Kelso Group Holdings Plc (LSE:KLSO) is calling on shareholders of TheWorks.co.uk plc to support the appointment of major investor Graeme Coulthard to the retailer’s board at its forthcoming Annual General Meeting.
Kelso is encouraging investors to vote in favour of Resolution 15, which proposes Coulthard’s election as a director. Kelso itself owns 10% of The Works, while Coulthard holds an 8% stake, giving the two shareholders significant exposure to the company’s future performance.
Kelso challenges concerns over Coulthard’s retail experience
Kelso has disputed The Works board’s assessment of Coulthard’s retail credentials, pointing to his previous involvement with Card Factory as evidence of his ability to contribute to shareholder value creation.
The investment group argues that appointing Coulthard would represent a relatively modest governance change, expanding The Works board to six directors while introducing the perspective of a substantial shareholder.
Kelso believes greater shareholder representation at board level could strengthen decision-making and help align the company’s strategic direction and capital allocation with the interests of its wider investor base.
Financial performance remains a key concern
Kelso’s own outlook continues to be constrained by weaker financial performance, including declining revenue, continuing losses and deterioration in operating and free cash flow.
Technical indicators are relatively neutral, with some positive momentum but no clear directional trend. Valuation metrics offer limited additional support, with a reported price-to-earnings figure of 0.0 and no dividend yield data available.
More about Kelso Group Holdings Plc
Kelso Group Holdings Plc is a UK-listed investment company established in January 2023 to identify opportunities among undervalued small and mid-cap businesses.
The company is backed by more than 80 business associates of its board alongside a small number of institutional investors. Its directors collectively have around 150 years of experience across UK-listed companies, including expertise in fund management, corporate broking, mergers and acquisitions, private equity and law. The board owns close to 20% of Kelso.
Kelso typically maintains a concentrated portfolio of fewer than ten investments. Rather than operating as a passive shareholder, it seeks to engage with investee companies on areas including corporate strategy, capital allocation and investor relations.
Through this activist-style approach, Kelso aims to identify and unlock value it believes is not adequately reflected in the market valuations of selected UK-listed businesses.
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