Crystal Amber Fund Limited Monthly Net Asset Value

 
TIDMCRS 
 
Dissemination of a Regulatory Announcement that contains inside information 
                according to REGULATION (EU) No 596/2014 (MAR). 
 
                                                                11 January 2017 
 
 
                          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 at 31 December 2016 was 218.02p (30 November 2016: 196.64p per share). 
 
The proportion of the Fund's NAV at 31 December 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 
 
Hurricane Energy Plc                85.9                     14.1% 
 
Grainger Plc                        34.3                     3.4% 
 
Northgate Plc                       31.7                     4.7% 
 
STV Group Plc                       19.9                     13.9% 
 
Leaf Clean Energy Co.               12.6                     29.9% 
 
FairFX Group                         8.8                     25.5% 
 
Sutton Harbour Holdings Plc          7.5                     29.3% 
 
Hansard Global Plc                   4.7                     3.3% 
 
Camellia Plc                         2.6                     0.9% 
 
Shepherd Neame Ltd                   2.5                     1.3% 
 
Total of ten largest holdings       210.5 
 
Other investments                   14.6 
 
Cash and accruals                   (7.1) 
 
Total NAV                           218.0 
 
Investment Adviser's commentary on the portfolio 
 
Over the quarter to 31 December 2016, NAV per share increased by 7.9 per cent. 
This return is calculated after providing for a 2.5p per share dividend 
declared on 14 December 2016 in respect of the year ending 30 June 2017. 
Adjusting for this dividend, total returns in the quarter were 9.2 per cent. 
For the six months to 31 December 2016, NAV per share increased by 41.8 per 
cent. Adjusting for dividends of 5p a share declared during the period, total 
returns were 45.0 per cent. 
 
The top three positive contributors to NAV growth over the quarter to 31 
December 2016 were Hurricane Energy plc (10.6%), Northgate plc (2.1%) and 
Grainger (0.8%).  The main detractors were Leaf Clean Energy Co (-0.9%), STV 
Group plc (-0.8%) and Sutton Harbour Holdings plc (-0.4%). 
 
Hurricane Energy plc ("Hurricane") 
 
During the Quarter, Hurricane released several positive drilling results and 
raised GBP70 million to fund drilling an exploration well at Lincoln, to acquire 
subsea equipment and to fund engineering studies for the Early Production 
System phase of the Lancaster development. 
 
Crystal Amber was pleased to participate in the fundraising, investing a 
further GBP10.7 million in line with the Fund's stake in the company at the time 
of 15.3%. 
 
In November 2016, Hurricane was awarded a new licence (Halifax) in its West of 
Shetland acreage, further expanding the footprint beyond its Lancaster oil 
asset.  Further exploration of this prospect has the potential to not only 
increase Hurricane's resource base, but also to help determine how far the 
Lancaster field extends. 
 
On 19 December 2016, Hurricane announced very positive interim results at its 
Lincoln exploration well, adding to its increasingly substantial resource 
base.  Results demonstrated a 660m deep oil column which exceeded the company's 
expectations and led to the company stating that the pre-drill estimate of 250 
million barrels may be conservative.  Hurricane's drill rig will now be moved 
on to drill the Halifax prospect. 
 
Recent drilling results reinforce the Fund's view that Hurricane has a 
significant resource base, potentially in excess of one billion barrels of 
oil.  We expect to see further positive news flow over the coming months, which 
should serve to de-risk the asset base further and may attract potential 
partners. 
 
Over the quarter, Hurricane's share price increased by 26.8 per cent. 
 
Northgate plc ("Northgate") 
 
On 6 December 2016, Northgate announced interim results broadly in line with 
expectations. The company stated that the UK business has stabilised and 
vehicle hires were increasing.  The Spanish division continues to develop 
well. 
 
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 former UK CEO of Avis Europe.  The Fund welcomes this development: 
in July 2016, the Fund announced that it had called on Northgate to carry out a 
strategic review to include a potential sale of the business. 
 
The Fund maintains the view that there is a significant opportunity to better 
capitalise on the Northgate brand and market positioning.  The Fund also notes 
that Northgate's shares trade on a historic PE ratio of 10.5 and regards the 
company as attractive to acquisitive investors in the sector. 
 
Over the quarter, Northgate's share price increased by 12.5 per cent. 
 
Grainger plc ("Grainger") 
 
On 1 December 2016, Grainger announced positive full year results, highlighting 
progress in refocusing and improving the efficiency of the business. 
 
The Fund continues to engage with Grainger's management regarding optimising 
capital structures and balance sheet efficiency. Despite improved focus and a 
reduction in the previous excessive administrative cost base, Grainger's shares 
continue to trade at a significant discount to its net asset value of 287p a 
share. This figure excludes 78p a share of reversionary surpluses accruing to 
Grainger as its reversionary portfolio becomes vacant. 
 
Over the quarter, Grainger's share price increased by 3.3 per cent. 
 
STV Group plc ("STV") 
 
In December 2016, STV announced that an agreement had been reached with the 
trustees of the company's defined benefits schemes. The Fund welcomes this 
development and believes that it will allow STV to provide greater clarity on 
how it will deploy capital. This could involve increasing the dividend payout 
or a share buyback. 
 
Although television advertising revenues have come under some pressure as a 
result of Brexit uncertainty (as evidenced by ITV's trading update in December 
2016), the Fund maintains the view that STV holds a strong franchise with a 
fast-growing consumer division and valuable production content activities. 
Trading on 10 times current year consensus earnings, the Fund regards STV as 
undervalued and an attractive takeover target. 
 
Over the quarter, STV's share price fell by 4.7 per cent. 
 
For further enquiries please contact: 
 
Crystal Amber Fund Limited 
William Collins (Chairman) 
Tel: [phone] 
www.crystalamber.com 
 
Allenby Capital Limited - Nominated Adviser 
David Worlidge/James Thomas 
Tel: [phone] 
 
Winterflood Investment Trusts - Broker 
Joe Winkley/Neil Langford 
Tel: [phone] 
 
Crystal Amber Advisers (UK) LLP - Investment Adviser 
Richard Bernstein 
Tel: [phone] 
 
 
 
END 
 

(END) Dow Jones Newswires

January 11, 2017 06:15 ET (11:15 GMT)