We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for streaming realtime charts, analysis tools, and prices.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Crystal Amber Fund Limited | LSE:CRS | London | Ordinary Share | GG00B1Z2SL48 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1.00 | 1.32% | 77.00 | 75.00 | 79.00 | 77.00 | 76.00 | 76.00 | 8,448 | 09:35:15 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Unit Inv Tr, Closed-end Mgmt | -2.14M | -5.58M | -0.0723 | -10.65 | 59.37M |
Hot Features
Premium
TIDMCRS
28 March 2017
Crystal Amber Fund Limited
Interim Results for the period ended 31 December 2016
The Company announces its interim results for the six months ended 31 December
2016.
Highlights
* NAV(1) per share increased 41.8 per cent. over the six-month period to
218.02 pence (153.79 pence per share at 30 June 2016). Including the
dividends paid, NAV total return per share over the six months ended 31
December 2016 was 45.0 per cent..
* Net realised gains over the six months to 31 December 2016 were GBP3.9
million.
* Dividends of 2.5 pence per share were paid in August 2016 and January 2017,
in line with the dividend policy announced in December 2014.
* Continued engagement with the Fund's main investee companies, particularly
Hurricane Energy plc ("Hurricane"), Grainger plc ("Grainger") and Northgate
plc ("Northgate"), all three of which made significant contributions to
NAV.
* Hurricane announced several positive drilling results from its wells in the
West of Shetlands area, which resulted in a share price increase of 192.6
per cent. over the Period.
William Collins, Chairman of the Company, commented:
"In the six months to 31 December 2016, the Fund's performance was strong as it
continued to deliver on its activist investment strategy. The return of 45.0
per cent. over the Period, made Crystal Amber the best performing UK fund
included within Trustnet's 110 Investment Trusts. During a period of political
uncertainty, the Fund continued its bottom up approach, focusing on special
situations where it sees the potential to act as a catalyst for change."
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
Winterflood Investment Trusts - Broker
Joe Winkley/Neil Langford Tel: 020 3100 0160
Crystal Amber Advisers (UK) LLP - Investment Adviser
Richard Bernstein Tel: 020 7478 9080
(1) All capitalised terms are defined in the Glossary of Capitalised Defined
Terms unless separately defined.
Chairman's Statement
I hereby present the interim results of the Company for the six months to 31
December 2016.
Over the Period, NAV per share increased 41.8 per cent. to an unaudited 218.02
pence per share (153.79 pence per share at 30 June 2016). Total return over the
Period, including the dividends paid, was 45.0 per cent.. This compares with a
total return of 12.0 per cent. for the FTSE All Share Index and 16.7 per cent.
for the Numis Smaller Companies Index. Over the 2016 calendar year, the Fund's
total return was 44.7 per cent., which compares to a total return of 16.8 per
cent. for the FTSE All Share and 12.8 per cent. for the Numis Smaller Companies
Index.
During the Period, the UK economy faced times of political uncertainty and
instability, with the UK vote in favour of "Brexit" and Donald Trump's victory
in the US presidential elections. However, despite these developments, US and
UK equity markets performed strongly over the Period and the FTSE 100 ended the
calendar year at a record high.
In August 2016, the Bank of England cut interest rates from 0.5 to 0.25 per
cent. and committed a further GBP100 billion of quantitative easing to reduce the
likelihood of the UK slipping into a recession. Sterling's depreciation
contributed to strong returns in UK equity markets during the Period. The Fund
believes this currency weakness makes UK companies more attractive to overseas
buyers and is leading to an increase in takeovers.
The Fund continues to purchase FTSE put options as insurance against a
significant market sell-off. The net cost of these options amounted to 3.6 per
cent. of NAV over the Period.
The discount management policy continued, with a further 160,000 shares
purchased into Treasury at an average cost of 157.7 pence, and at an average
discount to NAV at the time of purchase of 4.5 per cent.. As at 31 December
2016, the Fund's closing share price traded at a discount to NAV of 7.6 per
cent..
In keeping with the Fund's dividend policy of paying 5 pence per year, a
dividend of 2.5 pence per share in respect of the six months ended 30 June 2016
was paid on 19 August 2016 and an interim dividend of 2.5 pence per share in
respect of the six months ended 31 December 2016 was paid on 19 January 2017.
Based on the NAV at 31 December 2016, this represents a yield of approximately
2.3 per cent..
In conclusion, I am pleased to report strong performance, both in absolute and
relative terms, over the Period and the Board is confident of positive outcomes
from recent and current engagement with our principal investee companies.
William Collins
Chairman
27 March 2017
Investment Manager's Report
Strategy and Performance
During the Period, the Fund continued to engage closely with the management and
boards of its major holdings.
At 31 December 2016, investments in equities represented 103.3 per cent. of net
assets. Net debt and accruals were GBP7.1 million, of which GBP2.5 million was for
the interim dividend announced on 14 December 2016.
The table below lists the top ten holdings at 31 December 2016, with the
performance contribution of each during the six-month period. The main
positive contributions came from Hurricane (35.5 per cent.), Northgate (6.3 per
cent.) and Grainger (2.7 per cent.). The main negative contribution was from
Sutton Harbour Holdings plc ("Sutton Harbour") (-0.2 per cent.).
Net realised gains for the Period were GBP3.9 million. This compares with GBP2.9
million for the six months ended 31 December 2015.
