20th Apr 2020 15:40
(Alliance News) - Sherborne Investors (Guernsey) B Ltd on Monday reported a drop in net asset value over 2019 but Sherborne Investors (Guernsey) C Ltd saw a rise in NAV.
The funds each were set up with the specific policy of investing in one company, decided by investment manager Sherborne Investors Management LP, the investment vehicle of activist investor Edward Bramson.
Sherborne B was set up to acquire an interest in UK trust Electra Private Equity PLC, whereas Sherborne C holds Bramson's interest in FTSE 100-listed lender Barclays PLC.
At the end of 2019, Sherborne B held a 29.90% stake in Electra, while Sherborne B controlled a 5.48% stake in Barclays.
Electra is in the middle of a managed wind-down and will not be adding any new investments to its portfolio.
At the end of 2019, Sherborne B's NAV per share stood at 10.91 pence compared to 11.40p at the same point the year before. Sherborne B's net assets decreased to GBP34.3 million from GBP35.8 million. At March 31, NAV per share had dipped further, falling to 5.52p.
Sherborne B declared a 1.5p and 0.65p dividends in 2019, following two special dividends distributed by Electra.
The company's C share NAV increased over 2019, rising to 78.04p from 66.96p. Sherborne C's net assets at the end of 2019 were GBP546.3 million compared to GBP468.7 million twelve months earlier.
At March 31, Sherbrone C's NAV per share stood at 43.3p, with net assets of GBP303.3 million.
In May, Barclays' shareholders voted against adding Bramson to the bank's board, Bramson having previously been rebuffed in late 2018.
"The investment manager has advised the board that it believes that addressing the issues it has discussed with Barclays' board could increase Barclays' financial strength and its long-term competitive position, leading to an increase in shareholder value in line with the investment manager's customary return objectives. The investment manager's present intention is to continue its dialogue with Barclays for as long as it appears to be appropriate to do so," Sherborne C said.
Looking ahead, Sherborne C said the coronavirus pandemic is "difficult to quantify".
"The situation is constantly evolving as governments and businesses continue to combat the impact of the pandemic. As an investment company, for day to day operations the company is ultimately dependent on the investment manager, administrator and company secretary all of whom have robust business continuity plans in place to ensure that they can continue to service the company," the firm added.
Shares in Sherborne B were untraded in London on Monday having last closed at 5.00p. Sherborne C was untraded at 30.00p.
By Paul McGowan; [email protected]
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Sherborne Inv C