Stagecoach co-founder Sir Brian Souter lost more than £14 million on his investments last year.
The Perth-born entrepreneur holds the vast majority of his wealth within investment vehicle Souter Investments Limited.
Newly filed accounts, for the year ending March 31, show a pre-tax loss of £14.3m.
The fund’s largest investment used to be shares in Stagecoach. However, in June 2022 Stagecoach delisted from the stock market after being acquired by DWS Infrastructure in a £595m deal.
Sir Brian’s investment company held 80 million shares, which were acquired for £1.05 each.
The fund has made several investments since receiving this cash injection.
Sir Brian Souter’s investments
During the financial year to March 31, the fund sold more of its shareholdings from companies listed on stock exchanges.
The value of listed investments fell from £64.3m in 2023 to just £598,000 last year.
Meanwhile the value of unlisted investments rose from £331m to £340.6m.
Souter Investments Limited’s net assets, including cash in the bank, stood at £387.8m at the year end. This is down from more than £400m in 2023.
The fund holds stakes in more than 30 businesses across sectors ranging from financial services, to healthcare, industrial, telecoms and transport.
In May last year it became one of the investors who bought Johnson Matthey’s diagnostic services business Tracerco.
That same month it partnered with Buckthorn Partners to invest into Cardo Group which provides repairs, maintenance and retrofit works for local authorities and housing associations.
In November, it agreed terms to acquire Premier Hytemp, a global provider of turnkey metals and precision engineering solutions for the energy industry.
It also backed MML Infrastructure in its investment in modular building company Premier Modular.
In February it completed the sale of software company Kura, which tracks bus journeys.
‘Looking to future with confidence’
Last year’s pre-tax loss of £14.3m, followed a loss of £15.4m in 2023.
In 2022 the firm’s investments rose in value by more than £70m.
In his strategic report with the accounts, managing director Calum Cusiter said: “The group’s increased net cash position reflects proceeds from significant investment sales after deducting new investments made, loans to related parties and operating losses.
“The loss in the year principally reflects operating and unrealised losses netted off against realised fair value gains.
“Net assets remain broadly consistent with the prior year.
“The directors will continue to monitor the performance of its portfolio and seek to identify new opportunities which meet the group’s investment criteria.
“The directors look forward to the future with confidence.”
In 2020 Sir Brian donated a third of his shareholding in Souter Investments to the Trust. This stake was valued at around £108m at the time.
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