4th Mar 2020 11:29
(Alliance News) - Crystal Amber Fund Ltd saw a sharp fall in first half net asset value, the activist investor said on Wednesday.
Net asset value at December 31 slumped 30% to GBP167.9 million from GBP238.8 million at the end of June. Per share, it fell by 28% to 179.21 pence from 249.12p.
The stock was untraded at 93.00p each in London on Wednesday morning.
"After a strong performance in the first half of calendar year 2019, the first half of the current financial year proved particularly difficult for Crystal Amber," the company explained.
Crystal Amber added: "It is also important to note that the fund's strategy and activist tactics of patient engagement have remained consistent over the period. There has been no change in focus or approach, but there are clearly times when the investment environment is favourable to the fund's style and other times when it is not. There is no doubt that since the June 2019 financial year end, the investment climate for a UK focussed, small and mid-cap value investor has been difficult."
Among its investees is banknote printer De La Rue PLC, where "past mismanagement" has "significantly affected" Crystal Amber's performance.
Crystal Amber added: "Exposing and highlighting these failings accelerated the departures of the former chief executive and chairman and has allowed the new leadership to begin to take the corrective action necessary to execute a turnaround. De La Rue is a good example of the time lag that can exist between initiating an activist strategy and it bearing fruit."
By Eric Cunha; [email protected]
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Crystal AmberDe La Rue