Portfolio
Top ten holdings Pence per Percentage of Total Contribution
share investee return over to NAV
equity held the Period performance
Hurricane Energy plc 85.9 14.1% 193.2% 35.5%
Grainger plc 34.3 3.4% 13.8% 2.7%
Northgate plc 31.7 4.7% 57.0% 6.3%
STV Group plc 19.9 13.9% 18.9% 0.6%
Leaf Clean Energy 12.6 29.9% 2.9% 0.5%
Company
FairFX Group plc 8.8 25.5% 7.9% 0.5%
Sutton Harbour Holdings 7.5 29.3% (5.4)% (0.2)%
plc
Hansard Global plc 4.7 3.3% 6.2% 0.1%
Camellia plc 2.6 0.9% 37.3% 0.4%
Shepherd Neame Ltd 2.5 1.3% 13.3% 0.2%
Total of ten largest 210.5
holdings
Other investments 14.6
Cash and accruals (7.1)
Total NAV 218.0
Investee Companies
Our comments on a number of our principal investments are as follows;
Hurricane
Hurricane is an oil exploration company targeting naturally fractured basement
rock reservoirs in the West of Shetlands area. Its core oil fields are
Lancaster, Halifax, Lincoln and Warwick. The Fund initially invested in
Hurricane in 2013.
Drilling results reinforce the Fund's view that Hurricane has a significant
resource base, potentially in excess of one billion barrels of oil. The oil
price recovered in 2016, resulting in improved market sentiment towards the
sector.
On 9 September 2016, Hurricane announced positive drilling results at its
Lancaster well, indicating contingent resources materially higher than previous
estimates of 200 million barrels. In October 2016, the company announced flow
rates 50 per cent. higher than the previous horizontal well. Following these
results, Hurricane raised GBP70 million to fund the drilling of two additional
exploration wells, the acquisition of sub-sea equipment and engineering studies
for the Early Production System phase of the Lancaster development. As part of
this deal, the Fund invested a further GBP10.7 million in Hurricane.
In November 2016, Hurricane was awarded an adjacent new licence, Halifax. By
drilling Halifax and Lincoln, the company expects to determine how far the
field extends in the Greater Lancaster Area.
On 19 December 2016, Hurricane announced positive interim results at its
Lincoln exploration well.
We currently await more detailed results from the Halifax and Lincoln wells, as
well as the updated Competent Person's Report for Lancaster. A Competent
Person's Report is a technical report intended to provide an unbiased and
independent opinion on the technical aspects of an oil company or specific oil
field, with the ultimate purpose of informing investors.
The Fund continues with its ongoing positive engagement with Hurricane and
supports the management's strategy.
Grainger
Grainger is the UK's largest listed residential landlord with a portfolio of
assets worth GBP2.7 billion. It owns over 3,600 regulated tenancy properties
with a market value of GBP1.3 billion. As these properties become vacant and are
sold, Grainger estimates that they will generate a reversionary surplus of GBP327
million for the company.
As there are no new regulated tenancies in the UK, Grainger aims to focus
growth efforts on the Private Rental Sector ("PRS") division of the business by
investing GBP850 million in it by 2020. In its December 2016 full year results,
Grainger confirmed that it had secured GBP389 million of this investment target.
In these results it also announced that its cost of debt has been reduced to
3.9 per cent..
Over the Period, the Fund continued to engage with Grainger's management on
optimising capital structures and balance sheet efficiency. Despite
management's commitment to simplifying, refocusing and improving the efficiency
of the business, at the Period end Grainger's shares traded at a 17.1 per cent.
discount to its net asset value of 287 pence per share. This figure excludes
the 78 pence per share reversionary surplus.
After the Period end, Grainger announced the retirement of its Chairman,
Baroness Margaret Ford, who is to be replaced by Mark Clare, the former CEO of
Barratt Developments plc.
On 8 February 2017, Grainger announced a positive trading update with solid
progress in its PRS division and welcomed the Government's Housing White Paper,
which recognises the importance of rental properties in solving the housing
crisis. This should underpin Grainger's strategy to invest a total of GBP850
million into the PRS by 2020.
There remains a continuing opportunity to reduce Grainger's overhead, debt and
tax costs and improve capital allocation. We feel that there is still the
potential to realise significant value through either a spin-off of the
regulated tenancy portfolio or from the sale of the business.
Northgate
Northgate is the leading light commercial vehicle hire business in the UK,
Ireland and Spain and has been supplying and managing vehicles for over 35
years. It offers a flexible rental product without a long-term commitment from
the customer. The company has a fleet of over 93,000 commercial vehicles,
available from more than 100 sites across the UK, Ireland and Spain. Customers
can tailor rental contracts to their requirements and retain some flexibility
as their needs evolve.
On 6 December 2016, Northgate announced interim results in line with
expectations. The company had seen slightly weaker levels of vehicle hire in
the UK, but these had stabilised and were starting to increase. The Spanish
division saw continued growth.
Also in December 2016, Northgate announced the departure of its CEO, Bob
Contreras, and the appointment of a new CEO, Kevin Bradshaw, former CEO of
Wyevale Garden Centres and UK CEO of Avis Europe. The Fund welcomes this
development: in July 2016, the Fund announced that it had written to the
company setting out its assessment of the company's prospects with suggested
actions, including a strategic review to consider a potential sale of all or
part of the business.
