626shareson6June

2024.Asreportedinlastyear'sannualreport,theawardswere

subjecttoperformancetestingasat31March2024andvestedin

MayandJune2024respectively.Thetotalpre-taxvaluewas

£629,108,includingdividendequivalentsof£72,995.

Will’sprorataentitlementtoaperformanceshareschemeaward

madein2020wassubjecttoperformancetestingon31March

2025,ofwhich9,205shareswillveston4August2025.Ashe

remainsadirector,thedetailsarereportedinthesingletotal

figureofremunerationtableonpage105.

T J Livett

TimLivettretiredasCaledonia’sChiefFinancialOfficerand

steppeddownfromtheboardon1September2023.Heceased

employmentwiththegroupon31October2023.

Timexercisedallofthevested2019performancesharescheme

awardover11,813sharesandallofthevestedpartofhis2021

performanceshareschemeawardover5,416shareson25June

2024.Theawardsweresubjecttoperformancetestingasat31

March2024andvestedinMayandJune2024respectively.The

totalpre-taxvaluewas£685,318,includingdividendequivalents

of£78,426.

Tim’sprorataentitlementtoaperformanceshareschemeaward

madein2020wassubjecttoperformancetestingon31March

2025,ofwhich10,435shareswillveston4August2025.

One-thirdofhisprorataentitlementtoaperformanceshare

schemeawardmadein2022wassubjecttoperformancetesting

on31March2025,ofwhich1,389shareswillveston30May

2025andtowhichatwo-yearholdingperiodwillapply.

InlinewithCaledonia’spost-cessationshareholding

requirements,Timcontinuestoholdtheminimum

guidelineshareholding.

Directors’ remuneration report (continued)

Annual report on directors’ remuneration

108 Caledonia Investments plc Annual Report 2025

Payments for loss of office (audited)

Therewerenopaymentsmadeforlossofofficeduringtheyear.

Statement of directors’ shareholdings and scheme

interests (audited)

Executive directors’ minimum shareholding guidelines

Executivedirectors’minimumshareholdingguidelinesaresetout

onpage104.MatMastersandJamieCayzer-Colvinhaveattained

theminimumguidelineshareholdingasat31March2025.Rob

Memmott,whojoinedthecompanyon1September2023,has

beguntomeettheguidelines.Thevaluesoftherelevant

shareholdingsofeachexecutivedirectorasat31March2025,

calculatedbyreferencetoCaledonia’sclosingsharepriceonthat

dateof3540p,andthepercentagelevelbywhichthevalueof

theminimumguidelineshareholdinghasbeenachievedwere

asfollows:

Value of

shareholding

£m

Attainment

ofguideline

%

M S D Masters 2.8 281

R W Memmott 0.1 15

JMBCayzer-Colvin 9.0 1,501

1. Shareholdingsincludethoseofconnectedpersons;thevalue,netofany

exercisecosts,incometaxandNationalInsurancecontributions,of

unexercisedawardsgrantedundertheperformanceshareschemefor

whichtheperformancetargetshavebeenmet;andbonusesdeferred

compulsorilyunderthecompany’sdeferredbonusplannetofincometax

andNationalInsurancecontributions.

Directors’ shareholdings

Theinterestsofthedirectorswhoservedduringtheyearandtheir

connectedpersonsintheordinarysharecapitalofthecompany

asat31March2025wereasfollows:

Beneficial Non-beneficial

2025

number

2024

number

2025

number

2024

number

D C Stewart 6,944 6,944 – –

M S D Masters 67,145 58,376 – –

R W Memmott 2,852 2,852 – –

JMBCayzer-Colvin

244,235 249,435 203,754 198,554

F A Buckley 250 250 – –

HonCWCayzer

41,092 41,092 15,500 15,500

GBDavison 8,100 8,100 – –

M A Farlow 2,000 2,000 – –

CLFitzalanHoward 2,000 2,000 – –

LRFordham 1,330 1,330 – –

W P Wyatt

1,239,467 1,224,644 97,705 96,705

1. WillWyatt’sbeneficialinterestsincluded1,066,991shares(2024:

1,054,794shares)heldbyTheDunchurchLodgeStudCompanyand

10,135shares(2024:9,869)heldbyKnossingtonHoldingsCompany,both

privatefamilycompaniescontrolledbyMrWyattandcertainofhis

connectedpersons,and1,000sharesinwhichTheHonCWCayzerhada

non-beneficialinterest(2024:1,000shares).Hisnon-beneficialinterests

included14,500shares(2024:14,500shares)inwhichTheHonCW

Cayzeralsoheldanon-beneficialinterest.TheHonCWCayzer’sbeneficial

interestsincluded5,200shares(2024:5,200shares)inwhichMrWyatt

andMrCayzer-Colvinhadnon-beneficialinterests.

Therehavebeennochangesinthedirectors’interestsshown

abovenotifieduptothedateofthisreport.

Strategic report

Corporate governance

Financial statements Other information

Introduction

109

Directors’ remuneration report (continued)

Annual report on directors’ remuneration

Directors’ share scheme interests

Theinterestsofdirectorsasat31March2025intheshare-basedincentiveschemesoperatedbythecompanyaresetoutinthefollowingtable.

Shareprice

atdate

ofaward

Unvested

with

performance

conditions

1 

Unvested

without

performance

conditions

Vested

butun-

exercised

Total

M S D Masters Performance share scheme awards

Granted04.08.20(nil-cost) 2640p – 10,795 – 10,795

Granted04.06.21(nil-cost) 3102.5p 9,331 – – 9,331

Granted30.05.22(nil-cost) 3740p 12,032 2,888 – 14,920

Granted30.05.23(nil-cost) 3445p 20,573 – – 20,573

Granted28.05.24(nil-cost) 3410p 21,620 – – 21,620

Performance share scheme total 63,556 13,683 – 77,239

Deferred bonus plan – compulsory awards

Granted30.05.22(nil-cost) 3740p – – 3,870 3,870

Granted28.05.24(nil-cost) 3410p – 2,979 – 2,979

Deferred bonus plan total – 2,979 3,870 6,849

Totalshareschemeinterests 63,556 16,662 3,870 84,088

Duringtheyear,MatMastersexercisedperformanceshareschemeanddeferredbonusplanawardsoveratotalof16,603sharesatapre-taxgainof£589,822plus

anadditionalsumof£71,220inrespectofdividendequivalents.

W P Wyatt Performance share scheme awards

Granted04.08.20(nil-cost) 2640p – 9,205 – 9,205

Granted04.06.21(nil-cost) 3102.5p 4,351 – – 4,351

Performance share scheme total 4,351 9,205 – 13,556

Totalshareschemeinterests 4,351 9,205 – 13,556

Duringtheyear,WillWyattexercisedperformanceshareschemeawardsoveratotalof15,688sharesatapre-taxgainof£556,112plusanadditionalsumof

£72,995inrespectofdividendequivalents.

R W Memmott Performance share scheme award

Granted24.11.23(nil-cost) 3585p 17,573 – – 17,753

Granted28.05.24(nil-cost) 3410p 19,223 – – 19,223

Performance share scheme total 36,796 – – 36,796

Totalshareschemeinterests 36,796 – – 36,796

JMBCayzer-Colvin Performance share scheme awards

Granted30.05.19(nil-cost) 2910p – – 11,520 11,520

Granted04.08.20(nil-cost) 2640p – 13,018 6,510 19,528

Granted04.06.21(nil-cost) 3102.5p 11,248 – 5,625 16,873

Granted30.05.22(nil-cost) 3740p 9,799 941 – 10,740

Granted30.05.23(nil-cost) 3445p 16,763 – – 16,763

Granted28.05.24(nil-cost) 3410p 17,617 – – 17,617

Performance share scheme total 55,427 13,959 23,655 93,041

Deferred bonus plan – compulsory awards

Granted30.05.22(nil-cost) 3740p – – 4,666 4,666

Granted28.05.24(nil-cost) 3410p – 1,214 – 1,214

Deferred bonus plan total – 1,214 4,666 5,880

Totalshareschemeinterests 55,427 15,173 28,321 98,921

Duringtheyear,JamieCayzer-Colvinexerciseddeferredbonusplanawardsoveratotalof4,431sharesatapre-taxgainof£157,071plusanadditionalsumof

£16,485inrespectofdividendequivalents.

110 Caledonia Investments plc Annual Report 2025

1. Performance conditions

Performance share scheme

Oftheawardsshownasunvestedwithperformanceconditions,fornil-cost

optionsgrantedtoWillWyatton4June2021,toMatMasterson30May

2022and30May2023,toRobMemmotton24November2023andtoMat

MastersandRobMemmotton28May2024shareswillvestonagraduated

basis,withvestingcommencingat10%ifthecompanyachievesan

annualisedNAVTRof3%,risingincrementallyto100%vestingon

achievementofanannualisedNAVTRof10%.

ForJamieCayzer-Colvin,whoisHeadoftheFundspool,60%ofhis

performanceshareschemeawardsgrantedonthesedateswillbe

measuredagainsttheannualisedtotalreturnsachievedbytheFundspool.

Awardswillsimilarlyvestonagraduatedbasis,withvestingcommencingat

10%onachievementofanannualisedFundspooltotalreturnof6%,rising

incrementallyto100%vestingonachievementofanannualisedtotalreturn

of13.5%.Theremaining40%ofJamieCayzer-Colvin’sperformanceshare

schemeawardsforthesegrantswillbemeasuredagainstCaledonia’s

NAVTRasabove.

MatMasterswaspreviouslyHeadoftheCapitalportfoliobeforetakingon

broaderresponsibilityfortheIncomeportfoliofrom2019untilhis

appointmentasChiefExecutiveOfficer.Fornil-costoptionsgrantedon4

June2021,53.3%willbemeasuredbyreferencetotheannualisedtotal

returnachievedbytheCapitalportfolio,withawardsvestingonagraduated

basis,commencingat10%onachievementofanannualisedtotalreturnof

4%,risingincrementallyto100%vestingonachievementofanannualised

totalreturnof11%.26.7%willbemeasuredbyreferencetotheannualised

totalreturnachievedbytheIncomeportfolioovertheperformance

measurementperiod,withgraduatedvestingcommencingat10%on

achievementofanannualisedtotalreturnof3.5%,risingincrementallyto

100%vestingonachievementofanannualisedtotalreturnof7%.The

remaining20%oftheperformanceshareschemeawardsforthesegrants

willbemeasuredagainstCaledonia’sNAVTRasabove.

Therelevantperformanceconditionswillbetestedoverthreeyearsfor

one-thirdofthesharescomprisedinanawardandoverfiveyearsforthe

remainingtwo-thirdsofthesharescomprisedinanaward.

Thenil-costoptionsgrantedon4August2020,shownasunvestedwithout

performanceconditions,wereperformance-testedagainsttheirrelevant

targetasat31March2025andachievedavestinglevelof100%forthose

measuredagainstCaledonia’sNAVTR.TheproportionofMatMasters’

nil-costoptionsawardedatthatdatemeasuredagainsttheCapitaland

Incomeportfoliosbothachievedavestinglevelof100%.JamieCayzer-

Colvin’snil-costoptionsawardedatthatdatemeasuredagainsttheFunds

pool’sreturnachieveda100%vestinglevel.Theawardswillveston4

August2025.

Theone-thirdofthesharescomprisedinthenil-costoptionsgrantedon30

May2022,alsoshownasunvestedwithoutperformanceconditions,subject

tothree-yearperformancetestingwastestedasat31March2025and

achievedavestinglevelof48%forthosemeasuredagainstCaledonia’s

NAVTR.JamieCayzer-Colvin’snil-costoptionsawardedatthatdate

measuredagainsttheFundspool’sreturnachieveda0%vestinglevel.The

awardswillveston30May2025.

Other exercise conditions

2. Performance share scheme

Nil-costoptionsthatvestfollowingthethree-orfive-yearperformance

testingbecomeimmediatelyexercisableonthethirdorfifthanniversaryof

grant,asapplicable.

3. Vested but unexercised

Sharesvestedbutunexercisedrepresentthoseawardsthatareimmediately

exercisablewithoutanyconditions.

4. Deferred bonus plan

Compulsoryawardsunderthedeferredbonusplannormallyvestifthe

directorremainsanemployeeofthegroupforathree-yearperiod

commencingonthefirstdayofthefinancialyearinwhichtheaward

ismade.

Performance graph of total shareholder return and table

of Chief Executive Officer’s total remuneration

Thegraphbelowshowsthecompany’stotalshareholderreturn

(‘TSR’)againstthatoftheFTSEAll-ShareTotalReturnindexforthe

10financialyearsendedon31March2025.TSRhasbeen

calculatedassumingthatalldividendsarereinvestedontheir

ex-dividenddates.TheFTSEAll-ShareTotalReturnindexhasbeen

chosenasitisthebenchmarkbywhichthecompanymeasures

itsdeliveryofvalueoverthelongerterm.

TSR growth over 10 years

2015

120

160

200

240

280

320

360

2017 2019 2021 2023 2025

Caledonia TSR FTSE All-Share TR

Thetablebelowshowsthetotalremunerationreceivedbythe

ChiefExecutiveOfficerineachofthe10financialyearsto31March

2025,preparedonthesamebasisasinthesingletotalfigureinthe

tableonpage105,andthepercentageofthemaximumpotential

short-andlong-termincentivesreceivedinthoseyears.

Total

remuneration

£’000

Incentivesvested

asapercentage

of maximum

Yearsended

31March

ChiefExecutive

Officer

Short-term

Long-

term%

2016 W P Wyatt 1,648 45.0 100.0

2017 W P Wyatt 1,799 100.0 85.0

2018 W P Wyatt 1,795 40.0 84.7

2019 W P Wyatt 1,864 90.7 94.7

2020 W P Wyatt 805 – 20.9

2021 W P Wyatt 1,896 85.0 87.9

2022 W P Wyatt 2,326 100.0 100.0

2023 W P Wyatt

1,154 – 100.0

2023 M S D Masters

1,250 45.0 100.0

2024 M S D Masters 1,376

71.5 96.4

2025 M S D Masters 1,424 55.0 81.4

1. MatMasterssucceededWillWyattasChiefExecutiveOfficeron27July

2022.

2. Restatedfromlastyear’ssingletotalfiguretabletoreflectthecompany’s

sharepriceonthevestingdateofthe2019and2021performanceshare

schemeawards.

Strategic report

Corporate governance

Financial statements Other information

Introduction

111

Directors’ remuneration report (continued)

Annual report on directors’ remuneration

Percentage change in remuneration of the directors

Thefollowingtableshowsthepercentagechangeinthebasicsalary/fees,valueoftaxablebenefitsandshort-termincentivespaidto

directorsintheyearagainstthepriorfinancialyear,comparedwiththeaveragepercentagechangesinthosecomponentsofpayof

Caledonia’sotheremployees,excludingdirectors,onapercapitabasis.

Standardsalaryincreasesawardedfrom1April2024were4%.Thepercapitapercentageincreaseinbasicsalaryforemployeesshownin

thetableishigherthanthisduetotheeffectofnon-standardincreasesawardedforpromotions,increasedresponsibilitiesorothersuch

adjustments.Theaveragepercapitapercentagechangeforemployeetaxablebenefitsdecreasedovertheyearprincipallyduetochanges

inbenefitcoverforcertainemployeesunderthecompany’sprivatemedicalinsuranceplanandsmallvariancesinemployeebenefits.The

averagepercapitapercentagechangeforemployeebonusdecreasedovertheyearduetolowerbonusawardsbeingmade.MatMasters,

RobMemmottandJamieCayzer-Colvinwereawardedbonusesof55%,55%and52.5%ofsalaryrespectively,comparedwith71.5%,71.5%

and60.75%inthepreviousfinancialyear.CertainmembersofCaledonia’sstaffwereawardedbonusesofvaryinglevelsineachyear

dependingoncompanyperformance,investmentpoolperformance(whererelevant)andindividualperformance.Increasesinnon-

executivefeesincludeanychangestoresponsibilitiesmadeduringtheyear.

2025 2024 2023 2022 2021

Basic

salary/

fees

Benefits

Bonus

Basic

salary/

fees

Benefits

Bonus

Basic

salary/

fees

Benefits

Bonus

Basic

salary/

fees

Benefits

Bonus

Basic

salary/

fees

Benefits

Bonus

Executive directors

M S D Masters

4.0 (23.9) (20.0) 5.0 45.6 66.8 n/a n/a n/a n/a n/a n/a n/a n/a n/a

W P Wyatt

n/a n/a n/a n/a n/a n/a (67.5) (70.7) (100) n/a (4.1) 17.7 n/a 12.9 100

R W Memmott

4.0 60.4 (20.0) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

JMBCayzer-Colvin 4.0 (4.6) (10.1) 5.1 5.1 33.0 5.0 15.6 (49.6) 1.5 8.9 12.8 2.5 6.2 100

Chair and non-executive directors

D C Stewart – (100) n/a – 100 n/a 10.0 – n/a – – n/a – – n/a

F A Buckley 3.6 (17.8) n/a 4.8 100 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

HonCWCayzer 3.4 100 n/a 4.5 – n/a 11.4 – n/a – – n/a 6.6 – n/a

GBDavison 3.1 – n/a 4.2 – n/a 13.1 – n/a – (100) n/a 3.5 100 n/a

M A Farlow 3.0 – n/a 6.0 – n/a n/a – n/a – – n/a n/a n/a n/a

CLFitzalanHoward 3.6 – n/a 4.8 – n/a 13.3 – n/a – – n/a 43.8 n/a n/a

LRFordham 3.1 – n/a 8.9 (100) n/a 10.7 100 n/a n/a – n/a n/a n/a n/a

W P Wyatt

3.7 (84.5) n/a 5.0 100 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Staff per capita (excluding directors)

7.5 (1.4) (2.0) 10.1 4.7 98.8 10.2 17.5 (43.2) 4.0 7.5 22.9 7.4 5.2 157.5

1.MatMasterswasappointedtotheboardon1April2022,succeedingWillWyattasChiefExecutiveOfficeron27July2022.

2. WillWyattservedasChiefExecutiveuntil27July2022andhasservedasanon-executivedirectorsince27July2022.

3. RobMemmottwasappointedtotheboardon1September2023.

112 Caledonia Investments plc Annual Report 2025

Pay ratio information in relation to the total remuneration of the Chief Executive Officer

Withfewerthan250UKemployees,CaledoniaisnotrequiredtodiscloseChiefExecutiveOfficertoemployeepayratiosunderThe

Companies(MiscellaneousReporting)Regulations2018.However,asrecommendedbyTheInvestmentAssociation,theCommitteehas

decidedvoluntarilytopublishtheinformationbelow.TheratioscomparethetotalremunerationoftheChiefExecutiveOfficer,assetouton

page105,againstthelowerquartile,medianandupperquartiletotalremunerationofthecompany’semployeesasat31March2025.This

disclosurewillbuildupovertimetocoverarolling10yearperiod.

AsignificantproportionoftheChiefExecutiveOfficer’stotalearningspotentialiscomprisedofshare-basedincentives,whicharelinkedto

Caledonia’sperformanceandsharepricemovementoverthelongerterm.Thiswillinevitablyleadtoanelementofvolatilityintheyear-on-

yeartotalremunerationoftheChiefExecutiveOfficerandconsequentlyvariationsintheratios,assomeemployeesdonotparticipateinthe

long-termincentiveschemeorparticipateatlowerlevels.Asthemajorityofawardsundertheschemevestoverfiveyears,participantswill

onlybuildupequivalentannualvestingtotheChiefExecutiveOfficeroverthisperiodoftime,whichmayfurtherdistortthecomparison.

Inordertoprovidefurthercontext,thetableincludesratiosbasedonbasicsalaryonlytodemonstrateovertimethattheunderlyingpay

structuresdonotshowadivergenttrendbetweentheChiefExecutiveOfficer’spayandthatofemployeesgenerallyandalsothatemployees

arepaidfairly.

Pay ratios Remunerationvalues

Year Methodology

P25

(lower

quartile)

P50

(median)

P75

(upper

quartile) Basis

Chief

Executive

Officer

P25

(lower

quartile)

P50

(median)

P75

(upper

quartile)

2020 Option A 14:1 9:1 4:1 Totalremuneration(£’000) 814 57 94 217

Salary only 12:1 7:1 4:1 Salaryonly(£’000) 540 46 73 144

2021 Option A 30:1 15:1 6:1 Totalremuneration(£’000) 1,828 61 122 329

Salary only 12:1 7:1 4:1 Salaryonly(£’000) 540 46 78 138

2022 Option A 42:1 19:1 6:1 Totalremuneration(£’000) 2,294 54 122 392

Salary only 12:1 7:1 4:1 Salaryonly(£’000) 540 45 76 138

2023 Option A 20:1 14:1 6:1 Totalremuneration(£’000) 1,268 63 91 227

Salary only 9:1 6:1 3:1 Salaryonly(£’000) 450 50 70 135

2024 Option A 20:1 13:1 5:1 Totalremuneration(£’000) 1,351 68 106 268

Salary only 9:1 6:1 3:1 Salaryonly(£’000) 473 51 77 143

2025 Option A 20:1 13:1 6:1 Totalremuneration(£’000) 1,424 70 114 256

Salary only 9:1 6:1 3:1 Salaryonly(£’000) 492 56 83 150

Relative importance of spend on pay

Thegraphbelowshowsthepersonnelexpensesfortheyearof

groupcompaniesconsolidatedunderIFRS10,comparedwith

amountsdistributedtoCaledonia’sshareholdersbywayof

dividendsandsharepurchases.

Statement of implementation of remuneration policy

in the 2026 financial year

Thecompanyexpectstooperatetheremunerationpolicyas

describedintheapprovedremunerationpolicysetoutonpages

99to104withoutanychangesinthefinancialyearending31

March2026.

Basic salaries of executive directors

Forthe2026financialyear,theCommitteehasawardedan

increaseinbasicsalaryof3.5%toRobMemmottandJamie

Cayzer-Colvin,broadlyinlinewithinflation,whichwasthesame

standardincreasegiventotherestofthecompany’semployees.

TheCommitteehasawardedanincreaseinbasicsalaryof6.8%

toMatMastersforreasonsdescribedonpage97.

Theexecutivedirectors’salariesforthe2025financialyearare

asfollows:

Salaryforyearto31March

2026

2025

M S D Masters 525,000 491,500

R W Memmott 452,300 437,000

JMBCayzer-Colvin 414,600 400,500

120

100

£m

Personnel expenses Dividends/share purchases

2025

+2.4% +148.5%

2024

£38.2m

£21.2m

£42.3m

£21.7m

£105.1m

1. Theemployeesatthelower,medianandupperquartilesweredeterminedasat31Marchintherelevantyear.

2. ‘OptionA’methodology,assetoutinTheCompanies(MiscellaneousReporting)Regulations2018,whichrequiresdeterminationofthetotalfull-time

equivalentearningsofallUKemployeesfortherelevantfinancialyear,hasbeenusedasthisisconsideredthemoststatisticallyaccurateunderthereporting

regulations.

3. Todeterminefull-timeequivalentearnings,joinersduringtheyearareassumedtohaveworkedforthefullyearwithsalary,benefitsandbonusprorata

accordingly.Reducedhoursemployeessimilarlyhavebeenassumedtohaveworkedonafull-timebasis.Noadjustmentshavebeenmadetothevalueof

share-basedincentivesthatvestedduringtheyearforrelevantemployees,otherthanthatawardsheldbyreducedhoursemployeeshavebeen

recalculatedtoreflectthenumberofsharesthatwouldhavebeengrantedbasedonthefull-timeequivalentsalaryoftheparticipantatthetimeofgrant.

Strategic report

Corporate governance

Financial statements Other information

Introduction

113

Directors’ remuneration report (continued)

Annual report on directors’ remuneration

Chair’s and non-executive directors’ fees

TheChair’sfeewillbeunchangedfortheyearahead.The

non-executivedirectorbasicfeehasbeenincreasedby3.1%.

Nochangeshavebeenmadetothefeespaidforchairingand

membershipoftheAuditandRiskandRemunerationCommittees

ortothefeepaidtotheSeniorIndependentDirector.

Thefeesareasfollows:

Feesforyearto31March

2026

2025

Chair 165,000 165,000

Non-executivedirectorbasicfee 50,500 49,000

ChairoftheAuditandRiskCommittee 10,000 10,000

MemberoftheAuditandRiskCommittee 2,500 2,500

Chair of the Remuneration Committee 8,000 8,000

Member of the Remuneration Committee 2,000 2,000

SeniorIndependentDirector/Chairofthe

GovernanceCommittee 6,000 6,000

NoadditionalfeesarepaidformembershipoftheGovernanceand

NominationCommittees.Itisproposedthattheaggregateannual

limitfornon-executivedirectors’ordinaryremunerationcontained

inthecompany'sarticlesofassociation,currently£600,000,willbe

increasedattheforthcomingannualgeneralmeeting.

Annual bonus scheme and long-term incentive schemes

RPIwaspreviouslyusedasareferencepointforinflationinthe

overallbonuscalculation.WhilstRPIisstillpublishedbytheOffice

forNationalStatistics,itisrecognisedthattheCPIHisnowthe

leadingandpreferredindicatorofinflationintheUK.Since2023,

CaledoniahasusedCPIHinplaceofRPIasthemeasureforUK

inflation.However,giventhedifferentialbetweenthetwoinflation

rates,theCommitteehascommencedaphasedtransitionfromRPI

toCPIHastheinflationbenchmarkforbonuspurposesoverthe

courseofthethree-yearremunerationpolicyperiod.Theinflation

benchmarkwasweighted67:33onRPI:CPIHforthe2024financial

yearand50:50forthe2025financialyear,movingto33:67for

2026and100%onCPIHfor2027.

Nootherchangestotheperformancemetricsoraward

opportunitiesforthecompany’sannualbonusorlong-term

incentiveschemesareanticipatedforthe2026financialyear.

Approach

TheCommitteewillkeeptheimplementationoftheremuneration

policyunderreviewinordertotakeaccountofanychangesinthe

company’sbusinessenvironmentandremunerationpractice

generally,butwiththeoverallaimofensuringthatCaledonia’s

remunerationarrangementscontinuetosupportthecompany’s

strategyanddeliverlong-termshareholdervaluebyattractingand

retainingtalentandrewardingexecutivesappropriatelyinthelight

ofthecompany’sperformance.

Consideration by the directors of matters relating to

directors’ remuneration

ThecurrentmembersoftheCommitteeareAnneFarlow(Chair),

FarahBuckley,ClaireFitzalanHowardandDavidStewart.

Duringtheyear,theCommitteereceivedadvicefromFreshfields

LLP(formerlyFreshfieldsBruckhausDeringerLLP),thecompany’s

principallegaladvisers,whichcoveredmattersincludingthe

preparationofthedirectors’remunerationreportandshareplans.

EllasonLLP,appointedbytheCommitteefollowingaformaltender

processcompletedin2022,providesremunerationadvice.The

Committeeissatisfiedthatadvicereceivedwasobjectiveand

independent.Ellasonhasnoconnectionwithindividualdirectors

andisamemberoftheRemunerationConsultantsGroup(the

professionalbodyforremunerationconsultants)andadherestoits

codeofconduct.ThefeesforEllasonforworkrelatingtothe

Committeefor2025were£26,175(2024:£22,070).Feesincurred

arechargedonthebasisofeachfirm’sstandardtermsofbusiness.

