![]() 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 1 (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 1 (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 2005 2010 2015 2020 2025 800 2005 2010 2015 2020 2025 2005 2010 2015 2020 2025 APM Strategic report Corporate governance Financial statements Other information Introduction 1 ![]() #### 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 1 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 2  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 3 ![]() #### 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 0% 5% 10% Over 10 years Caledonia NAVTR Caledonia Share Price TR FTSE All-Share TR Target return 1 +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 5 ![]() 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 0% 5% 10% 15% Over 1 year Total Public Companies pool Over 3 years Over 5 years Over 10 years Capital Portfolio Income Portfolio 5% 6% 12% 8% 4% 6% 13% 10% 8% 4% 5% 9% #### 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$7.5bn 1 ,aCAGRof7.2%, reportinganEBITgrowthof7.4%overthesameperiodandamarginof20.0%in2024. Overthesameperiod,thesharepricehasmorethandoubled,reportinganannualised totalreturnof23%,includingdividends. 1.FY2019toFY2024 Share price US$ Initial investment at avg buy price of $31 Further top slicing at $82 per share Top slice at $60 per share 23% annualised return (£) 0 20 10 30 50 70 40 60 80 90 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 7 ![]() 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. 0% 10% 20% 30% Over 1 year Over 3 years Over 5 years Over 10 years 4% 8% 19% 12% 14% p.a. Total return target 17% 1 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 9 ![]() 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 0% 10% 5% 15% 20% Over 1 year Over 3 years Over 5 years Over 10 years 2% 6% 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 1 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 11 ![]() # 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 14 #### Chief Executive Officer’s report 16 #### How we create value 20 #### Key performance indicators 22 #### Investment review 24 #### Public Companies 28 #### Financial review 40 #### Going concern and viability 68 #### Funds 36 #### Risk management 63 #### Private Capital 32 #### Sustainability 44 Strategic report Corporate governance Financial statements Other information Introduction 13 ![]() 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 1 decreasedfrom£62.7m to£53.6m 2 andtotalnetrevenuewas£30.9m 3 .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 15 ![]() 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 3% Target return 0% 5% 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 5% CPIH 5% 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%. 0% 5% 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 17 ![]() #### 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 19 ![]() #### 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 21 ![]() #### 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 0% 2% 4% 6% 8% 10% 12% 14% Caledonia NAVTRCPI-H +3% to CPI-H +6% Caledonia NAVTR Caledonia TSR FTSE All Share TR 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 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 March 2015 March 2017 March 2019 March 2021 March 2023 March 2025 0 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) 0% 2% 4% 6% 8% 10% 12% 14% Caledonia NAVTRCPI-H +3% to CPI-H +6% Caledonia NAVTR Caledonia TSR FTSE All Share TR 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 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 March 2015 March 2017 March 2019 March 2021 March 2023 March 2025 0 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) 0% 2% 4% 6% 8% 10% 12% 14% Caledonia NAVTRCPI-H +3% to CPI-H +6% Caledonia NAVTR Caledonia TSR FTSE All Share TR 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 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 March 2015 March 2017 March 2019 March 2021 March 2023 March 2025 0 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 0% 2% 4% 6% 8% 10% 12% 14% Caledonia NAVTRCPI-H +3% to CPI-H +6% Caledonia NAVTR Caledonia TSR FTSE All Share TR 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 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 March 2015 March 2017 March 2019 March 2021 March 2023 March 2025 0 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 23 ![]() #### 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 1  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% 31 March 2024 £m Investments £m Realisations 3 £m Accrued income £m Gains/ (losses) £m 31 March 2025 £m Income £m Return 4 % 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 1 18.0 - (0.8) - (6.3) 10.9 9.0 Totalinvestments 2 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 25 ![]() 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% 3 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% 2 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% 1 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% 4 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% 5 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% 8 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% 6 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% 10 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% 9 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% 7 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 27 ![]() #### 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 (%) 0% 5% 10% 15% 1 year 3 years 5 years 10 years 5% 6% 12% 8% 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 D 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 0% 5% 10% 15% 20% 1 year 3 years 5 years 10 years 4% 6% 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 29 ![]() #### 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 0% 5% 10% 1 year 3 years 5 years 10 years 8% 4% 9% 5% 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. 0 100 200 300 400 500 600 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 31 ![]() #### 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 0% 10% 20% 30% 1 year 3 years 5 years 10 years 4% 8% 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 1  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 33 ![]() #### 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 89 116 145 150 179 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 35 ![]() 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% 0% 10% 5% 15% 20% Over 1 year Over 3 years Over 5 years Over 10 years 2% 6% 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 37 ![]() #### 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 39 ![]() #### 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 Share 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 3 Total return 31Mar 2025 Totalinvestmentportfolio 2,696.4 320.3 (336.4) (41.5) 93.9 2,732.7 Otherinvestments 1 18.0 – (0.8) (9.0) 2.7 10.9 Total investments 2 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. 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.