Diaceutics engagement update
In this update, Castlefield stewardship assistant Ffion Spencer reports on a recent engagement meeting with Belfast-based pharmaceutical company Diaceutics.
As part of our investment framework, we assess companies using a platform called ‘Impact Cubed,’ which benchmarks performance across fourteen different Environmental, Social and Transparency & Governance (E.S.T.) metrics. These metrics help us evaluate how a company is performing in key areas compared to industry peers, so that we can ensure that our investee companies align with our commitments.
We aim for at least 70% of our equity funds to be invested in companies scoring seven or higher, meaning they outperform their peer group (as defined by Impact Cubed) in at least seven of these E.S.T. categories.
We reached out to Diaceutics regarding its board composition after seeing that Diaceutics fell below the benchmark in its board independence.”
We reached out to Diaceutics regarding its board composition after seeing that Diaceutics fell below the benchmark in its board independence. We noted that the board currently consists of six members, three of whom are non-independent and three considered independent. We recognise that Diaceutics is a new publicly listed company and a small-cap business, and we understand that governance structures often develop and mature over time. We view this as part of a broader journey, and we appreciate the progress that has already been made.
At the same time, we see board independence as a key factor in strong corporate governance. Independent directors can bring objective perspectives, provide effective oversight, and contribute to more balanced decision-making. These qualities help promote transparency and accountability, which are essential to long-term value creation.
During our recent discussion with the company, Diaceutics provided encouraging updates regarding plans to strengthen its board. The company shared that it intends to recruit an additional Non-Executive Director (NED) soon. They offered a timeline for the appointment and outlined the desired qualifications and expertise for the new director. This includes a focus on skills that would add strategic value to the board and complement existing competencies.
we see board independence as a key factor in strong corporate governance. Independent directors can bring objective perspectives, provide effective oversight, and contribute to more balanced decision-making.
Although our engagement will not have an immediate impact, we are encouraged by Diaceutics’ acknowledgement of the importance of board independence and its willingness to take proactive steps toward improving governance standards. We see this as a positive indication of the company’s alignment with best practices in governance and its commitment to continuous improvement.
Outcome: We were encouraged by Diaceutics’ acknowledgement of board independence as a critical element of effective corporate governance and by its clear commitment to strengthening its board structure. We view these intentions as constructive and consistent with our expectations for continued governance enhancement. We encourage the company to move forward with the appointment of an additional independent Non-Executive Director and will continue to monitor its progress in this area.
Information is accurate as at 08.08.2025. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.