LONDON (Alliance News) - Sherborne Investors (Guernsey) B Ltd and Sherborne Investors (Guernsey) C Ltd both on Tuesday reported a sharp fall in net asset value.
The funds 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. Both stakes have been used to agitate for change, more successfully at Electra so far.
At December 31, Sherborne B held a 30% interest in Electra. As of January 31, Sherborne C held a 5.5% interest in Barclays.
At December 31, Sherborne's NAV per B share stood at 11.40 pence compared to 26.20p the year before, a 56% decrease. Sherborne B's net assets decreased 56% to GBP47.6 million.
In 2018, Sherborne B paid out 10.55p in dividends, which represents 30% of the company's 2017 NAV.
Electra is in the middle of a managed wind-down and will not be adding any new investments to its portfolio. Post period-end Electra distributed a 54p special dividend to shareholders, resulting in a 1.5p share dividend for Sherborne B shareholders.
The company's C share NAV decreased 33% over the same period, slipping to 66.96p from 99.41p. Sherborne C's net assets at the end of 2018 stood at GBP468.8 million, 33% lower than at the end of 2017.
"During 2018 shares of major global banks experienced a decline in value. Barclays' shares achieved a positive return for most of the first half of 2018, but declined significantly after the announcement of its first quarter results in April 2018," Sherborne C Chair Talmai Morgan said.
Bramson is seeking a seat on Barclays board at the bank's AGM this Thursday.
Morgan added: "The investment manager has advised the Barclays board that it believes that addressing the issues it has discussed with Barclays could increase the company's 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."
Shares in Sherborne B shares were up 11% Tuesday at 10.00p each. The C shares were flat at 57.50p.