Gore Street overhauls board but retains controversial chair

Two experienced directors joined the board, but the continuation of its contentious chair may slow efforts to restore confidence.

Gore Street Energy Storage (GSF ) has revamped its board with two new directors after accelerating its replacement plan at the beginning of the month.

The £300m trust initially pledged to overhaul the board when over a quarter of shareholders voted to oust them at an extraordinary general meeting earlier this year, but fast-forwarded their plans as grievances mounted.

Claims that £5m of fees paid to the investment manager were missing from its financial statement – which the board since claimed was all above board – added fuel to the fire.

To satisfy shareholders’ resentments, GSF today appointed Angus Gordon Lennox and Norman Crighton to the board, seeing out directors Thomas Murley and Malcolm King on 16 December.

Both new members have extensive histories working with investment trusts, with Lennox continuing to act as the chair of Aberforth Geared Value & Income (AGVI ) since June last year.

Prior to this, he’d been chair of Mercantile (MRC ) and a senior director of STS Global Income & Growth (STS ) following a 24-year career as a corporate broker for investment companies.

Crighton is equally well versed in the sector, currently serving as chair of the RM Infrastructure Income (RMII ) and AVI Japan Opportunity (AJOT ) trusts.

However, it is his experience overseeing the sale of Harmony Energy Income to Foresight Group as chair earlier this year that may be of particular relevance to his new position.

The fellow battery storage trust had languished at an average discount of 35% ahead of the auction, much like Gore Street’s current discount of 41.1%.

Taking advantage of the discounted price, Saba Capital nabbed a 5% stake in GSF last month, joining activist investor RM Funds. Together they own 11% of the trust’s shares.

Peel Hunt analyst Markuz Jaffe commended Gore Street’s speed in meeting its commitment to revamp the board as activist pressure mounts, having also appointed Simon Merriweather shortly before in September. One more director will be named in the coming months.

However, he noted that the move was ‘partially tempered’ by the continuation of chair Patrick Cox and non-executive director Caroline Banszky, who were both the primary targets of activists. They each received a 30.7% vote for their removal at the requisitioned general meeting in August.

Cox and Banszky will keep their positions until the next annual general meeting expected in July 2026, but will not seek re-election. Their continued presence on the board is likely to delay any meaningful moves to regain shareholders’ trust, according to Jaffe.

‘This may act to slow the pace with which a more comprehensive strategic review, independent of the investment manager, can take place – something we believe would help to restore confidence in GSF,’ he added.

‘Although we are also mindful of what such a comprehensive strategic review might uncover, given the challenges around transparency and quality of reporting that we have previously highlighted at GSF.’