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 1 43.7 - 43.7 47.1 - 47.1 Netgainsonfairvalueinvestments-portfolio 2 - 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 1 9.0 - 9.0 14.7 - 14.7 Netlossesonfairvalueinvestments-otherinvestments 2 - (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 3 - (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 4 - - - (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 41 ![]() #### 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 1  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 0 -10 0 -200 £m Opening value Investments - portfolio Realisations - portfolio Investment income received Dividends paid Share 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 0 $m 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 43 ![]() #### 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 46 #### Our investments 47 Environment – our portfolio and #### business operations 52 #### TCFD summary 55 #### Our people and culture 57 #### Equality, diversity and inclusion 61 #### The Caledonia Investments #### Charitable Foundation 59 Strategic report Corporate governance Financial statements Other information Introduction 45 45 ![]() #### 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 1. Advisesandassistsin thecontinued developmentand implementationof ourapproachtoESG matters across the business 2. Seeks to ensure that ESG matters areappropriately factoredinto decision-making processes 3. Continues to develop understandingof climate-related matters 4. 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 47 47 ![]() #### 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 49 ![]() #### Sustainability (continued) #### OUR AMBITION, #### YOUR FUTURE AND TO BE CARBON NEUTRAL BY 2030 WE 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 51 ![]() #### 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 2 e 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 2 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 3 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 53 ![]() #### 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 2 e Carbonfootprint 1and2 13 43 -69% 16 TonnesCO 2 e/$minvested WACI 1and2 51 97 -47% 60 TonnesCO 2 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 1 Scope Portfolio (2025) Units Totalcarbon emissions 2 1and2 6,742.7 TonnesCO 2 e Carbonfootprint 1and2 10.0 TonnesCO 2 e/£minvested WACI 1and2 10.0 TonnesCO 2 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 55 ![]() #### 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 57 ![]() #### 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 59 ![]() #### 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 1 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 1 Male 70% Female 30% Investment employees Male 35% Female 65% Support employees Strategic report Corporate governance Financial statements Other information Introduction 61 ![]() #### 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 63 ![]() #### 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. 1 #### 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 65 ![]() #### 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 67 ![]() #### Going concern and viability 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 69 ![]() # 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 72 #### Governance framework 74 #### Corporate governance report 76 #### Section 172 statement 80 #### Nomination Committee report 86 #### Audit and Risk Committee report 88 #### Directors’ remuneration report 96 #### Governance Committee report 94 #### Directors’ report 115 #### Responsibility statements 119 Strategic report Corporate governance Financial statements Other information Introduction 71 ![]() #### 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 N A G N A G N R A G N A G N R 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 73 ![]() #### 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 75 ![]() #### 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 1 7 8 F A Buckley 8 8 HonCWCayzer 8 8 GBDavison 8 8 M A Farlow 1 7 8 CLFitzalanHoward 1 7 8 LRFordham 8 8 W P Wyatt 1 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 77 #### 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 79 ![]() 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 81 ![]() 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 83 ![]() #### 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 85 ![]() #### 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 87 ![]() #### 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 1 : Strategic report Corporate governance Financial statements Other information Introduction 89 ![]() #### 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 91 ![]() #### 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 93 ![]() #### 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 95 ![]() #### 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 97 ![]() #### 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 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 99 ![]() #### 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 a JMBCayzer-Colvin W P Wyatt b 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 1 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 2 270 338 240 175 210 234 n/a n/a Long-termincentives 3 578 477 – – 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 RW 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 a 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 a 20 13.5 100 Capital portfolioTR b 53.3 13.1 100 Income portfolioTR c 26.7 8.5 100 2022 NAVTR a 100 5.4 48 W P Wyatt 2020 NAVTR a 100 13.5 100 JMB Cayzer-Colvin 2020 NAVTR a 40 13.5 100 Fundspool TR d 60 18.0 100 2022 NAVTR a 40 5.4 48 Fundspool TR d 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 a £ 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 a 54,132 476,559 JMBCayzer-Colvin 602,901 b 77,758 680,659 W P Wyatt 551,134 c 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 3 Total 7 2025 £’000 2024 £’000 2025 £’000 2024 £’000 2025 £’000 2024 £’000 D C Stewart 165 165 – – 165 165 F A Buckley 51 49 – 4 – 51 49 HonCWCayzer 1 54 52 1 5 – 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 2 49 47 – 6 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 Share priceat grant 1 Shares comprised inaward number 2 Receivableif minimum performance achieved 3 Endof performance/ retention period 4 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 1 £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 1 244,235 249,435 203,754 198,554 F A Buckley 250 250 – – HonCWCayzer 1 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 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 2 Vested butun- exercised 3 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 4 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 4 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 80 120 160 200 240 280 320 360 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 1,154 – 100.0 2023 M S D Masters 1 1,250 45.0 100.0 2024 M S D Masters 1,376 2 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 1 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 2 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 3 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 2 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 80 60 40 20 0 £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 1 Strategicreport 67 Likelyfuturedevelopments in the business 1 Strategicreport 66-67 Engagementwithsuppliers, customersandothers 1 Corporategovernance report,Section172 statement 80-85 Greenhousegasemissions, energyconsumptionand energy efficiency action 1 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). Shares 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 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 share p Share 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 159 159 ![]() 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 2 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 2 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