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Caledonia trims Close Brothers stake after 'strong' results
by Sarah Miloudi on Sep 25, 2013 at 14:47
The investment company said it had cut its holding of the stock from 5,960,894 shares to 5,907,595 shares, bringing it down to just shy of 4%.
The transaction was revealed the day after Close posted its preliminary full-year results, in which it told investors that its asset management division had returned to profitability following an earlier restructuring,
The latest sale marks a continuation of Caledonia's decision last year to reduce its position in the investment bank, which at one stage was as high as 13%.
Speaking to investors, Close said it had enjoyed a 'strong' year after its asset management division bounced back into the black with an adjusted operating profit of £4 million for the 12 months ended 31 July, versus the £4.3 million loss it posted the year before.
Across the group the firm's profit grew by 24% to £165.5 million, and following its solid performance its bosses decided to raise its full-year dividend by 7%, sending its shares up 4.9% to 1,189.00p on the previous day's close.
Will Wyatt's Caledonia has also performed well over the year to the end of August, with its share price rising by 26%, and its net asset value (NAV) by 14.4%.
Although this still leaves the £1.2 billion global growth trust lagging the FTSE World, which rose by 20.3% over the same stretch, the numbers see it wave goodbye to a difficult three years in which Caledonia's NAV fall below its benchmark by more than 20%.
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