19th Dec 2025 11:58
(Alliance News) - Chrysalis Investments Ltd on Friday hailed a year of progress, with the continued building of momentum, as it is set to propose revisions to its investment policy that sees capital returns to shareholders and a pause of new investments.
Chrysalis, a London-based investor in UK and European firms, reported a net asset value per share of 171.65 pence at September 30, its financial year-end, up 22% from 141.26p a year earlier.
The company tied this advancement to a combination of the upward valuation of the portfolio and NAV per share accretion from its buyback. The buybacks delivered an accretion of around 9p per share, said the company, "contributing approximately 7 percentage points to the rise in NAV per share".
Net assets grew 4.1% to GBP875 million from GBP840 million.
The company said growth was led by digital bank, Starling, as it noted a strong performance in its core UK banking operations and its software-as-a-service platform, Engine by Starling.
Chrysalis added that European insuretech company wefox served as another "significant contributor", with recapitalisation efforts turning around the company's earnings performance, as well as enhancing its carrying value.
Notable detractors over the financial year were Brandtech and Deep Instinct, said Chrysalis, "tempering overall gains".
Shares in Chrysalis Investments rose 2.7% to 114.03 pence on Friday morning in London.
The company said its share price improved by almost 30% over the financial year, finishing with a discount of 29%. However, it added that since the end of September, this has widened, standing at around 37%.
Chair Andrew Haining noted the continued building of momentum throughout the financial year, as well as positive developments within the portfolio. However, he stated: "Despite this progress, the discount to NAV against which the company's shares trade remains material and the board recognizes the need to do more to remedy this situation. Consequently, as covered in a separate announcement, the board is proposing significant changes to the company's Investment Policy which if adopted, should see the discount narrow."
Chrysalis said it is working towards proposing an amended investment policy to be approved by way of a vote at an extraordinary general meeting in February.
The key components include that no new investments be made and that Chrysalis will seek to "maximise the value of its existing portfolio and return capital to shareholders over a 3-year period".
Tied to this and under the terms, the company plans to offer an additional resolution at the EGM such that the next continuation vote would be in 2029.
It added that sale proceeds will be returned to shareholders efficiently and through mechanisms such as tender offers at NAV or through buybacks, with these subject to the maintenance of a working capital buffer.
Chrysalis also plans to liquidate quoted companies received through IPO or asset disposals in a value maximising timeframe and manner.
It added that it will keep a prudent working capital buffer to aid existing portfolio assets.
This proposal follows shareholder consultations announced back in May, which produced divergent shareholder views. Chrysalis said a "significant" proportion of shareholders felt the company "should continue to be structured and managed on a basis which affords appropriate scope for these assets to achieve their full potential over time."
However, it added that a small proportion felt Chrysalis should seek an orderly exit from underlying investments in a shorter timeframe.
Chrysalis said shareholders will receive a circular pertaining to the upcoming EGM in January.
Looking to the financial year ahead, Richard Watts and Nick Williamson, managing partners of the investment adviser, said: "We remain optimistic for 2026, with a focus on the most influential assets with a view to maximising value for shareholders."
By Christopher Ward, Alliance News reporter
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