Ellasondidnotprovideanyotherservicestothecompany.The

Committeeassessestheperformanceofitsadvisers,theassociated

leveloffeesandreviewsthequalityofadviceprovidedtoensure

thatitisobjectiveandindependentofanysupportprovidedto

management.

TheCommitteealsoconsultedwiththeChiefExecutiveOfficerin

relationtotheremunerationoftheexecutivedirectorsandother

seniorexecutivesandinternalsupportwasprovidedtothe

CommitteebytheCompanySecretary.Noexecutiveparticipatesin

discussionsinrespectoftheirownremuneration.Giventhe

compositionoftheCommitteeandthisrequirement,weare

comfortablethatnoconflictsaroseinrespectofdecision-making

bytheCommittee.

Statement of voting at general meetings

Attheannualgeneralmeetingofthecompanyheldon17July2024,

thevoteslodgedfortheresolutionsrelatingtodirectors’

remunerationandtheremunerationpolicywereasfollows:

Number %

To approve the 2024 Directors’ remuneration

report (other than the directors’

remuneration policy)

Votesinfavour 34,772,485 98.5

Votes against 536,700 1.5

Totalvotescast 35,309,185

Voteswithheld 18,589

Thevoteslodgedforthemostrecentlyapprovedremuneration

policy,beingattheannualgeneralmeetingheldon19July2023

wereasfollows:

Number %

To approve the remuneration policy

Votesinfavour 35,087,565 98.8

Votes against 412,670 1.2

Totalvotescast 35,609,903

Voteswithheld 109,668

Thisreportwasapprovedbytheboardon19May2025andsigned

onitsbehalfby:

Anne Farlow

Chair of the Remuneration Committee

19May2025

114 Caledonia Investments plc Annual Report 2025

Directors’ report

TheDirectors’reportfortheyearended31March2025has

beenpreparedinaccordancewiththedisclosurerequirements

ofthefollowing:

• CompaniesAct2006

• TheLargeandMedium-sizedCompaniesandGroups(Accounts

andReports)Regulations2008(asamended)

• FinancialConductAuthority’sListingRules(‘LRs’)andDisclosure

GuidanceandTransparencyRules(‘DTRs’).

TheDirectors’report,togetherwiththeStrategicreportonpages

14to68,representsthemanagementreportforthepurposeof

compliancewithDTR4.1.5R(2).

Information included elsewhere

ThefollowinginformationrequiredtobeincludedintheDirectors’

reporthasbeenincludedelsewhereandisincorporatedby

reference:

Disclosure Sectionofannualreport Page(s)

Informationonexposureto

liquidityrisk

Strategicreport 67

Likelyfuturedevelopments

in the business

Strategicreport 66-67

Engagementwithsuppliers,

customersandothers

Corporategovernance

report,Section172

statement

80-85

Greenhousegasemissions,

energyconsumptionand

energy efficiency action

Strategicreport 53-55

Disclosure of information

toauditors

Responsibilitystatements 119

Financial risk management

objectivesandpolicies

Note23 147-152

1. Inaccordancewithsection414C(11)oftheCompaniesAct2006.

Dividends

Dividend policy

Thecompany’spolicyistopayanincreasingannualdividendper

shareinrealterms,whichithasnowdonefor58consecutiveyears.

Inaddition,thecompanymaysupplementtheannualdividendwith

specialdividendswhentheboardconsidersitappropriate,for

exampleifthecompanyhassurpluscashreservesinexcessofits

strategicinvestmentplans.

Theboardhistoricallyaimedfortheannualdividendtobefully

coveredbynetrevenuefortherelevantfinancialyearinaperiodof

normaltradingbutmodifiedthisapproachin2023toreducethe

strategiclevelofnetrevenuecoverfromfullycoveredtoaround

0.5xandalsotofactorinnetcashinflowfromthematuringfunds

portfolio.Theexpectationisthatthiswillprovideanaggregatecash

flowcoverforthedividendofatleast1xoverthemediumterm.The

companyhasavailabledistributablereservesof£2,592m,broadly

equivalentto66years’paymentofthecurrentannualdividendto

maintainanincreasingannualdividendpershareinrealterms.

Theboardintendstoincreasefutureinterimdividendsto50%of

theprioryear'stotalannualdividend,ensuringamorebalanced

dividendprofileandprovidingamorepredictableincomestream

toourshareholders.

2025 dividend distributions

Aninterimdividendof19.69ppershare(2024:18.93p)waspaidon

9January2025andtheboardhasrecommendedafinaldividendof

53.91ppershare(2024:51.47p),givingtotalannualdividendsforthe

yearof73.6ppershare(2024:70.4p).

Share capital structure

Thecompanyhastwoclassesofsharecapital,ordinarysharesof

5peachanddeferredordinarysharesof5peach.

Theholdersoftheordinarysharesareentitledtoreceivedividends

asdeclaredfromtimetotimeandareentitledtoonevotepershare

atmeetingsofthecompany.Allvotingrightsare,however,

suspendedinrespectofanyofthecompany’ssharesthatareheld

intreasuryorbygroupcompanies.

Thedeferredordinarysharescarrynovotingrightsandarenot

redeemable.Theycarrytherighttoafixedcumulativepreference

dividendof1%perannumofthenominalvalueofadeferred

ordinaryshare,being0.05ppershare,or£4,000inaggregate,forall

suchsharescurrentlyinissue.Thecompanyisrequiredtopaythe

dividendtotheextentthatithasdistributableprofits.Ona

winding-uporotherreturnofcapital,thedeferredordinaryshares

carrytherighttothepaymentoftheamountpaidupontheshares

onlyafterholdersoftheordinaryshareshavereceivedthesumof

£100,000inrespectofeachordinaryshare.Allofthedeferred

ordinarysharesareheldbySterlingIndustriesLtd,awholly-owned

subsidiaryofCaledonia.

At31March2025,52,882,698ordinarysharesand8,000,000

deferredordinaryshareswereinissue.Theordinaryshares

thereforerepresentedapproximately87%andthedeferred

ordinarysharesapproximately13%ofthetotalissuedsharecapital

bynominalvalue.Oftheordinarysharesinissueat31March2025,

3,000shareswereheldbyagroupcompany.Asstatedabove,all

votingrightsaresuspendedontheseshares.

Duringtheyearthecompanypurchased1.7mofitsordinaryshares

atatotalcostof£62.7m.Theseshareshadanominalvalueof

£86,453,represented3.27%oftheissuedordinarysharecapitalas

at31March2025andwereimmediatelycancelled.Theseshares

werepurchasedtotakeadvantageofthewidediscountofthe

company’ssharepricetoitsnetassetvalue.Sincetheyearenda

further247,372ordinaryshareshavebeenpurchasedandcancelled

atatotalcostof£9.0m.Thecompany’sissuedsharecapitalafter

thesetransactions,asat19May2025,beingthelastpracticable

datepriortosignatureoftheseaccountswas52,635,326ordinary

sharesand8,000,000deferredordinaryshares.

Proposed share sub-division

Theboardisrecommendinga10:1sharesub-divisionto

shareholdersforapprovalatthe2025annualgeneralmeeting.

Thiswillreducethenominalvalueofordinarysharesof5peach

to0.5pandisplannedforimplementationonorafter17July2025.

Strategic report

Corporate governance

Financial statements Other information

Introduction

115

Restrictions on the transfer of shares

Therearenospecificrestrictionsonthetransferofthecompany’s

shares,althoughthearticlesofassociationcontainprovisions

wherebytheboardmayrefusetoregisteratransferofacertificated

sharewhichisnotfullypaid,providedthatsuchrefusaldoesnot

preventdealingsinthesharefromtakingplaceonanopenand

properbasis.Theboardmayalsorefusetoregisterthetransferof

acertificatedshareunlessitis(a)lodged,dulystamped(if

stampable),attheregisteredofficeoratsuchotherplaceasthe

boardmayappoint,accompaniedbythecertificatefortheshares

towhichitrelatesandsuchotherevidenceastheboardmay

reasonablyrequiretoshowtherightofthetransferortomakethe

transfer;(b)inrespectofonlyoneclassofshares;and(c)infavour

ofnotmorethanfourtransferees.

Thedirectorsmayrefusetoregisteratransferofsharesifa

shareholderhasnotsuppliedinformationtothecompanyindefault

ofarequestdulyservedundersection793oftheCompaniesAct

2006andsuchsharesrepresentatleast0.25%oftheclassof

sharesconcerned.

Substantial interests

Asat31March2025,thecompanyhadreceivedformalnotifications

ofthefollowingholdingsinitsordinarysharesinaccordancewith

therequirementsoftheDTRs:

Number of

votingrights

Percentage

ofvoting

rights

TheCayzerTrustCompanyLtd 19,341,264 36.01%

1. Percentageholdingbasedontotalvotingrightsat28October2024.

Employee Share Trust

TheCaledoniaInvestmentsplcEmployeeShareTrust(the‘EST’)and

TheCaledonia2024EmployeeBenefitTrust(the‘2024EBT’)acquire

andholdordinarysharesinthecompanyforsubsequenttransferto

employeesexercisingoptionsunderthecompany’sperformance

shareschemeordeferredbonusplan.Thevotingrightsofshares

heldbytheESTandthe2024EBTareexercisablebythe

independenttrusteehowever,inpractice,thesearenotvoted.

EachtrustisfinancedbyaninterestfreeloanfacilityfromCaledonia

andthetrusteehaswaivedalldividendspayableinrespectofthe

ordinarysharesheldbythetrusts.

At31March2025,theESTheld133,025ordinaryshares,

representing0.25%ofthetotalissuedvotingsharecapital.The2024

EBTdidnotholdanyordinaryshares.

Restrictions on voting rights

Thedirectorsmaydirectthatashareholdershallnotbeentitledto

attendandvoteeitherpersonallyorbyproxyorexerciseanyother

rightconferredbymembershipinrelationtogeneralmeetingsof

thecompanyinrespectofsomeorallofthesharesheldbythemif

theyoranypersonwithaninterestinsuchshareshasbeenduly

servedwithanoticeundersection793oftheCompaniesAct2006

andisindefaultfortheprescribedperiodinsupplyingtothe

companytheinformationrequiredor,inpurportedcompliancewith

suchanotice,hasmadeastatementwhichisfalseorinadequatein

amaterialparticular.

Agreements which may restrict the transfer of shares or exercise

of voting rights

Thecompanyisnotawareofanyarrangementswhichmayrestrict

thetransferofanyofitssharesortheexerciseofanyvotingrights.

Authority to allot shares

Attheannualgeneralmeetingofthecompanyheldon17July2024

(the‘2024AGM’),shareholdersgrantedtothedirectorsauthorityto

allotordinarysharesuptoanominalamountof£906,000,

representingapproximatelyone-thirdoftheordinarysharecapital

theninissue,withauthoritytoallotadditionalordinarysharesupto

anominalvalueof£906,000,representingapproximatelyafurther

one-thirdoftheordinarysharecapitaltheninissue,bywayof

pre-emptiverightsissuesonly,inaccordancewithguidanceissued

atthattimebytheInvestmentAssociation.Thedirectorswere

furtherauthorisedtoissueordinarysharesuptoanominalamount

of£135,933otherthanproratatoexistingordinaryshareholders.

Theseauthoritieslastuntil17October2025or,ifearlier,the

conclusionofthenextannualgeneralmeeting.

Authority to purchase shares

Atthe2024AGM,shareholdersalsograntedauthorityforthe

companytomakemarketpurchasesofupto5,437,344ofitsown

ordinaryshares,beingapproximately10%oftheordinaryshare

capitaltheninissue,atapricenotmorethanthehigherof(a)5%

abovetheaverageofthemiddlemarketquotationsforordinary

sharesduringthefivebusinessdaysprecedinganysuchpurchase;

and(b)thehigherof(i)thepriceofthelastindependenttradein

ordinaryshares;and(ii)thehighestcurrentindependentbidrelating

theretoonthetradingvenuewherethepurchaseiscarriedout,nor

lessthan5p,beingthenominalvalueofanordinaryshare.Atthe

sametime,shareholderswhowerenotmembersoftheCayzer

familyconcertparty(‘CayzerConcertParty’)gavetheirapprovalfor

awaiverbyThePanelonTakeoversandMergers(the‘Panel’)ofthe

obligationthatcouldariseontheCayzerConcertPartyunderRule9

oftheCityCodeonTakeoversandMergerstomakeageneraloffer

forCaledoniaontheimplementationbythecompanyoftheabove

authoritytopurchaseitsownshares(‘Rule9Waiver’).Theapproval

wassubjecttothemaximumpercentageofvotingrightsinwhich

theCayzerConcertPartyisinterestednotexceeding49.9%asa

resultofpurchasesbythecompany.

Atageneralmeetingofthecompanyheldon18December2024

(the‘2024GM’),shareholdersapprovedanewauthority(replacing

themarketpurchaseauthorityreferredtoabove)forthecompany

tomakemarketpurchasesofupto2,681,322ofitsownordinary

shares,beingapproximately5%oftheordinarysharecapitalthenin

issue,subjecttothesamepricerestrictionssetoutabove.This

authoritylastsuntil26May2026or,ifearlier,theconclusionofthe

annualgeneralmeetingtobeheldin2026.Atthesametime,

shareholderswhowerenotmembersoftheCayzerConcertParty

gavetheirapprovalforafurtherRule9Waiver.Theapprovalwas

notsubjecttoamaximumpercentageofvotingrightsinwhichthe

CayzerConcertPartyisinterestedasaresultofpurchasesby

thecompany.

Thecompanyhassubsequentlyutilisedtheauthoritytopurchase

thecompany’ssharesgrantedatthe2024GMandwillcontinueto

utilisetheauthority(or,ifapproved,thereplacementauthorityto

besoughtatthe2025annualgeneralmeeting)whenitconsidersit

isinthecompany’sandshareholders’bestintereststodosoandwill

Directors’ report (continued)

116 Caledonia Investments plc Annual Report 2025

resultinanincreaseinnetassetvalueperordinaryshare.In

consideringwhethertoexercisetheauthority,theboardwill

continuetotakeintoaccounttheliquidityofthecompany'sshares,

itsongoinginvestmentstrategyandthelevelofanydiscountat

whichtheordinarysharesaretradinginthemarketrelativetothe

netassetvalueperordinaryshare.

Change of control rights

Therearenospecialchangeofcontrolrightsinrelationtothe

company’sshares.

Awardsgrantedunderthecompany’sperformancesharescheme

anditsdeferredbonusplanmaybecomeexercisableorvestasa

resultofachangeofcontrol,althoughthenumberofshares

comprisedinthoseawardsmaybereduced.Theservicecontracts

ofcertaindirectorsandotherseniorexecutivesalsocontain

provisionswherebyaliquidatedsumispayablebythecompany

intheeventofterminationwithinoneyearfollowingachange

ofcontrol.

Furtherdetailsofthesechangeofcontrolrightsapplicableto

directorsaresetoutintheDirectors’remunerationreport.

Thecompanyispartytoarevolvingcreditagreementthatgivesthe

lenderstherighttorequireearlyrepaymentofoutstandingloans

andcancellationofitsavailablecommitmentsuponachangeof

controlofthecompanyoccurring.Atthedateofthisreport,

changeofcontrolprovisionswereincludedintherevolvingfacility

agreementdated5August2024betweenthecompanyandeach

ofIndustrialandCommercialBankofChinaLimitedLondonBranch,

BNPParibasS.A.,LondonBranch,TheRoyalBankofScotland

InternationalLimited,LondonbranchandNatWestMarketsPlc.

Thecompanyisnotawareofanyotheragreementswithchangeof

controlprovisionsthataresignificantintermsoftheirpotential

impacttothebusiness.

Directors

Thedirectorsofthecompanyareshownonpages72and73.Allof

thedirectorsservedthroughouttheyear.

Directors’ indemnity

Eachofthedirectorshasthebenefit,underthecompany’sarticles

ofassociation,ofanindemnity,totheextentpermittedbythe

CompaniesAct2006,againstanyliabilityincurredbythemfor

negligence,default,breachofdutyorbreachoftrustinrelationto

theaffairsofthecompany.

Appointment and removal of directors

Theappointmentandremovalofdirectorsisgovernedbythe

company’sarticlesofassociationandprevailingcompanylaw.

Thearticlesofassociationprovidethatateveryannualgeneral

meetingone-thirdofthedirectors,orifnotamultipleofthree,the

numbernearesttoone-third,shallretirebyrotationandtherefore

berequiredtoseekre-electionbyshareholders.Newdirectorsmay

beappointedbytheboard,butaresubjecttoelectionby

shareholdersatthenextannualgeneralmeetingofthecompany

followingtheirappointment.However,tocomplywiththe

provisionsoftheUKCorporateGovernanceCode(the‘Code’),the

companyrequiresthatalldirectorsshouldbesubjecttoannual

electionbyshareholders.Shareholdersmayalsoappointnew

directorsbyordinaryresolution.Thearticlesofassociationlimitthe

numberofdirectorstonotlessthanthreeandnotmorethan12,

unlesstheshareholdersresolveotherwise.

InaccordancewiththeFinancialConductAuthority’sListingRules,

theelectionofthosedirectorsdeterminedbytheboardtobe

independentundertheCodemustbesubjecttotheapprovalof

bothallshareholdersofthecompanyandseparatelythose

shareholderswhoarenotcontrollingshareholders,beingthe

CayzerConcertParty.

Articles of association

Anordinaryresolutiontoincreasetheaggregateannuallimitfor

non-executivedirectors’ordinaryremunerationcontainedinthe

articlesofassociation,currently£600,000,to£750,000willbe

proposedatthisyear’sannualgeneralmeeting.

Political donations

Thecompanymadenopoliticaldonationsandincurrednopolitical

expenditureduringtheyear.

Research and development

Thecompanydoesnotengageinresearchanddevelopment.

Overseas branches

Thecompanydoesnothaveanyoverseasbranches.

Investment trust status

Caledoniahasbeenacceptedasanapprovedinvestmenttrustby

HMRevenue&Customs,subjecttocontinuingtomeeteligibility

conditions.Thedirectorsareoftheopinionthatthecompanyhas

conducteditsaffairsinamannerwhichwillsatisfytheconditions

forcontinuedapprovalasaninvestmenttrustundersection1158

oftheCorporationTaxAct2010.

Registered office and number

Theregisteredofficeofthecompanyisat:CayzerHouse,30

BuckinghamGate,LondonSW1E6NN.Thecompanyisregistered

inEnglandundernumber235481.

Post balance sheet events

Therearenopostbalancesheetevents.

TheDirectors’reportwasapprovedbytheboardon19May2025

andsignedonitsbehalfby:

Richard Webster

CompanySecretary

Strategic report

Corporate governance

Financial statements Other information

Introduction

117

Directors’ report (continued)

Cross references to information required to be disclosed by Listing Rule 6.6.1R

TocomplywithListingRule6.6.4R,thefollowingtableprovidesreferencestowhererelevantinformationrequiredtobedisclosedunder

ListingRule6.6.1Rcanbefound.

Listing Rule Required information Location

6.6.1R(11) Detailsofanyarrangementunderwhichashareholderhaswaivedor

agreedtowaiveanydividends.

Directors’report–page116.Waiverof

alldividendsbythetrusteeofThe

CaledoniaInvestmentsplcEmployee

ShareTrustandTheCaledonia2024

EmployeeBenefitTrust.

6.6.1R(12) Whereashareholderhasagreedtowaivefuturedividends,detailsofsuch

waivertogetherwiththoserelatingtodividendswhicharepayableduring

theperiodunderreview.

Asabove.

6.6.1R(13)(a) Astatementmadebytheboardthatthecompanycontinuestocomplywith

therequirementinLR6.2.3R

Corporategovernancereport–page78.

Relationswithcontrollingshareholders.

118 Caledonia Investments plc Annual Report 2025

Responsibility statements

Statement of directors’ responsibilities in respect of the

annual report and the financial statements

Thedirectorsareresponsibleforpreparingtheannualreportand

financialstatementsinaccordancewithUKadoptedinternational

accountingstandardsandapplicablelawandregulations.

Companylawrequiresthedirectorstopreparefinancial

statementsforeachfinancialyear.Underthatlaw,thedirectors

havepreparedthegroupandparentcompanyfinancialstatements

inaccordancewithUKadoptedinternationalaccountingstandards.

Undercompanylaw,thedirectorsmustnotapprovethefinancial

statementsunlesstheyaresatisfiedthattheygiveatrueandfair

viewofthestateofaffairsofthegroupandthecompanyandof

theprofitorlossofthegroupforthatperiod.

Inpreparingthesefinancialstatements,thedirectorsare

requiredto:

• selectsuitableaccountingpoliciesandthenapplythem

consistently

• makejudgementsandestimatesthatarereasonableand

prudent

• statewhethertheyhavebeenpreparedinaccordancewith

UKadoptedinternationalaccountingstandards,subjectto

anymaterialdeparturesdisclosedandexplainedinthe

financial statements

• preparethefinancialstatementsonthegoingconcernbasis

unlessitisinappropriatetopresumethatthegroupandthe

companywillcontinueinbusiness

• prepareadirectors’report,astrategicreportanddirectors’

remunerationreportwhichcomplywiththerequirementsof

theCompaniesAct2006(the‘CompaniesAct’).

Thedirectorsareresponsibleforkeepingadequateaccounting

recordsthataresufficienttoshowandexplainthecompany’s

transactionsanddisclosewithreasonableaccuracyatanytimethe

financialpositionofthecompanyandthegroupandenablethem

toensurethatthefinancialstatementscomplywiththeCompanies

Act.Theyarealsoresponsibleforsafeguardingtheassetsofthe

companyandhencefortakingreasonablestepsfortheprevention

anddetectionoffraudandotherirregularities.

Thedirectorsareresponsibleforensuringthattheannualreport

financialstatements,takenasawhole,arefair,balanced,and

understandableandprovidetheinformationnecessaryfor

shareholderstoassessthegroup’sperformance,businessmodel

andstrategy.

Website publication

Thedirectorsareresponsibleforensuringtheannualreportand

financialstatementsaremadeavailableonawebsite.

Financialstatementsarepublishedonthecompany’swebsitein

accordancewithlegislationintheUKgoverningthepreparation

anddisseminationoffinancialstatements,whichmayvaryfrom

legislationinotherjurisdictions.Themaintenanceandintegrityof

thecompany’swebsiteistheresponsibilityofthedirectors.The

directors’responsibilityalsoextendstotheongoingintegrityofthe

financialstatementscontainedtherein.

Disclosure of information to auditors

Eachofthepersonswhoisadirectoratthedateofapprovalofthis

reportconfirmsthat:

1.sofarasthedirectorisaware,thereisnorelevantinformation

ofwhichthecompany’sauditorisunaware

2.thedirectorhastakenallstepsthattheyoughttohavetakenasa

directorinordertomakethemselvesawareofanyrelevantaudit

informationandtoestablishthatthecompany’sauditorisaware

ofthatinformation.

Thisconfirmationisgiven,andshouldbeinterpreted,inaccordance

withtheprovisionsofsection418oftheCompaniesAct.

Responsibility statements under the Disclosure Guidance

and Transparency Rules and the UK Corporate

Governance Code

Eachofthedirectors,whosenamesandfunctionsarelistedon

pages72and73confirmthat,tothebestoftheirknowledge:

1.thegroupandparentcompanyfinancialstatements,whichhave

beenpreparedinaccordancewithapplicableaccounting

standards,giveatrueandfairviewoftheassets,liabilities,

financialpositionandprofitorlossofthecompanyandthe

undertakingsincludedintheconsolidationtakenasawhole

2.theannualreportincludesafairreviewofthedevelopmentand

performanceofthebusinessandthepositionofthecompany

andtheundertakingsincludedintheconsolidationtakenasa

whole,togetherwithadescriptionoftheprincipalrisksand

uncertaintiesthatitfaces.

Signedonbehalfoftheboardby:

Mat Masters Rob Memmott

ChiefExecutiveOfficer ChiefFinancialOfficer

19May2025  19May2025

Strategic report

Corporate governance

Financial statements Other information

Introduction

119

Considered

& long-term

Our independence and reputation enables

us to take the long term view, which is key

to our goal of building a store of wealth

and delivering steady and rising income

for our shareholders.

Only a Pavement Away

The Caledonia Investments Charitable Foundation is pleased to have supported

Only a Pavement Away during the year, a charity that supports people looking

to rebuild their lives through employment opportunities in hospitality.

Levi Bradbury joined Only a Pavement Away’s Passport to Employment

programme after leaving prison. Through hard work and dedication, he

secured a role as a Commis Chef at a Hilton Hotel in London. He later

launched a street food business with support from an Only a Pavement Away

bursary, which helped lay the foundation for his venture. Today, Levi balances

fatherhood, full-time cheffing, and building his own business.

120 Caledonia Investments plc Annual Report 2025

Financial

statements

Independent auditor’s report

122

Financial statements

130

Material accounting policies

134

Notes to the financial statements

139

Other information

Company performance record

and investments summary

158

Glossary of terms and alternative

performance measures

159

Valuation methodology

161

Information for investors

163

Directors and advisers

164

Strategic report

Corporate governance

Financial statements

Other information

Introduction

121

Independent auditor’s report

to the members of Caledonia Investments plc

Opinion on the financial statements

Inouropinion:

• thefinancialstatementsgiveatrueandfairviewofthestateof

theGroup’sandoftheParentCompany’saffairsasat31March

2025andoftheGroup’sprofitfortheyearthenended;

• theGroupfinancialstatementshavebeenproperlypreparedin

accordancewithUKadoptedinternationalaccountingstandards;

• theParentCompanyfinancialstatementshavebeenproperly

preparedinaccordancewithUKadoptedinternational

accountingstandardsandasappliedinaccordancewiththe

provisionsoftheCompaniesAct2006;and

• thefinancialstatementshavebeenpreparedinaccordancewith

therequirementsoftheCompaniesAct2006.

WehaveauditedthefinancialstatementsofCaledoniaInvestments

plc(the‘ParentCompany’)anditsconsolidatedsubsidiaries(the

‘Group’)fortheyearended31March2025whichcomprisethe

Groupstatementofcomprehensiveincome,theGroupand

CompanyStatementoffinancialposition,theGroupandCompany

Statementofchangesinequity,theGroupandCompanyStatement

ofcashflows,andnotestothefinancialstatements,including

materialaccountingpolicyinformation.Thefinancialreporting

frameworkthathasbeenappliedintheirpreparationisapplicable

lawandUKadoptedinternationalaccountingstandardsandas

regardstheParentCompanyfinancialstatements,asappliedin

accordancewiththeprovisionsoftheCompaniesAct2006.

Basis for opinion

WeconductedourauditinaccordancewithInternational

StandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.Our

responsibilitiesunderthosestandardsarefurtherdescribedinthe

Auditor’sresponsibilitiesfortheauditofthefinancialstatements

sectionofourreport.Webelievethattheauditevidencewehave

obtainedissufficientandappropriatetoprovideabasisforour

opinion.Ourauditopinionisconsistentwiththeadditionalreport

totheauditcommittee.

