31 March 2026

CRYSTAL AMBER FUND LIMITED

("Crystal Amber Fund" or the "Fund")

Interim Report and Unaudited Condensed Financial Statements

For the six months ended 31 December 2025

Highlights

·  Net Asset Value ("NAV") per share decreased by 0.5% over the six-month period to 31 December 2025 to 177.5p per share.

·    £6.6 million asset enhancing share buyback during the period at an average 19.5% discount to NAV.

·    Strong operational progress at Morphic Medical Inc. 

·    Cash proceeds from De La Rue takeover received.

·    Shareholder approval sought to change the Company's investment policy and appoint a new Investment Manager and Investment adviser as set out in a Circular to shareholders dated 31 March 2026.

For further enquiries please contact:

Crystal Amber Fund Limited

Chris Waldron (Chairman)

Tel: 01481 742 742

www.crystalamber.com

Allenby Capital Limited - Nominated Adviser

Jeremy Porter/ Ashur Joseph

Tel: 020 3328 5656

Winterflood Investment Trusts - Broker

Joe Winkley/Neil Langford

Tel: 020 3100 0160

Crystal Amber Advisers (UK) LLP - Investment Adviser

Richard Bernstein

Tel: 020 7478 9080

Chairman's Statement

The six-month period to 31 December 2025 has seen the Fund make steady progress. As a result of the £6.6 million share buyback and negative exchange rate movements of £1.0 million, net asset value declined from £116.2 million (178.4p per share) to an unaudited NAV of £107.4 million (177.5p per share). Net asset value per share decreased by 0.5%. This compares to a 4.6% increase in the Deutsche Numis Small Cap Index including AIM over the same period. Over the longer term, the Fund's performance remains impressive, with NAV per share increasing by 68.5% since December 2022, well ahead of the benchmark 18.5%.

Much of that performance can be attributed to the successful exit from the Fund's long term holding in De La Rue and the continuing progress at the Fund's largest shareholding, Morphic Medical Inc ("MMI"). We have covered De La Rue extensively in previous reports, detailing the patient activism that was integral to enabling the successful exit, but the period under review saw the conclusion of the bid from Atlas Holdings and final cash proceeds were eventually received in July.

With De La Rue sold, the importance of MMI to the Fund only increased and this became the prime focus for the Manager and the Fund in the period. Initially, this saw an emphasis on ensuring the right management team was in place at MMI, and with the appointment of Mike Gutteridge as CEO and latterly Jane Wright as CFO, the Fund is confident that this has been achieved. Shareholders who saw the webinar that Mike and I hosted in October last year will have seen the progress that has been made. The Fund has also continued to fund the growth of MMI, as detailed in the Investment Manager's report below and will consider supporting further investment alongside new cornerstone investors if appropriate.

However, it also became clear during 2025 that despite the value added to date, maximising the value of the Fund's investment in MMI will take longer than previously envisaged and that securing FDA approval will be key to unlocking that value. This would therefore entail the Fund actively continuing to oversee MMI and its funding until 2028 or 2029. This longer timeframe, together with the wish to pursue other ventures were key considerations for the Manager and Richard Bernstein, its principal adviser, in deciding to step down from managing the Fund.

We first announced this to the market in November 2025 along with the intention to appoint Tarncourt Asset Management ("Tarncourt") as the successor manager and since then have worked with both the current and prospective management teams and our advisers to finalise the proposals. We have also liaised extensively with our largest shareholders to ensure that the terms of Tarncourt's appointment are in the best interests of the Fund and we are grateful for their input.

The proposals are set out in greater detail in the EGM circular that has been issued to shareholders at the same time as these interim accounts but I would like to emphasise the Board is confident that Tarncourt is well placed to manage the vital development and future funding of MMI as well as the long term growth of the Fund under its proposed new mandate. The Board also notes that the current Manager will remain a shareholder after stepping down, which is a welcome vote of confidence in the new structure.

Richard Bernstein and the Manager have been in place since the launch of the Fund in 2008, so the forthcoming EGM marks the end of an era. His style of quiet activism has seen many notable successes over the years, with Thorntons, Pinewood, Aer Lingus and Hurricane Energy coming to mind and latterly De La Rue. The Board is grateful for his support and dedication. We wish him well.

