Rebel Pinewood investor calls on chairman Michael Grade to quit

Pinewood Shepperton chairman Michael Grade today clashed with dissident investor Richard Bernstein, who demanded he resign in a face-to-face showdown during the film studios' annual general meeting.

Bernstein, who runs activist investment fund Crystal Amber, holds an 18% stake in Britain's biggest film and TV studios.

He said: "Since listing in 2004, both pre-tax profits and return on capital employed have more than halved at Pinewood Shepperton.

"This record speaks for itself and the buck stops with Michael Grade. We believe that all shareholders deserve better stewardship."

But there appeared to be no immediate threat to Grade's future as he was not up for re-election as chairman at the AGM, held at JP Morgan Cazenove in the City.

Grade, chairman since 2000, told the AGM: "We are well aware of Crystal Amber's viewpoint having met with them on a number of occasions. Our latest discussions with other major shareholders, representing a clear majority, give us confidence that they support the board."

Journalists were not allowed to attend the meeting, but reports suggested Grade struggled to answer some questions from Bernstein, who also called for senior independent director Adrian Burn to go.

The investor asked Grade if he could explain the meaning of "return on capital employed" — a measure of a company's profitability and efficiency.

Bernstein also questioned why Pinewood's property portfolio had not been revalued and claimed Grade told him at an earlier private meeting that it was worth more than is declared on the books.

Grade said he is keen for Pinewood to do well as he is a shareholder. But Bernstein pointed out the chairman sold some shares at the time of the 2004 stock market flotation and has bought none since then.

When Bernstein pressed him, Grade said he did not know exactly how much he'd paid for the shares.
Pinewood shares were flat today at 143.5p. The studios floated at 180p in 2004.