22nd Aug 2022 09:17
(Alliance News) - Chrysalis Investments Ltd on Monday said its net asset value fell sharply in the second quarter, as a result of the downward valuation of several holdings, due to high inflation and rising interest rates.
The investor in technology and finance startups said its net asset value per share as at June 30 stood at 163.48 pence, down 23% from 211.76p as at March 31.
The company attributed this to the downward valuation of several of its holdings, for example, Klarna Holdings AB, Starling Bank Ltd, and Brandtech Group LLC.
It explained that their valuations were negatively impacted by historic levels of inflation and material interest rate rises.
Klarna, specifically, was also written down by 78%, due to the valuation of a recent funding round completed in June.
Nonetheless, the FTSE 250 listing recorded strong revenue growth across its portfolio and "excellent" trading among its largest holdings.
"'We are encouraged that our net asset value outturn was in line with the 23% Nasdaq decline in the second quarter, particularly when our second largest holding, which represented 19% of the portfolio at the beginning of the period, was marked down by almost 80%. The implied write down for the rest of the portfolio is approximately 8% which reflects strong trading, a positive funding round for wefox and the inherent downside protections we have structured into many of our investments," Co-Portfolio Managers Richard Watts and Nick Williamson commented.
Looking ahead, Chrysalis said that equity markets have fared better in recent weeks.
"We have witnessed a material rerating of both Nasdaq and the GS Non-Profitable Index. A rerating of relevant listed peers, combined with strong revenue and earnings growth across the portfolio, should have positive implications for the value of the company's portfolio in forthcoming quarters," it noted.
Shares were down 1.7% at 85.82 pence each on Monday morning in London.
By Abby Amoakuh; [email protected]
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