Finally, with the appointment of Tarncourt and the change of investment mandate, I am mindful that my tenure on the Board is now well beyond the recommended nine years and consequently I will not be standing for re-election at the next AGM. In the interim, I am looking forward to working with all stakeholders to ensure a smooth transition to the next stage of the Fund's life.

Christopher Waldron

Chairman

30 March 2026

Investment Manager's Report

Performance

During the six-month period to 31 December 2025, net asset value decreased from £116.2 million (178.4p per share) to an unaudited NAV of £107.4 million (177.5p per share). The decline in NAV was predominately caused by the £6.6 million share buyback and negative exchange rate movements of £1 million.

Investee companies

Morphic Medical Inc ("MMI")

Morphic's product, Reset®, is a thin, flexible implant that lines the proximal small intestine and mimics gastric bypass bariatric surgery as food bypasses the duodenum and the upper intestines. Unlike gastric bypass surgery, Reset® is reversible, minimally invasive, and temporary. It does not permanently alter the patient's anatomy and uniquely targets the body's own blood glucose control mechanisms. This is achieved through a 20-minute endoscopic procedure. The patient will typically retain the device for nine months, after which the device is removed.

Following MMI's receipt of the European CE mark and UK regulatory approval for its Reset® system, patients have had procedures in both the UK and India. MMI has also signed distribution agreements in Spain, Belgium, Netherlands, Czech Republic and the Middle East. Patient enrolment for its US Step-1 study is ongoing and expected to complete between late 2027 and early 2028. FDA approval for the Reset® device in the US is expected in either 2028 or 2029.

Patient recruitment in the US for the pivotal FDA study for Reset® is accelerating. Last month, two further procedures were carried out in Miami and seven patients were scheduled for February 2026. The FDA has also recently agreed to a change to the study protocol, which will speed up patient recruitment.

Due to the data collected so far from over 200 studies on safety, efficacy and durability in Germany, NUB status (the reimbursement and pricing of innovative in-patient drugs and devices) has been awarded following a rigorous assessment by the German hospital and reimbursement system and reflects recognition that Reset® is supported by a substantial and growing body of clinical evidence and research, demonstrating both clinical relevance and therapeutic potential. The designation enables hospitals in Germany to apply for supplementary reimbursement for the use of Reset® while broader reimbursement pathways in other countries continue to be evaluated.

To satisfy future demand for Reset®, MMI has now agreed terms with its contract manufacturers to start manufacturing Reset® at scale.

The Fund has continued to fund the growth of MMI, with $14m invested in MMI since the start of 2025 at $0.48 per share and anticipates further investment alongside cornerstone investors if appropriate.

The Fund's other remaining holdings of Allied Minds Plc, Sigma Broking Limited and Sutton Harbour Plc account for less than 10% of the Fund's total net asset value. The Investment Manager is in active discussions with each of these companies with a view to maximising their monetisation. Sigma Broking Limited is in advanced discussions to dispose of its London Metal Exchange business. Completion is dependent upon regulatory approvals for the change of control. On closing, the Fund is expected to receive a capital distribution. Sigma Broking will retain its wealth management division.

The largest investment held by Allied Minds, Federated Wireless, delivered solid operational progress, executing the second year of its restructuring while improving financial quality and market position. Revenue for 2025 was $18.6M, with 36% year on year growth in recurring revenue, which now represents 86% of total revenue. Operating expenses were reduced by 30% compared to earlier years, enabling the company to achieve positive EBITDA and expand margins.  

The company grew market share to 80% in CBRS, driven by product performance and continued migration of customers from competitors. Management is targeting further strong growth in revenue and EBITDA, supported by growth from Verizon deployments, the expected Comcast migration, new federal projects, and further expansion within the existing customer base.

Crystal Amber Asset Management (Guernsey) Limited

30 March 2026

Condensed Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

For the six months ended 31 December 2025

All items in the above statement derive from continuing operations.

The total column of this statement represents the Company's Statement of Profit or Loss and Other Comprehensive Income prepared in accordance with IFRS. The supplementary information on the allocation between revenue return and capital return is presented under guidance published by the AIC.

The Notes to the Unaudited Condensed Financial Statements below form an integral part of these Interim Financial Statements.