During the Period, the Fund continued to increase its stake and engaged with
Northgate on ways to better capitalise on its brand, market position and
balance sheet strength. We maintain the view that Northgate is a company with
good prospects, trading at a significant discount to the market, making it an
attractive acquisition target.
STV Group plc ("STV")
STV is a media company that broadcasts free-to-air TV through the Channel 3
licence in Scotland. This channel is served by ITV in most of the UK.
In December 2016, STV announced a settlement with its pension trustees that
provides improved visibility of the cash requirements of the business.
In March 2017, the company reported its full year results, slightly ahead of
consensus expectations. Highlights included increasing the dividend by 50 per
cent. to 15 pence per share (equivalent to a 4 per cent. yield), which
represents a payout of 70 per cent. of earnings after the pension
contribution. Advertising revenues were weaker in the final quarter of 2016,
but this was consistent with guidance from ITV.
STV is targeting 10 per cent. annual earnings per share growth for the next
three years, which we believe could be conservative given the number of
potential profit levers. The company owns the rights to online revenues, so
will benefit from online growth as it provides a significantly higher
incremental gross margin of 50 per cent. (the margin on terrestrial business is
20 per cent.).
We maintain the view that the company could be an attractive acquisition
target.
Leaf Clean Energy Company ("Leaf")
Leaf is an investment company focused on clean energy, largely in North
America.
The Fund continues to support the company's realisation strategy. Leaf is
currently litigating with its largest holding, Invenergy, seeking payment of
$126 million (pre-tax). This equates to c.85 pence per Leaf share (pre-tax),
which compares to Leaf's share price at the Period end of 35.5 pence. We remain
confident that the litigation will be successful in due course and note that
whilst it is ongoing, assuming a successful outcome for Leaf, the claim accrues
interest at 6 per cent.. We feel that this adequately compensates our position
given the confidence we have in Leaf's case. We believe the company will be
able to generate resources needed to see through the litigation, from the
orderly realisation of other assets, thereby maximising the value of the legal
case against Invenergy.
FairFX Group plc ("FairFX")
FairFX is an international payment services provider, offering services to
customers in the UK since 2007. It has developed a payments platform that
enables personal and business customers to make easy, low-cost payments in a
broad range of currencies and countries and across a range of FX products via
one integrated system.
In September 2016, FairFX announced interim results with strong growth in
revenue and a more profitable business mix. A switch to higher margin products
saw gross profit rise 30 per cent., three times faster than turnover. Card and
international payments products delivered strong returns and the corporate card
platform saw very strong growth.
After the Period end, FairFX released a trading statement reporting revenues
for 2016 ahead of management expectations and 27 per cent. ahead of 2015. The
corporate platform saw particularly strong growth with turnover up 98 per cent.
from the previous year. In January 2017, FairFX announced the acquisition of an
e-money licence. This brings the possibility of FairFX becoming a card issuing
bank and reducing operating costs.
With its corporate platform we believe FairFX is well positioned to capture the
business left behind by the withdrawal of high street banks from small and
medium enterprises.
Hansard Global plc ("Hansard")
Hansard is a life insurance company based in the Isle of Man specialising in
long-term savings products. It writes policies via a network of more than 500
independent financial advisers who provide access to clients in more than 170
countries. Its core customers are affluent individuals looking for flexible
and tax efficient investment products. Hansard's platform funnels
policyholders' savings to external fund managers. Whilst the products are
insurance policies, Hansard's liabilities are matched by its asset holdings
(unit-linked products) and so there is little of the insurance risk associated
with annuities or with-profits books of business.
Over the Period, the company has continued to execute its new sales strategy,
delivering a 56 per cent. sales growth (excluding a related party transaction)
for the second half of calendar 2016. On 19 January 2017, Hansard announced a
strategic alliance with Union Insurance Company, a major insurer in the United
Arab Emirates. This will leverage Hansard's administration skills, which we
believe are its core competence. On 23 February 2017, in its interim results,
the company announced its decision to reduce the dividend starting in 2018, as
it was necessary to fund future sales growth.
We believe the company is delivering on its growth strategy and remain
supportive.
Shepherd Neame Ltd ("Shepherd Neame")
Shepherd Neame is Britain's oldest brewer, founded in 1698 in Kent. The brewery
produces a range of cask ales and filtered beers such as Spitfire, Whitstable
Bay Pale Ale and Asahi Super Dry. The company owns and operates 335 high
quality pubs and hotels throughout the South East of England, the majority of
which are freehold sites. These pubs are a mixture of 261 tenanted, 67 managed
operations and 7 free-of-tie pubs, where the company's beer products are sold
alongside wine and food and a growing accommodation business that totals around
500 letting rooms.
We believe there remains significant hidden value within Shepherd Neame's
property portfolio. The NAV reported in March 2017 stands at 1269 pence. This
excludes any revaluation of the unlicenced estate, which includes the 34 acre
residual holding of the Queen Court farm in Ospringe near Faversham.
Activist Investment Process
The Fund originates ideas mainly from its screening processes and its network
of contacts, including its institutional shareholders. Companies are valued
with focus on their replacement value, cash generation ability and balance
sheet strength. In the process, the Fund's goal is to examine the company both
'as it is' and also 'as it could be' to maximise shareholder value.
Investments are typically made after an initial engagement, which in some cases
may have been preceded by the purchase of a modest position in the company,
which allows us to meet the company as a shareholder. Engagement includes
dialogue with the company chairman and management, and normally also several
non-executive directors, as we build a network of knowledge around our
holdings. Site visits are undertaken to deepen our research and where
appropriate, independent research is commissioned. We attend investee company
annual general meetings to maintain close contact with the board and other
stakeholders.