Independence

FollowingtherecommendationoftheAudit&RiskCommittee,

wewereappointedbytheMembersoftheParentCompanyon

21July2021toauditthefinancialstatementsfortheyearended

31March2022andsubsequentfinancialperiods.Theperiod

oftotaluninterruptedengagementincludingretendersand

reappointmentsisfouryears,coveringtheyearsended31March

2022to31March2025.WeremainindependentoftheGroup

andtheParentCompanyinaccordancewiththeethical

requirementsthatarerelevanttoourauditofthefinancial

statementsintheUK,includingtheFRC’sEthicalStandardas

appliedtolistedpublicinterestentities,andwehavefulfilled

ourotherethicalresponsibilitiesinaccordancewiththese

requirements.Thenon-auditservicesprohibitedbythatstandard

werenotprovidedtotheGrouportheParentCompany.

Conclusions relating to going concern

Inauditingthefinancialstatements,wehaveconcludedthatthe

Directors’ use of the going concern basis of accounting in the

preparationofthefinancialstatementsisappropriate.Our

evaluationoftheDirectors’assessmentoftheGroupandthe

ParentCompany’sabilitytocontinuetoadoptthegoingconcern

basisofaccountingincluded:

• obtaining the Directors’ assessment of the going concern status

andlong-termviabilityofthegroupandtheparent;

• checkingtheaccuracyoftheunderlyingmodelsusedinthe

Directors’assessment;

• challengingmanagement’sassumptionsandjudgementsmade

withregardstostress-testingforecasts;

• assessingtheavailabilityofbankfacilities;and

• assessingtheliquidityofthequotedinvestmentportfolio.

Basedontheworkwehaveperformed,wehavenotidentifiedany

materialuncertaintiesrelatingtoeventsorconditionsthat,

individuallyorcollectively,maycastsignificantdoubtontheGroup

andtheParentCompany’sabilitytocontinueasagoingconcernfor

aperiodofatleasttwelvemonthsfromwhenthefinancial

statementsareauthorisedforissue.

InrelationtotheParentCompany’sreportingonhowithasapplied

theUKCorporateGovernanceCode,wehavenothingmaterialto

addordrawattentiontoinrelationtotheDirectors’statementin

thefinancialstatementsaboutwhethertheDirectorsconsidered

itappropriatetoadoptthegoingconcernbasisofaccounting.

OurresponsibilitiesandtheresponsibilitiesoftheDirectorswith

respecttogoingconcernaredescribedintherelevantsectionsof

thisreport.

122 Caledonia Investments plc Annual Report 2025

Overview

Coverage 100%(2024:100%)ofGroupprofitbeforetax

100%(2024:100%)ofGrouprevenue

100%(2024:100%)ofGrouptotalassets

Key audit

matters (KAMs)

2025 2024

KAM1-Valuationof

UnquotedPrivate

CapitalInvestments • •

KAM2-Valuationof

Fundinvestments • •

Materiality Group financial statements as a whole

£43.9m(2024:£44.5m)basedon1.5%(2024:

1.5%)ofNetAssets

An overview of the scope of our audit

OurGroupauditwasscopedasperrevisedISA(UK)600revised

wherewedefineacomponentasanentity,businessunit,function

orbusinessactivity,orsomecombinationthereof,determinedfor

purposesofplanningandperformingauditproceduresinagroup

audit.Basedonourunderstandingofthegroup’sorganisational

structure,operatingsegmentsandinformationsystem,wehave

identifiedcomponentsbasedonlegalentity.Wealsoaddressed

theriskofmanagementoverrideofinternalcontrols,including

assessingwhethertherewasevidenceofbiasbytheDirectorsthat

mayhaverepresentedariskofmaterialmisstatement.

TheGroupengagementteamcarriedoutafullscopeauditofall

componentsofthegroupmentionedbelowastheyrequiredaudits

forstatutorypurposes.TheGroupconsistedofthefollowing

components:

• CaledoniaInvestmentsplc;

• CaledoniaGroupServicesLimited;

• BuckinghamGateLimited.

TheGroupauditteamperformedtheGroupauditasifitrelatedto

asingleaggregatedsetoffinancialstatements,usingtheGroup

materialitylevelssetoutabove.

Climate change

Ourworkontheassessmentofpotentialimpactsonclimate-

relatedrisksontheGroup’soperationsandfinancialstatements

included:

1.Enquiriesandchallengeofmanagementtounderstandthe

actionstheyhavetakentoidentifyclimate-relatedrisksandtheir

potentialimpactsonthefinancialstatementsandadequately

discloseclimate-relatedriskswithintheannualreport;and

2.ReviewoftheminutesofBoardandAuditCommitteemeetings

andperformanceofariskassessmentastohowtheimpactof

theGroup’scommitmentassetoutintheotherinformationmay

affectthefinancialstatementsandouraudit.

Wechallengedtheextenttowhichclimate-relatedconsiderations

havebeenreflected,whereappropriate,inmanagement’sgoing

concernassessmentandviabilityassessment.

Wealsoassessedtheconsistencyofmanagement’sdisclosures

includedas‘otherinformation’/'StatutoryOtherInformation’

withinthefinancialstatementsandwithourknowledgeobtained

fromtheaudit.

Basedonourriskassessmentprocedures,wedidnotidentify

theretobeanyKeyAuditMattersmateriallyimpactedbyclimate-

relatedrisks.

Key audit matters

Keyauditmattersarethosemattersthat,inourprofessional

judgement,wereofmostsignificanceinourauditofthefinancial

statementsofthecurrentperiodandincludethemostsignificant

assessedrisksofmaterialmisstatement(whetherornotdueto

fraud)thatweidentified,includingthosewhichhadthegreatest

effecton:theoverallauditstrategy,theallocationofresourcesin

theaudit,anddirectingtheeffortsoftheengagementteam.These

matterswereaddressedinthecontextofourauditofthefinancial

statementsasawhole,andinformingouropinionthereon,andwe

donotprovideaseparateopiniononthesematters.

Strategic report

Corporate governance

Financial statements Other information

Introduction

123

Independent auditor’s report (continued)

Overview

Key audit matter How the scope of our audit addressed the key audit matter

Valuation of

Unquoted Private

Capital Investments

The Group’s

accounting policy for

valuation is described

in the Material

Accounting Policies

(Investments) note to

the financial

statements.

Theunquotedprivate

capitalinvestments

total£870.7m(2024:

£820.3m),

representing31.9%

(2024:30.4%)ofthe

investmentsheldat

fairvaluethrough

profitorloss.

Weconsiderthe

valuationsoftheprivate

capitalinvestmentstobe

one of the most

significantauditareas.An

objectiveoftheGroupis

tomaximiselong-term

capitalgrowth,andas

such,privatecapital

investmentswillbeakey

driverofperformance.

Themainriskfactor

relatingtothevaluations

oftheprivatecapital

investmentsrelatesto

thelackofobservable

inputstothose

valuations,which

classifiesthemas‘Level3’

investmentsaswellas

thelevelofestimation

uncertaintyinvolvedin

valuingthese

investments.

Toaddressthiskeyauditmatter,weperformedthefollowinginrespectofprocessandcontrols:

•Assessedtheappropriatenessofthevaluationmethodologygiventhecircumstancesunderthe

InternationalPrivateEquityandVentureCapitalValuation('IPEV')Guidelines;

•AttendedValuationCommitteemeetingstoobtainevidenceofgoodgovernanceandtoobservethe

reviewofinvestmentvaluationsbycommittee.Wechallengedontheunobservableinputsand

methodologyusedinthevaluationforeachinvestmentwhererequired;

•Discussedvaluationswithmanagementtounderstandmanagementassumptionsincludedinvaluations

andassessthereasonablenessoftheassumptionsapplied;

Ourauditproceduresincludedthefollowing:

•Wegainedcomfortonexistenceandownershipthroughdirectconfirmations,availablethirdparty

documentationsuchassharepurchaseagreements,sharecertificates,annualaccountsandcompanies

housedocumentation,whererelevant;

•Challengedandcorroboratedthekeyinputstothevaluationwithreferencetomanagement

informationoninvesteecompanies,marketdataandourownresearch;

•Gainedanunderstandingofthemovementsinvaluationsbetween31March2024and31March2025;

•Consideredtheeconomicenvironmentinwhichtheinvestmentoperatestoidentifyfactorsthatcould

impacttheinvestmentvaluation;

•ConsultedandinvolvedBDOvaluationexpertsinassessingthemethodology,assumptionsandkey

inputsusedinthevaluationofmaterialinvestmentsatyear-end;and

•Whereweconsideredthatreasonablealternativeassumptionshavebeenapplied,wedevelopedour

ownpointestimatewhichweassessedinthecontextofmateriality.

Key observations:

Basedontheproceduresweperformed,wedidnotidentifyanymaterialexceptionswithregardstothe

valuationofunquotedprivatecapitalinvestments.Wedeemtheassumptionsandjudgementsappliedby

managementinthevaluationofunquotedprivatecapitalinvestmentstobeappropriate.

Valuation of Fund

Investments

The Group’s

accounting policy for

valuation is described

in the Material

Accounting Policies

(Investments) note to

the financial

statements.

Thefundinvestments

total£897.3million

(2024:£926.3million),

representing32.8%

(2024:34.4%)ofthe

investmentsheldat

fairvaluethrough

profitorloss.

Thereisariskof'stale

pricingandmanual

adjustments'as

valuationsareobtained

from NAV statements

providedbytheGPs.

Caledonia’sinvestment

teamreviewsthese

valuationsandconsiders

any necessary

adjustments,thoughsuch

adjustmentsarerare,and

theGP’svaluationis

usuallyaccepted.The

partiesinvolvedinthe

valuationsaretheGPs

andtheinvestmentteam.

Risksinclude

inappropriatevaluation

bytheGPorinvestment

team,incorrect

adjustments,applying

unsuitablevaluation

methods,inaccurate

calculations,andusing

inappropriateinputs.

Toaddressthiskeyauditmatter,weperformedthefollowinginrespectofprocessandcontrols:

•AttendedtheValuationCommitteemeetingtoobtainevidenceofgoodgovernanceandtoobservethe

reviewoffundinvestmentvaluations;

•ReviewedthedesignandimplementationoftheCaledonia’sinternalprocessesandcontrols,inparticular

thoseprocessesandcontrolsforconsideringthemovementsinfairvalueoftheunderlyingportfolio;

•AssessedtheeffectivenessofprocessesinplaceregardingduediligenceovernewinvestmentsandGPs/

newmanagersbyagreeingsupportoftheprocesstoasampleofnewinvestmentadditionsinvolvinga

newunderlyingfundmanager;and

•Enquiredwiththeauditedentityastowhetherunderlyingfundmanagershavepreparedandprovided

SOCreports.Managementhasconfirmedthatnoreportsareavailable.

Forallfunds,weobtainedthelatestNAVstatementsandperformedthefollowing:

•AgreedthevaluationstothedirectconfirmationsreceivedfromtheGP;

•Weassessedifanyofthefundshaveacoterminousreportingdatetothereportingentityandnotednone

forthecurrentyear;

•ConsideredandreviewedtheneedfortheInvestmentManagertoadjusttheunderlyingvaluationsfor

specificcases,suchascarriedinterest,andagreedtheseadjustmentstotheunderlyingcalculationsand

supportconsideringwherehurdlesaremetornotbasedonperformance;

•Comparedtheyear-endvaluationspertheaccountingrecordstothevaluationstatementsreceivedfrom

themanagersoftheunderlyingfunds.Whereanup-to-datefundmanager’svaluationisnotavailable,we

agreedthecashrollforwardtodirectconfirmationfromtheGP;

•PerformedGPaccuracytestingbycomparingthemostrecentlyauditedNAVstoNAVsperGPstatements

forthecoterminousperiod;

•

Challengedmanagementonkeyjudgementsaffectingvaluationssuchasbasisforvaluationandadjustments;

•ReviewedtheyearendGPstatementsforanypossibleinconsistentinformationpertainingtothe

valuations;

•Fornon-coterminousGPstatements,assessedwhetheranysignificantmarketmovementsorevents

occurredfromtheGPstatementdatethatrenderedtheGPstatementaninappropriatebasisofthe

valuation;and

•ConsideredtheappropriatenessoftheoverallvaluationpoliciesundertakenbyunderlyingGPfund

managersinlinewiththeInternationalPrivateEquityandVentureCapitalValuation(“IPEV”)Guidelines.

Forfundsthatwereidentifiedashavingahigherriskofstalepricing,we:

•Reviewedtheunderlyinginvestmentportfoliocompositionandinvestmentstrategytoassessvolatility;

•Performedopen-sourceresearchrelatingtounderlyinginvestmentsforindicationsoffactorsthatwould

indicateasignificantvaluationmovement.

Key observations:

Basedontheproceduresweperformed,wedidnotidentifyanymaterialexceptionswithregardstothe

valuationoffundinvestments.Wedeemtheassumptionsandjudgementsappliedbymanagementinthe

valuationofunquotedprivatecapitalinvestmentstobeappropriate.

124 Caledonia Investments plc Annual Report 2025

Reporting threshold

WeagreedwiththeAudit&RiskCommitteethatwewouldreport

tothemallindividualauditdifferencesinexcessof£1.1million

(2024:£1.1million).Wealsoagreedtoreportdifferencesbelow

thisthresholdthat,inourview,warrantedreportingon

qualitativegrounds.

Other information

Thedirectorsareresponsiblefortheotherinformation.Theother

informationcomprisestheinformationincludedintheannual

reportotherthanthefinancialstatementsandourauditor’sreport

thereon.Ouropiniononthefinancialstatementsdoesnotcover

theotherinformationand,excepttotheextentotherwiseexplicitly

statedinourreport,wedonotexpressanyformofassurance

conclusionthereon.Ourresponsibilityistoreadtheother

informationand,indoingso,considerwhethertheother

information is materially inconsistent with the financial statements

orourknowledgeobtainedinthecourseoftheaudit,orotherwise

appearstobemateriallymisstated.Ifweidentifysuchmaterial

inconsistenciesorapparentmaterialmisstatements,weare

requiredtodeterminewhetherthisgivesrisetoamaterial

misstatementinthefinancialstatementsthemselves.If,based

ontheworkwehaveperformed,weconcludethatthereisa

materialmisstatementofthisotherinformation,wearerequired

toreportthatfact.

Wehavenothingtoreportinthisregard.

Our application of materiality

Weapplytheconceptofmaterialitybothinplanningandperformingouraudit,andinevaluatingtheeffectofmisstatements.Weconsider

materialitytobethemagnitudebywhichmisstatements,includingomissions,couldinfluencetheeconomicdecisionsofreasonableusers

thataretakenonthebasisofthefinancialstatements.

Inordertoreducetoanappropriatelylowleveltheprobabilitythatanymisstatementsexceedmateriality,weusealowermaterialitylevel,

performancemateriality,todeterminetheextentoftestingneeded.Importantly,misstatementsbelowtheselevelswillnotnecessarilybe

evaluatedasimmaterialaswealsotakeaccountofthenatureofidentifiedmisstatements,andtheparticularcircumstancesoftheir

occurrence,whenevaluatingtheireffectonthefinancialstatementsasawhole.

Basedonourprofessionaljudgement,wedeterminedmaterialityforthefinancialstatementsasawholeandperformancemateriality

asfollows:

Groupfinancialstatements Parentcompanyfinancialstatements

Keyauditmatter

2025

£m

2024

£m

2025

£m

2024

£m

Materiality 43.9 44.5 41.8 42.3

Basis for determining materiality 1.5%ofNetAssets 95%ofGroupmateriality

Rationale for the

benchmark applied

NetAssetValueisakeyindicatorofperformanceandas

suchthemostrelevantbenchmarkonwhichtobase

materialityfortheusersofthefinancialstatements.

WeconsideredtheaggregationriskwithintheGroup

andthensetmaterialityasapercentageofGroup

materiality.

Performance materiality 32.9 33.6 31.3 31.7

Basis for determining

performance materiality

75%ofMateriality

Rationale for the percentage

applied for performance

materiality

Thelevelofperformancematerialityappliedwassetafterhavingconsideredanumberoffactors,includingour

assessmentoftheGroupandparent'scontrolenvironmentandtheexpectedtotalvalueofknownandlikely

misstatementsandtheleveloftransactionsintheyear.

Strategic report

Corporate governance

Financial statements Other information

Introduction

125

Independent auditor’s report (continued)

Corporate governance statement

TheListingRulesrequireustoreviewtheDirectors’statementin

relationtogoingconcern,longer-termviabilityandthatpartofthe

CorporateGovernanceStatementrelatingtotheparentcompany’s

compliancewiththeprovisionsoftheUKCorporateGovernance

Codespecifiedforourreview.

Basedontheworkundertakenaspartofouraudit,wehave

concludedthateachofthefollowingelementsoftheCorporate

GovernanceStatementismateriallyconsistentwiththefinancial

statementsorourknowledgeobtainedduringtheaudit.

Going concern

and longer-term

viability

• TheDirectors'statementwithregardstothe

appropriatenessofadoptingthegoingconcern

basisofaccountingandanymaterial

uncertaintiesidentifiedsetoutonpage68;

and

• TheDirectors’explanationastotheir

assessmentoftheGroup’sprospects,the

periodthisassessmentcoversandwhythe

periodisappropriatesetoutonpage68.

Other Code

provisions

• Directors'statementonfair,balancedand

understandablesetoutonpage91;

• Board’sconfirmationthatithascarriedouta

robustassessmentoftheemergingand

principalriskssetoutonpage91;

• Thesectionoftheannualreportthatdescribes

thereviewofeffectivenessofriskmanagement

andinternalcontrolsystemssetoutonpage

91;and

• Thesectiondescribingtheworkoftheaudit

committeesetoutonpage91.

Other Companies Act 2006 reporting

Basedontheresponsibilitiesdescribedbelowandourwork

performedduringthecourseoftheaudit,wearerequiredbythe

CompaniesAct2006andISAs(UK)toreportoncertainopinions

andmattersasdescribedbelow.

Strategic report

and Directors’

report

Inouropinion,basedontheworkundertaken

inthecourseoftheaudit:

• theinformationgivenintheStrategicreport

andtheDirectors’reportforthefinancialyear

for which the financial statements are

preparedisconsistentwiththefinancial

statements;and

• theStrategicreportandtheDirectors’report

havebeenpreparedinaccordancewith

applicablelegalrequirements.

Inthelightoftheknowledgeandunderstanding

oftheGroupandParentCompanyandits

environmentobtainedinthecourseoftheaudit,

wehavenotidentifiedmaterialmisstatements

inthestrategicreportortheDirectors’report.

Directors’

remuneration

Inouropinion,thepartoftheDirectors’

remunerationreporttobeauditedhasbeen

properlypreparedinaccordancewiththe

CompaniesAct2006.

Matters on which

we are required

to report by

exception

Wehavenothingtoreportinrespectofthe

following matters in relation to which the

CompaniesAct2006requiresustoreporttoyou

if,inouropinion:

• adequateaccountingrecordshavenotbeen

keptbytheParentCompany,orreturns

adequateforouraudithavenotbeenreceived

frombranchesnotvisitedbyus;or

• theParentCompanyfinancialstatementsand

thepartoftheDirectors’remunerationreport

tobeauditedarenotinagreementwiththe

accountingrecordsandreturns;or

• certaindisclosuresofDirectors’remuneration

specifiedbylawarenotmade;or

• wehavenotreceivedalltheinformationand

explanationswerequireforouraudit.

126 Caledonia Investments plc Annual Report 2025

Responsibilities of Directors

AsexplainedmorefullyintheStatementofDirectors’

Responsibilities,theDirectorsareresponsibleforthepreparation

ofthefinancialstatementsandforbeingsatisfiedthattheygivea

trueandfairview,andforsuchinternalcontrolastheDirectors

determineisnecessarytoenablethepreparationoffinancial

statementsthatarefreefrommaterialmisstatement,whetherdue

tofraudorerror.

Inpreparingthefinancialstatements,theDirectorsareresponsible

forassessingtheGroup’sandtheParentCompany’sabilityto

continueasagoingconcern,disclosing,asapplicable,matters

relatedtogoingconcernandusingthegoingconcernbasisof

accountingunlesstheDirectorseitherintendtoliquidatethe

GrouportheParentCompanyortoceaseoperations,orhaveno

realisticalternativebuttodoso.

Auditor’s responsibilities for the audit of the

financial statements

Ourobjectivesaretoobtainreasonableassuranceaboutwhether

the financial statements as a whole are free from material

misstatement,whetherduetofraudorerror,andtoissuean

auditor’sreportthatincludesouropinion.Reasonableassuranceis

ahighlevelofassurance,butisnotaguaranteethatanaudit

conductedinaccordancewithISAs(UK)willalwaysdetecta

materialmisstatementwhenitexists.Misstatementscanarise

fromfraudorerrorandareconsideredmaterialif,individuallyorin

theaggregate,theycouldreasonablybeexpectedtoinfluencethe

economicdecisionsofuserstakenonthebasisofthesefinancial

statements.

Extent to which the audit was capable of detecting irregularities,

including fraud

Irregularities,includingfraud,areinstancesofnon-compliancewith

lawsandregulations.Wedesignproceduresinlinewithour

responsibilities,outlinedabove,todetectmaterialmisstatements

inrespectofirregularities,includingfraud.Theextenttowhichour

proceduresarecapableofdetectingirregularities,includingfraudis

detailedbelow:

Non-compliance with laws and regulation

Basedon:

•OurunderstandingoftheGroupandtheindustryinwhichit

operates;

•Discussionwithmanagementandthosechargedwith

governance;

•ObtaininganunderstandingoftheGroup’spoliciesand

proceduresregardingcompliancewithlawsandregulations;and

•ConsiderationoftheriskofactsbytheGroupwhichwere

contrarytoapplicablelawsandregulations,includingfraud.

Weconsideredthesignificantlawsandregulationstobe

compliancewiththeCompaniesAct2006,UK-adoptedIFRS,UKtax

legislationincludingInvestmenttrusttaxlegislation,theFinancial

ConductAuthority’sregulationsandListingandDisclosure

GuidanceandTransparencyRules,theUKCorporateGovernance

Code,andindustrypracticeasrepresentedbytheAICStatementof

RecommendedPractice('SORP').

Wefocusedonlawsandregulationsthatcouldgiverisetoa

materialmisstatementinthefinancialstatements.Ourprocedures

included:

•Reviewofminutesofmeetingofthosechargedwithgovernance

foranyinstancesofnon-compliancewithlawsandregulations;

•Reviewofcorrespondencewithregulatoryandtaxauthoritiesfor

anyinstancesofnon-compliancewithlawsandregulations;

•Reviewoffinancialstatementdisclosuresandagreeingto

supportingdocumentation;

•Involvementoftaxspecialistsintheaudit;and

•Reviewandchallengeofmanagement’sconsiderationofthe

ParentCompany’scompliancewiththeInvestmentTrustrulesset

outunderUKtaxlegislation.

Strategic report

Corporate governance

Financial statements Other information

Introduction

127

Independent auditor’s report (continued)

Fraud

Weassessedthesusceptibilityofthefinancialstatementsto

materialmisstatement,includingfraud.Ourriskassessment

proceduresincluded:

• Enquirywithmanagementandthosechargedwithgovernance

regardinganyknownorsuspectedinstancesoffraud;

• ObtaininganunderstandingoftheGroup’spoliciesand

proceduresrelatingto:

- Detectingandrespondingtotherisksoffraud;and

- Internalcontrolsestablishedtomitigaterisksrelatedtofraud.

• Reviewofminutesofmeetingofthosechargedwithgovernance

foranyknownorsuspectedinstancesoffraud;

• Discussionamongsttheengagementteamastohowandwhere

fraudmightoccurinthefinancialstatements;

• Performinganalyticalprocedurestoidentifyanyunusualor

unexpectedrelationshipsthatmayindicaterisksofmaterial

misstatementduetofraud;and

• Consideringremunerationincentiveschemesandperformance

targetsandtherelatedfinancialstatementareasimpactedby

these.

Basedonourriskassessment,weconsideredtheareasmost

susceptibletofraudtobemanagementoverrideofcontrolsand

valuationofprivatecapitalandfundinvestments.

Ourproceduresinrespectoftheaboveincluded:

•Testingthedataelementsofthejournalspopulationwhichthe

auditteamutilisedaspartofcompletenessandaccuracytesting;

•Determiningkeyriskcharacteristicstofilterthepopulationof

journals,thenreviewingandagreeingthejournalsidentifiedto

supportingdocumentation;

•UsingourITauditspecialiststoassistwithextractingthejournal

population;

•Evaluatingfindingsfromtheevaluationofthedesignand

implementationofITgeneralcontrols;

•Criticallyreviewingtheconsolidationand,inparticular,manual

and/orlatejournalspostedatconsolidationlevel;

•Reviewingtheestimatesandjudgementsappliedbymanagement

inthefinancialstatementstoassesstheirappropriatenessandthe

existenceofanysystembiases.Thisincludedconsideringwhether

thesplitbetweenrevenueandcapitalisappropriateandkey

accountingestimatesaroundthevaluationofprivatecapitaland

fundinvestments;

•Reviewingunadjustedauditdifferencesforindicationsofbiasor

deliberatemisstatement;and

•Otherkeyproceduresrelatedtovaluationofprivatecapitaland

fundinvestmentsaresetoutintheKeyAuditMatterssection

above.

Wealsocommunicatedrelevantidentifiedlawsandregulations

andpotentialfraudriskstoallengagementteammemberswho

werealldeemedtohaveappropriatecompetenceandcapabilities

andremainedalerttoanyindicationsoffraudornon-compliance

withlawsandregulationsthroughouttheaudit.

Ourauditproceduresweredesignedtorespondtorisksofmaterial

misstatementinthefinancialstatements,recognisingthattherisk

ofnotdetectingamaterialmisstatementduetofraudishigher

thantheriskofnotdetectingoneresultingfromerror,asfraudmay

involvedeliberateconcealmentby,forexample,forgery,

misrepresentationsorthroughcollusion.Thereareinherent

limitationsintheauditproceduresperformedandthefurther

removednon-compliancewithlawsandregulationsisfromthe

eventsandtransactionsreflectedinthefinancialstatements,the

lesslikelywearetobecomeawareofit.

Afurtherdescriptionofourresponsibilitiesisavailableonthe

FinancialReportingCouncil’swebsiteat:

www.frc.org.uk/auditorsresponsibilities.Thisdescriptionforms

partofourauditor’sreport.

Use of our report

ThisreportismadesolelytotheParentCompany’smembers,asa

body,inaccordancewithChapter3ofPart16oftheCompanies

Act2006.Ourauditworkhasbeenundertakensothatwemight

statetotheParentCompany’smembersthosemattersweare

requiredtostatetotheminanauditor’s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ParentCompany

andtheParentCompany’smembersasabody,forourauditwork,

forthisreport,orfortheopinionswehaveformed.

Peter Smith

SeniorStatutoryAuditor

ForandonbehalfofBDOLLP,StatutoryAuditor

London,UK

19May2025

BDOLLPisalimitedliabilitypartnershipregisteredinEnglandand

Wales(withregisterednumberOC305127).