Condensed Statement of Financial Position (Unaudited)

As at 31 December 2025

The Interim Financial Statements were approved by the Board of Directors and authorised for issue on 30 March 2026

   Christopher Waldron                                                                     Jane Le Maitre                 

   Chairman                                                                                            Director

   30 March 2026                                                                                 30 March 2026                                    

The Notes to the Unaudited Condensed Financial Statements below form an integral part of these Interim Financial Statements.

Condensed Statement of Changes in Equity (Unaudited)

For the six months ended 31 December 2025

For the six months ended 31 December 2024

Condensed Statement of Cash Flows (Unaudited)

For the six months ended 31 December 2025

The Notes to the Unaudited Condensed Financial Statements below form an integral part of these Interim Financial Statements.

Notes to the Unaudited Condensed Financial Statements

For the six months ended 31 December 2025

General Information

Crystal Amber Fund Limited (the "Company") was incorporated and registered in Guernsey on 22 June 2007 and is governed in accordance with the provisions of the Companies Law. The registered office address is PO Box 286, Floor 2, Trafalgar Court, Les Banques, St Peter Port, Guernsey, GYI 4LY. The Company was established to provide Shareholders with an attractive total return, which was expected to comprise primarily capital growth with the potential for distributions of up to 5 pence per share per annum following consideration of the accumulated retained earnings as well as unrealised gains and losses. Following changes to the Company's investment policy in March 2022, the Company's strategy has been to optimise outcomes for a limited number of special situations where the Company believes value can be realised regardless of market direction.

Proposed changes to investment policy and management arrangements

As the Fund announced on 14^th November 2025, the Fund's investment manager, Crystal Amber Asset Management (Guernsey) Limited (the "Existing Manager"), has informed the Board of its intention to resign as investment manager. The Existing Manager, with its principal adviser Richard Bernstein, has been managing the Fund since its launch in 2008. Given the need to continue to oversee MMI for a longer period than previously anticipated and Mr Bernstein's wish to pursue other ventures, the Fund has accepted the Existing Manager's decision  which will take effect on the appointment of a new investment manager. The Board wishes to express its sincere gratitude to Mr Bernstein for his vision, dedication and contribution to both the performance and the reputation of the Fund since its inception.

As outlined in the shareholder circular published on 31 March 2026, the Board has proposed a number of changes to the Company's investment policy, the appointment of a new Investment Manager (Global Fund Management Services Limited) and a new Investment Adviser (Tarncourt Asset Management Limited) together with the adoption of new Articles to reinstate a periodic continuation vote. These proposals have been developed following extensive engagement with major Shareholders and reflect the Board's intention to ensure that the Company is appropriately positioned for the next phase of its strategy. As at the date of approval of these Interim Financial Statements, these proposals remain subject to Shareholder approval at an Extraordinary General Meeting and therefore have not yet taken effect. The Company will update Shareholders following the outcome of the Extraordinary General Meeting.

Morphic Medical Inc is an unconsolidated subsidiary of the Company and was incorporated in Delaware. As at 31 December 2025 it had 6 wholly-owned subsidiaries and its principal place of business is Boston. Refer to Note 9 for further information.

The Company's Ordinary shares were listed and admitted to trading on AIM, on 17 June 2008. The Company is also a member of the AIC.

1.            SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these Interim Financial Statements are set out below. These policies have been consistently applied to those balances considered material to the Interim Financial Statements throughout the current period, unless otherwise stated.

Basis of preparation

The Interim Financial Statements have been prepared in accordance with IAS 34, Interim Financial Reporting. 

The Interim Financial Statements do not include all the information and disclosures required in the Annual Financial Statements and should be read in conjunction with the Company's Annual Financial Statements for the year to 30 June 2025. The Annual Financial Statements have been prepared in accordance with IFRS.

The same accounting policies and methods of computation have been used in the Interim Financial Statements as in the Annual Financial Statements for the year ended 30 June 2025.

The presentation of the Interim Financial Statements is consistent with the Annual Financial Statements. Where presentational guidance set out in the SORP "Financial Statements of Investment Trust Companies and Venture Capital Trust (issued by the AIC in November 2014 and updated in February 2018, October 2019, April 2021 and July 2022) is consistent with the requirements of IFRS, the Directors have sought to prepare the Interim Financial Statements on a basis compliant with the recommendations of the SORP. In particular, supplementary information which analyses the Statement of Profit or Loss and Other Comprehensive Income between items of a revenue and capital nature has been presented alongside the total Statement of Profit or Loss and Comprehensive Income.