Wherever possible, the Fund strives to develop an activist angle and aims to
contribute to the companies' strategy with the goal of maximising shareholder
value. Where value is hidden or trapped, we look for ways to realise it. Most
of the Fund's activism has taken place in private, but the Fund remains willing
to make its concerns public when appropriate. The response of management and
boards to our suggestions has generally been encouraging. We remain determined
to ensure that our investments deliver their full potential for all
shareholders, and are committed to engage to the degree required to achieve
this.
Realisations
Over the Period, net realised gains, after taking in account losses realised on
put options purchased for portfolio insurance purposes, amounted to GBP3.9
million.
The Fund realised the remainder of its holding in Pinewood Shepperton plc
("Pinewood") during the Period at a profit of GBP5.3 million. Taking into account
all realisations since July 2011, this brings the total profit on the Fund's
investment in Pinewood to GBP14.7 million.
During the Period, the Fund also realised its holding in Restaurant Group at a
profit of GBP1.3 million and realised a profit of GBP3.3 million on part of its
holding in Hurricane. During the Period, the Fund realised losses from its
holdings in Providence Resources (-GBP0.6 million) and San Leon Energy (-GBP0.5
million).
Previous profitable exits include Dart Group plc, 4imprint Group plc, Aer
Lingus Group plc, Thorntons plc, Norcros plc, 3i Quoted Private Equity plc,
Delta plc, Kentz Corporation Ltd, Tate & Lyle plc and Chloride Group plc.
Hedging Activity
The Fund continues to purchase FTSE put options as insurance against a
significant market sell-off. The net cost of these options amounted to 3.6 per
cent. of NAV over the period to 31 December 2016.
Outlook
We feel the global economic outlook remains uncertain, as the full impact of
Brexit and the Donald Trump presidency is yet to be seen. We maintain strong
conviction in the Fund's bottom up investment strategy, focusing on asset
backed special situations where it sees the potential to act as a catalyst to
realise shareholder value.
Crystal Amber Asset Management (Guernsey) Limited
27 March 2017
Condensed Statement of Profit or Loss and Other Comprehensive Income
(Unaudited)
For the six months ended 31 December 2016
Six months ended 31 December Six months ended 31 December
2016 2015
(Unaudited) (Unaudited)
Revenue Capital Total Revenue Capital Total
Notes GBP GBP GBP GBP GBP GBP
Income
Dividend income from 1,861,886 - 1,861,886 923,915 - 923,915
listed investments
Fixed deposit - - - 48 - 48
interest
Bank interest 252 - 252 10,471 - 10,471
1,862,138 - 1,862,138 934,434 - 934,434
Net gains on
financial assets at
fair value through
profit or loss
Equities
Net realised gain 4 - 8,832,775 8,832,775 - 3,102,272 3,102,272
Movement in 4 - 64,123,866 64,123,866 - (8,957,963) (8,957,963)
unrealised gains/
(losses)
Money market
investments
Movement in 4 - - - - 4,496 4,496
unrealised gains
Derivative financial
instruments
Realised loss 4 - (4,973,571) (4,973,571) - (190,420) (190,420)
Movement in 4 - 5,887,194 5,887,194 - (2,727,640) (2,727,640)
unrealised gains/
(losses)
Total income/(loss) 1,862,138 73,870,264 75,732,402 934,434 (8,769,255) (7,834,821)
Expenses
Transaction costs - 214,538 214,538 - 133,100 133,100
Exchange movements - (76,135) (76,135) - (378,656) (378,656)
on revaluation of
investments
Management fees 8 1,438,909 - 1,438,909 1,314,947 - 1,314,947
Performance fees 8 - 5,714,940 5,714,940 - - -
Directors' 58,914 - 58,914 57,500 - 57,500
remuneration
Administration fees 111,783 - 111,783 91,965 - 91,965
Custodian fees 47,655 - 47,655 38,621 - 38,621
Audit fees 10,920 - 10,920 10,091 - 10,091
Other expenses 105,546 - 105,546 97,549 - 97,549
1,773,727 5,853,343 7,627,070 1,610,673 (245,556) 1,365,117
Return/(loss) for 88,411 68,016,921 68,105,332 (676,239) (8,523,699) (9,199,938)
the Period
Basic and diluted 2 0.09 68.70 68.79 (0.73) (9.20) (9.93)
earnings/(loss) per
share (pence)
All items in the above statement derive from continuing operations.
The total column of this statement represents the Company's Statement of Profit
or Loss and Other Comprehensive Income prepared in accordance with IFRS. The
supplementary information on the allocation between income return and capital
return is presented under guidance published by the AIC.
Condensed Statement of Financial Position (Unaudited)
As at 31 December 2016
As at As at As at
31 December 30 June 31 December
2016 2016 2015
(Unaudited) (Audited) (Unaudited)
ASSETS Notes GBP GBP GBP
Cash and cash equivalents 764,000 1,317,389 7,673,427
Trade and other receivables 797,806 463,510 347,738
Financial assets designated at FVTPL 4 221,451,533 151,090,246 137,009,952
Total assets 223,013,339 152,871,145 145,031,117
LIABILITIES
Trade and other payables 8,555,747 1,347,074 227,325
Total liabilities 8,555,747 1,347,074 227,325
EQUITY
Capital and reserves attributable to
the Company's equity shareholders
Share capital 5 989,998 989,998 989,998
Treasury shares 6 (972,800) (720,478) (8,972,339)
Distributable reserve 105,058,397 109,977,886 111,941,615
Retained earnings 109,381,997 41,276,665 40,844,518
Total equity 214,457,592 151,524,071 144,803,792
Total liabilities and equity 223,013,339 152,871,145 145,031,117
NAV per share (pence) 3 218.02 153.79 155.90
The financial statements were approved by the Board of Directors and authorised
for issue on 27 March 2017.
