NAV at end of Feb was 123p. De la Rue a mess but we have seen a big drop here. |
a lot of un competence in portfoglio. what is striking - even as a large shareholder - it is almost impossible to bring the right people and the common sense to the steering wheel of the companies. governance system is harmed or broken |
 Half Year Results out ...
Key Points
· Total returns in the six months ended 31 December 2022 were 4.4% (£16.6 million) reflecting total dividend payments of 20p per share (two 10p dividends) during the period. As a result, Net Asset Value ("NAV") per share fell by 10% over the period to 130.05p per share.
· The Fund's performance compares to a 1.3% increase in the Numis Small Cap Index.
· Further progress in delivering profitable exits, with disposals of Equals Group plc and Board Intelligence Limited realising profits in the period of £7.8 million.
· Recommended offer for Hurricane Energy plc announced post period end in March 2023 following formal sale process.
· De la Rue cut profit guidance by a third at its October interims.
· GI Dynamics enrolled its first patients to the clinical trial in India.
· The Fund undertook no buybacks during the period. Share price discount to NAV averaged 22.7%.
· Crystal Amber Fund named as the sixth most influential global activist investor of 2022 by Insightia delivering a return of 27.9%. |
They offer approx 50% of cash held by Hurricane. How this can be good? |
The deal with Prax is not easy to understand, but CA have had a good look at it and thought it ok.
Although the initial cash component is not fantastic, if the economy hits the buffers and the oil price tanks HUR would be a mess. Maybe 7.7p cash was not a disaster.
I suppose time will tell here. My guess is that the HUR deal (a bit like the recent SQZ deal) is not quite as bad as it seems and might work out ok. |
That Hurricane's deal with Prax is shocking. CA managers lost all my respect yesterday. |
Annual Report for year ending 30/06/22 came out on 28/11, available to download on CRS website.
Notable:
The section Investment Policy starting on page 10 sets out the plans for 2023.
- end of Dividends. Future capital returns will be by "tax-efficient means such as redeemable shares and/or tender offers";
- Company looking at ways of monetising GI Dynamics (81.5% shareholding, estimated value £23 million) by end 2023...
"In due course, the Company will consult with investors about the longer-term plans for GI Dynamics to realise value for the Company’s Shareholders. A trade sale is a potential crystallisation path.Alternatively, as the Company continues its disposal programme of its listed investment portfolio, it is possible that the Company’s listing may provide a suitable and cost-effective vehicle for GI Dynamics to be listed, raise its profile and potentially, following the achievement of milestones, provide the Company’s Shareholders with direct exposure to its growth prospects, as well as liquidity." |
See RNS. Formal reporting results of the AGM (all motions passed).
Just the DLAR meeting to go, then, on December 2nd. (DLAR results RNS issued today, not well received. My guess is the Chairman will go. Maybe Morera will be proposed as CRS's NED on DLAR?)
Since the CRS AGM is in Guernsey I was expecting an update pre-meeting. I'm surprised they did not put out an RNS this morning (especially since this is the first meeting since last March's EGM about wind up plans, which have changed). |
AGM today? |
And the rest went on Monday. "Juan Morera is no longer a shareholder of the Company". |
Juan Morera sold 50,000 shares. He's an 'employee' and may not be Inside CA, but he earns a crust acting as CA's appointee on HUR and ALM as NEDs. Odd timing. CRS AGM is set for Wednesday next week, He would normally vote through a proxy, I would think.
Is it significant? I can't think of anything. But coincidences make me nervous. |
Must be a frustrating time for Mr Bernstein !On ALM although the price has fallen on delist the underlying assets are the same..and its quite likely as a private company the valuation would be nearer the asset value on an independent valuation. Share price 8p nav 34p ?But management has been extremely poorDe La Rue difficult to know what has happened..but the management have not delivered on the restructuring for growth and are 2 profit warnings down. Still think the two parts are more valuable on trade sale..looks like the management prefer to keep it together...management not delivering.HUR is a situation where the well paid incompetent executive board prefer to sit tight and keep earning. They have no real shareholdings and don't even have options to align them with shareholders. Management dire. |
ALM vote went as expected (to delist).
HUR still in the hands of a recalcitrant CEO not appropriate for the company's circumstances, but at least it looks like endgame.
DLAR ... At least the market likes the Activism. |
Well the Hurricane development today puts it in play and also shows there is a potentially a liquidity option available as there was an offer on the table at 7.7p that it appears CRS would accept , but the board do not recommend.If they got 7.7p per share for their holding would be £44.33m cash equating to about 53p a share so pretty much 50% of the current share price in cash.The 31st august nav was 137p there should be end Sept figure shortly but the offer valuation on Hurricane seems broadly in line with the price then.If one took that cash out of the equation ie ex 50p distribution the shares would go to 55p and assets stand at 87p hence an increased discount to NAV at 37%. |
Nothing on HUR, but CRS has asked for a meeting to get the DLAR Chairman ousted.
Also, Meeting to delist ALM shares has been called for tomorrow in Boston, Result should be announced for Wednesday LSE opening.
CRS Annual Meeting set for 23/11/22. (Missed the palindrome by a day!) |
Any update on CRS getting rid of HUR? |
CA needs to and will focus on selling Hurricane stake now. This is a priority imo as the times will not be better than now, before the winter, in the middle of the energy crisis. |
RNS out. No clarity on dividend (Return of Capital) previously predicted at 60 pence per share, £50 million total cost.
I think CA need to clarify, especially to indicate if they have the support of Saba and other instis which may have voted against continuation.
AGM last year was November 22. |
CRS share price didn't move on opening, which tells me CA are a force behind the move at ALM. Bad news for PIs like me (only a small holding) but it is what should have happened two years ago. Only slightly better late than never.
Imo it means ALM cannot be one of the holdings making up the £50 million payout promised next month. CRS slightly up now. |
It's not 50 pence coming up, it's 60 pence. Here's the quote from the June 30 RNS.
"Following the payment of the 10p a share dividend to shareholders in February 2022 (representing a gross return of £8.3 million), the Fund expects to return a further 10p a share (representing a gross return of £8.3 million) by mid-August 2022 and to have returned an additional 60p a share (equivalent to £50 million) by the end of September 2022."
If HUR does not look like fetching the price RB thinks is right he may have a roll over in mind just for that holding. He is not likely to release it for less than it's worth just because of the winding-up. The pressure to pay the special dividend is self imposed (from CRS's own RNS) not from Saba.
The improvement in DLAR may have to do with short contracts closing, again Saba related? Just a guess.
EQLS sales were reported as a fall from 9.97% from memory to 5.81% and I calculated there was enough cash elsewhere to make up the 10 pence payout. Since that sale EQLS have put on another 10 pence.
All good! (Except ALM!) |
I have been wondering this also that the individual holdings have been strengthening of late (but after pull backs, barring EQLS).
I'm assuming that the latest 10p is being funded mainly by the reported EQLS sales.
The coming 50p - is there a way that could be something other than corporate activity on HUR? Could there be some kind of realisation on the unlisted holdings?
I do find it odd that there is a stated commitment to future actions that are clearly contingent and not completely done and dusted (otherwise there would need to be an announcement on anything listed) |
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