Fund manager Neil Woodford told the High Court this week that claims he engaged in a "conspiracy" to change the management at FTSE 250 business Stobart Group were false.
Mr Woodford, via his funds, owns 19.5 per cent of the shares in the company, which had originated as a road haulage business but is now best known for Southend Airport.
The company is engaged in legal action against its former long serving chief executive Andrew Tinkler, who departed the role of chief executive in 2017, and was sacked from the board in June 2018, but was later re-elected to the board by the shareholders.
Mr Woodford, who was among the shareholders who voted for Mr Tinkler’s re-election, gave evidence in the High Court on behalf of Mr Tinkler on Monday, November 19, and the case was adjourned on November 29.
Mr Woodford told the court it was "totally false" to claim that he had engaged in a conspiracy with others to change the management of the company in a way that, while in the interests of Mr Stobart and Mr Woodford, would not be in the interests of other shareholders.
He supports management change at the company, and had approached Philip Day, an established city figure who runs the Edinburgh Woollen Mills business, to take over as chairman and work with Mr Tinkler. But he said this was not done in an underhand way.
Mr Woodford said he would not engage in any such conspiracy as it would damage the interests of the business, and so hinder the chances of the company performing well, and the share price recovering.
The judge in the case is expected to deliver his verdict in the new year, but Stobart withdrew some of its original claims against Mr Tinkler this week, including that he inappropriately used company money for personal spending.
The shares of Stobart Group have fallen from £2.83 a year ago today, to the current level of £2.05p.
Mr Woodford believes Mr Tinkler is key to the future success of the company. He declined to comment further on the progress of the case, as it is ongoing.
david.thorpe@ft.com