William Collins
Sarah Evans
Chairman
Director
27 March
2017
27 March 2017
Condensed Statement of Changes in Equity (Unaudited)
For the six months ended 31 December 2016
Share Treasury Distributable Retained earnings Total
Notes Capital Shares Reserve Capital Revenue Total Equity
GBP GBP GBP GBP GBP GBP GBP
Opening balance at 989,998 (720,478) 109,977,886 42,151,632 (874,967) 41,276,665 151,524,071
1 July 2016
Purchase of 6 - (252,322) - - - - (252,322)
Company shares
into Treasury
Dividends paid in 7 - - (4,919,489) - - - (4,919,489)
the Period
Return for the - - - 68,016,921 88,411 68,105,332 68,105,332
Period
Balance at 31 989,998 (972,800) 105,058,397 110,168,553 (786,556) 109,381,997 214,457,592
December 2016
Share Treasury Distributable Retained earnings Total
Notes Capital Shares Reserve Capital Revenue Total Equity
GBP GBP GBP GBP GBP GBP GBP
Opening balance at 989,998 (9,009,985) 114,181,017 49,606,601 437,855 50,044,456 156,205,486
1 July 2015
Purchase of 6 - (393,061) - - - - (393,061)
Company shares
into Treasury
Sale of Company 6 - 430,707 - - - - 430,707
shares from
Treasury
Premium on sale of - - 75,405 - - - 75,405
Company shares
from Treasury
Dividends paid in - - (2,314,807) - - - (2,314,807)
the Period
Loss for the - - - (8,523,699) (676,239) (9,199,938) (9,199,938)
Period
Balance at 31 989,998 (8,972,339) 111,941,615 41,082,902 (238,384) 40,844,518 144,803,792
December 2015
Condensed Statement of Cash Flows (Unaudited)
For the six months ended 31 December 2016
Six months Six months
ended ended
31 December 31 December
2016 2015
(Unaudited) (Unaudited)
GBP GBP
Cashflows from operating activities
Dividend income received from listed investments 1,519,269 679,359
Fixed deposit interest received - 48
Bank interest received 2,285 11,502
Management fees paid (1,438,909) (1,314,947)
Performance fee paid - (653,962)
Directors' fees paid (58,914) (57,500)
Other expenses paid (248,542) (247,381)
Net cash outflow from operating activities (224,811) (1,582,881)
Cashflows from financing activities
Purchase of Ordinary shares into Treasury (252,322) (393,061)
Sale of Ordinary shares from Treasury - 506,112
Dividends paid (2,460,370) (2,314,807)
Net cash outflow from financing activities (2,712,692) (2,201,756)
Cashflows from investing activities
Purchase of equity investments (35,322,456) (16,855,037)
Sale of equity investments 43,748,529 14,722,108
Purchase of money market investments - (6,000,000)
Purchase of derivative financial instruments (5,913,500) (4,845,800)
Sale of derivative financial instruments 86,079 5,069,846
Transaction charges on purchase and sale of (214,538) (133,100)
investments
Net cash inflow/(outflow) from investing activities 2,384,114 (8,041,983)
Net decrease in cash and cash equivalents during the (553,389) (11,826,620)
Period
Cash and cash equivalents at beginning of Period 1,317,389 19,500,047
Cash and cash equivalents at end of Period 764,000 7,673,427
The Notes to the Unaudited Condensed Financial Statements form part of these
financial statements.
Notes to the Unaudited Condensed Financial Statements
For the six months ended 31 December 2016
General Information
The Company was incorporated and registered in Guernsey on 22 June 2007 and is
governed under the provisions of the Companies Law. The registered office
address is Heritage Hall, Le Marchant Street, St. Peter Port, Guernsey, GYI
4HY. The Company was established to provide shareholders with an attractive
total return which is expected to comprise primarily capital growth with the
potential for distributions of up to 5 pence per share per annum following
consideration of the accumulated retained earnings as well as the unrealised
gains and losses at that time. The Company seeks to achieve this through the
investment in a concentrated portfolio of undervalued companies which are
expected to be predominantly, but not exclusively, listed or quoted on UK
markets and which have a typical market capitalisation of between GBP100 million
and GBP1,000 million.
The Company's Ordinary shares were listed and admitted to trading on AIM, on 17
June 2008. The Company is also a member of the AIC.
1. SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial
statements are set out below. These policies have been consistently applied to
those balances considered material to the financial statements throughout the
current Period, unless otherwise stated.
Basis of preparation
The Interim Financial Statements have been prepared in accordance with IAS 34,
Interim Financial Reporting.
The Interim Financial Statements do not include all the information and
disclosures required in the Annual Financial Statements and should be read in
conjunction with the Company's Annual Financial Statements for the year to 30
June 2016. The Annual Financial Statements have been prepared in accordance
with IFRS.