128 Caledonia Investments plc Annual Report 2025

Strategic report

Corporate governance

Financial statements

Other information

Introduction

129

Group statement of comprehensive income

for the year ended 31 March 2025

			2025			2024
		Revenue	Capital	Total	Revenue	Capital	Total
	Note	£m	£m	£m	£m	£m	£m
Net investment income
Investmentincome	1	52.7	–	52.7	61.8	–	61.8
Otherincome	1	0.9	0.4	1.3	0.9	0.6	1.5
Netgainsonfairvalueinvestments	8	–	43.9	43.9	–	174.4	174.4
Netlossesonfairvalueproperty	9,10	–	(1.3)	(1.3)	–	(3.9)	(3.9)
Totalnetinvestmentincome		53.6	43.0	96.6	62.7	171.1	233.8
Managementexpenses	2	(25.9)	(6.1)	(32.0)	(22.9)	(8.4)	(31.3)
Othernon-recurringexpenses		(2.9)	–	(2.9)	–	–	–
Profit before finance costs		24.8	36.9	61.7	39.8	162.7	202.5
Treasuryinterestreceivable	3	9.9	–	9.9	3.2	–	3.2
Finance costs	4	(3.5)	–	(3.5)	(10.6)	–	(10.6)
Foreignexchangemovements		(1.3)	–	(1.3)	6.3	–	6.3
Profit before tax		29.9	36.9	66.8	38.7	162.7	201.4
Taxation	5	1.0	(1.7)	(0.7)	1.8	0.6	2.4
Profit for the year		30.9	35.2	66.1	40.5	163.3	203.8
Other comprehensive income items never to be reclassified to profit or loss
Re-measurementsofdefinedbenefitpensionschemes	25	–	0.3	0.3	–	(0.8)	(0.8)
Taxonothercomprehensiveincome	5	–	0.5	0.5	–	0.4	0.4
Totalcomprehensiveincome		30.9	36.0	66.9	40.5	162.9	203.4
Basicearningspershare	7	57.5p	65.5p	123.0p	74.5p	300.2p	374.7p
Dilutedearningspershare	7	56.7p	64.6p	121.3p	73.3p	295.7p	369.0p

Thetotalcolumnoftheabovestatementrepresentsthegroup’sstatementofcomprehensiveincome,preparedinaccordancewithIFRSs

adoptedintheUnitedKingdom.

Therevenueandcapitalcolumnsaresupplementarytothegroup’sstatementofcomprehensiveincomeandarepreparedunderguidance

publishedbytheAssociationofInvestmentCompanies.

Theprofitfortheyearandtotalcomprehensiveincomefortheyearisattributabletoequityholdersoftheparent.

Theaccountingpoliciesandnotesonpages134to157areanintegralpartofthesefinancialstatements.

130 Caledonia Investments plc Annual Report 2025

Statement of financial position

at 31 March 2025

		Group			Company
		2025	2024	2025	2024
	Note	£m	£m	£m	£m
Non-current assets
Investmentsheldatfairvaluethroughprofitorloss	8	2,743.6	2,695.4	2,748.9	2,700.7
Investmentsinsubsidiariesheldatcost	8	–	–	0.9	0.9
Investmentproperty	9	12.6	13.3	–	–
Property,plantandequipment	10	25.3	25.2	–	–
Deferredtaxassets	11	5.3	5.3	–	–
Otherreceivables	12	–	–	30.5	35.5
Employeebenefits	25	5.4	4.3	–	–
Non-currentassets		2,792.2	2,743.5	2,780.3	2,737.1
Current assets
Assetheldforsale	8	–	19.0	–	19.0
Tradeandotherreceivables	12	10.3	7.3	6.4	5.0
Current tax assets	5	4.2	1.7	4.5	2.0
Cashandcashequivalents	13	151.3	227.4	148.5	227.3
Current assets		165.8	255.4	159.4	253.3
Totalassets		2,958.0	2,998.9	2,939.7	2,990.4
Current liabilities
Tradeandotherpayables	15	(16.4)	(24.4)	(22.1)	(38.2)
Employeebenefits	25	(3.7)	(3.1)	–	–
Current liabilities		(20.1)	(27.5)	(22.1)	(38.2)
Non-current liabilities
Employeebenefits	25	(4.8)	(5.0)	–	–
Deferredtaxliabilities	11	(1.5)	(1.1)	–	–
Non-currentliabilities		(6.3)	(6.1)	–	–
Totalliabilities		(26.4)	(33.6)	(22.1)	(38.2)
Net assets		2,931.6	2,965.3	2,917.6	2,952.2
Equity
Sharecapital	16	3.0	3.1	3.0	3.1
Sharepremium	16	1.3	1.3	1.3	1.3
Capitalredemptionreserve		1.5	1.4	1.5	1.4
Capitalreserve		2,689.9	2,716.6	2,691.6	2,717.1
Retainedearnings		240.4	250.2	224.7	236.6
Ownshares		(4.5)	(7.3)	(4.5)	(7.3)
Totalequity		2,931.6	2,965.3	2,917.6	2,952.2
Undilutednetassetvalue	17	5558p	5452p
Dilutednetassetvalue	17	5475p	5369p

TheCompanyprofitfortheyearended31March2025was£66.0m(2024:£202.4m)

The financial statements on pages 130 to 157 were approved by the board and authorised for issue on 19 May 2025 and were signed on its

behalf by:

Mat Masters Rob Memmott

Chief Executive Officer Chief Financial Officer

Theaccountingpoliciesandnotesonpages134to157areanintegralpartofthesefinancialstatements.

Strategic report

Corporate governance

Financial statements Other information

Introduction

131

Statement of changes in equity

for the year ended 31 March 2025

Note

				Capital
		Share	Share	redemption	Capital	Retained	Own	Total
		capital	premium	reserve	reserve	earnings	shares	equity
		£m	£m	£m	£m	£m	£m	£m
Group
Balanceat31March2023		3.1	1.3	1.4	2,555.4	247.4	(10.6)	2,798.0
Total comprehensive income
Profit for the year		–	–	–	163.3	40.5	–	203.8
Othercomprehensiveincome		–	–	–	(0.4)	–	–	(0.4)
Totalcomprehensiveincome		–	–	–	162.9	40.5	–	203.4
Transactions with owners of the company
Contributions by and distributions to owners
Share-basedpayments		–	–	–	–	6.2	–	6.2
Transferofsharestoemployees		–	–	–	–	(6.9)	6.9	–
Ownsharespurchasedandcancelled		–	–	–	(1.7)	–	–	(1.7)
Ownsharespurchased		–	–	–	–	–	(3.6)	(3.6)
Dividendspaid	6	–	–	–	–	(37.0)	–	(37.0)
Totaltransactionswithowners		–	–	–	(1.7)	(37.7)	3.3	(36.1)
Balanceat31March2024		3.1	1.3	1.4	2,716.6	250.2	(7.3)	2,965.3
Total comprehensive income
Profit for the year		–	–	–	35.2	30.9	–	66.1
Othercomprehensiveincome		–	–	–	0.8	–	–	0.8
Totalcomprehensiveincome		–	–	–	36.0	30.9	–	66.9
Transactions with owners of the company
Contributions by and distributions to owners
Share-basedpayments		–	–	–	–	4.5	–	4.5
Transferofsharestoemployees		–	–	–	–	(6.8)	6.8	–
Ownsharespurchasedandcancelled		(0.1)	–	0.1	(62.7)	–	–	(62.7)
Ownsharespurchased		–	–	–	–	–	(4.0)	(4.0)
Dividendspaid	6	–	–	–	–	(38.4)	–	(38.4)
Totaltransactionswithowners		(0.1)	–	0.1	(62.7)	(40.7)	2.8	(100.6)
Balanceat31March2025		3.0	1.3	1.5	2,689.9	240.4	(4.5)	2,931.6

Company

Balanceat31March2023 3.1 1.3 1.4 2,554.3 236.4 (10.6) 2,785.9

Profitandtotalcomprehensiveincome – – – 164.5 37.9 – 202.4

Transactions with owners of the company

Contributions by and distributions to owners

Share-basedpayments – – – – 6.2 – 6.2

Transferofsharestoemployees – – – – (6.9) 6.9 –

Ownsharespurchasedandcancelled – – – (1.7) – – (1.7)

Ownsharespurchased – – – – – (3.6) (3.6)

Dividendspaid 6 – – – – (37.0) – (37.0)

Totaltransactionswithowners – – – (1.7) (37.7) 3.3 (36.1)

Balanceat31March2024 3.1 1.3 1.4 2,717.1 236.6 (7.3) 2,952.2

Profitandtotalcomprehensiveincome – – – 37.2 28.8 – 66.0

Transactions with owners of the company

Contributions by and distributions to owners

Share-basedpayments – – – – 4.5 – 4.5

Transferofsharestoemployees – – – – (6.8) 6.8 –

Ownsharespurchasedandcancelled (0.1) – 0.1 (62.7) – – (62.7)

Ownsharespurchased – – – – – (4.0) (4.0)

Dividendspaid 6 – – – – (38.4) – (38.4)

Totaltransactionswithowners (0.1) – 0.1 (62.7) (40.7) 2.8 (100.6)

Balanceat31March2025 3.0 1.3 1.5 2,691.6 224.7 (4.5) 2,917.6

Theaccountingpoliciesandnotesonpages134to157areanintegralpartofthesefinancialstatements.

132 Caledonia Investments plc Annual Report 2025

Statement of cash flows

for the year ended 31 March 2025

Reconciliation of net cash flow to movement in net debt

for the year ended 31 March 2025

		Group		Company
		2025	2024	2025	2024
	Notes	£m	£m	£m	£m
Operating activities
Dividendsandfundincomedistributionsreceived		38.5	57.9	38.5	57.9
Interestreceived		9.9	3.8	9.9	3.8
Cashreceivedfromcustomers		1.3	1.5	0.5	0.6
Cashpaidtosuppliersandemployees		(29.7)	(23.5)	(38.8)	(23.7)
Taxesreceived		0.2	0.1	0.2	0.1
Grouptaxreliefreceived		0.5	20.9	0.9	21.1
Grouptaxreliefpaid		(2.8)	(0.8)	(2.8)	–
Netcashflowfromoperatingactivities		17.9	59.9	8.4	59.8
Investing activities
Purchasesofinvestments		(318.9)	(340.8)	(318.9)	(340.8)
Proceedsfromrealisationofinvestments		337.4	599.7	337.4	599.7
Proceedsfromrepaymentofloanstogroupcompanies		–	–	5.0	–
Purchasesofproperty,plantandequipment		(1.8)	(0.5)	–	–
Netcashflowfrominvestingactivities		16.7	258.4	23.5	258.9
Financing activities
Interestpaid		(3.7)	(10.4)	(3.7)	(10.4)
Dividendspaidtoownersofthecompany		(38.4)	(37.0)	(38.4)	(37.0)
Proceedsfrombankborrowings		–	70.0	–	70.0
Repaymentofbankborrowings		–	(70.0)	–	(70.0)
Repaymentofborrowingsfromnon-consolidatedsubsidiaries		–	(258.8)	–	(258.8)
Purchases of own shares		(67.7)	(5.3)	(67.7)	(5.3)
Netcashflowusedinfinancingactivities		(109.8)	(311.5)	(109.8)	(311.5)
Net(decrease)/increaseincashandcashequivalents		(75.2)	6.8	(77.9)	7.2
Cashandcashequivalentsatyearstart		227.4	221.6	227.3	221.1
Effect of foreign exchange rate changes on cash		(0.9)	(1.0)	(0.9)	(1.0)
Cashandcashequivalentsatyearend	13	151.3	227.4	148.5	227.3

Group Company

Notes

2025

£m

2024

£m

2025

£m

2024

£m

Net(decrease)/increaseincashandcashequivalentsintheyear (75.2) 6.8 (77.9) 7.2

Cash inflow from increase in borrowings – (70.0) – (70.0)

Cashoutflowfromdecreaseinborrowings – 328.8 – 328.8

Change resulting from cash flows (75.2) 265.6 (77.9) 266.0

Changeresultingfromforeignexchangemovements (0.9) 6.2 (0.9) 6.2

Netcash/(debt)atthestartoftheyear 13,14 227.4 (44.4) 227.3 (44.9)

Netcashattheendoftheyear 13,14 151.3 227.4 148.5 227.3

Theaccountingpoliciesandnotesonpages134to157areanintegralpartofthesefinancialstatements.

Strategic report

Corporate governance

Financial statements Other information

Introduction

133

Material accounting policies

General information

Caledonia Investments plc is an investment trust company

domiciled in the United Kingdom and incorporated in England in

1928, under number 235481. 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 under Equity shares (commercial companies).

These financial statements were authorised for issue by the

directors on 19 May 2025.

These financial statements are presented in pounds sterling, as this

is the currency of the primary economic environment in which

Caledonia operates.

Material accounting policies

Critical accounting judgements and estimates

Critical judgements

In the course of preparing the financial statements, one judgement

has been made in the process of applying the group’s accounting

policies, other than those involving estimations, that has had a

significant effect on the amounts recognised in the financial

statements as follows:

1. Assessment as an investment entity

The board has concluded that the company continues to meet

the definition of an investment entity, as its strategic objective of

investing in a portfolio of investments for the purpose of

generating returns in the form of income and capital

appreciation remains unchanged and as a consequence

investments in controlled entities are held at fair value through

profit or loss rather than consolidated in the group results. For

further details on assessment as an investment entity please

refer to page 135. The company is exempt from UK corporation

tax on capital gains provided it meets the HM Revenue &

Customs criteria for an investment company set out in Section

1158 of the Corporation Tax Act 2010. This is judgemental based

on assessments performed by management prepared to

maintain investment trust status in accordance with relevant

taxation legislation.

Critical estimates

In addition to this significant judgement the directors have made

one estimate, which they deem to have a significant risk of resulting

in a material adjustment to the amounts recognised in the financial

statements within the next financial year. The details of the

estimate was as follows:

1. Fair values of private equity financial instruments

For direct private investments (Private Capital investments),

totalling £870.7m (2024: £820.3m) valuation techniques using a

range of internally and externally developed unobservable inputs

are used to estimate fair value. Valuation techniques make

maximum use of market inputs, including reference to the

current fair values of instruments that are substantially the same

(subject to appropriate adjustments). Private Capital assets have

been disaggregated into categories and sensitised according to

the degree of uncertainty attached to their estimation in note 23.

For private equity funds and fund of funds (unlisted Funds Pool

investments excluding funds invested exclusively in quoted

markets), totalling £882.9m (2024: £868.8m) held through

externally managed fund vehicles, the estimated fair value is

based on the most recent valuation provided by the external

manager, usually received within 3 to 6 months of the relevant

valuation date. Management periodically assesses whether

reported net asset values are fair value based through

consideration of a range of information, including but not limited

to underlying valuation methodologies, governance and

assurance frameworks, and correspondence with third-party

managers. Management were satisfied that the valuations

provided in the current period were on a fair value basis.

Where required, valuations are adjusted for investments and

distributions between the valuation date and the reporting date.

The delay in manager NAV receipts creates a risk of changes or

events occurring between the NAV and reporting dates which

could impact valuations. We review market and other relevant

conditions at the year end and consider whether a valuation

adjustment is required, making such an adjustment where

deemed necessary.

Fair value estimates for the above private assets are made at a

specific point in time, based on market conditions and information

about the financial instrument. These estimates are subjective in

nature and involve uncertainties and matters of significant

judgement and therefore cannot be determined with precision.

Other judgement

Management has exercised judgment in determining the

classification of money market investments held by the group as

cash equivalents under IAS 7. In arriving at this judgement

management has noted that it uses money market funds to

manage day-to-day working capital requirements, and that all such

funds are highly liquid Low Volatility Net Asset Value products with

a minimum credit rating of AAAm, and a maximum weighted-

average maturity of 60 days. They have therefore judged that the

risk of changes in value is insignificant and investments can be

readily converted to a known amount of cash upon redemption,

and therefore classification as cash equivalents is appropriate. They

note that, although remote, there is not a zero risk of significant

change in value and that therefore this classification is judgemental.

Going concern

As at 31 March 2025, the board has undertaken an assessment of

the appropriateness of preparing its financial statements on a going

concern basis, taking into consideration future cash flows, current

cash holdings of £151m, undrawn banking facilities of £325m and

readily realisable assets of £965m as part of a wider process in

connection with its viability assessment. It has concluded that the

group has sufficient cash, other liquid resources and committed

bank facilities to meet existing and new investment commitments.

The directors have concluded that the group has adequate

resources to continue in operational existence for a period of at

least 12 months from the date of approval of the financial

statements. Accordingly, they continue to consider it appropriate to

adopt the going concern basis in preparing the financial statements.

The group has conducted a going concern assessment which

considered future cash flows, the availability of liquid assets and

debt facilities, banking covenant requirements and consideration of

the economic environment over at least 12 months from the date

of approval of these financial statements.

In making this assessment, the directors took comfort from the

results of two stress tests, which considered the impact of

significant market downturn conditions.

134 Caledonia Investments plc Annual Report 2025

The first stress test addressed two discrete scenarios: a 5% reduction

in the value of Sterling versus the US dollar compared to the rate on

31 March 2025 and a 12-month delay to Private Capital realisations.

The second stress test modelled a market downturn event over a

two-year period reflecting a fall in Public Companies investment

income of 20%, reduction of Private Capital investment income by

100%, an inability to realise the Private Capital portfolio and a 50%

reduction in distributions from the group’s funds portfolio. To

simulate an extreme downside scenario the impact of a market

downturn event and all fund commitments falling due was also

assessed. The directors do not believe the extreme downside

scenario is likely but factors this into the going concern assessment.

Under these scenarios the group would have a range of mitigating

actions available to it, including sales of liquid assets, and usage of

banking facilities, which would provide sufficient funds to meet all

of its liabilities as they fall due and still hold significant liquid assets

over the assessment period. As a result of this assessment the

directors are confident that the company will have sufficient funds

to continue to meet its liabilities as they fall due for at least 12

months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going

concern basis. For further details on assessment of going concern

and viability please refer to page 68.

Basis of accounting

These group and parent company financial statements were

prepared in accordance with UK adopted international accounting

standards in conformity with the requirements of the Companies

Act 2006. IFRSs comprise accounting standards issued by the

International Accounting Standards Board and its predecessor body

as well as interpretations issued by the International Financial

Reporting Interpretations Committee and its predecessor body.

The financial statements have been prepared on an historical cost

basis, except for the revaluation of certain financial instruments

and properties. Where presentational guidance set out in the

Statement of Recommended Practice: Financial Statements of

Investment Trust Companies and Venture Capital Trusts (‘SORP’)

issued by the Association of Investment Companies in October

2019 is consistent with the requirements of UK adopted

international accounting standards, the directors have sought to

prepare the financial statements on a basis compliant with the

recommendations of the SORP.

The Statement of comprehensive income of the company has been

omitted from these financial statements in accordance with

section 408 of the Companies Act 2006.

Under the UK Corporate Governance Code and applicable

regulations, the directors are required to satisfy themselves that it

is reasonable to presume that the company is a going concern.

After reviewing the company’s performance projections for a

period of at least 12 months, the directors are satisfied that in

taking account of reasonably possible downsides the company has

adequate access to resources to enable it to meet its obligations as

they fall due for at least 12 months from the date of approval of the

financial statements. Accordingly, the directors have adopted the

going concern basis in preparing these financial statements.

Adopted IFRSs and IFRSs not yet applied

In the current year, the group has not adopted any new standards

or interpretations. Amendments to IFRSs adopted in the year have

not had a material impact on the group.

At the date of approval of these financial statements, IFRS 18

Primary Financial Statements was in issue but not yet effective, and

includes requirements setting out a new presentation requirement

for the statement of profit or loss, and providing new definitions

and disclosures related to non-IFRS performance measures. IFRS 18

is not expected to have a material impact on the group financial

statements.

Assessment as investment entity

Entities that meet the definition of an investment entity within IFRS

10 are required to account for most investments in controlled

entities as held at fair value through profit or loss. Subsidiaries that

provide investment related services or engage in permitted

investment related activities with investees continue to be

consolidated unless they are also investment entities.

Having considered the following, the board has concluded that the

company meets the definition of an investment entity.

An investment entity is one which:

• obtains funds from investors for the purpose of providing

them with investment management services

• invests funds solely for returns from capital appreciation

and/or investment income

• measures and evaluates the performance of substantially

all of its investments on a fair value basis.

Basis of consolidation

In accordance with the IFRS 10/IAS 28 Investment entities

amendments, the consolidated financial statements include the

financial statements of the company and service entities controlled

by the company made up to the reporting date. Control is achieved

where the company has the power over the potential investee as a

result of voting or other rights, has rights to positive or negative

variable returns from its involvement with the investee and has the

ability to use its power over the investee to affect significantly the

amount of its returns.

The following subsidiaries are deemed service entities and are

consolidated in the group financial statements:

• Caledonia Group Services Ltd

• Buckingham Gate Ltd

Other associated entities and subsidiaries are disclosed in notes 26

and 27 to the financial statements and are not consolidated in the

group financial statements, being held at fair value through profit

or loss.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of

exchange ruling at the date of the transaction. Monetary assets

and liabilities denominated in foreign currencies at the reporting

date are translated to the functional currency at the foreign

exchange rate ruling at the reporting date. Non-monetary assets

and liabilities that are measured in terms of historical cost in a

foreign currency are translated to the functional currency using the

exchange rate at the date of the transaction. Non-monetary assets

and liabilities denominated in foreign currencies that are stated at

fair value are translated to the functional currency at foreign

exchange rates ruling at the dates the fair values were determined.

In the financial statements, foreign exchange gains or losses are

recognised in capital or revenue reserve depending on whether the

gain or loss is of a capital or revenue nature respectively.

Strategic report

Corporate governance

Financial statements Other information

Introduction

135

Material accounting policies (continued)

Income

Dividends receivable on equity shares are recognised as revenue

when the shareholders’ right to receive payment has been

established, normally the ex-dividend date. Where no ex-dividend

date is available, dividends receivable on or before the period end,

are treated as revenue. Overseas dividend income is shown net of

withholding tax under investment income.

The fixed returns on debt securities, loans and non-equity shares

are recognised on an effective interest rate basis, which is the

rate that exactly discounts estimated future cash receipts through

the expected life of the financial asset to that asset’s net

carrying amount.

Rental income is recognised on a straight-line basis over the

lease term.

The company’s share of net income from limited partnerships is

recognised as revenue when received.

Where uncertainty arises over the collectability of an amount

already included in income, the uncollectable amount or the

amount in respect of which the recovery has ceased to be

probable, is recognised as an expense. When the uncertainty

over collectability is removed, normally on receipt, the income is

recognised in the Statement of comprehensive income on the

same line as the original expense was initially recognised.

Expenses

All expenses are accounted for on an accrual basis. In the financial

statements, ongoing management expenses are included in the

revenue column of the Statement of comprehensive income,

whereas performance fees and share-based payment expenses –

costs relating to compensation schemes that are linked directly to

investment performance – are included in the capital column of

the Statement of comprehensive income. Expenses of acquisition

of an investment designated as held at fair value through profit or

loss or expenses of an aborted acquisition or disposal of an

investment are presented as transaction costs, or deducted from

the proceeds of sale as appropriate, and included in the capital

column of the Statement of comprehensive income.

Non-recurring other expenses

Non-recurring expenses are expenses that are unlikely to re-occur

in the foreseeable future.

Leases

Lessor

Leases are classified as finance leases whenever the terms of the

lease transfer substantially all the risks and rewards of ownership to

the lessee. All other leases are classified as operating leases. The

group does not have any finance leases.

Rental income from operating leases is recognised on a straight-

line basis over the term of the relevant lease. Initial direct costs

incurred in negotiating and arranging an operating lease are added

to the carrying amount of the leased asset and recognised on a

straight-line basis.

Benefits provided as an incentive to enter into an operating lease

are also spread on a straight-line basis over the lease term.

Lessee

On commencement of a contract which gives the group the right

to use assets for a period of time in exchange for consideration,

the group recognises a right-of-use asset and a lease liability, unless

the lease qualifies as a 'short-term' lease (that is, the term is twelve

months or less with no option to purchase the lease asset) or a

'low-value' lease. Payments associated with short-term leases

are recognised on a straight-line basis as an expense in the

income statement.

Employee benefits

Pension schemes

Payments to defined contribution schemes are charged as an

expense as they fall due.

For defined benefit schemes, the cost of providing benefits is

determined using the projected unit credit method, with

actuarial valuations being carried out at each reporting date.

Re-measurement gains and losses are recognised in full in the

period in which they occur in other comprehensive income.

Past service cost is recognised immediately in the period of a

plan amendment.

The retirement benefit obligation recognised in the Statement

of financial position represents the present value of the defined

benefit obligations as reduced by the fair value of scheme assets.

Any asset resulting from this calculation is limited to the present

value of available refunds and reductions in future contributions

to the plan.

Profit sharing and bonus plans

The group recognises a liability and an expense for bonuses and

profit sharing, based on a formula that takes into consideration the

profit attributable to the company’s shareholders after certain

adjustments. The group recognises a provision where contractually

obliged or where there is a past practice that has created a

constructive obligation.

Share-based payments

The group issues equity-settled share-based payments to certain

employees. Equity-settled share-based payments are measured at

fair value at the date of grant and the fair value is expensed on a

straight-line basis over the vesting period, based on the group’s

estimate of the number of shares that will eventually vest.

As part of the share-based payment arrangements, the group pays

a cash amount to employees on exercise of options, equating to

the dividend entitlement on the option shares between grant and

vesting dates. This payment is treated as a cash-settled share-

based payment and is expensed on a straight-line basis over the

vesting period, based on the group’s estimate of the number of

shares that will eventually vest and a re-estimate of the fair value

of the dividend entitlement.

Where employees of a subsidiary are granted rights to the equity

instruments of its parent as consideration for the services provided

to the subsidiary, the subsidiary recognises an equity-settled

share-based payment transaction expense with a corresponding

intercompany balance with the parent. In addition, the parent

recognises an increase in equity and an increase in intercompany

balance for the amount of the share-based payment transaction.

136 Caledonia Investments plc Annual Report 2025

An employee share trust is used for distributing shares awarded

to employees under Caledonia's share remuneration schemes.

The trustee purchases shares with money lent interest free by

Caledonia and transfers shares to participating employees

on exercise.

The transactions the employee share trust undertakes are

considered to be performed by the trust as an agent for Caledonia.

The transactions of the employee share trust are included in the

separate financial statements of the parent company and, following

the requirements of IFRS 10, in the consolidated financial

statements as if they arose in that company. Own shares held by

the employee share trust as at the reporting date are accounted

for as treasury shares.

National Insurance on share-based payment awards

National Insurance payable on the exercise of share awards has

been charged as an expense spread over the respective vesting

periods of the awards. The charge is based on the difference

between the market value of the estimated number of shares that

will vest and on the vested but unexercised awards at the reporting

date, less any consideration due, calculated at the latest enacted

National Insurance rate.

Taxation

The tax expense represents the sum of tax currently payable and

deferred tax.

The tax currently payable is based on the taxable profit for the

period. Taxable profit differs from net profit as reported in the

Statement of comprehensive income because it excludes items of

income or expense that are taxable or deductible in other periods

and it further excludes items that are never taxable or deductible.

The group’s liability for current tax is calculated using tax rates that

were applicable at the reporting date.

