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CRYSTAL AMBER FUND LIMITED - Net Asset Value December 2012CRYSTAL AMBER FUND LIMITED - Net Asset Value December 2012
PR Newswire
London, January 8
Crystal Amber Fund announces that its unaudited net asset value ("NAV") pershare 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 tenlargest holdings, other investments and cash (including accruals), was asfollows: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 120.1Investment adviser's quarterly commentary on the portfolio
Over the quarter to 31 December 2012, NAV grew by 12.3%. For the year to 31December 2012, NAV growth was 35.3%.
Key positive contributors to the NAV performance have been N Brown, SuttonHarbour, Northgate, API Group and May Gurney. Smaller negative impacts havecome from Devro and TT Electronics.
TT Electronics' share price was flat over the quarter. The Fund's holding in TThas been reduced during the period to rebalance the portfolio, and in light ofweaker trading in the automotive industry. The Fund has remained activelyengaged with the company, its largest shareholders and other stakeholders.
Sutton Harbour's share price rose by 31.8% over the quarter. This positiveshare price performance was despite a more conservative valuation of theproperty portfolio. The announcement of Sutton Harbour's indicative master-planfor development of the 113-acre former airport site has highlighted the longterm value of its assets. The completion of lease agreements for the Millbaysite has allowed Sutton Harbour to start the development of its new King PointMarina 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 andadditional market research, we engaged in open and constructive dialogue withthe company's board. We advised management to demonstrate more clarity inmaking the investment case for Devro and have suggested additional disclosureson the opportunities for improved profitability through capital investment.Believing that the outlook for the business is favourable, our aim is to helpDevro to maximise its potential and to set appropriately stretching goals forits management. We look forward to a continuation of this engagement process.
API's share price rose by 22.1% over the quarter. Following previous boardannouncements, API initiated its sale process at the end of September byinviting tenders. In the announcement of its interim results, API confirmedthat it is in discussions with a number of interested parties. Trading resultshighlight the on-going recovery in profitability driven by normalised inputcosts and self-help measures. Following multiple site visits and researchmeetings, and despite a share price gain of 100% over 2012, we believe that APIremains undervalued.
During the quarter, Northgate's share price appreciated by 26.1%. We havepreviously highlighted the scope to achieve benefits in reducing the company'scost of capital in the current low interest rate environment. Following thecompany's interim results in December, we are pleased to note that such anapproach is gaining increasing credence with the analyst community and has leadto a share price re-rating. In December, the Fund top-sliced its holding.
During the quarter, the Fund disclosed a small position in Thorntons, theconfectioner, worth approximately £0.9m.
N Brown's share price rose by 34.6% over the quarter. The arrival of AndrewHigginson as non-executive chairman has been well received. The Fund was thefirst institutional investor to meet him in his new capacity. It was a positivemeeting and we were pleased with the new chairman's initial thoughts on thecompany. A positive trading update in October triggered a reappraisal of NBrown's prospects, which reflect the fact that it is now generating over halfof its sales online, and its favourable prospects in the US. However in ourview, pressure on disposable income of its core customers could remain aheadwind on sales performance in the medium term. Following the share pricestrength, the Fund has significantly reduced its holding in the company as theshare price achieved the Fund's price objective.
Further comments on the main investments in the portfolio can be found in theFund'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 averageprice of 104.04p per share, which are held as treasury shares. The buy-back hashad the effect of significantly reducing the share price discount to the Fund'snet asset value.
Cash resources
Following strong share price performances in a number of our holdings, the Fundbanked some profits within the portfolio. Over the quarter, cash and accrualsincreased from 9.2p per share to 21.4p per share. These cash balances willenable the Fund to take advantage of fresh investment opportunities which havebeen identified.
For further enquiries please contact:
Crystal Amber Fund LimitedWilliam Collins (Chairman)Tel: 01481 716 000Merchant Securities Limited - Nominated AdviserDavid Worlidge/Simon ClementsTel: 020 7628 2200Numis Securities Limited - BrokerNathan Brown/Hugh JonathanTel: 020 7260 1426Crystal Amber Advisers (UK) LLP - Investment AdviserRichard BernsteinTel: 020 7478 9080