Achilles seeks mandate expansion in inaugural results as it eyes Spire Healthcare

The fledgling activist trust is interested in operating companies with similar 'discounted asset-backed' features.

Achilles (AIC) is set to consult with shareholders on a potential broadening of its investment mandate to include more operating companies.

The £54.3m activist trust, launched last year by Harwood Capital’s Christopher Mills and Robert Naylor, released its inaugural set of results today, covering the period from its incorporation on 20 January 2025 to 31 December .

While the managers reported ‘weak’ returns since its debut that February, with its net asset value (NAV) per share up only 0.5%, they said momentum has accelerated post-period end as the NAV climbed a further 5.8p to reach 104.7p. 

Achilles pursued six major campaigns during its first year, four of which have been successfully concluded – corporate activity triggered at Urban Logistics Reit, Empiric Student Property, HICL Infrastructure (HICL), and Life Science Reit (LABS). 

Urban Logistics was the biggest contributor following a cash and share acquisition by London Metric at a 23% premium to its average share price. The trust had built up a stake of around 2.12% in the company and saw an uplift on 31.2% on its investment. 

Engagements continue at Aquila European Renewable (AERS), where Robert Naylor is overseeing a managed wind-down as Chair, and Spire Healthcare, where a strategic review is awaiting an outcome.

Although Spire Healthcare is a private hospital operator rather than a traditional investment trust, Achilles argues it displays classic ‘discounted asset-backed’ features, including significant freehold property and an undervalued occupational health platform.

Chair Charlotte Denton noted that the original flotation policy was ‘arguably not drawn widely enough’ to capture self-managed property companies that share the characteristics of investment trusts without the legal structure. A non-material change has already been implemented to widen the scope, and the board now intends to formalize this via shareholder consultation.

Following the success at Urban Logistics, Achilles offered to return capital to investors, but the proposal was universally declined. The board today said it expects to revisit a potential return of capital once there is ‘greater certainty’ regarding the Spire Healthcare investment.