Deferred tax is the tax expected to be payable or recoverable on

differences between the carrying amounts of assets and liabilities

in the financial statements and the corresponding tax bases used in

the computation of taxable profit and is accounted for using the

liability method. Deferred tax liabilities are recognised for all

taxable temporary differences and deferred tax assets are

recognised to the extent that it is probable that future taxable

profits will be available against which deductible temporary

differences can be utilised. Investment trust companies that have

approval as such under section 1159 of the Corporation Tax Act

2010 are not liable for taxation on capital gains.

The carrying amount of deferred tax assets is reviewed at each

reporting date and adjusted to the extent that it is probable that

sufficient future taxable profits will be available to allow all or part

of the assets to be recovered.

Dividend distribution

Dividends are recognised in the period in which they are

appropriately authorised and no longer at the discretion of the

entity. For interim dividends, this will normally mean the date on

which they are paid and, for final dividends, the date on which they

are approved in general meeting.

Investments

Investments are recognised and derecognised on the date when

their purchase or sale is subject to a relevant contract and the

associated risks and rewards have been transferred. Where a

purchase or sale is made under a contract whose terms require

delivery within the timeframe established by the market

concerned, transactions are recognised on the trade date.

Investments held as part of the group's business of investing in

financial assets are designated as held at fair value through profit

or loss in both the consolidated financial statements and the

company financial statements.

Investments designated as held at fair value through profit or loss

are measured at subsequent reporting dates at fair value. Gains or

losses arising from changes in the value of investments designated

as held at fair value through profit or loss, including foreign

exchange movements, are included in net profit or loss for the

period as a capital return.

Listed investments are valued at bid price or the last traded price

when a bid price is not available. Unlisted investments are valued

using recognised valuation methodologies, based on the

International Private Equity and Venture Capital Valuation

Guidelines, which reflect the amount for which an asset could be

exchanged between knowledgeable, willing parties on an arm’s

length basis. The portfolio valuation methodology is detailed on

pages 161 to 162.

Distributions from investment limited partnerships are treated as

disposal proceeds or income in accordance with the nature of the

distribution. Any surplus capital distributions after repaying

partner’s capital are treated as realised gains.

Service subsidiaries are either designated as held at fair value

through profit or loss or held at amortised cost in the company

financial statements.

When management is committed to a plan to sell an investment,

the asset is available for immediate sale and the sale is deemed

highly probable at the balance sheet date., the asset is classified as

held for sale and held within current assets.

Capital reserve

The company maintains a capital reserve. The following items are

transferred into the capital reserve from profit or loss:

• gains and losses on investments held at fair value through profit

or loss

• fees and share-based payment expenses linked to investment

performance

• expenses and finance costs incurred directly in relation to capital

transactions

• actuarial gains and losses on defined benefit pension schemes

• taxation on items recognised in the capital reserve.

Strategic report

Corporate governance

Financial statements Other information

Introduction

137

Material accounting policies (continued)

Investment property

Investment properties are properties which are held either to earn

rental income or for capital appreciation or for both. Investment

properties are stated at fair value.

The valuations are prepared by considering the aggregate of the

net annual rents receivable from the properties and where

relevant, associated costs. A yield which reflects the specific risks

inherent in the net cash flows is then applied to the net annual

rentals to arrive at the property valuation.

Any gain or loss arising from a change in fair value is recognised in

profit or loss. Rental income is recognised on a straight-line basis

over the lease term.

Property, plant and equipment

Property is measured at fair value. Gains arising from changes in

the fair value are included in other comprehensive income for the

period in which they arise and losses included in profit or loss. To

the extent gains represent the reversal of cumulative losses

previously recognised they are included in profit or loss.

Plant and equipment is measured at cost less accumulated

depreciation and any accumulated impairment loss.

Assets in course of construction are measured at cost less any

accumulated impairment loss.

Depreciation is calculated to write off the fair value or cost of items

of property, plant and equipment less their estimated residual

values using the straight-line method over their estimated useful

lives. Land and assets in course of construction are not

depreciated.

The estimated useful lives of property, plant and equipment are as

follows:

Buildings 25 and 50 years

Fixtures and fittings 5-10 years

Office equipment 3-5 years

Accumulated depreciation on revalued property is eliminated

against the gross carrying amount of the asset.

The gain or loss on the disposal or retirement of an asset is

determined as the difference between the sales proceeds and the

carrying amount of the asset and is recognised in the Statement of

comprehensive income.

Impairment of assets

At each reporting date, the group reviews the carrying amounts of

its tangible assets to determine whether there is any indication that

those assets have suffered an impairment loss. If any such

indication exists, an impairment loss is recognised for the amount

by which the asset’s carrying amount exceeds its recoverable

amount, if any. The recoverable amount is the higher of an asset’s

fair value less costs to sell and value in use.

Receivables

Receivables do not carry any interest and are stated at their

nominal value as reduced by expected credit losses (‘ECL’) arising

from an annual ECL assessment of recoverable amounts. The

company has applied the three stage model to intercompany

receivables and determined they are not impaired on a stage one

basis because credit risk has not increased significantly since

initial recognition.

Cash and cash equivalents

Cash and cash equivalents comprises cash in hand, demand

deposits and money market funds. Cash equivalents are short-

term, highly liquid investments that are readily convertible to

known amounts of cash and that are subject to an insignificant risk

of changes in value.

Borrowings

Interest-bearing bank loans and overdrafts are recorded at the fair

value of proceeds received, net of direct issue costs. Finance

charges, including premiums payable on settlement or redemption

and direct issue costs, are accounted for on an accrual basis in the

Statement of comprehensive income using the effective interest

method and are added to the carrying amount of the instrument to

the extent that they are not settled in the period in which they

arise. The effective interest method allocates the interest expense

over the life of the instrument so as to reflect a constant return on

the carrying amount of the liability.

Payables

Payables, are stated based on the amounts which are considered

to be payable in respect of goods or services received up to the

balance sheet date. Financial liabilities are recognised at amortised

cost in accordance with IFRS 9.

Provisions

A provision is recognised in the Statement of financial position

when the company has a present legal or constructive obligation

as a result of a past event, and it is probable that an outflow of

economic benefits will be required to settle the obligation.

Provisions are measured at the directors’ best estimate of the

expenditure required to settle the obligation at the reporting date

and are discounted to present value where the effect is material.

In the financial statements, provisions recognised for investments

are included in the Statement of comprehensive income as a

capital return.

Share capital

Equity instruments issued by the company are recorded as the

proceeds received, net of direct issue costs.

Where The Caledonia Investments plc Employee Share Trust

purchases the company’s equity share capital, the consideration

paid, including any directly attributable incremental costs (net of

income taxes), is deducted from equity attributable to the

company’s owners until the shares are transferred. Where such

shares are subsequently transferred, any consideration received,

net of any directly attributable incremental transaction costs and

the related income tax effects, is included in equity attributable to

the company’s owners.

Operating segments

Operating segments are based on the financial information

reported to the chief operating decision maker, being the

Executive Committee.

138 Caledonia Investments plc Annual Report 2025

Notes to the financial statements

1. Net investment income

Investment income

	2025	2024
	£m	£m
Income statement revenue column
Income from pool investments
Dividends from UK listed companies	10.5	11.5
Dividends from overseas listed companies	11.4	10.3
Dividends from unlisted companies	14.4	19.2
Distributions from limited partnerships	4.4	3.6
Interest on unlisted debt investments	3.0	2.5
	43.7	47.1
Income from other investments
Dividends from unlisted companies 1	9.0	14.7
	52.7	61.8

1. During the year £9.0m of dividend income was received from Caledonia

CCIL Distribution Ltd and in the prior year £14.7m was received from

Caledonia US Investments Ltd.

Other income

	2025	2024
	£m	£m
Income statement revenue column
Property income	0.9	0.9
Income statement capital column
US limited partnerships tax refunds	0.4	0.6

2. Expenses

Management expenses

	2025	2024
	£m	£m
Income statement revenue column
Personnel expenses	15.4	12.9
Depreciation	1.2	1.1
Auditor’s remuneration	0.5	0.4
Other administrative expenses	11.2	9.6
Directors’ fees and disbursements recharged	(0.8)	(0.9)
Management fees and recharges	(1.6)	(0.2)
	25.9	22.9
Income statement capital column
Personnel expenses	6.3	8.3
Transaction costs	0.3	0.1
Management fees	(0.5)	–
	6.1	8.4
	32.0	31.3 

Further information

Auditor’s remuneration

Fees payable to BDO LLP in respect of services to Caledonia

Investments plc were as follows:

	2025	2024
	£m	£m
Audit services
Statutory audit – group	0.4	0.3
Non-audit services
Other assurance services	0.1	0.1
	0.5	0.4

Fees payable to BDO LLP in respect of services to Caledonia

Investments plc’s non-consolidated subsidiaries were as follows:

	2025	2024
	£m	£m
Audit services
Statutory audit – UK subsidiaries	0.1	0.7
Non-audit services
Other assurance services	–	0.1
	0.1	0.8

Personnel expenses

	2025	2024
	£m	£m
Income statement revenue column
Wages and salaries	12.9	11.1
Compulsory social security contributions	1.9	1.7
Contributions to defined contribution plans	1.3	1.1
Defined benefit pension plans expense (note25)	(0.7)	(1.0)
	15.4	12.9
Income statement capital column
Share-based payments (note24)	5.1	7.1
National Insurance on share awards	1.2	1.2
	6.3	8.3
	21.7	21.2

The average number of employees, including executive directors,

throughout the year was as follows:

	2025	2024
	No	No
Investment and administration	76	71

The company did not have any employees in either the current or

the prior year.

Total directors’ remuneration expensed for the year was £4.6m

(2024: £5.3m), as follows:

	Group
	2025	2024
	£m	£m
Short-term employee benefits	2.8	2.8
Gains on exercise of share awards	1.8	2.5
	4.6	5.3 

Strategic report

Corporate governance

Financial statements Other information

Introduction

139

3. Treasury interest receivable

	2025	2024
	£m	£m
Interest on bank deposits and liquidity funds	9.9	3.2

4. Finance costs

	2025	2024
	£m	£m
Interest on bank loans and overdrafts	3.5	3.4
Interest on loans from group companies	–	7.2
	3.5	10.6

5. Taxation

Recognised in profit for the year

	2025	2024
	£m	£m
Current tax (expense)/income
Current year	2.8	3.4
Adjustments for prior years	(3.0)	(1.5)
	(0.2)	1.9
Deferred tax (expense)/income
Origination and reversal of temporary differences	(0.4)	0.5
Adjustments for prior years	(0.1)	–
	(0.5)	0.5
Total tax (expense)/income	(0.7)	2.4

Adjustments for prior years represented settlement of prior year

tax loss relief surrendered to group companies, finalised in the year.

Reconciliation of effective tax expense

	2025	2024
	£m	£m
Profit before tax	66.8	201.4
Tax expense at the domestic rate of 25%	(16.7)	(50.4)
Non-deductible expenses	2.6	2.1
Unrecognised tax assets	(5.4)	(4.7)
Non-taxable gains on investments 1	11.0	42.8
Non-taxable dividend income	11.3	14.0
Other temporary differences	(0.4)	0.1
Adjustments for prior years	(3.1)	(1.5)
Tax (expense)/income	(0.7)	2.4

1. The Company is exempt from UK corporation tax on capital gains as it

meets the HM Revenue & Customs criteria for an investment company set

out in Section 1158 of the Corporation Tax Act 2010.

Recognised in other comprehensive income

	2025	2024
	£m	£m
Current tax income
Current year	0.4	0.6
Deferred tax income/(expense)
On re-measurements of defined benefit
pension schemes	–	0.2
On share options and awards	0.1	(0.4)
	0.1	(0.2)
Total tax income	0.5	0.4

Current tax assets

Current tax assets of £4.2m in the group and £4.5m in the company

represented tax loss relief surrender for settlement (2024: £1.7m in

the group and £2.0m in the company).

6. Dividends

Amounts recognised as distributions to owners of the company

in the year were as follows:

	2025		2024
	p/share	£m	p/share	£m
Final dividend for the year
ended 31 March 2024 (2023)	51.47	27.9	49.20	26.7
Interim dividend for the year
ended 31 March 2025 (2024)	19.69	10.5	18.93	10.3
	71.16	38.4	68.13	37.0
Amounts proposed after the year end and not recognised in the financial statements were as follows:
Proposed final dividend for the year ended 31 March 2025	53.91	28.5

The proposed final dividend for the year ended 31 March 2025

was not included as a liability in these financial statements. The

dividend, if approved by shareholders at the annual general

meeting to be held on 16 July 2025, will be payable on 7 August

2025 to holders of shares on the register on 27 June 2025. The

ex-dividend date will be 26 June 2025. The deadline for elections

under the dividend reinvestment plan offered by MUFG Corporate

Markets will be the close of business on 17 July 2025.

For the purposes of section 1158 of the Corporation Tax Act 2010

and associated regulations, the dividends payable for the year

ended 31 March 2025 are the interim and final dividends for that

year, amounting to £39.0m (2024: £38.3m).

7. Earnings per share

Basic and diluted earnings per share

The calculation of basic earnings per share of the group was based

on the profit attributable to shareholders and the weighted

average number of shares outstanding during the year. The

calculation of diluted earnings per share included an adjustment

for the effects of dilutive potential shares.

The profit attributable to shareholders (basic and diluted) was

as follows:

	2025	2024
	£m	£m
Revenue	30.9	40.5
Capital	35.2	163.3
Total	66.1	203.8

The weighted average number of shares was as follows:

	2025	2024
	000’s	000’s
Issued shares at the year start	54,612	54,664
Effect of shares cancelled	(740)	(1)
Effect of shares held by the employee share trust	(151)	(270)
Basic weighted average number of shares
in the year	53,721	54,393
Effect of performance shares, share options
and deferred bonus awards	793	844
Diluted weighted average number of shares
in the year	54,514	55,237

Notes to the financial statements (continued)

140 Caledonia Investments plc Annual Report 2025

8. Investments

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments held at fair value through profit or loss
Investments listed on a
recognised stock exchange	964.7	949.8	964.7	949.8
Unlisted investments	1,778.9	1,745.6	1,784.2	1,750.9
	2,743.6	2,695.4	2,748.9	2,700.7
Investments held at cost
Service subsidiaries	–	–	0.9	0.9
Held for sale
Unlisted investments	–	19.0	–	19.0
	2,743.6	2,714.4	2,749.8	2,720.6

The movements in non-current investments were as follows:

	Listed	Unlisted	Unlisted
	equity	equity 1	debt	Total
	£m	£m	£m	£m
Group
Balance at 31 March 2023	836.9	1,932.4	25.6	2,794.9
Transfer to Held for sale	–	(19.0)	–	(19.0)
Purchases at cost	76.5	265.0	1.9	343.4
Realisation proceeds	(43.5)	(556.2)	–	(599.7)
Gains/losses on investments	79.9	94.5	–	174.4
Accrued income	–	1.4	–	1.4
Balance at 31 March 2024	949.8	1,718.1	27.5	2,695.4
Transfer of debt for equity	–	21.2	(21.2)	–
Purchases at cost	106.8	202.0	11.5	320.3
Realisation proceeds	(114.2)	(202.5)	(1.5)	(318.2)
Gains/losses on investments	22.3	21.6	–	43.9
Accrued income	–	2.2	–	2.2
Balance at 31 March 2025	964.7	1,762.6	16.3	2,743.6
Company
Balance at 31 March 2023	836.9	1,941.6	25.6	2,804.1
Transfer to Held for sale	–	(19.0)	–	(19.0)
Purchases at cost	76.5	265.0	1.9	343.4
Realisation proceeds	(43.5)	(556.2)	–	(599.7)
Gains/losses on investments	79.9	91.5	–	171.4
Accrued income	–	1.4	–	1.4
Balance at 31 March 2024	949.8	1,724.3	27.5	2,701.6
Transfer of debt for equity	–	21.2	(21.2)	–
Purchases at cost	106.8	202.0	11.5	320.3
Realisation proceeds	(114.2)	(202.5)	(1.5)	(318.2)
Gains/losses on investments	22.3	21.6	–	43.9
Accrued income	–	2.2	–	2.2
Balance at 31 March 2025	964.7	1,768.8	16.3	2,749.8

1. Unlisted investments included limited partnership and open ended fund

investments, including a loan facility to a wholly owned investment

subsidiary investing in US PE funds. It also included £10.9m of non-pool

investments (2024: £18.0m non-pool investments). For further details fair

value measurement of investments please refer to note 23 on page 147.

9. Investment property

	Freehold
	property
	£m
Cost
Balance at 31 March 2023, 2024 and 2025	19.8
Revaluation
Balance at 31 March 2023	(4.7)
Revaluation in the year	(1.8)
Balance at 31 March 2024	(6.5)
Revaluation in the year	(0.7)
Balance at 31 March 2025	(7.2)
Carrying amounts
At 31 March 2023	15.1
At 31 March 2024	13.3
At 31 March 2025	12.6

At 31 March 2025, the group held one property classified as

investment property, comprising that part of its head office

building occupied by a third party tenant.

The fair value of the investment property was determined by

Tuckerman, an external, independent property valuer, holding

recognised and relevant professional qualifications and with recent

experience in the location and category of the property being

valued. The valuation conforms to the Royal Institution of

Chartered Surveyors ('RICS') Valuation Professional Standards. Fees

paid to the valuer are based on a fixed price contract.

As the property was let to a third party tenant, it was valued on the

basis of the terms of the lease and current rent payable.

The investment property held by the group is classified as Level 3

under the fair value hierarchy (see page 149).

	Market			Range
	value	Valuation	Key unobservable	(weighted
Property	£m	technique	inputs	average)
Buckingham	12.6	Residual	Rent per sq ft pa	£38.00 –
Gate		development		£85.00
		value		(£73.78)
			Rent-free period	1.5 yrs
			Capitalisation rate	5.5%
			Purchaser’s costs	6.8%

An increased capitalisation rate of 0.25% would result in a

decreased asset valuation of £0.6m and a decrease of 0.25% would

result in an increased asset valuation of £0.6m. Conversely, an

increase in the estimated rent by 10% would result in an increase in

the asset valuation of £1.3m and a decrease of 10% would result in

a decrease in the asset valuation of £1.3m. The above inputs are

interdependent and partially determined by market conditions.

The impact on the valuation could be mitigated by the inter-

relationship between these inputs.

Strategic report

Corporate governance

Financial statements Other information

Introduction

141

Notes to the financial statements (continued)

The prior year sensitivity to inputs was as follows:

The investment property held by the group is classified as Level 3.

	Market			Range
	value	Valuation	Key unobservable	(weighted
Property	£m	technique	inputs	average)
Buckingham	13.3	Residual	Rent per sq ft pa	£38.00 –
Gate		development		£85.00
		value		(73.78)
			Rent-free period	1.5 yrs
			Capitalisation rate	5.25%
			Purchaser’s costs	6.8%

An increased capitalisation rate of 0.25% would result in a

decreased asset valuation of £0.6m (restated) and a decrease

of 0.25% would result in an increased asset valuation of £0.8m

(restated). Conversely, an increase in the estimated rent by 10%

would result in an increase in the asset valuation of £1.3m and a

decrease of 10% would result in a decrease in the asset valuation

of £1.3m. The above inputs are interdependent and partially

determined by market conditions. The impact on the valuation

could be mitigated by the inter-relationship between these

inputs.

10. Property, plant and equipment

Group

		Office
		equip-
	Property	ment	Total
	£m	£m	£m
Cost
Balance at 31 March 2023	32.4	4.7	37.1
Acquisitions	–	0.5	0.5
Disposals	–	(0.2)	(0.2)
Balance at 31 March 2024	32.4	5.0	37.4
Acquisitions	–	1.8	1.8
Balance at 31 March 2025	32.4	6.8	39.2
Depreciation
Balance at 31 March 2023	–	(3.1)	(3.1)
Depreciation charge	(0.6)	(0.5)	(1.1)
Eliminate depreciation	0.6	–	0.6
Disposals	–	0.2	0.2
Balance at 31 March 2024	–	(3.4)	(3.4)
Depreciation charge	(0.6)	(0.5)	(1.1)
Eliminate depreciation	0.6	–	0.6
Balance at 31 March 2025	–	(3.9)	(3.9)
Revaluation
Balance at 31 March 2023	(6.1)	–	(6.1)
Revaluation in the year	(2.1)	–	(2.1)
Eliminate depreciation	(0.6)	–	(0.6)
Balance at 31 March 2024	(8.8)	–	(8.8)
Revaluation in the year	(0.6)	–	(0.6)
Eliminate depreciation	(0.6)	–	(0.6)
Balance at 31 March 2025	(10.0)	–	(10.0)
Carrying amounts
At 31 March 2023	26.3	1.6	27.9
At 31 March 2024	23.6	1.6	25.2
At 31 March 2025	22.4	2.9	25.3 

Property is measured at fair value and comprised freehold land and

buildings.

Property was revalued at 31 March 2025 by an independent valuer.

Had the property been carried under the cost model, the carrying

amount would have been £24.0m (2024: £24.6m).

The fair value of the property was determined by Tuckerman, an

external, independent property valuer, holding recognised and

relevant professional qualifications and with recent experience in

the location and category of the property being valued. The

valuation conforms to the Royal Institution of Chartered Surveyors

('RICS') Valuation Professional Standards. Fees paid to the valuer

are based on a fixed price contract.

The external valuations were prepared by considering the

aggregate of the net annual rents receivable from the property and

where relevant, associated costs. A yield which reflects the specific

risks inherent in the net cash flows is then applied to the net annual

rentals to arrive at the property valuation.

The property held by the group is classified as Level 3 under the fair

value hierarchy (see page 149).

	Market			Range
	value	Valuation	Key unobservable	(weighted
Property	£m	technique	inputs	average)
Buckingham	22.4	Rental	Rent per sq ft pa	£40.00 –
Gate		yield		£85.00
				(£73.32)
			Capitalisation rate	5.5%
			Purchaser’s costs	6.8%

An increased capitalisation rate of 0.25% would result in a

decreased asset valuation of £1.1m and a decrease of 0.25%

would result in an increased asset valuation of £1.2m. An increase

in the estimated rent by 10% would result in an increase in the

asset valuation of £1.1m and a decrease of 10% would result in a

decrease in the asset valuation of £1.1m. The above inputs are

interdependent and partially determined by market conditions.

The impact on the valuation could be mitigated by the inter-

relationship between these inputs.

The prior year sensitivity to inputs was as follows:

	Market			Range
	value	Valuation	Key unobservable	(weighted
Property	£m	technique	inputs	average)
Buckingham	23.6	Rental	Rent per sq ft pa	£40.00 –
Gate		yield		£85.00
				(£73.32)
			Capitalisation rate	5.25%
			Purchaser’s costs	6.8%

An increased capitalisation rate of 0.25% would result in a decreased

asset valuation of £1.2m and a decrease of 0.25% would result in an

increased asset valuation of £1.2m. An increase in the estimated

rent by 10% would result in an increase in the asset valuation of

£1.1m and a decrease of 10% would result in a decrease in the asset

valuation of £1.2m. The above inputs are interdependent and

partially determined by market conditions. The impact on the

valuation could be mitigated by the inter-relationship between

these inputs.

142 Caledonia Investments plc Annual Report 2025

11. Deferred tax

Deferred tax assets and liabilities were attributable

to the following:

	Assets	Liabilities	Net
Group	£m	£m	£m
2025
Employee benefits	5.3	(1.3)	4.0
Other timing differences	–	(0.2)	(0.2)
	5.3	(1.5)	3.8
2024
Employee benefits	5.4	(1.0)	4.4
Other timing differences	(0.1)	(0.1)	(0.2)
	5.3	(1.1)	4.2

Movement in temporary differences during the year

			Other
		Compre-	compre-
	Balance at	hensive	hensive	Balance at
	year start	income	income	year end
Group	£m	£m	£m	£m
2025
Employee benefits	4.4	(0.5)	0.1	4.0
Other timing differences	(0.2)	–	–	(0.2)
	4.2	(0.5)	0.1	3.8
2024
Employee benefits	4.1	0.5	(0.2)	4.4
Other timing differences	(0.2)	–	–	(0.2)
	3.9	0.5	(0.2)	4.2

Deferred tax assets and liabilities are measured at the tax rates that

are expected to apply to the period when the asset is realised or

the liability settled, based on rates that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax balances are calculated on all temporary differences

using a tax rate of 25%.

Group and company

Unrecognised deferred tax assets

Deferred tax assets were not recognised in relation to the following

deductible temporary differences and unused tax losses:

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Tax losses	125.0	82.9	125.0	82.9
Corporate Interest
Restrictions	–	4.0	–	4.0
Capital losses	82.3	76.6	63.2	63.2

These deductible temporary differences and unused tax losses do

not expire.

Given the Company’s status as an investment trust company and

the intention to continue meeting the conditions required to obtain

approval, the Company has not provided for deferred tax on any

capital gains or losses arising on the revaluation or disposal of

investments held by the Company itself.

12. Trade and other receivables

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Non-current assets
Other receivables	–	–	30.5	35.5
Company non-current other receivables comprise £30.5m (2024:
£35.5m) due from a wholly owned subsidiary.
Current assets
Trade receivables	3.5	2.2	1.2	2.0
Non-trade receivables and
prepayments	6.8	5.1	5.2	3.0
	10.3	7.3	6.4	5.0

We estimate expected credit losses on the Group and Company

receivables to be under £0.1m (2024: less than £0.1m). Our ECL

assessment included a review of recoverability of the Trade

receivables which comprise quoted investment income and private

capital sales balances to confirm amounts were received within

one month of the reporting date.

An aged analysis of group trade receivables is disclosed below.

		Within
	Total	terms	0-1 month
	£m	£m	£m
2025	3.5	3.4	0.1
2024	2.2	2.1	0.1

13. Cash and cash equivalents

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Bank balances	9.8	3.9	8.3	4.5
Money market funds	141.5	223.5	140.2	222.8
Cash and cash equivalents	151.3	227.4	148.5	227.3

14. Interest-bearing loans and borrowings

There were no interest-bearing loans and borrowings outstanding

at 31 March 2025 or 2024.

As at 31 March 2025 the group had undrawn committed facilities

totalling £325m (2024: £250m), comprising two tranches: £175m

with a three year term from BNP Paribas and Industrial and

Commercial Bank of China that will expire in August 2027; and

£150m with a five year term from The Royal Bank of Scotland

International RBSI that will expire in August 2029. The bank facility

is secured by way of floating charge over the public companies

shares held by BNP Paribas, as global custodian to the company.

The facilities are in place to ensure the group has sufficient liquid

funds to meet its working capital and investment requirements,

most notably drawdown notices from private equity funds, whose

exact timing can be unpredictable.

The previous £250m bilateral facilities with The Royal Bank of

Scotland International RBSI and ING were cancelled at the same

time.

Strategic report

Corporate governance

Financial statements Other information

Introduction

143

Notes to the financial statements (continued)

Covenants attached to the group loan facilities assess borrowing

levels against the net assets of Caledonia plc and sub-categories of

assets held therein, adjusted to take account of liquidity, asset

concentration and the markets in which they are invested. As at

31 March 2025, Caledonia plc had remaining borrowing capacity

under the covenants of £754m (2024: £560m), considerably in

excess of undrawn facilities. Compliance with covenants is

tested monthly.

