Chrysalis (CHRY) has reported an 8.0% uplift in NAV per share over the six months to 31 March 2025, to 152.62p, helped by portfolio revaluations and the ongoing share buyback programme. However, the share price edged 1.5% lower over the same period to 91.90p, leaving the trust trading at a 40% discount to NAV at the period end. Encouragingly, that discount had narrowed to 31% by 24 June, aided by a 14% recovery in the share price post-period.
Total net assets slipped slightly from £840m to £827m, reflecting capital returned to shareholders and asset disposals. Realisations totalled £80m during the period, including £79m from the sale of Featurespace, while a further £49m was raised from the sale of InfoSum just after the period end. These disposals have increased liquidity and sharpened the focus of the portfolio on later-stage assets with potentially greater upside.
The company continued to support its core holdings, with follow-on investments into wefox (£17m) and InfoSum (£2m), and a further £8m allocated to Klarna. Chrysalis’s top five holdings now represent 81% of NAV, all of which are reported to be profitable on an adjusted basis.
£51.7m was returned to shareholders through the buyback programme during the period, with £68.9m returned in total by the time of the results. This forms part of the company’s Capital Allocation Policy (CAP), which allows for up to £100m of capital to be returned. The board has committed to holding a shareholder vote on the CAP’s future at the 2026 AGM, with a consultation process planned in advance.
Chair Andrew Haining highlighted the progress made since the portfolio’s low point in 2023, crediting revaluations and buybacks for the NAV growth. He noted that the portfolio is now more heavily weighted towards mature companies with clearer paths to monetisation and value crystallisation.
The investment adviser, Chrysalis Investment Partners LLP, remains optimistic. Managing partners Richard Watts and Nick Williamson pointed to restructuring progress at Smart and wefox, cost discipline at Klarna, and the reduced funding risk across the core portfolio. They flagged Starling Bank – which accounts for a third of NAV – as a key driver of potential upside, with scope to reaccelerate growth and monetise its Engine platform globally.
They also noted that improving equity markets may pave the way for a Klarna IPO, providing a further potential catalyst for value realisation.
[QD comment Matthew Read: Chrysalis continues to make headway in reshaping its portfolio around higher-conviction, more mature assets. Realisations from Featurespace and InfoSum not only provided liquidity but also helped fund selective follow-ons into core names like wefox and Klarna. The buyback programme appears to be doing its job, with the NAV benefitting and the discount narrowing post period end – though at 31%, there’s still considerable ground to make up.
Encouragingly, the top five holdings are all generating adjusted profits, suggesting that the portfolio’s funding risks are reducing. With Starling representing a third of NAV and Klarna potentially heading toward IPO territory again, Chrysalis could have some powerful value realisation levers ahead. The CAP review planned for 2026 could mark another turning point if the company can maintain its current momentum and build shareholder confidence further.]
