Crystal Amber Regulatory News (CRS)

CRYSTAL AMBER FUND LIMITED - Net Asset Value(s)

PR Newswire

London, April 5

Crystal Amber Fund announces that its unaudited net asset value ("NAV") pershare on 31 March 2013 was 128.19p (28 February 2013: 124.05p per share).

Investment adviser's quarterly commentary on the portfolio

Over the quarter to 31 March 2013, Net Asset Value grew by 6.75%. This followsa 35% increase in the year to December 2012.

The top three positive contributors to NAV performance over the last quarterwere TT Electronics (2.5% contribution), Tribal Group (2.4%) and Norcros(2.4%). The top three detractors have been Sutton Harbour (-3%), API Group(-1.9%) and Renishaw (-0.4%).

TT Electronics' share price is up 22% over the quarter. Despite a challengingeconomic backdrop and a decline in sales, TT reported 60bp margin improvementfor 2012. At 6.2%, operating margins are progressing towards the 8% target for2014. With approximately £50 million of net cash, we are particularlyinterested in the use of cash proceeds for acquisitions and the opportunitiesfor investment in consolidating Western European production sites. In ourview, the initial move of production lines to Romania demonstrates that largerscale consolidation exercises could materially improve margins, in addition tothe self-help measures that already underpin the current 8% target. We hopethat the company will elaborate on its strategy to consolidate sites at itsJune capital markets day.

Sutton Harbour's share price fell by 33% over the quarter. Despite no materialdevelopments, the share price's discount to its 38.3p NAV has widened to morethan 40%, highlighting what we consider to be a lack of investor confidence.

As an activist Fund, we regard this situation as untenable and we are nowworking on proposals to restore investor confidence and to unlock the company'spotential.

The February IMS from Norcros indicated stronger than expected sales growth,albeit at some cost to margins. The share price rose 29% over the quarter.

Following the significantly upgraded guidance for estimates that was issued oneweek before its results, Tribal Group's shares have responded strongly and areup 42% over the quarter. An important contract in Australia is progressingwell. There is considerable momentum both in Australia and other overseasmarkets, and we believe that this will be helped in future by the recentacquisition of i-graduate.

API's share price fell by 24% over the quarter. In February 2013, after theboard announced that indicative bids were below 90p per share, we wrote tothe chairman indicating that, in our opinion, an offer at that level would notreflect the value of the company. The board confirmed its agreement with ourposition and the sale process was terminated. With the distraction of the saleprocess now removed, we have held discussions with the board around key issuesincluding the reintroduction of a dividend and the consolidation of the two APIFoils Americas sites. In our view the latter could release considerable valuefrom the Rahway freehold property, and be significantly accretive to margins.Furthermore, our assessment is the business is now highly cash generative andnow in a position to embark on a significant, sustainable and growing dividenddistribution policy.

Share buy-back

Over the quarter, and following the release of its interim results, the Fundhas purchased 1,705,000 of its own shares at an average price of 109.5pper share, which are held as treasury shares together with the 1m sharespurchased in December. The buy-back has had the effect of reducing the shareprice discount to the Fund's net asset value.

Cash resources

Over the quarter, cash and accruals decreased from 21.4p per share to 20.3p pershare. A number of opportunistic investments have been undertaken. At currentmarket levels, the Adviser is keen to retain cash reserves to be in a positionto take advantage of a potential significant market sell-off.

For further enquiries please contact:

Broker Profile Limited - Stockbroker Relations ConsultantsSimon CourtenayTel: 020 7448 3244

Crystal Amber Advisers (UK) LLP - Investment AdviserRichard BernsteinTel: 020 7478 9080