During the year the group and company utilised £nil (2024: £70m)

of an available £325m (2024: £250m) of bank revolving credit

facilities.

15. Trade and other payables

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Trade payables	1.3	1.1	0.1	10.5
Non-trade payables and
accrued expenses	3.7	3.1	10.6	7.5
Other payables	11.4	20.2	11.4	20.2
	16.4	24.4	22.1	38.2

Other payables of the group and company include short-term

borrowing from non-consolidated subsidiaries of £11.4m (2024:

£20.2m).

16. Share capital

		Deferred
	Ordinary	ordinary	Share
	shares	shares	premium	Total
	£m	£m	£m	£m
Balance at 31 March 2023
and 2024	2.7	0.4	1.3	4.4
Transfer to capital
redemption reserve on
cancellation of share capital	(0.1)	–	–	(0.1)
Balance at 31 March 2025	2.6	0.4	1.3	4.3

The number of fully paid shares in issue was as follows:

				Deferred
		Ordinary shares		ordinary shares
	2025	2024	2025	2024
	000’s	000’s	000’s	000’s
Balance at the year start	54,612	54,664	8,000	8,000
Shares purchased and cancelled	(1,729)	(52)	–	–
Balance at the year end	52,883	54,612	8,000	8,000

The company had outstanding performance share scheme and

deferred bonus awards (note 24).

As at 31 March 2025, the issued share capital of the company

comprised 52,882,698 ordinary shares (2024: 54,611,759 ) and

8,000,000 deferred ordinary shares (2024: 8,000,000). The

ordinary and deferred ordinary shares have a nominal value

of 5p each.

The holders of the ordinary shares are entitled to receive dividends

as declared from time to time and are entitled to one vote per

share at meetings of the company. In respect of the company’s

ordinary shares that are held by subsidiaries, all voting rights

are suspended.

The deferred ordinary shares carry no voting rights and are not

redeemable. They carry the right to a fixed cumulative preference

dividend of 1% per annum (exclusive of any associated tax credit) of

the nominal value of such deferred ordinary shares, being 0.05p

per share, or £4,000 in aggregate, for all such shares currently in

issue. The company is required to pay the dividend to the extent

that it has distributable profits. On a winding-up or other return of

capital, the deferred ordinary shares carry the right to the payment

of the amount paid up on such shares only after holders of the

ordinary shares have received the sum of £100,000 in respect of

each such ordinary share. All of the deferred ordinary shares are

held by Sterling Industries Ltd, a wholly-owned group company.

17. Net asset value ('NAV') and NAV total return

(‘NAVTR’)

APM

The group’s undiluted net asset value is based on the net assets of

the group at the year end and on the number of ordinary shares in

issue at the year end less ordinary shares held by The Caledonia

Investments plc Employee Share Trust. The group’s diluted net

asset value assumes the calling of performance share and deferred

bonus awards.

		2025			2024
	Net	Number		Net	Number
	assets	of shares 1	NAV	assets	of shares 1	NAV
	£m	000’s	p/share	£m	000’s	p/share
Undiluted	2,936.1	52,750	5558	2,965.3	54,388	5452
Share awards	–	793	(83)	–	844	(83)
Diluted	2,936.1	53,543	5475	2,965.3	55,232	5369

1. Number of shares in issue at the year end is stated after the deduction of

133,025 (2024: 223,666) ordinary shares held by the Caledonia

Investments plc Employee Share Trust.

Net asset value total return is calculated in accordance with AIC

guidance, as the change in NAV from the start of the period,

assuming that dividends paid to shareholders are reinvested at NAV

at the time the shares are quoted ex-dividend.

	2025	2024
	p	p
Diluted NAV at year start	5369	5068
Diluted NAV at year end	5475	5369
Dividends payable in the year	71	68
Reinvestment adjustment 2	–	6
	5546	5443
NAVTR over the year	3.3%	7.4%

2. The reinvestment adjustment is the gain or loss resulting from reinvesting

the dividends in NAV at the ex-dividend date.

144 Caledonia Investments plc Annual Report 2025

18. Operating segments

The chief operating decision maker has been identified as the

Executive Committee, which reviews the company’s internal

reporting in order to assess performance and allocate resources.

Management has determined the operating segments based on

these reports.

The performance of operating segments is assessed on a measure

of group total revenue, principally comprising gains and losses on

investments and derivatives hedging those investments and

investment income. Reportable profit or loss is after treasury

income and ‘Other items’, which comprise management and other

expenses and provisions. Reportable assets equate to the group’s

total assets. Cash and cash equivalents and other items are not

identifiable operating segments.

‘Other investments’ comprise subsidiaries not managed as part of

the investment portfolio.

Reportable segments are identified with reference to investment

‘pools’ which are used by management to organise the asset

allocation and performance measurement of the business.

The pools are quoted equity, private companies (Private Capital)

and private equity funds (Funds), with each pool exposed to

different risks, and operated by different teams according to

distinct investment criteria and subject to different internal

performance targets.

		Profit/(loss)before tax		Total assets
	2025	2024		2025	2024
	£m		£m	£m	£m
Public Companies	44.1	101.8	964.7		949.8
Private Capital	30.5	111.2	870.7		820.3
Funds	19.5	19.4	897.3		926.3
Investment portfolio	94.1	232.4	2,732.7		2,696.4
Other investments 1	2.5	1.4	10.9		18.0
Total revenue/investments	96.6	233.8	2,743.6		2,714.4
Cash and cash equivalents	9.9	3.2		151.3	227.4
Other items	(39.7)	(35.6)		63.1	57.1
Reportable total	66.8	201.4		2,958.0	2,998.9

1. Other investments included £10.9m of non-pool investments (2024:

£18.0m of non-pool investments).

Geographical segments

In presenting information on the basis of geographical segments,

segment revenue is based on the currency of primary listing for

listed securities, or country of residence for unquoted investments,

and segment assets are based on the geographical location of the

assets. Non-current assets below comprise investment property

and property, plant and equipment (notes 9-10).

	UK	US	Other	Total
	£m	£m	£m	£m
2025
Revenue	(78.1)	103.1	71.6	96.6
Non-current assets	37.9	–	–	37.9
2024
Revenue	7.8	102.6	123.4	233.8
Non-current assets	38.5	–	–	38.5

19. Related parties

Identity of related parties

The group and company had related party relationships with its

subsidiaries (note 27) and associates (note 26) and with its key

management personnel, being its directors.

Transactions with key management personnel

Certain directors of the company and their immediate relatives had

significant influence in The Cayzer Trust Company Ltd, which held

36.6% of the voting shares of the company as at 31 March 2025

(2024: 35.6%).

During the year, the group invoiced and received £0.1m (2024:

£0.1m) in rent and administration fees from The Cayzer Trust

Company Ltd.

In addition to their salaries, the group provided non-cash and

post-employment benefits to directors and executive officers.

Details of directors’ pension benefits are set out in the Directors’

remuneration report on page 105.

The key management personnel compensation was as follows:

	Group
	2025	2024
	£m	£m
Short-term employee benefits	2.8	2.8
Equity compensation benefits	1.1	1.5
	3.9	4.3

Total remuneration of directors is included in ‘Personnel expenses’

(note 2).

Strategic report

Corporate governance

Financial statements Other information

Introduction

145

Notes to the financial statements (continued)

Other related party transactions

Subsidiaries

Transactions between the company and its subsidiaries were

as follows:

		2025		2024
	Amount		Amount
	of trans-	Balance at	of trans-	Balance at
	actions	year end	actions	year end
	£m	£m	£m	£m
Comprehensive income items
Dividends receivable on
equity shares	17.5	–	22.2	–
Interest receivable	3.0	–	2.4	–
Management fees payable	(32.6)	(12.6)	(31.4)	(11.4)
Interest payable	(0.1)	–	(7.3)	–
Taxation received	0.9	–	21.1	–
Taxation paid	(2.8)	–	–	–
Financial position items
Capital contributed 1	(31.4)	–	–	–
Investment loans	(34.9)	31.7	13.9	66.6
Loans receivable	(5.0)	30.5	–	35.5
Loans payable 2	8.9	(11.4)	266.0	(20.2)

1. During the year the Company contributed its investment in SIS Holdings

Ltd to a wholly owned subsidiary SISH Shareholder LLP.

2. During the prior year $328m (£266m) was repaid to Caledonia US

Investments Ltd on the loan facility provided in 2023.

Associates

Transactions between the company and group and associates

were as follows:

		2025		2024
	Amount		Amount
	of trans-	Balance at	of trans-	Balance at
	actions	year end	actions	year end
	£m	£m	£m	£m
Directors’ fees 1	0.1	–	0.1	–
Dividends receivable on
equity shares	2.7	–	–	–

1. Transactions with subsidiary.

20. Operating leases

Leases as lessor

The group leases out its investment property under operating

leases (note 9). The future minimum lease receipts under non-

cancellable leases were as follows:

	2025	2024
	£m	£m
Less than one year	0.9	0.9
Between one and five years	0.3	1.2
	1.2	2.1

During the year ended 31 March 2025, £0.7m (2024: £0.8m) was recognised

as income in the statement of comprehensive income in respect of operating

leases.

21. Capital commitments

At the reporting date, the group and company had entered into

unconditional commitments to limited partnerships and

committed loan facility agreements, as follows:

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments
Contracted but not called	415.9	377.0	415.9	377.0
Loan facilities
Committed but undrawn	–	–	9.5	4.5
	415.9	377.0	425.4	381.5

Amounts are callable within the next 12 months. The group has

conducted a going concern assessment which considered future

cash flows, the availability of liquid assets and debt facilities, over

the 12-month period required. In making this assessment a number

of stress scenarios were developed. The most extreme downside

scenario included the impact of a market downturn event and all

outstanding private equity fund commitments being drawn. Under

this scenario the group would have a range of mitigating actions

available to it, including sales of liquid assets and usage of banking

facilities, which would provide sufficient funds to meet all of its

liabilities as they fall due and still hold significant liquid assets over

the assessment period. For further details on assessment of going

concern and viability please refer to page 68.

22. Contingencies

The company has provided guarantees capped at £6.5m, £9.0m

and £5.0m to the trustees of the Caledonia Pension Scheme,

the Sterling Industries Pension Scheme and the Amber Industrial

Holdings PLC Pension & Life Assurance Scheme respectively in

respect of the liabilities of the participating employers of

those schemes.

Management have not set out a maturity analysis in relation to

the pensions guarantees totalling £20.5m on the grounds that

management are unable to accurately allocate to the earliest

period in which the guarantee could be called due to the conditions

of this guarantee.

146 Caledonia Investments plc Annual Report 2025

23. Financial instruments

Financial instruments comprise securities and other investments,

cash balances, borrowings and receivables and payables that arise

from operations. The investment portfolio includes listed and

unlisted equity investments, debt instruments and investments in

funds that are intended to be held for the long term.

Risk analysis

The main types of financial risk to which the group is exposed are

market risk (which encompasses price risk, currency risk and

interest rate risk), credit risk and liquidity risk.

The nature and extent of the financial instruments outstanding at

the reporting date and the risk management policies employed are

discussed below.

Market risk

Market risk embodies the potential for both losses and gains and

includes price risk, currency risk and fair value interest rate risk.

The strategy for managing market risk is driven by the company’s

objectives, which are to outperform the CPIH by 3% to 6% in the

short term and the FTSE All-Share Total Return index over rolling ten

year periods. Investments are made in a range of instruments,

including listed and unlisted equities, debt and investment funds,

in a range of sectors and regions.

Price risk

Price risk may affect the value of listed and unlisted investments as

a result of changes in market prices (other than arising from

interest rate risk or currency risk), whether caused by factors

specific to an individual investment, its issuer or factors affecting all

instruments traded in the market. Factors affecting instruments

traded in the market could include changes in market prices

whether driven by market sentiment, information specific to

individual investments, or the movements in foreign currency

relative to the group’s functional currency of Sterling.

As the majority of financial instruments are carried at fair value,

with fair value changes recognised in the Statement of

Comprehensive Income, all changes in market conditions will affect

portfolio asset prices.

Price risk is managed by constructing a diversified portfolio of

instruments traded on various markets and hedging where

appropriate.

The exposures of listed and unlisted equity investments and fund

interests were as follows:

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments held at fair
value through profit or loss	2,727.3	2,667.9	2,732.6	2,673.2

The following table details the sensitivity to a 10% variation in

equity prices. The sensitivity analysis includes all equity and fund

investments held at fair value through profit or loss and adjusts

their valuation at the year end for a 10% change in value.

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Increase in prices	272.7	266.8	273.3	267.3
Decrease in prices	(272.7)	(266.8)	(273.3)	(267.3)

The sensitivity to equity and fund investments has increased during

the year due to net gains on investments in the year more than

offsetting net realisations thereby increasing the portfolio value at

the year end.

Currency risk

The group’s currency risk is attributable to monetary items which

are denominated in currencies other than the group’s functional

currency of Sterling. This excludes the impact of foreign currency

movements on equity instruments which carry foreign currency

price risk (see price risk section above). There is exposure to the risk

that the exchange rate of the functional currency may change

relative to other currencies in a manner that has an adverse effect

on the value of that portion of assets and liabilities denominated in

currencies other than the functional currency.

The company’s non-functional currency denominated monetary

items and gains and losses thereon are reviewed regularly by the

directors and the currency risk is managed by the directors within

the overall asset allocation strategies.

The fair values of the monetary items that have foreign currency

exposure were as follows:

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments in debt
instruments	–	1.6	–	1.6
Cash and cash equivalents	23.1	15.9	22.9	15.8
	23.1	17.5	22.9	17.4

The following table details the sensitivity to a 10% variation in

exchange rates. This level of change is considered to be reasonable,

based on observation of market conditions and historic trends. The

sensitivity analysis includes all foreign denominated debt

investments.

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Sterling depreciates (weakens)	1.9	1.6	1.9	1.6
Sterling appreciates
(strengthens)	(1.6)	(1.3)	(1.6)	(1.3)

The exposure to foreign currency has increased in the year due to

an increase in foreign denominated cash and cash equivalents

more than offsetting the reduction in foreign debt investments.

The group actively monitors its exposure to foreign currency risk

but does not seek to hedge against it.

Interest rate risk

Interest rate movements may affect the fair value of investments in

fixed interest securities and the level of income receivable from

floating income securities and cash at bank and on deposit.

The company and group held cash at bank, term deposits and

money market funds, with the term to maturity of up to three

months and fixed and floating rate, interest-bearing financial

assets. 

Strategic report

Corporate governance

Financial statements Other information

Introduction

147

Notes to the financial statements (continued)

The company’s interest bearing assets and liabilities are reviewed

periodically by the company and interest rate risk is managed by

the directors within the overall asset allocation strategies.

The exposure to interest rate risk on financial assets and liabilities

was as follows:

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Fixed rate
Interest-bearing loans to non-consolidated subsidiaries	–	1.6	–	1.6
Floating rate
Investments in debt
instruments	16.3	25.9	16.3	25.9
Cash and cash equivalents	151.3	227.4	148.5	227.3

The sensitivity analysis below has been determined based on the

exposure to interest rates at the reporting date from a 50 basis

point change taking place at the beginning of the financial year and

held constant throughout the year. This level of change is

considered to be reasonable, based on observation of market

conditions and historic trends.

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Decrease in interest rates	(0.7)	(1.1)	(0.7)	(1.1)
Increase in interest rates	0.7	1.1	0.7	1.1

The group’s sensitivity to interest rates has reduced over the year

due to a reduction in net cash balances.

The group does not consider there is a material exposure to interest

rate risk.

Credit risk

Credit risk is the risk that the counterparty to a financial instrument

will fail to discharge an obligation or commitment. A credit policy is

in place and exposure to credit risk is monitored regularly.

The exposure to credit risk in financial assets was as follows:

	Group			Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments in debt instruments	16.3	27.5	16.3	27.5
Operating and other receivables	10.3	7.3	36.9	40.5
Cash and cash equivalents	151.3	227.4	148.5	227.3
	177.9	262.2	201.7	295.3

The group’s credit risk is primarily attributable to its cash and cash

equivalents, trade receivables and debt investments. For an aged

analysis of trade receivables see note 12. A group analysis of credit

ratings for cash and cash equivalents is presented below. All other

financial assets are unrated.

	Group
	2025	2024
Credit rating	£m	£m
AAAm 1	141.5	223.5
A+ / A- 1	9.8	3.9
	151.3	227.4

1. The group holds £141.5m (2024 - £223.5m) in Low Volatility Net Asset

Value money market funds which all hold a AAAm rating from Standard &

Poors and £9.8m (2024: £3.9m) of cash in current accounts with three

commercial banks with credit ratings from Standard & Poor's of A+ and A-.

Debt instruments relate to loans to investees within the Private

Capital pool totalling £16.3m (2024: £27.5m). Prior to making

investments in debt instruments, management has in place a

process of review that includes an evaluation of a potential

investee company's ability to service and repay its debt.

Management assesses the credit risk relating to these instrument

as part of an overall ongoing monitoring of its debt and equity

positions in each relevant investee.

The exposure to credit risk on operating and other receivables is

mitigated by performing credit evaluations on investee companies

as part of the due diligence process.

Credit risk arising on money market liquidity funds and cash and

cash equivalents is mitigated by spreading liquidity investments

and deposits across a number of approved counterparties in

accordance with board policy. These are “AAA” rated money

market funds, as determined by the rating agencies Fitch, Moody’s

or Standard & Poor’s; highly-rated banks operating in the London

money market; or investment-grade clearing banks specifically

approved by the board. These credit ratings are reviewed regularly.

At the year end, the group and company had money market

liquidity funds of £141.5m and £140.2m respectively (2024:

£224.2m and £223.5m).

At the year end, the group and company had £20.0m invested in

each of the Aberdeen Liquidity Fund (Lux) GBP, the ILF GBP liquidity

fund from Insight and the LGIM Liquidity Fund GBP, £15.0m

invested in each of the Institutional Sterling Liquidity fund from

Blackrock, the Sterling Liquidity fund from Aviva Investors and the

Sterling liquid reserves fund from Goldman Sachs and £12.0m

invested in the JP Morgan GBP liquidity fund. In addition the

company and group had £23.2m and £24.5m invested respectively

in the HSBC Global Liquidity Funds plc Sterling and US Dollar

Liquidity Funds.

At the prior year end, the group and company had £30.5m invested

in the JP Morgan GBP and US Dollar liquidity funds, £30m invested

in each of the ILF GBP liquidity fund from Insight and the LGIM

Liquidity Fund GBP, £28.6m invested in the Institutional Sterling and

US Dollar Liquidity funds from Blackrock, £26.0m invested in each

of the Aberdeen Liquidity Fund (Lux) GBP, the Sterling Liquidity fund

from Aviva Investors and the Sterling liquid reserves fund from

Goldman Sachs. In addition the company and group had £25.7m

and £26.4m invested respectively in the HSBC Global Liquidity

Funds plc Sterling and US Dollar Liquidity Funds.

All transactions in listed securities are settled on contract terms

using approved brokers. The risk of default is considered minimal,

as delivery of securities sold is only made once the broker has

received payment. Payment is made on a purchase once the

securities have been received by the broker. The trade will fail if

either party fails to meet their obligations. Listed security trades

are settled through BNP Paribas Global Custody.

Fair value

Most of the financial instruments are carried at fair value in the

Statement of financial position. Usually, the fair value of the

financial instruments can be reliably determined within a

reasonable range of estimates. For certain other financial

instruments, specifically operating and other receivables and

payables, the carrying amounts approximate fair value due to the

immediate or short term nature of these financial instruments.

148 Caledonia Investments plc Annual Report 2025

Liquidity risk

Liquidity risk arises as a result of the possibility that the group and

company may not be able to meet its obligations as they fall due.

The corporate treasury function provides services to the company

and group, coordinating access to domestic financial markets for

both borrowing and depositing. Group companies access local

financial markets when this is more favourable, in liaison with the

corporate treasury function. Executive management monitors the

group’s liquidity on a weekly basis, including the level of undrawn

committed bank facilities.

Bank facilities were undrawn at 31 March 2025 and 2024.

Capital management policies and procedures

The group’s capital management objectives are:

• to ensure that the group and company will be able to continue

as a going concern

• to maximise the income and capital return to the company's

shareholders, principally through the use of equity capital,

although the group will maintain appropriate borrowing facilities,

to be used for short-term working capital or bridging finance,

currently £325m (2024: £250m).

The group’s total capital at 31 March 2025 was £2,931.6m (2024:

£2,965.3m) and comprised equity share capital and reserves of

£2,931.6m (2024: £2,965.3m) and £nil of borrowings (2024: £nil).

The group was ungeared at the year end (2024: ungeared) and had

£325m (2024: £250m) of undrawn committed bank facilities.

The board monitors and reviews the broad structure of the group’s

and company's capital on an ongoing basis. This review includes:

• the planned level of gearing, which takes into account planned

investment activity

• the possible buy-back of equity shares for cancellation, which

takes account of the discount of the share price to net asset

value per share

• the annual dividend policy.

The group’s objectives, policies and processes for managing capital

are unchanged from the preceding year.

The parent company is subject to the following externally imposed

capital requirements:

• as a public limited company, the company is required

to have a minimum issued share capital of £50,000

• to maintain its approval as an investment trust company, the

company is required to comply with the provisions of section

1158 of the Corporation Tax Act 2010 as amended by the

Investment Trust (Approved Company) (Tax) Regulations 2011.

The parent company has complied with these requirements,

which are unchanged since the previous year end.

Fair value hierarchy

The company measures fair values using the following fair value

hierarchy, reflecting the significance of the inputs used in making

the measurements:

Level 1 Inputs that are quoted market prices (unadjusted) in

active markets for identical instruments.

Level 2 Inputs other than quoted prices included in Level 1

that are observable either directly or indirectly.

Level 3 Inputs that are unobservable.

The table below analyses financial instruments held at fair value

according to level in the fair value hierarchy into which the fair

value measurement is categorised:

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Investments held at fair value
Level 1	964.7	949.9	964.7	949.9
Level 2	14.4	8.4	14.4	8.4
Level 3	1,764.5	1,737.1	1,769.8	1,742.4
	2,743.6	2,695.4	2,748.9	2,700.7

The following table shows a reconciliation from the opening

balances to the closing balances for fair value measurements in

Level 3 of the fair value hierarchy:

	Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Balance at the year start	1,737.1	1,953.2	1,742.4	1,961.5
Transferred to Held for Sale	–	(19.0)	–	(19.0)
Purchases	213.5	269.8	213.5	269.8
Disposal proceeds	(203.9)	(327.8)	(203.9)	(327.8)
Gains and losses on
investments sold in the year	56.2	122.7	56.2	122.7
Gains and losses on
investments held at the year end	(40.6)	(263.2)	(40.6)	(266.2)
Accrued income	2.2	1.4	2.2	1.4
Balance at the year end	1,764.5	1,737.1	1,769.8	1,742.4

The following table provides information on significant

unobservable inputs used at 31 March 2025 in measuring financial

instruments categorised as Level 3 in the fair value hierarchy. 

Strategic report

Corporate governance

Financial statements Other information

Introduction

149

Notes to the financial statements (continued)

Private company assets have been disaggregated into categories

as follows: Assets in the large, earnings based category have an

Enterprise Value of >£200m, and benefit from a reasonable

number of comparative data points, as well as having sufficient size

to make their earnings reliable and predictable. The assets in the

small and medium, earnings based category have an Enterprise

Value of <£200m and have a more limited universe of comparable

businesses available. Manager valuations are used for assets where

the net asset method is employed. During the prior year the large

categorisation was increased to >£200m.

For private company assets we have chosen to sensitise and

disclose EBITDA multiple inputs because their derivation involves

the most significant judgements when estimating valuation,

including which data sets to consider and prioritise. Valuations also

include other unobservable inputs, including earnings, which are

based on historic and forecast data and are less judgemental. For

each asset category, inputs were sensitised by a percentage

deemed to reflect the relative degree of estimation uncertainty,

and valuation calculations re-performed to identify the impact.

Private equity fund assets are each held in and managed by the

same type of fund vehicle, valued using the same method of

adjusted manager valuations, and subject to broadly the same

economic risks. They are therefore subject to a similar degree of

estimation uncertainty. They have been sensitised at an aggregated

level by 5% to reflect a degree of uncertainty over managers’

valuations which form the basis of their fair value.

At 31 March 2025

				Input	Change
		Unobser-	Weighted	sensit-	in valu-
Description /	Fair	vable	average	ivity	ation
valuation method	value £m	input	input	+/-	+/- £m
Internally developed
Private companies
Large, earnings	555.5	EBITDA	12.5x	10.0%	+56.2/-
		multiple			59.8
Small and medium,	67.5	Various			+6.8/
blend of methods					-7.5
Transaction	55.0		1	5%	+/-2.8
Net assets /	192.7	Multiple	1	0.1x	+/-19.3
manager valuation	870.7				+85.1/-
					89.4
Non-pool companies	10.9
Total internal	881.6
Externally developed
Private equity fund
Net asset value	882.9	Manager	1	5%	+/-44.1
		NAV
					+129.2/-
	1,764.5				133.5

The table below sets out information about significant

unobservable inputs used at the prior year end, 31 March 2024 in

measuring financial instruments categorised as Level 3 in the fair

value hierarchy.

At 31 March 2024

				Input	Change
		Unobser-	Weighted	sensit-	in valu-
Description /	Fair	vable	average	ivity	ation
valuation method	value £m	input	input	+/-	+/- £m
Internally developed
Private companies
Large, earnings	473.9	EBITDA	12.1x	10.0%	+51.1/-
		multiple			52.7
Small and medium,	164.0	EBITDA	9.1x	10.0%-	+15.3/-
earnings		multiple		15%	14.4
Net assets / manager	182.4	Multiple	1	0.1x	+18.6/-
valuation					18.8
	820.3				+85.0/-
					85.9
Non-pool companies	18.0
Total internal	838.3
Externally developed
Private equity fund
Net asset value	898.8	Manager	1	5%	+/-44.9
		NAV
					+129.9/-
	1,737.1				130.8

150 Caledonia Investments plc Annual Report 2025

Private capital companies

Valuation approach

For each asset, management considers a range of valuation

methods and select those which are considered most appropriate

for each asset, taking into consideration the quantity and quality of

data points available with each method. Methods include inter alia:

Indicative offers. We regularly receive indications of interest from

potential acquirers for our private capital assets, either as part of a

structured sale process or in the form of a direct approach. Where

we judge it appropriate, the insight gained from such approaches is

incorporated into the data sets used in arriving at valuations. Where

there is an offer from credible buyer or buyers, and there is an

intention to advance discussions, our practice is to consider fair

values derived from an indicative enterprise value based on offers

received with an appropriate discount applied. Discounts aim to

reflect the unique uncertainty associated with the execution of

each transaction, and are normally in a range of 5-20%.

Multiples

This method involves the application of an earnings multiple to the

maintainable earnings of the business, most commonly earnings

before interest, tax, depreciation and amortisation (“EBITDA”)

multiples, and is likely to be appropriate for investments in

established businesses with an identifiable ongoing earnings stream.