Going concern

As at 31 December 2025, the Company had net assets of £107.4 million (30 June 2025: £116.2 million) and cash balances of £17.5 million (30 June 2025: £10.9 million) which are sufficient to meet current obligations as they fall due. Approximately 0.6% of the Company's investment portfolio comprises readily realisable securities valued at £0.6 million using bid price at the balance sheet date which could be sold to assist with meeting funding requirements if necessary.

As these are quoted prices in an active market, any volatility in the global economy is reflected within the value of the financial assets designated at fair value through profit or loss.

Following extensive Shareholder consultation in the early part of 2022, a change of investment policy was approved by Shareholders in March 2022 which prioritised the intention to maximise the return of capital, representing a change of strategy.

As noted above, the Board has put forward proposals to appoint a new Investment Manager and Investment Adviser, as detailed in the Shareholder Circular dated 31 March 2026. As the proposals do not involve the compulsory liquidation of the Company and costs will be substantially the same for at least 12 months, the Directors remain confident in the Company's ability to meet its obligations as they fall due whether the proposals are accepted or not. If the proposals are accepted, the transition is expected to run smoothly as the Existing Investment Manager will continue to provide services until the Effective Date as set out in the Circular ensuring no disruption to the Company's operations. 

The Company has a track record of returning cash to Shareholders via share buybacks and dividends. The Company has returned over £118 million to shareholders since 2013, when the requirement for the continuation vote to be proposed at the 2021 AGM was introduced.

As a result of matters set out above, the Board is confident that the Company has adequate resources to continue in operational existence for the foreseeable future, and do not consider there to be any threat to the going concern status of the Company. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.

For management purposes, the Company is domiciled in Guernsey and is engaged in investment in UK equity instruments, mainly in one geographical area, and therefore the Company has only one operating segment.

2.            BASIC AND DILUTED EARNINGS PER SHARE

Earnings per share is based on the following data:

3.            NAV PER SHARE

NAV per share is based on the following data:

4.            FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS

5.            FINANCIAL INSTRUMENTS

Fair value measurements

The Company measures fair values using the following fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under IFRS 13 are as follows:

Level 1:       Quoted price (unadjusted) in an active market for an identical instrument.

Level 2:       Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques for which all significant inputs are directly or indirectly observable from market data.

Level 3:       Valuation techniques using significant unobservable inputs. This category includes all instruments for which the valuation technique includes inputs that are not based on observable data, and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes 'observable' requires significant judgement by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The objective of the valuation techniques used is to arrive at a fair value measurement that reflects the price that would be received if an asset was sold or a liability transferred in an orderly transaction between market participants at the measurement date.

The following tables analyse, within the fair value hierarchy, the Company's financial assets measured at fair value at 31 December 2025 and 30 June 2025:

The Level 1 equity investments were valued by reference to the closing bid prices in each investee company on the reporting date.

The Level 2 equity investment relates to Sutton Harbour. Due to the low volume of trading activity in the market for this investment, it has been valued by reference to the closing bid price on the reporting date.

The Level 3 equity investment in Allied Minds (which delisted on 30 November 2022) was valued at the Net Asset Value per share on 31 December 2025 converted at an exchange rate of $1.3462 to £1 and reduced by a 25% liquidity discount to reflect the nature and risks associated with the underlying portfolio of Allied Minds and the likelihood of being able to realise the investment at Net Asset Value. The Level 3 equity investments in MMI were valued at 30 June 2025 by reference to an independent third-party valuation commissioned by the Company. The valuer reported a range of valuations using discounted cash flow techniques and a probability-weighted expected returns method in the event of a trade sale or IPO. The total valuation was then allocated through a waterfall to the Series A shares and common stock owned by the Company. The Level 3 equity investment in Sigma Broking Limited was valued by reference to the valuation at 30 June 2025 of three separate constituent parts, which included the broking business, a wealth management business and Novum Investment Management. Advanced negotiations are ongoing regarding sale of the broking business.

For financial instruments not measured at FVTPL, the carrying amount is approximate to their fair value.