Seraphim Space (SSIT) saw its largely unquoted portfolio of space commercialisation companies rise by 28.9%, or £58.3m, to £259.8m in the year to 30 June.
The strong underlying performance was helped by a doubling in the value of ICEYE, the satellite constellation provider that accounted for 37.4% of net assets at the financial year-end, which benefited from winning an array of new defence contracts.
As a result net asset value (NAV) rose 23.2% to £281.1m with NAV per share advancing to 118.52p from 96.18p as chief executive Mark Boggett declared the year had been a “profound inflection point for the portfolio, shaped by the tectonic shifts in global geopolitics and the accelerating rearmament of Europe in the wake of the waning ‘Pax Americana’.”
He said the trust’s private holdings continued to deliver on key milestones, and a number had seen substantial revenue growth and were expected to achieve underlying profitability by the end of the year.
Two thirds of the portfolio by fair value also has a “robust cash runway” with 58% fully funded and 8% funded for 12 months or more from 30 June 2025.
Our view
James Carthew, head of investment company research at QuotedData, said: “Back in July, when Seraphim Space reported its third quarter update, I said the rise in its portfolio might soon accelerate. Today, we see the evidence of this. The disappointment is that the share price is not keeping pace. A 3p uplift to 84p this morning still leaves it sitting on a 29% discount to NAV.
“Interest in the sector is building, helped by soaring defence spending. Seraphim Space is a unique and exciting long-term growth capital investment that is barely four years old. Even now, a large proportion of the portfolio is only just becoming profitable. Impatient investors drove this to a discount, but it now seems to be coming good.”