Such multiples are derived from (i) comparable public companies

based on geographic location, industry, size, target markets and

other factors that management considers to be reasonable and (ii)

reported mergers and acquisitions transactions involving

comparable companies. EBITDA multiples ranged from 10x to 15x

(2024: 4x to 15x), with a weighted average of 11.3x (2024: 11.5x).

Earnings are obtained from portfolio company statutory and

management accounts and forecast management accounts.

Maintainable earnings are estimated by adjusting reported and

forecast earnings for non-recurring items (for example restructuring

expenses), for significant corporate actions, and, in exceptional

cases, run-rate adjustments.

Net assets

This method is likely to be appropriate for businesses whose value

derives principally from the underlying value of its assets rather than

its ongoing earnings. A third-party valuation may be used to derive

the fair value of a particular asset or group of assets, most

commonly property assets.

Having selected an appropriate method, management then

considers a range of data relevant to each asset. The data selected

and the assumptions used are in each case examined by the

Valuation Committee and Audit and Risk Committee to ensure

sufficient challenge and reflection has been made on the decisions

made to arrive at valuations.

In arriving at valuations for the Private Capital portfolio the directors

have conducted a portfolio analysis, examining company and sector

specific vulnerabilities, the quantity and quality of data available, as

well as considering operating and financial leverage and liquidity.

They have classified the investments into five categories based on a

combination of enterprise value, valuation technique and sector as

shown on the following page.

At 31 March 2025, the investments were classified as follows:

		EV Range	Valuation	Valuation
Investment	Category	£m	technique	£m
Stonehage	Large, internally	>200m	Earnings	221.4
Fleming	developed
AIR-serv	Large, internally	>200m	Earnings	197.7
	developed
Cobehold	Utilise external	N/A	Net assets	192.7
	valuation
Butcombe	Large, internally	>200m	Earnings	136.5
	developed
DTM	Utilise transaction	N/A	Transaction	55.0
	price
Cooke	Small and Medium,	<200m	Blended	44.1
Optics	internally developed		method
Other investments				23.3
				870.7

At 31 March 2024, the investments were classified as follows:

		EV Range	Valuation	Valuation
Investment	Category	£m	technique	£m
Cobehold	Utilise external	N/A	Net assets	181.0
	valuation
AIR-serv	Large, internally	>200m	Earnings	170.1
	developed
Stonehage	Large, internally	>200m	Earnings	168.5
Fleming	developed
Butcombe	Large, internally	>200m	Earnings	135.2
	developed
Cooke Optics Small and Medium,		<200m	Earnings	105.4
	internally developed
Other investments				60.1
				820.3 

Strategic report

Corporate governance

Financial statements Other information

Introduction

151

Notes to the financial statements (continued)

The valuation of Private Capital companies may also be informed by

offers we have received from interested parties in the year.

More details on the valuation process for individual assets within

these categories is outlined below.

Large, internally developed

AIR-serv, Stonehage Fleming and Butcombe use an earnings

multiple method with earnings derived from trading over historic,

current and forecast periods. A particularly high quality set of

comparator companies was identified when arriving at an

appropriate multiple.

Small and medium, internally developed

Cooke Optics and Sports Information Services used a blend of

methods comprising the earnings multiple method, weighting of

outcomes and discounted cash flows. Earnings were derived from

trading over historic, current and forecast periods. Multiples were

arrived at after considering a basket of sector specific transactions

and sector specific multiples. Weightings of outcomes were based

on future expected outcomes. Discounted cashflow techniques

included forecast cashflows and appropriate discount rates.

Cooke Optics and Sports Information Services are market-leading

companies operating in niche sectors so the quantity of available

suitable publicly quoted comparators is low.

Transaction

Direct Tyre Management (DTM) used the price of the recent

transaction method.

Utilise external valuation

Cobehold’s fair value is derived from the valuation prepared by

Cobepa (the manager) which reflects the net asset value of the

group as at 31 December 2024, Cobehold’s year end.

Non-pool companies

Non-pool companies comprise principally cash or group company

receivables or payables held in subsidiary investment entities.

Private equity funds

Private equity fund interests are valued on a net assets basis,

estimated based on the managers’ NAVs. Managers' NAVs apply

valuation techniques consistent with IFRS and are normally subject

to audit. Managers’ NAVs are usually published quarterly, two to

four months after the quarter end. Consequently, the fund

valuations included in these financial statements were based

principally on the 31 December 2024 managers’ NAVs.

152 Caledonia Investments plc Annual Report 2025

24. Share-based payments

The company has a performance share scheme that entitles senior

employees to receive options over the company's shares, which are

exercisable subject to service and performance conditions. For

nil-cost option awards granted in 2015 onwards, one-third of the

shares comprised in the awards may be exercised after three years

and two-thirds after five years.

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.

The terms and conditions of the grants outstanding were as follows,

whereby all grants are settled by physical delivery of shares:

		Vesting	Number
Grant date	Entitlement	conditions	of shares
Performance share scheme awards
26.06.15	Award grant to senior staff	Note 1	916
26.05.16	Award grant to senior staff	Note 1	2,585
21.07.17	Award grant to senior staff	Note 1	3,769
30.05.18	Award grant to senior staff	Note 1	5,393
31.05.19	Award grant to senior staff	Note 1	19,714
04.08.20	Award grant to senior staff	Note 1	161,110
04.06.21	Award grant to senior staff	Note 1	115,738
30.05.22	Award grant to senior staff	Note 1	152,075
25.11.22	Award grant to senior staff	Note 1	5,169
30.05.23	Award grant to senior staff	Note 1	186,741
24.11.23	Award grant to senior staff	Note 1	19,665
28.05.24	Award grant to senior staff	Note 1	227,912
07.11. 24	Award grant to senior staff	Note 1	6,218
			907,005
Deferred bonus awards to senior staff
30.05.22	Compulsory award	Note 2	34,283
30.05.23	Compulsory award	Note 2	1,976
28.05.24	Compulsory award	Note 2	29,224
			65,483

1. Three/five years of service with vesting on a graduated basis from 10% to

100% for annualised NAV total return of 3% to 10% and (for investment

executives) annualised pool total returns in a range of 4% to 15%, in each

case measured over three years for one-third of the award and five years

for the remaining two-thirds of the award. Investment executives’ awards

are measured as to 80% by reference to pool total returns and 20% by

reference to NAV total return, other than Mr Cayzer-Colvin’s awards,

which are 60% and 40% respectively.

2. Three years of service.

All performance share awards have a life of ten years and all

deferred bonus awards have a life of four years.

The fair value of services received in return for performance share

scheme and deferred awards granted was measured indirectly, by

reference to the share price at the date of grant.

The weighted average share price at the date of exercise of share

awards during the year was as follows:

	2025	2024
	p		p
Weighted average share price	3521	3467

Under the schemes, awards were granted with service and

non-market performance conditions. Such conditions were not

taken into account in the fair value measurement of the services

received at the dates of grant.

Employee expenses were as follows:

	2025	2024
Years ended 31 March	£m	£m
Performance share awards granted in 2018	–	0.6
Performance share awards granted in 2019	–	0.4
Performance share awards granted in 2020	0.2	0.7
Performance share awards granted in 2021	0.8	1.1
Performance share awards granted in 2022	0.8	1.1
Performance share awards granted in 2023	0.1	0.8
Performance share awards granted in 2024	1.0	1.3
Performance share awards granted in 2025	1.3	–
Deferred bonus awards for 2021	0.1	0.6
Deferred bonus awards for 2022	0.5	0.5
Deferred bonus awards for 2024	0.3	–
	5.1	7.1

Strategic report

Corporate governance

Financial statements Other information

Introduction

153

Notes to the financial statements (continued)

25. Employee benefits

Group

	2025	2024
	£m	£m
Non-current assets
Defined benefit pension asset	5.4	4.3
Current liabilities
Profit sharing bonus	(3.7)	(3.1)
Non-current liabilities
National Insurance on performance shares and
deferred bonus awards	(2.8)	(2.7)
Dividends payable on performance shares and deferred bonus awards	(2.0)	(2.3)
	(4.8)	(5.0)
Total employee liabilities	(8.5)	(8.1)

Defined benefit pension obligations

The group operates three plans in the UK that provide pension

benefits for employees and makes contributions to one of the

plans. The schemes are approved by HMRC for tax purposes and

operated separately from the group being managed by an

independent set of trustees, whose appointment is determined by

the schemes’ documentation and legislation. The schemes are

subject to UK funding regulations, which require the group and the

trustees to agree a funding strategy and contribution schedule

where necessary. Three (2024: three) of the schemes were in

surplus on an IAS 19 basis. One scheme surplus was recognised in

full as the company considers there is an unconditional right to a

refund under IFRIC 14, one scheme surplus was capped at the

economic benefit of reduced future contributions and one scheme

surplus was unrecognised. Two schemes were effectively closed to

new members in April 1996 and the other scheme in April 1997.

New employees joining after that date were offered alternative

defined contribution pension arrangements. Caledonia Group

Services Ltd, a wholly owned subsidiary of Caledonia Investments

plc, is the Sponsoring Employer for all Schemes.

Virgin Media section 37 case

The group has undertaken an impact assessment for each scheme,

which includes the review of available historical records, relevant

enquiries and the receipt of advice. Based on the group’s impact

assessment, no significant adjustments are expected to be

required to the defined benefit pension obligations of the group’s

pension schemes in respect of the Virgin Media section 37 case as

at the reporting date. The group will continue to monitor the

developments in relation to the matter.

	2025	2024
	£m	£m
Present value of funded obligations	(43.5)	(49.0)
Fair value of plan assets	72.3	74.1
Present value of net assets	28.8	25.1
Irrecoverable surplus	(23.4)	(20.8)
	5.4	4.3

Changes in the present value of defined benefit obligations were

as follows:

	2025	2024
	£m	£m
Balance at the year start	49.0	50.6
Service cost	0.1	0.1
Interest cost	2.3	2.4
Actuarial (gain)/loss from changes:
-indemographic assumptions	(0.8)	(0.6)
-infinancial assumptions	(4.0)	(0.9)
-experience gains	(0.2)	0.2
Plan amendment	0.2	–
Actual benefit payments	(3.1)	(2.8)
Balance at the year end	43.5	49.0

Changes in the fair value of plan assets were as follows:

	2025	2024
	£m	£m
Balance at the year start	74.1	71.9
Interest income	3.5	3.4
Return on plan assets less interest income	(2.1)	1.5
Employer contributions	0.1	0.1
Actual benefit payments	(3.1)	(2.8)
Administrative expenses	(0.2)	–
Balance at the year end	72.3	74.1

Amounts recognised in management expenses in the Statement

of comprehensive income were as follows:

	2025	2024
	£m	£m
Service cost	0.1	0.1
Interest on obligations	2.3	2.4
Interest on plan assets	(3.5)	(3.4)
Plan amendment	0.2	–
Scheme administrative expenses	0.2	–
	(0.7)	(0.9)

Amounts recognised in other comprehensive income

were as follows:

	2025	2024
	£m	£m
Actuarial gains arising from financial assumptions	4.0	0.9
Actuarial gains arising from demographic
assumptions	0.8	0.6
Actuarial gains/(losses)fromexperience
adjustments	0.2	(0.2)
Return on plan assets less interest income	(2.1)	1.5
Increase in irrecoverable surplus	(2.6)	(3.6)
Re-measurement gains/(losses) in the year	0.3	(0.8)

An analysis of plan assets at the end of the year was as follows:

	2025	2024
	£m	£m
Equities	13.1	35.3
Bonds	49.9	27.2
Cash	9.3	11.6
	72.3	74.1

The analysis of plan assets above included an underlying asset

allocation of investment funds.

154 Caledonia Investments plc Annual Report 2025

Principal actuarial assumptions at the reporting date (expressed as

weighted averages) were as follows:

	2025	2024
	%	%
Discount rate at the year end	5.6	4.8
Future salary increases	na	3.0
Future pension increases	3.2	3.3
RPI price inflation	3.2	3.3

Mortality rates are assumed to follow the Self-Administered Pension

Schemes ‘Series 4’ very light tables with an allowance for future

improvements in line with the CMI 2023 core projections model with

a long-term trend of 1.50% pa and an initial addition of 0.75% pa.

Life expectancy on retirement in normal health is assumed to be 26.9

years (2024: 27.8 years) for males and 28.2 years (2024: 28.8 years)

for females who are currently 62 years of age.

Expected contributions to group post-employment benefit plans for

the year ending 31 March 2026 were £nil (2025: £0.1m).

In the UK, the funding is set on the basis of a triennial funding

valuation by the actuaries for which the assumptions may differ

from those above. IAS 19 requires ‘best estimate’ assumptions to be

used whereas the funding valuation uses ‘prudent’ assumptions. As

a result of these valuations, the group and the scheme trustees

agree a Schedule of Contributions, which sets out the required

contributions from the employer and employees for current service.

Where the scheme is in deficit, the Schedule of Contributions also

includes required contributions from the employer to eliminate the

deficit. The most recent triennial valuations were completed in 2024

for the Caledonia Pension Scheme (completed) and Amber

Industrial Holdings pension scheme (in progress) and 2022 for the

Sterling Industries Pension Scheme. A summary of the recent

funding obligations and weighted average duration of the defined

benefit obligations was as follows:

		Weighted
		average
	Obligations	duration
	at 31 Mar	at 31 Mar
	2024	2025
	£m	years
Caledonia Pension Scheme	26.3	11

	At 30 Sep	At 31 Mar
	2022	2025
	£m	years
Sterling Industries Pension Scheme	17.2	9

	At 30 Mar	At 31 Mar
	2021	2025
	£m	years
Amber Industrial Holdings Pension Scheme	13.0	11

Sensitivities

The calculation of the defined benefit obligation is sensitive to the

assumptions set out above. The following table summarises the

estimated increase in defined benefit obligations to a change in

individual actuarial assumptions, while holding all other

assumptions constant. This sensitivity analysis may not be

representative of the actual change in the defined benefit

obligation as it is unlikely that the change in an assumption would

occur in isolation, as some of the assumptions may be correlated.

	2025	2024
	£m	£m
Reduction in the discount rate of 0.25%	1.1	1.3
Increase in inflation of 0.25%	0.7	0.9
Increase in life expectancy of one year	1.8	2.0

Risks

The pension schemes typically expose the group to risks such as:

• Investment risk – the schemes hold their investments in equities

and bonds, the value of which fluctuates, whether caused by

factors specific to an individual investment, its issuer or factors

affecting all instruments traded in the market.

• Interest rate risk – the schemes’ liabilities are assessed using

market rates of interest, based on corporate bond yields, to

discount the liabilities and are therefore subject to any volatility

in the movement of the market rate of interest. The net interest

income or expense recognised in profit or loss is calculated using

the market rate of interest.

• Inflation risk – a significant proportion of the benefits under the

schemes is linked to inflation. Although the schemes’ assets are

expected to provide a good hedge against inflation over the long

term, movements over the short term would increase the

schemes’ net deficit.

• Mortality risk – in the event that members live longer than

assumed, the liabilities may turn out to have been understated

originally and a deficit may emerge if funding has not been

adequately provided for the increased life expectancy.

26. Interests in associates

Company	Class	Holding %	Registered office
Sports	Ordinary	22.6	Unit 1/2 Whitehall
Information			Avenue, Kingston, Milton
Services			Keynes, Buckinghamshire,
(Holdings)Ltd 1			MK10 0AX
Stonehage	Preferred	39.8	Third Floor, 1 Le Truchot,
Fleming Family &	A1 Ordinary	8.0	St Peter Port, Guernsey,
Partners Ltd			GY1 1WD

1. Sports Information Services (Holdings) Ltd is held via a subsidiary SISH

Shareholder LLP

The company is an investment trust company and, accordingly,

does not equity account for associates that are designated as

investments held at fair value through profit or loss.

Aggregated amounts relating to associates, extracted on a 100%

basis, were as follows:

	2025	2024
	£m	£m
Assets	323.0	395.9
Liabilities	(224.7)	(269.4)
Equity	98.3	126.5
Revenues	408.8	429.1
Profit	11.9	15.7

Strategic report

Corporate governance

Financial statements Other information

Introduction

155

Notes to the financial statements (continued)

27. Subsidiaries

			Key to							Key to
			Registered							Registe r ed
Company	Class	Holding %	office	Company				Class	Holding %	office
Caledonia Investments				Crewkerne Investments Ltd				A Ordinary	50.5 1	7
Amber 2010 Ltd	Ordinary	100.0 1	7					B Ordinary	100.0 1
Buckingham Gate Ltd 2	Ordinary	100.0 1	7	Easybox Self-Storage Ltd				Ordinary	100.0 1	7
Caledonia CCIL Distribution Ltd	Ordinary	100.0 1	7	Edinmore Investments Ltd				Ordinary	100.0 1	7
Caledonia Financial Ltd	Ordinary	100.0 1	7	SISH Shareholder LLP				Equity right	100.0 1	7
Caledonia Group Services Ltd 2	Ordinary	100.0 1	7	Sterling Crewkerne Ltd				Ordinary	100.0 1	7
Caledonia Land & Property Ltd	Ordinary	100.0 1	7	Sterling Industries Ltd				Ordinary	100.0 1	7
Caledonia Treasury Ltd	Ordinary	100.0 1	7	The Union-Castle Mail				Ordinary	100.0 1	7
				Steamship Co Ltd				A Ordinary	100.0 1
Caledonia US Investments Ltd	Ordinary	100.0 1	7
AIR-serv
AIR-serv Belgium BV 3	Ordinary	100.0	8	AIRvending Ltd 3				Ordinary	100.0	13
AIR-serv France SARL 3	Ordinary	100.0	9	Crossbow Bidco Ltd 3				Ordinary	100.0	13
AIR-serv Germany GmbH 3	Ordinary	100.0	10	Crossbow Midco Ltd		3			Ordinary	100.0	13
AIR-serv Netherlands BV 3	Ordinary	100.0	11	Crossbow Topco Ltd				Ordinary	99.8 1	13
								Growth	34.7 1
AIR-serv Spain SLU 3	Ordinary	100.0	12
Butcombe Group
A.E. Smith & Son Ltd 4	Ordinary	100.0	14	La Cave des Vins Ltd	4			Ordinary	100.0	14
A.S.B.M. Ltd 4	Ordinary	100.0	14	La Rocque Enterprises Ltd		4		Ordinary	100.0	14
A.S.B.O. Ltd 4	Ordinary	100.0	14		La Rocque Inn (Jersey)Ltd 4			Ordinary	100.0	14
A.S.B.T. Ltd 4	Ordinary	100.0	14	4	Lapwing (Trading)Ltd			Ordinary	100.0	14
Aurora Hotel Ltd 4	Ordinary	100.0	14	Le Hocq Hotel Ltd		4		Ordinary	100.0	14
Bath Street Wine Cellar Ltd 4	Ordinary	100.0	14		Les Garcons Ltd 4			Ordinary	100.0	15
Brasserie du Centre Ltd 4	Ordinary	100.0	14		Longueville Distributors Ltd 4			Ordinary	100.0	14
Bucktrout & Company Ltd 4	Deferred	100.0	15		M Still Catering Ltd 4			Ordinary	100.0	16
	Ordinary	100.0
	Preference	100.0
Butcombe Brewery Ltd 4	Ordinary	100.0	16		Marais Hall Ltd 4			Ordinary	100.0	17
Butcombe Brewing Company	Ordinary	100.0	16		Mary Ann Products (Jersey)			Ordinary	100.0	14
Ltd 4					Ltd 4
Caesarea Hotel (Jersey)Ltd 4	Ordinary	100.0	14		Mitre Hotel (Jersey)Ltd 4			Ordinary	100.0	14
Café de Paris (Jersey)Ltd 4	Ordinary	100.0	14		Nightbridge Ltd 4			Ordinary	100.0	14
Caledonia TLG Bidco Ltd 4	Ordinary	100.0	16		Old Court House Hotel (St			Ordinary	100.0	14
					Aubin) 1972 Ltd 4
Caledonia TLG Ltd	Ordinary A	100.0 1	14		Parade Hotel (Jersey)Ltd 4			Ordinary	100.0	14
	Ordinary B	1.1 1
	Ordinary C	75.4 1
	Preference	66.8 1
	Deferred	100.0 1
Caledonia TLG Midco Ltd 4	Ordinary	100.0	14	Peirson (1971)Ltd		4		Ordinary	100.0	14
Captains Holdings Ltd 4	Ordinary	100.0	15	Puffin NewCo Ltd		4		Ordinary	100.0	14
Channel Wines & Spirits	Ordinary	100.0	14	Red Lion Ltd		4		Ordinary	100.0	14
(Jersey)Ltd 4
Cirrus Inns Holdings Ltd 4	Ordinary	100.0	16		Robin Hood (Jersey)Ltd 4			Ordinary	100.0	14
Cirrus Inns Ltd 4	Ordinary	100.0	16		S.L. Ltd 4			Ordinary	100.0	14
Citann Ltd 4	Ordinary	100.0	14		Ship Holdings Ltd 4			Ordinary	100.0	15
	Preference	100.0
Cosy Corner (Jersey)Ltd 4	Ordinary	100.0	14		Square Ltd 4			Ordinary	100.0	14
Craig Street Brewing Company	Ordinary	100.0	14		St John's Hotel Ltd		4	Ordinary	100.0	14
Ltd 4
Divette Holdings Ltd 4	Ordinary	100.0	15	4	Stag Hotel (Jersey)Ltd			Ordinary	100.0	14
Don Inn (Jersey)Ltd 4	Ordinary	100.0	14		Sussex Hotel Ltd	4		Ordinary	100.0	14
Evenstar Ltd 4	Ordinary	100.0	14		The Guernsey Brewery Co			Ordinary	100.0	15
					(1920)Ltd 4			Preference	100.0
Exeter Hotel (Jersey)Ltd 4	Ordinary	100.0	14		The Independent Brewing	Company Ltd 4		Ordinary	100.0	14
Farm Street Inns Ltd 4	Ordinary	100.0	16		The Liberation Group Ltd 4			Ordinary	100.0	14
Farmers Inn Ltd 4	Ordinary	100.0	14		The Liberation Group UK Ltd 4			Ordinary	100.0	16

156 Caledonia Investments plc Annual Report 2025

			Key to									Key to
			Registered									Registered
Company	Class	Holding %	office	Company						Class	Holding %	office
Butcombe Group (continued)
Five Oaks Hotel Ltd 4	Ordinary	100.0	14	The Liberation Pub Company						Ordinary	100.0	15
				(Guernsey)Ltd 4
Foresters Arms (Jersey)Ltd 4	Ordinary	100.0	14	The Liberation Pub Company						Ordinary	100.0	14
				(Jersey)Ltd 4
Gimbels (Jersey)Ltd 4	Ordinary	100.0	14	The Post Horn Ltd		4				Ordinary	100.0	14
Glo'ster Vaults Ltd 4	Ordinary	100.0	14	The Royal Oak Inn Trading Ltd				4		Ordinary	100.0	16
Great Union Hotel (Holdings)	Ordinary	100.0	14	Trafalgar Hotel (Jersey)Ltd				4		Ordinary	100.0	14
Ltd 4
Great Western Hotel Ltd 4	Ordinary	100.0	14	Union Inn (Jersey)Ltd			4			Ordinary	100.0	14
Guernsey Leisure Company	Ordinary	100.0	15	Victor Hugo Ltd	4					Ordinary	100.0	14
Ltd 4
Guppy's Holdings Ltd 4	Ordinary	100.0	15		Victoria (Valley)Ltd		4			Ordinary	100.0	14
Guppy's of Guernsey Ltd 4	Ordinary	100.0	15	Victoria Hotel (Jersey)Ltd 4						Ordinary	100.0	14
Hautville Ltd 4	Ordinary	100.0	15	4			Wellington Hotel Ltd			Ordinary	100.0	14
Horse & Hound (Jersey)Ltd 4	Ordinary	100.0	14		Wests Cinemas Ltd		4			Ordinary	100.0	14
John Tregear Ltd 4	Ordinary	100.0	14	4		White Hart Ltd				Ordinary	100.0	15
Cooke Optics
Chaplin Bidco Ltd 5	Ordinary	100.0	18				Cooke Optics (HongKong)Ltd 5			Ordinary	100.0	21
Chaplin Midco Ltd 5	Ordinary	100.0	18				Cooke Optics (India)PrivateLtd		5	Ordinary	100.0	22
Chaplin Topco Ltd	A Ordinary	100.0 1	18				Cooke Optics Holdings Ltd 5			Ordinary	100.0	18
	B Ordinary	75.3 1
	C Ordinary	98.6 1
Cooke Optics Inc. 5	Ordinary	100.0	19		Cooke Optics Ltd 5					Ordinary	100.0	18
Cooke (Shanghai)Optics	Ordinary A	100.0	20	5			Cooke Optics TV Ltd			Ordinary	100.0	18
Technology Co Ltd 5
Cooke Optics Group Ltd 5	Ordinary	100.0	18
Direct Tyre Management
Cefni Tyres Ltd 6	Ordinary	100.0	23		6	IT5 Holdings Ltd				Ordinary	100.0	23
Clan Rock Bidco Ltd 6	Ordinary	100.0	23				IT5 Fleetmobile Ltd	6		Ordinary	100.0	23
Clan Rock Midco Ltd 6	Ordinary	100.0	23				Project Lafite Bidco Ltd	6		Ordinary	100.0	23
Clan Rock Topco Ltd	Ordinary	98.6	23				Project Lafite Topco Ltd 6			Ordinary	100.0	23
Direct Tyre Management Ltd 6	Ordinary	100.0	23				Tyreforce NW Ltd 6			Ordinary	100.0	23
Direct Tyre Sales Ltd 6	Ordinary	100.0	23				Tyrewatch.com Ltd	6		Ordinary	100.0	23
DTM Holdings Ltd 6	Ordinary	100.0	23	Tyre Plus Durham Ltd			6			Ordinary	100.0	23

7. Cayzer House, 30 Buckingham Gate, London SW1E 6NN

8. Rubensstraat 104/57, 2300 Turnhout, Belgium

9. Parc d’Activités les Béthunes, 16 rue du compas, 95310 Cergy Pontoise

Cedex, France

10. Elisabethstr. 1, 52428 Jülich, Germany

11. Spuiweg 22 D, 5145 NE Waalwijk, The Netherlands

12. C/ Isla de Alegranza 2, nave 53, 28703 San Sebastián de los Reyes,

Madrid, Spain

13. Redgate Road, South Lancashire Industrial Estate, Ashton-In-Makerfield,

Wigan, Lancashire, WN4 8DT

14. Tregear House, Longueville Road, St Saviour, Jersey JE2 7WF

15. Hougue Jehannet, Vale, Guernsey GY3 5UF

16. Butcombe Brewery Havyatt Road Trading Estate, Havyatt Road,

Wrington, Bristol, BS40 5PA

17. Marais Hall, Marais Square, St Anne, Alderney GY9 3TS

18. 1 Cooke Close, Thurmaston, Leicester LE4 8PT

19. 4131 Vanowen Place, Burbank, CA 91505, USA

20. Rooms 503/504, No 1 Building, No 908 Xiuwen Road, Minhang District,

Shanghai, China

21. TMF Hong Kong Limited, 31F, Tower Two, Times Square, Matheson

Street, Causeway Bay, Hong Kong

22. C/o Late B KRISHNA MURTHY PLOT NO. 8 ROAD NO 13 Banjara Hills

Hyderabad Telangana India 500034

23. Unit 16 Thompson Road, Whitehills Business Park, Blackpool, FY4 5PN

1. Directly held by the company

2. Included in the consolidation

3. Subsidiary of Crossbow Topco Ltd

4. Subsidiary of Caledonia TLG Ltd

5. Subsidiary of Chaplin Topco Ltd

6. Subsidiary of Clan Rock Topco Ltd

Registered office addresses

Strategic report

Corporate governance

Financial statements Other information

Introduction

157

The10-yearrecordofthecompany’sfinancialperformanceisasfollows:

Company performance record (unaudited)

Profit/

(loss)for

the year

£m

Diluted

earnings

pershare

p

Annual

dividend

p

Net

assets

£m

Diluted

NAVper

p

price

p

Rolling10yearsannualised

Totalshare-

holder

return

%

FTSE

All-Share

TotalReturn

%

2016 41.1 73.1 52.6 1,644 2890 2285 3.8 4.7

2017 290.1 518.4 54.8 1,899 3395 2750 5.2 5.7

2018 26.5 47.4 57.0 1,837 3285 2650 5.3 6.7

2019 198.2 354.7 59.3 2,002 3582 2980 11.6 11.1

2020 (172.5) (315.0) 61.1 1,787 3236 2435 6.7 4.4

2021 467.6 837.8 62.9 2,225 4000 2645 7.1 6.0

2022 611.3 1101.5 64.8 2,783 5041 3540 11.9 7.2

2023 144.0 259.0 67.4 2,798 5068 3390 9.5 5.8

2024 203.4 369.0 70.4 2,965 5369 3280 8.6 5.8

2025 66.9 121.3 73.6 2,932 5475 3540 7.5 6.2

1. Annualdividendsarestatedinrelationtotheyear’sresultsfromwhichtheywerepaid.Dividendsfor2017and2022excludethespecialdividendof100.0p

and175.0p.

