Caledonia's NAV decline paces the All-Share

Blue-blooded investment firm Caledonia marginally outperformed the FTSE All-Share in the first half of its financial year in what was a tough period for the UK stock market.

Net asset value (NAV) at the end of September stood at £1,091m, down 13.3% from the end-March figure of £1,259m.

Over the same period NAV per share tumbled 13.4% to 1876p from 2165p, a marginal out-performance of the All-Share index, the index against which the company benchmarks its performance, which fell 13.5% from the end of March to the end of September.

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Looking at the profit and loss account, the company plunged into the red. Although revenue rose from £7.9m to £12.2m on a like-for-like basis, pre-tax profits of £41.7m turned to losses of £153.1m after capital expenditure rose significantly.

However, on a purely revenue basis, profit before tax rose from £2.3m to £6.2m.

The company has stuck with its strategy, announced this time last year, of focusing more on income stocks than growth shares, as it battens down the hatches during a period of extreme market volatility.

Will Wyatt, chief executive of the firm said: "The near term story will continue to be dominated by the problems of the eurozone. Until there is a clear and achievable solution to the debt crises, investors will continue to be subjected to unusually large movements in markets.

"This, combined with the lack of clarity over the health of the world economy provides a difficult backdrop against which to invest," he added.

The firm increased its interim dividend by 5.45 to 11.7p per share.

The share price rose slightly by 0.07% to 1,410p by 09:15.

NR