H1 2025: NAV down to 58.23p while the Navient turnaround shifts gear
Sherborne Investors (Guernsey) C Limited has posted its interim numbers for the six months to 30 June 2025. Net asset value (NAV) fell to £405.9 million, equal to 58.23 pence per share, from £430.3 million (61.47 pence) at year end. For context, the prior year half-year NAV was £454.8 million (64.97 pence). The Company also flagged an estimated 31 August 2025 NAV of 58.0 pence per share.
The headline move was driven by mark-to-market swings in the single core holding – Navient Corporation – and, to a lesser extent, the Company’s own share price within the co-investment structure. With Edward Bramson now Chair of Navient and phase two of the turnaround due in H2 2025, investors are watching closely for operational milestones to translate into NAV progress.
Key numbers investors should know
| NAV | £405.9 million (30 June 2025) |
| NAV per share | 58.23p |
| Comprehensive loss | £22.51 million |
| Unrealised loss on investments | £22.03 million |
| Basic and diluted EPS (deficit) | (3.22p) |
| Total operating expenses | £480,782 |
| Cash and cash equivalents | £749,263 |
| Shares in issue (period end) | 697,000,000 |
| Share buybacks (H1 executed) | 3.0 million shares; £1.25 million total consideration |
| Dividend paid (May 2025) | 0.1 pence per share (£700,000) |
What moved the NAV: single-name exposure cuts both ways
Sherborne C invests via SIGC LLC into two things: Navient common stock and, to a smaller extent, the Company’s own shares. The valuation is Level 3 (unobservable) because it is taken from the NAV of SIGC LLC, but that NAV in turn is mainly driven by quoted prices of Navient and Sherborne C.
In H1, the Company recorded an unrealised loss of £22.03 million. With a concentrated portfolio, share price volatility translates quickly into NAV. Management’s own sensitivity shows that a 10% swing in Navient and Sherborne C’s share prices would move the Company’s NAV by about £39.1 million. That is the key risk – and opportunity – to keep in mind.
Navient update: phase one complete, phase two on deck
There has been meaningful governance change at Navient. Following the 5 June 2025 AGM, Edward Bramson was appointed Chairman. The first phase of Navient’s turnaround – outsourcing loan servicing, selling a non-core division, and cutting costs – has been completed, with overheads reduced by about 40%.
Phase two is expected in H2 2025 and will target further cost reductions and set growth objectives, with a particular focus on the Earnest business. If delivery matches the ambition, that should be supportive for Sherborne C’s NAV. The investment is now formally classified as a Turnaround Investment, though any incentive allocation at the fund level was £Nil at 30 June 2025.
Capital returns: small dividend, accretive buybacks
Navient paid $0.32 per share in dividends during H1 2025, of which the Company received its proportionate share via the fund structure (amount not disclosed). Sherborne C paid a 0.1 pence per share dividend on 23 May 2025 and intends another 0.1 pence post the 2025 full-year results.
Buybacks began after the May AGM. By 31 August 2025, 3.0 million shares had been repurchased for gross consideration of £1.25 million – roughly 42 pence per share. Management notes this is about a 25% discount to prevailing NAV, making the purchases accretive. The Board still expects to allocate £10 million to £15 million to repurchases this year, which, if continued around similar discounts, should add incremental value per share.
Costs, cash and governance
Operating expenses were modest at £480,782 for the half, with directors’ fees of £104,487 and professional fees of £219,924 the main items. Cash stood at £749,263 and net current assets at £766,284. The going-concern statement is robust, noting that even a 100% increase in annualised expenses would be roughly 0.1% of NAV.
At the fund level (SIGC LLC), management fees of £2,066,668 were paid during the period. No incentive allocation was accrued. All AGM resolutions passed, though a minority opposed increases to director fees, the waiver related to concert parties and repurchase authority. The Board is engaging with those shareholders. James Christie joined as a non-executive director on 1 September 2025.
Risk and sensitivity: what could swing the dial next
- Market price risk – a 10% move in Navient and Sherborne C share prices changes NAV by approximately £39.1 million.
- Interest rate exposure – limited. With cash of £749,263, a 100 bps change implies about £7,492 up or down on annual income.
- FX risk – limited at the Company level; underlying exposure sits mainly in the fund that owns US-listed Navient.
The risk section is broadly unchanged from year end, but with the portfolio now squarely in turnaround mode at Navient, execution will be the key driver from here.
My take: glass half full, but catalysts needed
There is no denying the numbers – NAV per share down to 58.23p and a comprehensive loss of £22.51 million. That is the cost of concentrated exposure when markets are choppy. On the positive side, buybacks at around a 25% discount are value-add, costs are tight, and phase one at Navient has delivered a sizeable 40% overhead reduction.
The near-term share price story likely hinges on two catalysts: the detailed launch of phase two at Navient in H2 2025 (especially growth targets at Earnest) and continued buyback execution at a discount. If Bramson’s plan at Navient gains traction, Sherborne C’s NAV should respond. Until then, expect NAV to move with the Navient share price – that is both the opportunity and the risk.
