Seraphim Space Investment Trust (SSIT) has announced its audited results for the financial year ended 30 June 2023. The company’s NAV total return was -7.1%, while shares fell 49% to see the discount widen to 70.9%. Regarding the discount, the board continues to believe this does not reflect the performance of the portfolio or how downside protections in well-capitalised companies are effectively protecting shareholder value.
Discussing the performance, CIO James Bruegger, said:
“We are delighted with the progress the portfolio has made during the period. The portfolio has proven itself adept at successfully accessing capital at a time when the wider funding raising environment has been challenging. It is particularly gratifying that many of these companies have closed funding rounds led by new investors and on improved terms relative to their previous funding rounds. The success in capital raising across the portfolio is in no small part due to the impressive commercial traction achieved allied to the scale of the opportunities these companies are addressing. With the majority of the portfolio now well-funded through the next 12‑18 months, we are excited to see what will be achieved over the year ahead.”
Regarding the outlook for the company, chair Will Whitehorn added:
“The board continues to believe that the SSIT portfolio is well-positioned given the strong global tailwinds of increased defence spending and an openness to adopt solutions to address the climate and sustainability agenda. The top 10 companies saw their bookings increase by 199% on average over the year. Therefore, these companies have solid contracted orders for the years ahead, providing great confidence to investors.
“Encouragingly, we have seen some well-known private equity investors, such as KKR, Advent and BlackRock, entering the sector to build their SpaceTech exposure and indicating interest from new investor groups. Given their broad mandate to invest across sectors, their focus on space gives us confidence of increasing growth aspirations for the domain. Furthermore, with significant amounts of dry powder (capital which has been committed to but not yet invested by investment vehicles) sat in impact and climate funds from across the globe, we remain confident that there is a large and growing pool of motivated capital to support the needs of companies in the SSIT portfolio in the years ahead.
“We have reserved cash to support portfolio fundraisings as required in the year ahead, leaving a modest sum for new investment until the market improves and more capital can be raised. Experience demonstrates that some of the best investments are undertaken at the bottom of the economic cycle. The SSIT deal flow pipeline is healthy and, given cash constraints, we are focused on participating in only the most exceptional opportunities, carefully selecting those with a strong growth premise that offer the highest returns for shareholders.”
SSIT : Seraphim Space Investment Trust continues to plummet