REG - Chrysalis Investment - Interim Results for the period to 31 March 2025

Chrysalis InvestmentsAnnouncement

26/06/2025 07:00

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RNS Number : 4501O  Chrysalis Investments Limited  26 June 2025

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pursuant to The European Union Withdrawal Act 2018, as amended by The Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

26 June 2025

 

 

Chrysalis Investments Limited ("Chrysalis" or the "Company")

 

Interim Results for the period from 1 October 2024 to 31 March 2025

 

Financial Summary

 

                   31 March 2025  30 September 2024  % Change
 NAV per share     152.62p        141.26p            + 8.0%
 Share price       91.90p         93.30p             - 1.5%
 Total net assets  £827 million   £840 million       - 1.5%

 

The NAV per share calculation is based on the Company's issued
share capital as at 31 March 2025 of 542,192,153 ordinary shares of no par
value.

 

Headlines

 

-     NAV per share of 152.62 pence, representing an 8.0% increase over
the first half of the financial year

-     Realisations totalling £80 million, including £79 million from the
sale of Featurespace. A further £49 million was realised from the sale of
InfoSum just after the period end

-     Follow-on investments into wefox (£17 million) and InfoSum (£2
million), and an increase in the position size of Klarna (£8 million)

-     £51.7 million of capital returned to shareholders as of period end
as part of the share buyback programme announced on 26 September 2024; £68.9
million returned to date, representing 11.9% of shares outstanding prior to
commencement of the buyback

-     The Company continues to execute its commitment to return up to
£100 million to shareholders through the share buyback programme; part of the
Company's current Capital Allocation Policy ("CAP")

-     Equity markets were generally risk-on from the start of the period
through to late February, buoyed by monetary easing and U.S. political
developments, before weakening significantly through March amid rising trade
tensions and rebounding post period end

-     The Investment Adviser remains focused on maximising portfolio
companies' potential valuations, while looking for opportunities to
crystallise value where appropriate

-     The Investment Adviser remains optimistic over the outlook for the
portfolio, with several levers available to Starling Bank to reaccelerate its
growth and the recent recovery in stock markets potentially supporting a
Klarna IPO

 

 

Andrew Haining, Chair, commented:

 

"The strong NAV per share performance in the period continues the progress
made since its low point in 2023 and was driven by the positive impact of the
share buyback programme and the upward revaluation of certain portfolio
companies.

 

Recent exits have left the portfolio focused on the more mature, later-stage
assets, which arguably are the most exciting in terms of possible valuation
upside; the Investment Adviser continues to work closely with the management
teams at these companies to unlock their potential.

 

The Board is encouraged to note that the Company's share price has increased
by 14.0% post period end, which has underpinned a narrowing of the discount to
NAV at which its shares trade, from 40% at 31 March 2025 to 31% at 24 June
2025. The Company continues to repurchase its own shares in the market in line
with its CAP, and the Board and the Investment Adviser continue to evaluate
options to further reduce the discount.

 

Over the period since the approval of the CAP, the Company has seen
accelerated disposals from some of the less mature assets in the portfolio,
namely Graphcore, Featurespace and InfoSum, resulting in a stronger liquidity
position than anticipated. As announced in May 2025, the Board will propose a
vote on the future operation of the CAP at the 2026 AGM. A consultation
process will be undertaken prior to this, to take into account the wishes of
shareholders in any proposed amendments to the CAP; I would encourage as many
shareholders as possible to take part."

 

Richard Watts and Nick Williamson, Managing Partners of Chrysalis Investment
Partners LLP, commented:

 

"Over the last two years, the characteristics of the portfolio and its
potential to deliver value to shareholders have both substantially improved.
The strong performance and active management of the Company's assets,
including the restructurings undertaken at both Smart and wefox and the cost
control at Klarna have resulted in a substantial decrease in the funding risk
of the top five portfolio holdings - that account for 81% of NAV - as
evidenced by them all generating profits on an adjusted basis (before
exceptional and certain non-cash items).

 

We are excited about Starling: it has several angles from which to enhance its
investment case, particularly the opportunity to reaccelerate growth in its
core UK market, and the capacity to monetise its technology platform - Engine
- across a global market. Accounting for 33% of NAV, Starling's prospects are
clearly crucial to the overall success of Chrysalis; we are optimistic that it
is well positioned over the second half of 2025 to further demonstrate its
potential."

-ENDS-

 For further information, please contact:

 Media                                             +44 (0) 7921 881 800

 Montfort Communications:                          chrysalis@montfort.london

 Charlotte McMullen / Imogen Saunders

 Investment Adviser                                +44 (0) 20 7871 5343

 Chrysalis Investment Partners LLP:

 James Simpson

 AIFM                                              +44 (0) 20 7397 5450

 G10 Capital Limited:

 Maria Baldwin

 Deutsche Numis:                                   +44 (0) 20 7260 1000

 Nathan Brown / Matt Goss

 Panmure Liberum:                                  +44 (0) 20 3100 2222

 Chris Clarke / Darren Vickers

 Barclays Bank PLC:                                +44 (0) 20 7623 2323

 Dion Di Miceli / Stuart Muress / James Atkinson

 IQEQ Fund Services (Guernsey) Limited:            +44 (0) 1481 231852

 Aimee Gontier / Elaine Smeja

 

LEI: 213800F9SQ753JQHSW24

A copy of this announcement will be available on the Company's website at
https://www.chrysalisinvestments.co.uk
(https://www.chrysalisinvestments.co.uk)

The information contained in this announcement regarding the Company's
investments has been provided by the relevant underlying portfolio company and
has not been independently verified by the Company. The information contained
herein is unaudited.

This announcement is for information purposes only and is not an offer to
invest. All investments are subject to risk. Past performance is no guarantee
of future returns. Prospective investors are advised to seek expert legal,
financial, tax and other professional advice before making any investment
decision. The value of investments may fluctuate. Results achieved in the past
are no guarantee of future results. Neither the content of the Company's
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website for any other website, is incorporated into, or forms part of, this
announcement nor, unless previously published by means of a recognised
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decision as to whether or not to acquire, continue to hold, or dispose of,
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The Company is an alternative investment fund ("AIF") for the purposes of the
AIFM Directive and as such is required to have an investment manager who is
duly authorised to undertake the role of an alternative investment fund
manager ("AIFM"). G10 Capital Limited is the AIFM to the Company. Chrysalis
Investment Partners LLP is the investment adviser to G10 Capital Limited.
Chrysalis Investment Partners LLP (FRN: 1009684) is an Appointed
Representative of G10 Capital (FRN: 648953) Limited, which is authorised and
regulated by the Financial Conduct Authority.

 

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