The same accounting policies and methods of computation are followed in the
Interim Financial Statements as in the Annual Financial Statements for the year
ended 30 June 2016.
The presentation of the Interim Financial Statements is consistent with the
Annual Financial Statements. Where presentational guidance set out in the SORP
"Financial Statements of Investment Trust Companies and Venture Capital Trusts"
issued by the AIC in November 2014 is consistent with the requirements of IFRS,
the Directors have sought to prepare the financial statements on a basis
compliant with the recommendations of the SORP. In particular, supplementary
information which analyses the Statement of Profit or Loss and Other
Comprehensive Income between items of a revenue and capital nature has been
presented alongside the total Statement of Profit or Loss and Comprehensive
Income.
The Company does not operate in an industry where significant or cyclical
variations as a result of seasonal activity are experienced during the
financial year. Income and dividends from investments will vary according to
the construction of the portfolio from time to time.
Going concern
The Directors are confident that the Company has adequate resources to continue
in operational existence for the foreseeable future and do not consider there
to be any threat to the going concern status of the Company.
The Directors have specifically considered the implications of the continuation
vote to be proposed at the 2017 AGM on the application of the going concern
basis. The continuation vote is scheduled to occur every two years. The
Directors have no reason to doubt that shareholders will vote for the Company
to continue as constituted at the AGM, scheduled for November 2017, given the
positive performance of the Company since the previous continuation vote at the
2015 AGM. Therefore, the Directors conclude that there is no material
uncertainty which may cast significant doubt on the ability of the Company to
continue as a going concern. For this reason, they continue to adopt the going
concern basis in preparing the financial statements.
Segmental reporting
Operating segments are reported in a manner consistent with internal reporting
provided to the chief operating decision maker. The chief operating decision
maker, who is responsible for allocating resources and assessing performance of
the operating segments, has been identified as the Board as a whole. The key
measure of performance used by the Board to assess the Company's performance
and to allocate resources is the total return on the Company's NAV, as
calculated under IFRS, and therefore no reconciliation is required between the
measure of profit or loss used by the Board and that contained in these
financial statements.
For management purposes, the Company is domiciled in Guernsey and is engaged in
a single segment of business mainly in one geographical area, being investment
in UK equity instruments, and therefore the Company has only a single operating
segment.
2. BASIC AND DILUTED EARNINGS/(LOSS) PER SHARE
Earnings/(loss) per share is based on the following data:
Six months Six months
ended ended
31 December 31 December
2016 2015
(Unaudited) (Unaudited)
Return/(loss) for the Period GBP68,105,332 GBP(9,199,938)
Weighted average number of issued Ordinary shares 98,999,762 92,674,999
Basic and diluted earnings/(loss) per share (pence) 68.79 (9.93)
3. NET ASSET VALUE PER SHARE
NAV per share is based on the following data:
As at As at As at
31 December 30 June 31 December
2016 2016 2015
(Unaudited) (Audited) (Unaudited)
NAV per Condensed Statement of Financial GBP214,457,592 GBP151,524,071 GBP144,803,792
Position
Total number of issued Ordinary shares 98,364,762 98,524,762 92,881,276
(excluding Treasury shares)
NAV per share (pence) 153.79 155.90
218.02
4. FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS
1 July 1 July 1 July
2016 to 2015 to 2015 to
31 December 30 June 31 December
2016 2016 2015
(Unaudited) (Audited) (Unaudited)
GBP GBP GBP
Equity investments 211,706,765 148,086,522 130,701,056
Money market investments - - 6,004,496
Derivative financial instruments 9,744,768 3,003,724 304,400
221,451,533 151,090,246 137,009,952
Equity investments
Cost brought forward 153,875,142 160,110,908 160,110,908
Purchases 34,335,995 81,096,969 11,492,838
Sales (43,748,529) (68,688,860) (14,664,877)
Net realised gain 8,832,775 (18,643,875) 3,102,272
Cost carried forward 153,295,383 153,875,142 160,041,141
Unrealised losses brought forward (5,852,434) (20,171,543) (20,171,543)
Movement in unrealised gains/(losses) 64,123,866 14,319,109 (8,957,963)
Unrealised gains/(losses) carried 58,271,432 (5,852,434) (29,129,506)
forward
Effect of exchange rate movements 139,950 63,814 (210,579)
Fair value of equity investments 211,706,765 148,086,522 130,701,056
Money market investments
Cost brought forward - - -
Purchases - - 6,000,000
Sales - - -
Realised gain - - -
Cost carried forward - - 6,000,000
Unrealised gains brought forward - - -
Movement in unrealised gains - - 4,496
Unrealised gains carried forward - - 4,496
Fair value of money market - - 6,004,496
investments
Derivative financial instruments
Cost brought forward 1,023,001 1,078,000 1,078,000
Purchases 5,913,500 11,773,346 4,845,800
Sales (86,079) (8,844,051) (4,936,340)
Realised losses (4,973,571) (2,984,294) (190,420)
Cost carried forward 1,876,851 1,023,001 797,040
Unrealised gains brought forward 1,980,723 2,235,000 2,235,000
Movement in unrealised gains/(losses) 5,887,194 (254,277) (2,727,640)
Unrealised gains/(losses) carried 7,867,917 1,980,723 (492,640)
forward
Fair value of derivative financial 9,744,768 3,003,724 304,400
instruments
Total financial assets designated at 221,451,533 151,090,246 137,009,952
FVTPL
At the reporting date the Company's derivative financial instruments consisted
of four (30 June 2016: two) FTSE 100 Index Put Option positions, purchased as
protection against a significant market sell-off and two warrant instruments in
FairFX and Hurricane (30 June 2016: two) for the purchase of ordinary shares.
