Crystal Amber Fund Reports NAV Growth and Successful De La Rue Exit in Final Results

Crystal Amber Fund final results: NAV up, De La Rue cashed out, and MMI steps forward

Crystal Amber Fund’s year to 30 June 2025 delivered what most shareholders wanted: steady NAV per share growth, a major cash realisation from De La Rue, and a regulatory breakthrough at its core private asset, Morphic Medical Inc (MMI). The trade-off is growing concentration in one unlisted investment and a live debate about how best to fund it while still returning cash to investors.

Quick definitions for newer readers:

• NAV per share – the value of all assets minus liabilities, divided by shares. It’s the key yardstick for investment trusts.
• CE Mark – European approval confirming a medical device meets health and safety standards, enabling commercial sales in Europe.
• FDA – the US regulator. Pivotal study approval is a crucial step toward US market access.

Headline numbers: NAV, cash and buybacks

Metric	FY2025	Prior Year/Notes
NAV per share	178.39p	Up 2.6% from 173.90p
Total NAV	£116.2 million	£126.7 million in 2024
Cash at year-end	£10.94 million	Pro forma £28.95 million incl. post-year De La Rue proceeds (44.4p per share)
Buybacks	£9.1 million	10.58% of shares at 117.34p, a 34.22% discount to year-end NAV
Result for the year	£1.4 million loss	EPS -2.05p
De La Rue cash realisation	£40.7 million	£18.0 million received in July 2025
MMI carrying value	£78.1 million	US$107.2 million independent valuation

On the face of it, the 2.6% rise in NAV per share is modest. But remember, Crystal Amber bought back 7.7 million shares at a big discount, which is accretive to NAV and supports per-share value. Total NAV fell mainly because capital was returned via buybacks and the fund posted a small loss.

De La Rue activism pays out: cash in at 130p a share

This was a textbook activist win. After a long campaign, De La Rue announced a 130p per share cash offer in April 2025. Crystal Amber realised £40.7 million in total proceeds during the offer period, with £18.0 million landing shortly after the year end. For context, De La Rue’s share price more than trebled since June 2023.

Why it matters: it validates the fund’s strategy and replenishes the war chest for either distributions or supporting MMI. It also demonstrates Crystal Amber’s ability to unlock “strategic value” beyond day-to-day earnings – exactly the activist edge investors pay for.

Morphic Medical (MMI): CE Mark, first revenues, and a large runway

MMI – in which the fund now owns 98% on an undiluted basis – secured CE Mark approval for its RESET device immediately after the year end. Sales have begun in Germany and the UK, and patient recruitment for the FDA fast track pivotal study can now accelerate.

RESET in a nutshell

RESET is a thin, reversible lining for the small intestine placed via a 20-minute endoscopic procedure. It aims to provide weight loss and better blood sugar control without permanent surgery. Clinical studies showed patients lost, on average, 19% of total body weight within a year and exceeded international safety and effectiveness standards for endoscopic weight-loss treatments.

Valuation and strategic options

An independent valuation put MMI at US$107.2 million (£78.1 million) at 30 June 2025. The company is in discussions with potential strategic investors, including large medical device names. While there’s no certainty, MMI believes any such investment would be at a premium to Crystal Amber’s current carrying value. If FDA approval follows, the Board believes MMI’s value could be materially enhanced given the US weight loss devices market is estimated to reach US$8.5 billion by 2032.

My take: CE Mark and early revenues are significant de-risking steps. But growth requires funding, and the Board is weighing MMI’s capital needs against returning more cash to shareholders. Expect debate – and likely a staged approach.

Portfolio concentration: the big risk to watch

As assets have been realised, the portfolio is now highly concentrated. At the year end, MMI represented 67% of gross assets, and the two largest holdings (MMI and De La Rue) were 82%. After De La Rue’s exit completed in July, MMI’s weighting is even higher. The remaining holdings – Allied Minds, Sigma Broking, and Sutton Harbour – together accounted for less than 10% of NAV.

What this means: Crystal Amber’s NAV is now driven predominantly by one private asset valued using Level 3 methods. That’s not inherently bad, but it does amplify valuation, regulatory, execution, and foreign exchange risks. The RNS also notes press reports that Sigma Broking is in advanced discussions about a partial sale, but completion is uncertain.

Shareholder returns, costs and capital framework

Performance has been excellent versus peers. Trustnet ranks Crystal Amber second of 21 over one year and first over three and five years, with shareholder returns of 38.3%, 129.6%, and 250.8%, versus 9.2%, 37.7%, and 58.0% for the Investment Trust UK Smaller Companies Index.

On costs, the ongoing charges ratio fell to 1.26% (from 1.50%). The management fee was £690,000 and there was no performance fee. The fund also booked £2.17 million of realised gains on CFDs (derivatives that track stock price movements) as part of its tactical toolkit.

For distributions, the B Share Scheme adopted in October 2024 remains available for tax-efficient returns of capital. No dividends or B Shares were issued during the year. Buybacks continued post year end – a further 2.2 million shares at 148.67p – taking total capital returned via buybacks and other means to more than £120 million to date.

Strategy consultation: structure, listings and the path to value

The Board has begun consultations with larger shareholders on the Company’s future. With MMI likely to be the last remaining asset, they are considering the best structure and management approach to maximise value and keep costs sensible. Options noted include a trade sale of MMI or potentially using the Company’s listing to provide a public market route for MMI once milestones are achieved. No decisions yet – and funding needs for MMI will be carefully balanced against returning cash to shareholders.

My view: a pivotal year that sets up the next chapter

Positives:

• Activism delivered: De La Rue proceeds of £40.7 million crystallised value and boosted liquidity.
• MMI milestone: CE Mark approval and early revenues in Europe are major steps forward.
• Capital discipline: buybacks at a 34.22% discount were NAV-accretive; costs moved lower.

Watch-outs:

• Concentration: MMI now dominates NAV, with Level 3 valuation and FX sensitivity (a 10% USD move impacts the carrying value materially).
• Funding vs distributions: shareholders may want cash, but MMI will likely need support through FDA and early commercial scaling.
• Smaller holdings: Sigma, Allied Minds and Sutton Harbour are small in NAV terms and uncertain on timing.

Bottom line: This is increasingly a single-asset story with a credible medical device that has passed a key regulatory gate. If MMI executes, the prize could be meaningful. The Board’s impending strategy decisions – funding plan, structure, and exit route – are now the main catalysts to watch.