Crystal Amber Fund Limited Monthly Net Asset Value and Interim Dividend Declaration

 
TIDMCRS 
 
Dissemination of a Regulatory Announcement that contains inside information 
                according to REGULATION (EU) No 596/2014 (MAR). 
 
                                                                   11 July 2017 
 
 
                          CRYSTAL AMBER FUND LIMITED 
          ("Crystal Amber Fund" or the "Fund???) 
 
           Monthly Net Asset Value and Interim Dividend Declaration 
 
 
Crystal Amber Fund announces that its unaudited net asset value ("NAV") per 
share at 30 June 2017 was 204.37 pence (31 May 2017: 227.46 pence per share). 
 
The proportion of the Fund's NAV at 30 June 2017 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                49.6                     12.2% 
 
Northgate plc                       29.5                     4.9% 
 
STV Group plc                       25.7                     16.8% 
 
Fair FX Group plc                   16.0                     25.9% 
 
Leaf Clean Energy Co.               12.9                     29.9% 
 
NCC Group plc                       11.6                     2.5% 
 
Ocado Group plc                      9.6                     0.5% 
 
GI Dynamics Inc                      9.4                     46.1% 
 
Sutton Harbour Holdings plc          7.5                     29.3% 
 
Johnston Press plc                   3.3                     21.4% 
 
Total of ten largest holdings       175.1 
 
Other investments                   26.8 
 
Cash and accruals                    2.5 
 
Total NAV                           204.4 
 
Investment Adviser's commentary on the portfolio 
 
Over the quarter to 30 June 2017, NAV per share decreased by 15.4 per cent. 
Over the year to 30 June 2017, NAV per share increased by 32.9 per cent. 
Including the two dividends paid, NAV total return was 36.1 per cent. 
 
The top three positive contributors to NAV growth over the quarter to 30 June 
2017 were Fair FX Group plc (1.0%), Grainger plc (1.0%) and NCC Group plc 
(0.9%). Top detractors were Hurricane Energy plc (-14.8%), Northgate plc 
(-2.8%) and Johnston Press plc (-0.6%). 
 
Hurricane Energy plc ("Hurricane") 
 
At the end of the quarter, Hurricane announced that it had raised $530 million 
of funding for the development of the Early Production System (EPS) at its 
Lancaster field. This comprised $300 million of new equity at 32p and $230 
million of secured debt in the form of a convertible loan note. As a result, 
the company is targeting first oil from the EPS in 2019. 
 
This followed a warrant issue on 12 May 2017, which raised GBP12.7 million for 
working capital purposes and the publication on 8 May 2017 of its updated 
Competent Person's Report (CPR) on Lancaster. Factoring in the appraisal 
results over the last four years, the CPR raised the recoverable oil volume 
estimate from 207 million barrels to 523 million barrels. The Fund believes 
that Hurricane holds a very large, quality asset, with a resource potentially 
in excess of 1.6 billion barrels of oil. 
 
In April 2017, the Fund commented that during the previous quarter it reduced 
its position into demand to manage its exposure to this successful investment. 
Over the quarter, Hurricane's share price decreased by 42.7 per cent. We regard 
the principal cause of this substantial derating to be the mismanagement of the 
warrant issue. On 23 June 2017, the Fund released an announcement, expressing 
its disappointment at Hurricane's poor handling of the warrant issue and 
comments made at its AGM on 7 June 2017, which referred to the near-term focus 
being on funding and delivering the EPS. Since the quarter end, the Fund has 
written to the company expressing its concerns. The Fund also strongly believes 
that the way the company has gone about the recent fundraisings has created a 
significant disconnect between the operational value of Hurricane and its 
strategic value. 
 
GI Dynamics Inc ("GI Dynamics") 
 
On 3 May 2017, GI Dynamics announced that it had selected Allenby Capital to 
explore the option of a London AIM listing, which the Fund believes would be a 
positive step to increase the company's investor profile in its main European 
markets. On 18 May 2017, GI Dynamics announced the suspension of its CE Mark 
approval due to non-conformity with internal regulatory procedures. Additional 
research released over the quarter continues to support the safety and efficacy 
of the device.  Of note, a meta-analysis presented at the Digestive Disease 
Week meeting reviewed all clinical trials and confirmed improved glycaemic 
control and weight loss in patients. 
 