At the reporting date, the warrant instruments in FairFX and Hurricane were
valued using a Black Scholes valuation technique.
The following table details the Company's positions in derivative financial
instruments:
Nominal amount Value
31 December 2016 GBP
Derivative financial instruments
Puts on UKX P6500 (expiry: January 2017) 2,500 125,000
Puts on UKX P6900 (expiry: January 2017) 1,000 245,000
Puts on UKX P6500 (expiry: February 2017) 2,000 460,000
Puts on UKX P6700 (expiry: February 2017) 1,000 400,000
FairFX warrant instrument 6,000,000 673,602
Hurricane warrant instrument 23,333,333 7,841,166
29,339,833 9,744,768
Nominal amount Value
30 June 2016 GBP
Derivative financial instruments
Puts on UKX P5800 (expiry: July 2016) 700 49,000
Puts on UKX P6000 (expiry: August 2016) 1,000 665,000
FairFX warrant instrument 23,333,333 1,555,354
Hurricane warrant instrument 7,500,000 734,370
30,835,033 3,003,724
5. SHARE CAPITAL AND RESERVES
The authorised share capital of the Company is GBP3,000,000 divided into 300
million Ordinary shares of GBP0.01 each.
The issued share capital of the Company is comprised as follows:
31 December 2016 30 June 2016
(Unaudited) (Audited)
Number GBP Number GBP
Allotted, called up and fully paid 98,999,762 989,998 98,999,762 989,998
Ordinary shares at GBP0.01 each
6. TREASURY SHARES
Six months ended Year ended
31 December 2016 30 June 2016
(Unaudited) (Audited)
Number GBP Number GBP
Opening balance 475,000 720,478 6,163,486 9,009,985
Treasury shares purchased 160,000 252,322 725,000 1,113,539
during the Period/year
Treasury shares sold during - (6,413,486) (9,989,766)
the Period/year -
Premium transferred to - - 586,720
distribution reserve -
Closing balance 635,000 972,800 475,000 720,478
During the period ended 31 December 2016, 160,000 (2015: 250,000) Treasury
shares were purchased at an average price of 157.7 pence per share,
representing an average discount to NAV at the time of purchase of 4.5 per
cent., (2015: 157.22 pence per share). During the period ended 31 December
2016, Nil (2015: 295,000) Treasury shares were sold, representing a premium
above cost of GBPNil (2015: GBP75,405).
7. DIVIDS
On 14 July 2016, the Company declared an interim dividend of GBP2,460,369,
equating to 2.5 pence per Ordinary share, which was paid on 19 August 2016 to
shareholders on record on the register on 22 July 2016.
On 14 December 2016, the Company declared an interim dividend of GBP2,459,120,
equating to 2.5 pence per Ordinary share, which was paid on 19 January 2017 to
shareholders on record on the register on 22 December 2016.
8. RELATED PARTIES
Richard Bernstein is a director and a member of the Investment Manager, a
member of the Investment Adviser and a holder of 10,000 (30 June 2016: 10,000)
Ordinary shares in the Company, representing 0.01 per cent. (30 June 2016: 0.01
per cent.) of the voting share capital of the Company at 31 December 2016.
During the Period the Company incurred management fees of GBP1,438,909 (2015: GBP
1,314,947) none of which was outstanding at 31 December 2016 (30 June 2016: GBP
Nil). The Company also accrued performance fees of GBP5,714,940 (2015: GBPNil) all
of which was outstanding and is included in trade and other payables as at 31
December 2016 (30 June 2016: GBPNil). Under the terms of the Investment
Management Agreement between the Company and the Investment Manager, if the NAV
per share at 30 June 2017 exceeds the 2017 performance hurdle, a performance
fee will be payable to the Investment Manager. The performance hurdle
represents an expected return on share capital since placing compounded at a
rate of 7 per cent. up to 20 August 2013, 8 per cent. up to 27 January 2015 and
10 per cent. after that date.
As the NAV per share at 31 December 2016 exceeded the performance hurdle at
that date, a performance fee has been accrued in the Interim Financial
Statements. In the event that, on 30 June 2017, the NAV per share exceeds the
2017 performance hurdle, the performance fee will be an amount equal to 20 per
cent. of the excess of the NAV per share at that date over the 2017 performance
hurdle multiplied by the time weighted average number of Ordinary shares in
issue during the year ending 30 June 2017. Depending on whether the Ordinary
shares are trading at a discount or a premium to the Company's NAV per share at
30 June 2017, the performance fee will be either payable in cash (subject to
the Investment Manager being required to use the cash payment to purchase
Ordinary shares in the market) or satisfied by the sale of Ordinary shares out
of Treasury or by the issue of new fully paid Ordinary shares at the closing
mid-market closing price on 30 June 2017, respectively.
As at 31 December 2016 the Investment Manager held 4,015,666 Ordinary shares
(30 June 2016: 4,015,606) of the Company, representing 4.08 per cent. (30 June
2016: 4.08 per cent.) of the voting share capital.
