10th Jan 2025 09:07
(Alliance News) - Chrysalis Investments Ltd on Friday said it returned to profit during its most recent financial year, amid a market return to positivity on growth assets.
The Guernsey-based investment firm said pretax profit for the year that ended September 30 was GBP39.2 million, swinging from a loss of GBP78.2 million the year before.
Net asset value at September 30 was 141.26 pence per share, up 4.8% year-on-year from 134.65p.
The swing to profit was primarily due to a GBP45.8 million net gain on investments held at fair value during the year, compared to a net loss of GBP72.7 million in financial 2023.
Chrysalis did not declare a dividend for the year, unchanged from a year prior.
Chair Andrew Haining said: "In April 2024, the existing investment advisory team left Jupiter Asset Management in an agreed transition, to their own investment advisory business; I am delighted to say that this process has been seamless.
"Of probably greater consequence has been the return of some positivity in the stock market for "growth assets" and thus an improving outlook for similar investments in private markets. Evidence of this can be seen from the recent realisations from the portfolio, and we hope will continue to be underpinned by a successful [initial public offering] of Klarna this year.
"These realisations, along with the loan facility from Barclays, have enabled us to return capital to shareholders, as we committed to do at the time of the company's continuation vote in March 2024. We view the initial impact of this buyback programme as positive, with the shares rising by approximately 24% from when the share buyback programme was announced to the end December 2024.
"The board continues to work with the Investment Adviser to consider how to best generate value for shareholders. We see two main levers to deliver this. First, is to minimise the discount at which the shares trade to NAV on a sustainable basis, and second, maximise the valuations of the portfolio companies, and thus the company's NAV. I look forward to discussing this topic with shareholders this year."
Shares in Chrysalis were down 1.0% at 101.00 pence each in London on Friday morning.
By Emily Parsons, Alliance News reporter
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