Net Asset Value December 2012
8 January 2013
CRYSTAL AMBER FUND LIMITED
("Crystal Amber Fund" or the "Fund")
Monthly Net Asset Value
Crystal Amber Fund announces that its unaudited net asset value ("NAV") per
share on 31 December 2012 was 120.08p (30 November 2012: 117.18p per share).
The proportion of the Fund's NAV at 31 December 2012 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
TT Electronics plc 14.4 3.8%
Sutton Harbour Holdings plc 12.8 27.0%
Norcros plc 10.3 8.2%
Devro plc 9.7 1.1%
API Group plc 9.2 8.8%
Northgate plc 7.7 1.1%
Tribal Group plc 7.1 4.4%
Smiths News plc 6.8 1.4%
Renishaw plc 4.4 0.2%
4imprint Group plc 4.3 2.8%
Total of ten largest holdings 86.7
Other investments 12.0
Cash and accruals 21.4
Total NAV 120.1
Investment adviser's quarterly commentary on the portfolio
Over the quarter to 31 December 2012, NAV grew by 12.3%. For the year to 31
December 2012, NAV growth was 35.3%.
Key positive contributors to the NAV performance have been N Brown, Sutton
Harbour, Northgate, API Group and May Gurney. Smaller negative impacts have
come from Devro and TT Electronics.
TT Electronics' share price was flat over the quarter. The Fund's holding in TT
has been reduced during the period to rebalance the portfolio, and in light of
weaker trading in the automotive industry. The Fund has remained actively
engaged with the company, its largest shareholders and other stakeholders.
Sutton Harbour's share price rose by 31.8% over the quarter. This positive
share price performance was despite a more conservative valuation of the
property portfolio. The announcement of Sutton Harbour's indicative master-plan
for development of the 113-acre former airport site has highlighted the long
term value of its assets. The completion of lease agreements for the Millbay
site has allowed Sutton Harbour to start the development of its new King Point
Marina which, in due course, will add scale to its operations. Over the period,
the Fund has progressed its proposals to deliver shareholder value.
Devro's share price was down 6.2% over the quarter. Following a site visit and
additional market research, we engaged in open and constructive dialogue with
the company's board. We advised management to demonstrate more clarity in
making the investment case for Devro and have suggested additional disclosures
on the opportunities for improved profitability through capital investment.
Believing that the outlook for the business is favourable, our aim is to help
Devro to maximise its potential and to set appropriately stretching goals for
its management. We look forward to a continuation of this engagement process.
API's share price rose by 22.1% over the quarter. Following previous board
announcements, API initiated its sale process at the end of September by
inviting tenders. In the announcement of its interim results, API confirmed
that it is in discussions with a number of interested parties. Trading results
highlight the on-going recovery in profitability driven by normalised input
costs and self-help measures. Following multiple site visits and research
meetings, and despite a share price gain of 100% over 2012, we believe that API
remains undervalued.
During the quarter, Northgate's share price appreciated by 26.1%. We have
previously highlighted the scope to achieve benefits in reducing the company's
cost of capital in the current low interest rate environment. Following the
company's interim results in December, we are pleased to note that such an
approach is gaining increasing credence with the analyst community and has lead
to a share price re-rating. In December, the Fund top-sliced its holding.
During the quarter, the Fund disclosed a small position in Thorntons, the
confectioner, worth approximately £0.9m.
N Brown's share price rose by 34.6% over the quarter. The arrival of Andrew
Higginson as non-executive chairman has been well received. The Fund was the
first institutional investor to meet him in his new capacity. It was a positive
meeting and we were pleased with the new chairman's initial thoughts on the
company. A positive trading update in October triggered a reappraisal of N
Brown's prospects, which reflect the fact that it is now generating over half
of its sales online, and its favourable prospects in the US. However in our
view, pressure on disposable income of its core customers could remain a
headwind on sales performance in the medium term. Following the share price
strength, the Fund has significantly reduced its holding in the company as the
share price achieved the Fund's price objective.
Further comments on the main investments in the portfolio can be found in the
Fund's 2012 Annual Report (available at www.crystalamber.com).
Share buy-back
During December, the Fund purchased 1,000,000 of its own shares at an average
price of 104.04p per share, which are held as treasury shares. The buy-back has
had the effect of significantly reducing the share price discount to the Fund's
net asset value.
Cash resources
Following strong share price performances in a number of our holdings, the Fund
banked some profits within the portfolio. Over the quarter, cash and accruals
increased from 9.2p per share to 21.4p per share. These cash balances will
enable the Fund to take advantage of fresh investment opportunities which have
been identified.
For further enquiries please contact:
Crystal Amber Fund Limited
William Collins (Chairman)
Tel: 01481 716 000
Merchant Securities Limited - Nominated Adviser
David Worlidge/Simon Clements
Tel: 020 7628 2200
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
Latest directors dealings
- 3 minutes ago Power Probe PLC
- 4 minutes ago Origin Enterprises (CDI)
- 20 minutes ago NATWEST GROUP
- 23 minutes ago SThree
- 49 minutes ago GSK