The interests of the Directors in the share capital of the Company at the
Period/year end and as at the date of this report are as follows:
31 December 2016 30 June 2016
Number of Issued Number of Issued
Ordinary Shares Share Ordinary Share
Capital Shares Capital
William Collins 25,000 0.03% 25,000 0.03%
Sarah Evans 25,000 0.03% 25,000 0.03%
Total 50,000 0.06% 50,000 0.06%
All related party transactions are carried out on an arm's length basis.
9. POST BALANCE SHEET EVENTS
On 6 February 2017 the Company reported that its unaudited NAV at 31 January
2017 was 218.51 pence per share.
On 6 March 2017 the Company reported that its unaudited NAV at 28 February 2017
was 231.52 pence per share.
10. AVAILABILITY OF INTERIM REPORT
Copies of the Interim Report will be available to download from the Company's
website www.crystalamber.com.
Glossary of Capitalised Defined Terms
"AIC" means the Association of Investment Companies;
"AIM" means the Alternative Investment Market of the London Stock Exchange;
"Annual Financial Statements" means the audited annual financial statements of
the Company, including the Statement of Profit or Loss and Other Comprehensive
Income, the Statement of Financial Position, the Statement of Changes in
Equity, the Statement of Cash Flows and associated notes;
"Annual Report" means the annual publication of the Company to the shareholders
to describe their operations and financial conditions, together with the
Company's financial statements;
"Board" or "Directors" or "Board of Directors" means the directors of the
Company;
"Company" or "Fund" means Crystal Amber Fund Limited;
"Companies Law" means the Companies (Guernsey) Law, 2008, (as amended);
"FTSE" means the Financial Times Stock Exchange;
"FVTPL" means Fair Value Through Profit or Loss;
"IAS" means international accounting standards as issued by the Board of the
International Accounting Standards Committee;
"IFRS" means the International Financial Reporting Standards, being the
principles-based accounting standards, interpretations and the framework by
that name issued by the International Accounting Standards Board, as adopted by
the European Union;
"Interim Financial Statements" means the unaudited condensed interim financial
statements of the Company, including the Condensed Statement of Profit or Loss
and Other Comprehensive Income, the Condensed Statement of Financial Position,
the Condensed Statement of Changes in Equity, the Condensed Statement of Cash
Flows and associated notes;
"Interim Report" means the Company's interim report and unaudited condensed
financial statements for the period ended 31 December;
"Investment Management Agreement" means the agreement between the Company and
the Investment Manager, dated 16 June 2008, as amended on 21 August 2013 and
further amended on 27 January 2015;
"NAV" or "Net Asset Value" means the value of the assets of the Company less
its liabilities as calculated in accordance with the Company's valuation
policies and expressed in Pounds Sterling;
"NAV per share" means the Net Asset Value per Ordinary share of the Company and
is expressed in pence;
"Ordinary shares" means allotted, called up and fully paid Ordinary shares of
the Company of GBP0.01 each;
"Period" means the six months to 31 December 2016;
"SORP" means Statement of Recommended Practice;
"Treasury" means the reserve of Ordinary shares that have been repurchased by
the Company;
"Treasury shares" means Ordinary shares in the Company that have been
repurchased by the Company and are held as Treasury shares;
"UK" or "United Kingdom" means the United Kingdom of Great Britain and Northern
Ireland;
"US" means the means the United States of America, its territories and
possessions, any state of the United States and the District of Columbia; and
"GBP" or "Pounds Sterling" or "Sterling" means British pound sterling and "pence"
means British pence.
Directors and General Information
Directors Registered Office
William Collins (Chairman) Heritage Hall
Sarah Evans (Senior Independent Le Marchant Street
Director) St. Peter Port
Nigel Ward Guernsey GY1 4HY
Christopher Waldron
Investment Manager
Investment Adviser Crystal Amber Asset Management
Crystal Amber Advisers (UK) LLP (Guernsey) Limited
29 Curzon Street Heritage Hall
London W1J 7TL Le Marchant Street
St. Peter Port
Administrator and Secretary Guernsey GY1 4HY
Heritage International Fund Managers
Limited Nominated Adviser
Heritage Hall Allenby Capital Limited
Le Marchant Street 3 St. Helen's Place
St. Peter Port London EC3A 6AB
Guernsey GY1 4HY
Legal Advisers to the Company
Broker As to English Law
Pre 09/09/2016: Norton Rose Fulbright LLP
Numis Securities Limited 3 More London Riverside
The London Stock Exchange Building London SE1 2AQ
10 Paternoster Square
London EC4M 7LT As to Guernsey Law
Carey Olsen
Post 09/09/2016: PO Box 98
Winterflood Investment Trusts Carey House
The Atrium Building Les Banques
Cannon Bridge House St. Peter Port
25 Dowgate Hill Guernsey GY1 4BZ
London EC4R 2GA
Custodian
Independent Auditor ABN AMRO (Guernsey) Limited
KPMG Channel Islands Limited PO Box 253
Glategny Court Martello Court
Glategny Esplanade Admiral Park
St. Peter Port St. Peter Port
Guernsey GY1 1WR Guernsey GY1 3QJ
Identifiers Registrar
ISIN: GG00B1Z2SL48 Capita Registrars (Guernsey) Limited
Sedol: B1Z2SL4 Longue Hougue House
Ticker: CRS St Sampson
Website: crystalamber.com Guernsey GY2 4JN
END
(END) Dow Jones Newswires
March 28, 2017 02:00 ET (06:00 GMT)
1 Year Crystal Amber Chart |
1 Month Crystal Amber Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
