26th Jun 2025 12:48
(Alliance News) - Chrysalis Investments Ltd on Thursday reported that its share discount had narrowed during boost the first-half, bolstering optimism for the remainder of financial 2025.
The Weybridge, Surrey-based investor in British and European private companies said net asset value at March 31 was GBP827 million, down 1.5% from GBP840 million at September 30.
However, NAV per share increased 8.0% to 152.62 pence from 141.26 pence, suggesting it is headed for a recovery after hitting "its low point in 2023", Chrysalis said.
The average share price at March 31 was 91.90p, compared with 93.30p on-year, a decline of 1.5%. Still, the trading discount to NAV at June 24 had narrowed to 31% from 40% at March 30.
Chrysalis attributed this improvement to its share buyback scheme, and upgraded evaluations for some investees. The firm plans to continue repurchasing shares to meet its GBP100 million target for shareholder returns. During the half-year, around GBP51.7 million was paid out to shareholders,
Chrysalis noted several follow-on investments as well as growing its position to GBP8 million in Klarna Bank AB, a Stockholm-based financial technology firm which enables online payment via instalment.
Realisations totalled approximately GBP80 million in the first-half, Chrysalis added, which included GBP79 million from the disposal of Featurespace Ltd. Since the half-year-end, Chrysalis reported a GBP49 million realisation via the sale of InfoSum Ltd.
"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," commented Chair Andrew Haining.
"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 firm commented.
Nonetheless, Chrysalis remained "optimistic" about its portfolio, particularly its stake in London-based Starling Bank Ltd.
"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," said Richard Watts and Nick Williamson, managing partners of Chrysalis Investment Partners LLP.
Chrysalis also noted there were "several levers available to Starling Bank to reaccelerate its growth and the recent recovery in stock markets potentially supporting a Klarna IPO."
Chrysalis shares traded up 1.5% at 107.00p on Thursday afternoon in London, for a market capitalisation of GBP561.8 million.
By Holly Munks, Alliance News reporter
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