In June 2017, the Fund was pleased to subscribe to a $5 million convertible 
note so that GI Dynamics is able to fully capitalise on its growth potential. 
 
Over the quarter, GI Dynamics' share price decreased by 11.4 per cent.  The 
Fund continues to work closely with the management of GI Dynamics to optimise 
its strategy and realise shareholder value. 
 
On 29 June 2017, Scott Schorer, CEO of GI Dynamics, presented at Crystal 
Amber's Investor Conference. His presentation is available at: http:// 
crystalamber.com/press#699 
 
FairFX Group plc ("FairFX") 
 
During the quarter, FairFX published its final results for the year ended 31 
December 2016, reporting strong revenue growth in the second half of 2016, with 
positive momentum continuing into 1Q2017.  Highlights included a 27.9 per cent. 
rise in currency transactions in 2016, compared to 2015, and a 49.2 per cent. 
increase in international payments turnover year-on-year.  We expect to see 
continued revenue growth as the company focuses on higher margin areas of the 
business, particularly in the corporate division. 
 
On 19 May 2017, FairFX announced that it had signed a partnership agreement 
with online foreign exchange boutique, easyCurrency, which will see FairFX 
offer currency cards, cash and international payments services to easyGroup 
customers through easyCurrency.com.  This partnership will simplify the process 
of foreign exchange for easyCurrency customers and will open up new revenue 
streams for FairFX.  The deal reinforces the Fund's view that FairFX is a 
market leader in this high growth market. 
 
Over the quarter, FairFX's share price increased by 16.7 per cent.  After the 
quarter end, Fair FX announced that it was trading ahead of management 
expectations. The share price trades on 15 times prospective earnings for 2018 
and less than 9 times prospective earnings for 2019. 
 
On 29 June 2017, Ian Strafford-Taylor, CEO of FairFX presented at Crystal 
Amber's Investor Conference. His presentation is available at: http:// 
crystalamber.com/press#698 
 
Grainger plc ("Grainger") 
 
During the quarter, the Fund exited its position in Grainger, the UK's largest 
listed residential landlord, following a significant share price re-rating, 
which saw its discount to net assets narrow from 17.1 per cent. at 31 December 
2016 to 8.5 per cent. in June 2017. The Fund acquired its 3.4 per cent. 
shareholding in Grainger in the summer of 2015 at a cost of GBP31.2 million. The 
Fund is pleased that following engagement, as requested by the Fund, Grainger 
undertook a strategic review, streamlined the business, reduced its 
administrative and other expenses from GBP42 million a year to GBP27.5 million a 
year and reduced its cost of debt from 5.3 per cent. to 3.6 per cent. The Fund 
realised total sale proceeds of GBP37.3 million and together with dividends 
received, generated a profit of GBP7.1 million on this successful investment. 
 
Ocado Group plc ("Ocado") 
 
During the quarter, the Fund initiated an investment in Ocado. The Fund 
believes that the company's Smart Platform potential is not reflected in the 
current valuation. This end-to-end operating solution for online grocery retail 
is based on proprietary technology and IP developed over fifteen years. It is 
suitable for its own business and those of commercial partners around the world 
facing the threat of Amazon and limited ability or time to develop a solution 
in-house. The Fund believes this scalable technology platform can generate 
substantial free cash flows. 
 
On 4 June 2017, Ocado announced its first international deal with a regional 
European retailer. In June 2017, the Investment Adviser met with and held 
constructive discussions with Ocado's senior management. The Fund looks forward 
to supporting Ocado. 
 
Dividend 
 
The Board has declared an interim dividend of 2.5p per ordinary share in 
respect of the year ended 30 June 2017. The dividend will be paid on 18 August 
2017 to shareholders on the register on 21 July 2017 (the record date).  The 
shares will be quoted ex-dividend on 20 July 2017. 
 
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

July 11, 2017 12:44 ET (16:44 GMT)