• by  • January 14, 2019 • Crystal Amber


    (“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 2018 was 221.67 pence (30 November 2018: 222.44 pence per share).

    The proportion of the Fund’s NAV at 31 December 2018 represented by the ten largest shareholdings, other investments and cash (including accruals), was as follows:

    Ten largest shareholdings Pence per share Percentage of investee equity held
    Hurricane Energy plc 45.0 5.1%
    FairFX Group plc 38.7 20.2%
    Northgate plc 32.7 6.4%
    STV Group plc 27.7 19.7%
    De La Rue plc 24.3 5.4%
    Board Intelligence Ltd* 4.8 *
    GI Dynamics Inc. 4.6 48.4%
    Sutton Harbour Holdings plc 3.1 10.0%
    Cenkos plc 2.8 6.9%
    Leaf Clean Energy Co 2.8 30.0%
    Total of ten largest shareholdings 186.5
    Other investments 28.6
    Cash and accruals 6.6
    Total NAV 221.7

    *Board Intelligence Ltd is a private company and its shares are not listed on a stock exchange. Therefore, the percentage held is not disclosed.

    Investment adviser’s commentary on the portfolio

    Over the quarter to 31 December 2018, NAV per share declined by 13.6%, or by 12.6% adjusting for the 2.5p dividend accrued during the period. The dividend was declared on 13 December 2018 and will be paid on 18 January 2019.

    Over the 2018 calendar year, the Fund’s NAV grew by 16.2%, or by 18.9% adjusting for the two dividends paid during the year. The total return of the Numis Small Caps Index was a negative 11.0%.

    The top positive contributor to NAV growth over the quarter to 31 December 2018 was Board Intelligence Ltd (0.4%). Top detractors were Hurricane Energy plc (-6.7%), FairFX Group plc (-4.1%) and Northgate Group plc (-1.3%). The Fund’s put options contributed 1.8% to the NAV.

    Hurricane Energy plc (“Hurricane”)

    Hurricane’s Early Production System (“EPS”) for its Lancaster asset continued to make progress over the period. The EPS’ Floating Production and Storage Vessel (“FPSO”) Aoka Mizu sailed away from Dubai in October after completing a programme of repair, upgrade and life extension. The FPSO is now at the port of Cromarty, near Inverness, awaiting a favourable weather window to initiate commissioning.

    Hurricane’s share price fell by 24.5% over the period. In the early weeks of the quarter, the Fund continued to reduce its position and sold shares to the value of £3.5 million. Following subsequent share price weakness, the Fund reinvested £3 million, growing its position by one million shares over the period.

    Board Intelligence Ltd

    The Fund invested in Board Intelligence Ltd in March 2018 and carried the investment in this private company at cost. The holding was revalued at the end of December resulting in an increase in its value. This reflects the acceleration in revenue growth achieved by the business.

    STV Group plc (“STV”)

    In December 2018, STV announced the launch of its Player on the Virgin TV platform. This month, STV announced that its Player would also become available on the Sky platform from the second half of 2019. The availability of STV’s own Player product on those platforms will give the company additional digital video advertising inventory to sell. Such inventory has been achieved and has sustained premium rates relative to other digital channels and is core to STV’s growth plans.

    Over the quarter, STV’s share price fell by 9.1%.

    Sutton Harbour Holdings plc (“Sutton Harbour”)

    In November 2018, Sutton Harbour received planning approval for its Sugar Quay project. Interim results reported 37.4p NAV per share versus a share price of 28.5p at the time of the announcement, when the company launched a £3 million open offer. This will be used to fund post planning pre-construction phase project costs, capital maintenance project costs and to provide cash headroom. The Fund took its full entitlement and continued to grow its position.

    Over the quarter, Sutton Harbour’s share price fell by 13.1%.

    FairFX Group plc (“FairFX”)

    In December 2018, FairFX announced an agreement with Metropolitan Commercial Bank to offer its services to the US market. The agreement is subject to additional due diligence and will cover FairFX’s Corporate Expense platform as well as its international payments service. Both are expected to go live over the first half of 2019.

    Over the quarter, FairFX’s share price fell by 20.3%.

    Transactions in Own Shares

    The Fund bought back 895,000 of its own ordinary shares at an average price of 213p per share as part of its buyback programme.