Holdings over 1% of net assets at 31 March 2025

Name Pool Geography Business Value£m Netassets%

Stonehage Fleming PrivateCapital ChanIs. Familyofficeservices 221.4 7.6

AIR-servEurope PrivateCapital UK Forecourtvending 197.7 6.7

Cobepa PrivateCapital Europe Investmentcompany 192.7 6.6

ButcombeGroup PrivateCapital ChanIs. Pubs,bars&inns 136.5 4.7

HighVista Strategies Funds US Fundsoffunds 99.9 3.4

PhilipMorris PublicCompanies US Tobacco&smoke-freeproducts 90.1 3.1

Watsco PublicCompanies US Ventilationproducts 76.6 2.6

Microsoft PublicCompanies US Software 73.6 2.5

AxiomAsiafunds Funds Asia Fundsoffunds 73.4 2.5

Oracle PublicCompanies US Software 72.3 2.5

TexasInstruments PublicCompanies US Semiconductors 64.2 2.2

DeChengfunds Funds Asia Privateequityfunds 58.5 2.0

DirectTyreManagement PrivateCapital UK Tyremanagementservices 55.0 1.9

CookeOptics PrivateCapital UK Cinematographylenses 44.1 1.5

Fastenal PublicCompanies US Industrialsupplies 43.1 1.5

Charter Communications PublicCompanies US Cable communications 40.4 1.4

Unicornfunds Funds Asia Fundsoffunds 39.9 1.4

ThermoFisherScientific PublicCompanies US Pharmaandlifesciencesservices 38.7 1.3

Moody'sCorporation PublicCompanies US Financialservices 38.3 1.3

AsiaAlternativesfunds Funds Asia Fundsoffunds 38.2 1.3

Hill & Smith PublicCompanies UK Infrastructure 35.6 1.2

CrodaInternational PublicCompanies UK Specialitychemicals 34.6 1.2

Boynefunds Funds US Privateequityfunds 33.4 1.1

PoolCorp PublicCompanies US Poolservices 31.9 1.1

SpiraxSarco PublicCompanies UK Steam engineering 31.0 1.1

AEIndustrialfunds Funds US Privateequityfunds 29.0 1.0

Stonepeakfunds Funds US Privateequityfunds 28.6 1.0

CenterOakfunds Funds US Privateequityfunds 28.5 1.0

AlibabaGroup PublicCompanies Asia E-commerce 28.5 1.0

Otherassets 757.0 25.5

Investmentportfolio 2,732.7 93.2

Cashandothernetassets 198.9 6.8

Net assets 2,931.6 100.0

Investments summary (unaudited)

158 Caledonia Investments plc Annual Report 2025

Alternative performance measures (‘APMs’)

APMsarenotprescribedbyaccountingstandardsbutareindustry

specificperformancemeasureswhichhelpusersoftheannual

accountsandfinancialstatementstobetterinterpretand

understandperformance.

TermsinthisglossaryidentifiedasAPMs

havebeenhighlightedbythesymbol:

Discount

Ordinarysharesarequotedonthestockmarketandcantrade

atadiscounttotheNAVofthecompany.Thefollowingdiscount

appliedtotheshares:

Distributable profits

Distributableprofitsincludeprofitsdistributableunderthe

CompaniesAct2006andincludedistributablereserves,being

realisedrevenueandcapitalprofits,lessanyunrealisedlossesin

excessofunrealisedprofits.

Dividend cover

Dividendcoveristheratioofnetrevenue(asdefinedbelow)tothe

annualdividendpayable(excludingspecialdividends)to

shareholdersoutofprofitsfortheyear.Ithelpstoindicatethe

sustainabilityofannualdividends.

Ex-dividend date

Thedateimmediatelyprecedingtherecorddate(asdescribed

below)foragivendividend.Shareholderswhoacquiretheirshares

onoraftertheex-dividenddatewillnotbeeligibletoreceivethe

relevantdividend.

APM

Investment and pool returns

ThecompanyusesthemodifiedDietzmethodasameasureofthe

performanceofaninvestmentorinvestmentpooloveraperiod.

Thismethoddividesthegainorlossinvalueplusanyincome,less

anycapitalcashflows,bytheaveragecapitalinvestedoverthe

periodofmeasurement.Averagecapitaltakesintoaccountthe

timingofindividualcashflows.

Net assets

Netassetsprovidesameasureofthevalueofthecompanyto

shareholdersandistakenfromtheIFRSgroupnetassets.

Net asset value (‘NAV’)

NAVisameasureofthevalueofthecompany,beingitsassets–

principallyinvestmentsmadeinothercompaniesandcashheld–

minusanyliabilities.NAVpershareiscalculatedbydividingnet

assetsbythenumberofsharesinissue,adjustedforsharesheldby

thecompany’sEmployeeShareTrustandfordilutionbythe

exerciseofvestedshareawards.NAVtakesaccountofdividends

payableontheex-dividenddate.

Seefinancialstatementsnote17.

APM

NAV total return (‘NAVTR’)

NAVTRisameasureofhowtheNAVpersharehasperformedover

aperiod,consideringbothcapitalreturnsanddividendspaidto

shareholders.NAVTRiscalculatedastheincreaseinNAVpershare

betweenthebeginningandendoftheperiod,plusaccretionfrom

theassumeddividendreinvestmentintheperiod.Weusethis

measureasitenablescomparisonstobedrawnagainstan

investmentindexinordertobenchmarkperformance.Theresultis

plottedonpage23.andthecalculationfollowsthemethod

prescribedbytheAssociationofInvestmentCompanies(‘AIC’).

Seefinancialstatementsnote17.

Glossary of terms and alternative

performance measures (unaudited)

31Mar2025

£m

31Mar2024

£m

Shareprice(b) 3540p 3280p

NAV(a) 5475p 5369p

Discount((a-b)/a)

(expressedasapercentage) 35.3% 38.9%

31Mar2025

£m

31Mar2024

£m

Netrevenue(b) 30.9 40.5

Dividendpayable(a) 39.0 38.3

Dividendcover((b)/a)

(expressedasapercentage) 79% 106%

31Mar2025

£m

31Mar2024

£m

Retainedearnings 104.5 176.3

Distributablecapitalgainsandlosses 2,487.0 2,415.2

2,591.5 2,591.5

APM

31Mar

2025

31Mar

2024

ClosingNAVpershare(p) 5475p 5369p a

Dividendspaidout(p) 71p 241p b

Effectofre-investingdividends(p) – 6p c

AdjustedNAVpershare(p) 5446p 5443p d=a+b+c

OpeningNAVpershare(p) 5369p 5068p e

NAVtotalreturn(%) 3.3% 7.4% =(d/e)-1

Strategic report

Corporate governance

Financial statements Other information

Introduction

159

APM

Net revenue

Netrevenuecomprisesincomefrominvestmentsless

managementexpenses,financingcostsandtax.Netrevenue

comprisestherevenuecolumnpresentedintheGroupstatement

ofcomprehensiveincomeonpage130anddiffersfromtotal

comprehensiveincomeinexcludinggainsandlosseson

investmentsandotheritemsofacapitalnature.Theseparationof

revenueandcapitalprofitsandlossesisrequiredbytheAICSORP

asbeingoffundamentalimportancetoshareholdersandother

usersofthefinancialstatementsofinvestmenttrustcompanies.

APM

Ongoing charges

Thetotalofinvestmentmanagementfeesandotherexpensesas

shownintheincomestatement,asapercentageoftheaverage

monthlynetassetvalue,followingtheguidanceprovidedbythe

AssociationofInvestmentCompanies.Expenseitemsincludedin

theongoingchargescalculationcompriserecurringcostsrelating

totheoperationofthecompany.Ongoingchargesexclude

transactioncosts,externalperformancefeesandshare-based

paymentexpenses,whicharedirectlylinkedtoinvestment

performance,andre-measurementofdefinedbenefitpension

schemes,alsolinkedtomarketmovements.

Share-basedpaymentscompriseawardsunderthecompany’s

performancesharescheme,whichvestsubjecttoachievingNAVTR

targets,aswellasservicerequirements,plusdeferredbonus

awardswhicharisefromannualbonusawardsover50%ofbasic

salary,whichalsorelatetothecompany’sinvestmentperformance.

Record date

Thecut-offdateonwhichashareholderneedstobebeneficially

entitledtoashareonthecompany’sshareregisterinorderto

qualifyforaforthcomingdividend.

APM

Total Shareholder Return (‘TSR’)

TSRmeasuresthereturntoshareholders,takingintoaccountthe

changeinsharepriceoveraperiodoftimeaswellasallthe

dividendspaidduringthatperiod.Itisassumedthatthedividends

arereinvestedatthetimethesharesarequotedexdividend.

31Mar2025

£m

31Mar2024

£m

Managementexpenses(a) 25.9 22.9

Annualisedaveragenetassets(b) 2,960.5 2,841.1

Ongoingcharges(a)/(b)

(expressedasapercentage) 0.87% 0.81%

Annualisedaveragenetassets-

31Mar2025£m

Apr24 2,937.2

May24 2,963.1

Jun24 2,946.1

Jul24 2,978.7

Aug24 2,946.8

Sep24 2,917.7

Oct24 2,950.3

Nov24 3,004.5

Dec24 2,963.4

Jan25 3,007.1

Feb25 2,978.9

Mar25 2,931.6

Average 2,960.5

Annualisedaveragenetassets-

31Mar2024£m

Apr23 2,791.4

May23 2,796.1

Jun23 2,779.3

Jul23 2,781.5

Aug23 2,804.1

Sep23 2,876.1

Oct23 2,854.0

Nov23 2,848.3

Dec23 2,863.5

Jan24 2,859.4

Feb24 2,873.7

Mar24 2,965.3

Average 2,841.1

Glossary of terms and alternative performance measure (unaudited) (continued)

160 Caledonia Investments plc Annual Report 2025

Valuation methodology

Investmentsaremeasuredatthedirectors’estimateoffairvalue

atthereportingdate,inaccordancewithIFRS13FairValue

Measurement.Fairvalueisthepricethatwouldbereceivedtosell

anassetinanorderlytransactionbetweenmarketparticipantsat

themeasurementdate.

Publicly traded securities

Listedinvestmentsinanactivemarketarevaluedbasedonthe

closingbidpriceontherelevantexchangeonthereportingdate.

Whenabidpriceisunavailable,thepriceofthemostrecent

transactionwillnormallybeused.

Unquoted securities

Caledonia’svaluationmethodologyforunquotedsecuritiesis

derivedfromtheInternationalPrivateEquityandVentureCapital

(‘IPEV’)ValuationGuidelines(December2022).Thisguidancecame

intoeffectforperiodsbeginningonorafter1January2023and

supersedespreviousguidance.

Unquoted companies

Unquotedcompanyinvestmentsarevaluedbyapplying

anappropriatevaluationtechnique,whichmakesmaximumuseof

market-basedinformation,isconsistentwithmodelsgenerallyused

bymarketparticipantsandisappliedconsistentlyfromperiodto

period,exceptwhereachangewouldresultinabetterestimation

offairvalue.

Thevalueofanunquotedcompanyinvestmentisgenerally

crystalisedthroughthesaleorflotationoftheentirebusiness,

ratherthanthesaleofanindividualinstrument.Therefore,the

estimationoffairvalueisbasedontheassumedrealisationofthe

entireenterpriseatthereportingdate.Recognitionisgiventothe

uncertaintiesinherentinestimatingthefairvalueofunquoted

companiesandappropriatecautionisappliedinexercising

judgementsandinmakingthenecessaryestimates.

Thevaluationmethodologyappliesthefollowingsteps:

1. determinetheenterprisevalueusinganappropriate

valuationtechnique

2. adjusttheenterprisevalueforfactorsthatamarketparticipant

wouldtakeintoaccount,suchassurplusassets,excessliabilities

andothercontingencies

3.deductthevalueofinstrumentsrankingaheadofthoseheldto

derivetheattributablevalue

4.apportiontheattributablevaluebetweentheremaining

financial instruments

5.allocatetheamountsderivedaccordingtotheholdingineach

financialinstrument.

Valuation methods

Enterprisevalueisnormallydeterminedusingoneofthefollowing

valuationmethodologies:

Multiples

Thismethodologyinvolvestheapplicationofanearningsmultiple

tothemaintainableearningsofthebusinessandislikelytobe

appropriateforaninvestmentinanestablishedbusinesswith

anidentifiablestreamofcontinuingearnings.

Maintainableearningsareassessedusingthelatestavailable

financialdata.Earningsandbalancesheetdataareadjusted,

whereappropriate,forexceptionalornon-recurringitemsandan

averageofmorethanoneyear’searningsmaybeusedtoestimate

maintainableearningsforcyclicalorvolatilebusinesses.

Theearningsmultipleusedismostcommonlyearningsbefore

interest,tax,depreciationandamortisation(‘EBITDA’)andis

determinedbyreferencetomarket-basedmultiplesappropriate

forthebusiness.Wherepossible,anaverageofseveralappropriate

marketmultipleswillbeused.Theaimistoidentifycomparator

companiesthataresimilarintermsofriskandgrowthprospects

tothecompanybeingvalued.Thetransactionmultiplesofsimilar

comparatorunquotedcompaniesmayalsobeconsideredin

determiningtheearningsmultiple.

Multiplesofcomparablecompaniesmaybeadjustedindividually

orinaggregatetoreflectpointsofdifferencebetweenthe

comparatorsandthecompanybeingvalued,withreferenceto

theriskprofileandearningsgrowthprospectsthatunderpinthe

earningsmultiple.Riskarisesfromarangeoffactors,includingthe

natureofthecompany’soperations,markets,competitiveposition,

qualityofmanagementandemployeesandcapitalstructure.Other

reasonsforadjustmentmayincludethesizeanddiversityofthe

entity,therateofgrowthofearnings,relianceonkeyemployees,

diversityofproductsandcustomerbase,andthelevelof

borrowing.Adjustmentwillalsobeconsideredtotheextentthat

aprospectiveacquirerwouldtakeaccountofadditionalrisks

associatedwithholdinganunquotedshare,includingtheirability

todrivearealisationatwill.

Net assets

Thenetassetsmethodologyislikelytobeappropriatefora

businesswhosevaluederivesmainlyfromtheunderlyingvalue

ofitsassetsratherthanitsongoingearnings,suchasaproperty

holdingcompanyoraninvestmentbusiness.Itmayalsobe

appropriateforabusinessthatisnotmakinganadequatereturn

onassetsandforwhichagreatervaluecanberealisedby

liquidatingthebusinessandsellingitsassets.Athird-party

valuationmaybeusedtogivethefairvalueofacertainasset

orgroupofassets,mostcommonlypropertyassets.

Strategic report

Corporate governance

Financial statements Other information

Introduction

161

Indicative offers

Weregularlyreceiveindicationsofinterestfrompotentialacquirers

forourprivatecapitalassets,eitheraspartofastructuredsale

processorintheformofadirectapproach.Wherewejudgeit

appropriate,theinsightgainedfromsuchapproachesis

incorporatedintothedatasetsusedinarrivingatvaluations.

Wherethereisanofferfromacrediblebuyerorbuyers,andthere

isanintentiontoadvancediscussions,ourpracticeistoconsider

fairvaluesderivedfromanindicativeenterprisevaluebasedon

offersreceivedwithanappropriatediscountapplied.Discounts

aimtoreflecttheuniqueuncertaintyassociatedwiththeexecution

ofeachtransactionandarenormallyinarangeof5-20%.

Calibration and backtesting

Whenthepriceofaninitialinvestmentisdeemedfairvalue

(whichisgenerallythecaseiftheinvestmentisconsideredan

orderlytransaction),thevaluationtechniquesthatareexpectedto

beusedtoestimatefairvalueinthefuturearecalibratedbyusing

marketinputsatthedatetheinvestmentwasmade.Calibration

validatesthatthevaluationtechniquesusingcontemporaneous

marketinputswillgeneratefairvalueatinceptionandtherefore

giveconfidencethatsubsequentvaluationsusingupdatedmarket

inputswillgeneratefairvalueateachfuturemeasurementdate.

Backtestingenablesthevaluertounderstandanysubstantive

differencesthatlegitimatelyoccurbetweentheexitpriceandthe

previousfairvalueassessment,byapplyingtheinformationknown

atexittothepreviousvaluationtechnique.Backtestingisusedto

helprefinethevaluationprocess.

Fund interests

Fundinterestsrefertoparticipationsinexternallymanaged

investmentvehiclesthatinvestinawiderrangeofassetsthanis

feasibleforanindividualinvestortovalueseparately.

Open-endfunds,includinginvestmentcompanieswithvariable

capital,typicallyreportregularnetassetvalues,whichusually

provideareliablebasistoestimatefairvalue.Management

periodicallyassesseswhetherreportednetassetvaluesarefair

valuebasedthroughconsiderationofarangeofinformation,

includingbutnotlimitedtounderlyingvaluationmethodologies,

governanceandassuranceframeworks,andcorrespondence

withthird-partymanagers.Ifthepricereportedbythefundis

notavailableatthereportingdate,thelatestavailablepriceisused

andmaybeadjustedtotakeaccountofchangesoreventstothe

reportingdate,ifmaterial.

Closed-endfundsincludeunlistedinvestmentcompaniesand

limitedpartnerships.Fortheseinvestments,thefairvalueestimate

isbasedonasummationoftheestimatedfairvalueofthe

underlyinginvestments(‘fundNAV’)attributabletotheinvestor.

FundNAVmaybeusedwherethereisevidencethatthevaluation

isderivedusingfairvalueprinciples.FundNAVreportsarenormally

receivedsometimeafterthereportingdate,typicallytwoorthree

months,butsometimesuptosixmonths.Thelatestavailablefund

NAVwillnormallyprovidethebasisofafairvalueestimate,

adjustedforsubsequentinvestmentsandrealisations.Adjustment

mayalsobenecessaryforfeaturesofthefundagreementnot

capturedinthevaluationreport,suchasperformancefeesor

carriedinterest.ThetimingoffundNAVreportscreatesariskof

changesoreventsoccurringbetweenthefundNAVandreporting

dates,whichimpactsvaluation.Thisissueismonitoredcarefully

and,ifofamaterialnature,canleadtoadjustmentseitheratthe

specificfundlevelormorebroadlyacrosstherelevantfunds

affectedbytheidentifiedchangeorevent.Ifadecisionhasbeen

madetosellthefundinterestorportionthereof,theexpectedsale

pricewouldnormallyprovidethebestestimateoffairvalue.

Other investments

Otherinvestmentsincludepreferenceshares,loannotesor

facilities,options,warrantsandtreasuryinstrumentsthatare

notpubliclytradedanddonotformpartofaninvestmentinan

unlistedcompany.Forsuchinvestments,appropriatevaluation

techniquesareadoptedandusedconsistently.

Environmental, Social and Governance factors

Environmental,SocialandGovernance(‘ESG’)factors,both

quantitativeandqualitative,mayimpactfairvalue.Ourfair

estimatesthereforeincorporateESGinitiativesandthe

ESGregulatoryenvironmenttotheextenttheyareknown

orknowable.

Valuation methodology (continued)

162 Caledonia Investments plc Annual Report 2025

Information for investors

Registrar

OurRegistraris:

MUFGCorporateMarkets(‘MUFG’)

CentralSquare

29WellingtonStreet

LeedsLS14DL

Shareholderenquiries:(open9.00amto5.30pm)

03716640300or+443716640300ifcallingfromoverseas

Sharedealingservice:(open8.00amto4.30pm)

03716640445or+443716640445ifcallingfromoverseas

Callsto0371arechargedatthestandardgeographicrateandwill

varybyprovider.CallsoutsidetheUnitedKingdomarechargedat

theapplicableinternationalrate.

MUFGalsoprovideanonlineservice,SignalShares,throughwhich

youcanviewyourshareholdingdetails,transactionanddividend

histories,changeyouraddress,bankmandateandelectronic

communicationpreferenceandusetheonlineproxyvotingservice.

SignalSharesisavailableatwww.signalshares.com.

Financial calendar

Finaldividendex-dividenddate 26June2025

Finaldividendrecorddate 27June2025

Annualgeneralmeeting 16July2025

Finaldividendpaymentdate 7August2025

Half-yearresultsannouncement November2025

Anticipatedinterimdividendpaymentdate January2026

2026annualresultsannouncement May2026

2026annualreportpublication June2026

Electronic communications

Youmayelecttoreceivecommunicationsfromthecompany

electronicallyviaitswebsiteasanalternativetoreceivinghard

copyaccountsandcirculars.Ifyouwouldliketochangeyour

communicationpreference,youmaydosoatwww.signalshares.

comorbywritingtoMUFGatFREEPOSTSAS,MUFGCorporate

Markets,CentralSquare,29WellingtonStreet,Leeds,LS14DL

(ifyouareaUKbasedshareholder)ortoSAS,MUFGCorporate

Markets,CentralSquare,29WellingtonStreet,Leeds,LS14DL.

NostampisrequiredforlettersfromUKshareholders.

Share price information

Thecompany’sordinarysharesarelistedontheLondonStock

ExchangeundertheSEDOLcodeof0163992orTIDMcodeof

CLDN.PricesarepublisheddailyintheFinancialTimesunderthe

‘InvestmentCompanies’headingandinotherleadingnewspapers

andcanalsobeviewedonthecompany’swebsiteat

www.caledonia.com.

TheISINforCaledonia’sordinarysharesisGB0001639920.

Monthly net asset value

Thecompanyreleasesanetassetvalueannouncementand

publishesafactsheetshortlyaftereachmonthend.Thesecan

befoundonthecompany’swebsiteatwww.caledonia.com.

Boiler room and other scams

Investmentandpensionscamsareoftensophisticatedanddifficult

tospot.Shareholdersareadvisedtobewaryofanyunexpected

offersreceivedbyemail,postortelephoneandtocheckthe

FinancialConductAuthority’sWarningListifanyunsolicited

communicationisreceived.Visitwww.fca.org.uk/scamsmart

formoreinformation.

Strategic report

Corporate governance

Financial statements Other information

Introduction

163

Directors and advisers

Chair

DavidCStewart

2,3

Executive directors

MathewSDMasters(ChiefExecutiveOfficer)

RobertWMemmott(ChiefFinancialOfficer)

JamieMBCayzer-Colvin

Non-executive directors

Farah A Buckley

2,3,4

TheHonCharlesWCayzer

GuyBDavison

1,2,4

M Anne Farlow

1,2,3,4

ClaireLFitzalanHoward

2,3,4

LynnRFordham

1,2,4

William P Wyatt

1. MemberoftheAuditandRiskCommittee

2. MemberoftheNominationCommittee

3. MemberoftheRemunerationCommittee

4. MemberoftheGovernanceCommittee

Secretary

RichardWebster

Registered office

CayzerHouse

30BuckinghamGate

LondonSW1E6NN

Registered number

RegisteredinEnglandno235481

Auditor

BDOLLP

55BakerStreet

LondonW1U7EU

Registrar

MUFGCorporateMarkets

CentralSquare

29WellingtonStreet

LeedsLS14DL

Brokers

J.P.MorganCazenove

25BankStreet

Canary Wharf

LondonE145JP

PeelHuntLLP

7thFloor

100LiverpoolStreet

LondonEC2M2AT

Solicitors

FreshfieldsLLP

100Bishopsgate

LondonEC2P2SR

164 Caledonia Investments plc Annual Report 2025

165

ThisreportisprintedonpapercertifiedinaccordancewiththeFSC®(ForestStewardshipCouncil®)andisrecyclableandacid-free.

PureprintGroupisFSCcertifiedandISO14001certifiedshowingthatitiscommittedtoall-roundexcellenceandimprovingenvironmental

performanceisanimportantpartofthisstrategy.PureprintGroupaimstoreduceatsourcetheeffectitsoperationshaveontheenvironment

andiscommittedtocontinualimprovement,preventionofpollutionandcompliancewithanylegislationorindustrystandards.

Printed by Pureprint

Designed and produced by www.designmotive.co.uk

ShareGift

WesupportShareGift,thecharitysharedonationscheme(registeredcharitynumber1052686).ThroughShareGift,shareholderswho

haveonlyasmallnumberofshares,whichmightbeconsidereduneconomictosell,areabletodonatethemtocharity.Donatedsharesare

aggregatedandsoldbyShareGift,theproceedsbeingpassedontoawiderangeofUKcharities.Seesharegift.orgorcall+442079303737

forfurtherdetails.

Updates

Ifyouwouldliketoreceiveup-to-dateinformationaboutCaledonia,pleasescantheQRcodetotherightofthispagetovisitourwebsite.

Ifyouhaveasmartphone,youcanactivatetheQRcodebyopeningthecameraonyourdeviceandpointingitattheQRcode.Thiswillopen

alinktothe‘Contactus’pageonthewebsitewhereyoucansubscribetoreceiveoramendemailalertnotifications,includingFactsheets,

news,reportsand/orRNSannouncements.Tofindouthowweprocesspersonaldata,pleasereadthePrivacyPolicyavailableat

www.caledonia.com/privacy-policy.

Caledonia Investments plc

Cayzer House

30 Buckingham Gate

London SW1E 6NN

tel +44 20 7802 8080

email enquiries@caledonia.com

web www.caledonia.com