Crystal Amber Fund Limited Monthly Net Asset Value and Interim Dividend Declaration

 
TIDMCRS 
 
8 April 2016 
 
 
                          CRYSTAL AMBER FUND LIMITED 
 
                     ("Crystal Amber Fund" or the "Fund") 
 
           Monthly Net Asset Value and Interim Dividend Declaration 
 
 
Crystal Amber Fund announces that its unaudited net asset value ("NAV") per 
share on 31 March 2016 was 156.5p (29 February 2016: 151.2p per share). 
 
The proportion of the Fund's NAV at 31 March 2016 represented by the ten 
largest holdings, other investments and cash (including accruals), was as 
follows: 
 
Top ten holdings               Pence per share Percentage of investee equity 
                                               held 
 
Grainger Plc                        32.4                     3.4% 
 
Pinewood Group Plc                  20.7                     6.4% 
 
Dart Group Plc                      14.6                     1.5% 
 
Leaf Clean Energy Co.               12.5                     29.9% 
 
STV Group Plc                       12.1                     7.3% 
 
Hurricane Energy Plc                10.9                     16.1% 
 
Coats Group Plc                      9.4                     2.4% 
 
FairFX Group Plc                     7.8                     24.8% 
 
Sutton Harbour Holdings Plc          6.9                     29.3% 
 
Hansard Global Plc                   4.8                     3.3% 
 
Total of ten largest holdings       132.1 
 
Other investments                   19.2 
 
Cash and accruals                    5.2 
 
Total NAV                           156.5 
 
Investment Adviser's commentary on the portfolio 
 
Over the quarter to 31 March 2016, NAV per share grew by 0.4 per cent or 2.0 
per cent after adjusting for the 2.5p dividend paid in the period. 
 
The top three positive contributors to NAV growth over the quarter to 31 March 
2016 were Pinewood Group plc (3.3 per cent), FairFX Group plc (1.7 per cent) 
and Dart Group plc (1.4 per cent). The three main detractors were STV Group plc 
(-2.0 per cent), Sutton Harbour Holdings plc (-1.2 per cent) and Grainger plc 
(-0.5 per cent). 
 
Dart Group plc 
 
The company issued a trading update on 4 March 2016 indicating that current 
year profits would be ahead of market expectations due to a better than 
anticipated winter season. The company also stated that it "expects operating 
performance for the year ending 31 March 2017 to be broadly in line with the 
current year" which led to a substantial upgrade of consensus forecast for 
pre-tax profit. 
 
FairFX Group plc ("FairFX") 
 
On 7 March 2016, FairFX announced a GBP5.0 million strategic investment by the 
Fund to finance its marketing strategy. The investment was at 20p per share. 
Furthermore, in exchange for strategic assistance from the Fund, FairFX issued 
the Fund a three-year warrant over 7.5 million shares at an exercise price of 
27p per share. 
 
Historically, the company had limited investment to execute its "land grab" 
strategy to fully leverage its scalable platform. The Fund's investment, part 
of a GBP5.25m fundraising, is expected to accelerate growth. In 2015, FairFX 
acquired 75,000 currency card customers, up 54 per cent on 2014. This takes the 
total number of customers to 508,000. The Fund notes that market forecasts for 
2018 are for earnings per share of 3.8p, placing the shares on a prospective PE 
multiple of 8.2. 
 
Grainger plc ("Grainger") 
 
On 4 January 2016, Grainger announced the exchange of contracts, subject to 
regulatory approval, to sell its Equity Release division on or before 30 May 
2016 for an estimated gross consideration of GBP325 million, comprising GBP175 
million cash and the transfer to the buyer of GBP150 million of debt. Grainger 
said the sale would significantly reduce its financial and operational costs. 
 
On 28 January 2016, Grainger announced the outcome of its strategy review, 
which includes plans to reduce overheads through a streamlined structure, exit 
non-core development assets and reduce financing costs with a target of 4 per 
cent cost of debt. It also announced plans to invest over GBP850 million by 2020 
into the private rented sector to drive the growth of rental income and 
dividends. 
 
The Fund welcomes and supports Grainger's actions to streamline the business 
and cut costs; however, we remain concerned both with the pace and scope of 
cost cutting. We continue to believe that further significant value can be 
realised through either a spin-off of the regulated tenancies division or a 
sale of Grainger. 
 
Leaf Clean Energy Co. ("Leaf") 
 
In March 2016, Leaf announced a NAV per share of 62.5p as at 31 December 2015, 
following the return of GBP6.4 million to shareholders in October 2015. Over 90 
per cent of Leaf's value is held in its investment in Invenergy. The process to 
exit this investment is ongoing, yet the timing remains uncertain. 
 
The Fund is confident that the value of Invenergy will be released and expects 
this to happen in 2016. The Fund believes that the shares, trading at more than 
a 40 per cent discount to the December NAV, remain deeply undervalued. 
 
Pinewood Group Plc ("Pinewood") 
 
On 10 February 2016 Pinewood announced that management's expectations of 
performance for the year to 31 March were higher than at the time of the 
interim results. Pinewood's board appointed Rothschild "to assist with a 
strategic review of the overall capital base and structure, which could include 
a sale of the company". The Fund believes that whilst the strategic review may 
result in the release of value at Pinewood through a possible sale, this would 
have been unnecessary had management run the business more efficiently. 
 
Transaction in shares 
 
During the quarter to 31 March 2016, the Fund sold 6.1 million shares from 
Treasury at NAV, or 155p per share to an institutional investor. The Fund 
subsequently bought back 300,000 shares at an average cost of 147.5p per share. 
These shares are held in Treasury. 
 
Dividend 
 
The Board declared an interim dividend of 2.5p per share which was paid on 19 
February 2016 to shareholders on record on the register on 22 January 2016. 
This interim dividend brings total dividends paid since August 2015 to 5p per 
share. 
 
For further enquiries please contact: 
 
Crystal Amber Fund Limited 
William Collins (Chairman) 
Tel: 01481 716 000 
 
Allenby Capital Limited - Nominated Adviser 
David Worlidge/James Thomas 
Tel: 020 3328 5656 
 
Numis Securities Limited - Broker 
Nathan Brown/Hugh Jonathan 
Tel: 020 7260 1426 
 
Crystal Amber Advisers (UK) LLP - Investment Adviser 
Richard Bernstein 
Tel: 020 7478 9080 
 
 
 
END
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