Chrysalis Investments Reports Substantial NAV Growth and Buybacks

Chrysalis Investments Achieves Notable NAV Growth

Chrysalis Investments Limited has made significant strides in its annual performance, reporting a remarkable increase in its net asset value (NAV) for the fiscal year. The NAV per share grew by 4.9%, reaching 141.26 pence, an improvement from 134.65 pence recorded previously. Despite an increase in share price to 93.30 pence—amounting to a staggering 50% rise—the company still operates at a 34% discount to its NAV, indicating room for improvement.

Strong Financial Position Amid Mixed Performances

The total net assets of Chrysalis have climbed to £840 million, surpassing the £801 million recorded from last year. This growth can be attributed to robust performances from key holdings in the portfolio, including notable players like Starling, Klarna, and Smart Pension. However, this positive trend faced headwinds due to a write-down in wefox and foreign exchange impacts that partially offset these gains.

Continued Investment Strategies

In line with its commitment to growth, Chrysalis continued to bolster its investments, allocating around £23 million throughout the fiscal year. Specifically, Smart Pension received £6 million, while £17 million was directed towards wefox. Furthermore, the company capitalized on opportunities by realizing around £54 million from asset sales, most significantly from Graphcore's transaction with SoftBank and further proceeds from Wise.

Liquidity and Financing Developments

Chrysalis recently secured a loan agreement with Barclays, drawing the full £70 million available after the reporting period. A pivotal sale involved Featurespace to Visa, generating initial proceeds of approximately £79 million. These actions not only boosted the company’s liquidity, totaling roughly £151 million but also allowed for continued investments and a robust capital return to shareholders. The company successfully executed buybacks amounting to nearly £31 million as of early January.

Future Outlook and Market Sentiment

Looking forward, Chrysalis has laid out plans to advance its capital return program, setting aside up to £100 million for this initiative. The chairperson, Andrew Haining, spotlighted the transformative changes throughout the year, particularly noting the establishment of the investment advisory team as an independent entity and a shift towards more favorable market sentiments for growth assets.

Optimism for Investment Returns

Investment advisers Richard Watts and Nick Williamson remain dedicated to maximizing investment potential. Their optimism is further fueled by the anticipated initial public offering (IPO) of Klarna, projected within the current fiscal year. Such an IPO could significantly bolster Chrysalis’s liquidity position, presenting additional avenues for growth and shareholder value enhancement.

Frequently Asked Questions

What is the main achievement reported by Chrysalis Investments?

Chrysalis Investments reported a 4.9% increase in net asset value (NAV) per share and a 50% rise in its share price.

How much was allocated to investments over the year?

Chrysalis allocated roughly £23 million to support its investments during the fiscal year.

What is the company's liquidity position?

The company's liquidity position stands at approximately £151 million, with future plans for significant capital returns.

What key holdings contributed positively to its performance?

Key holdings such as Starling, Klarna, and Smart Pension made positive contributions to the company's overall performance.

What are the future plans for Chrysalis Investments?

Chrysalis plans to continue its capital return program, potentially returning up to £100 million to shareholders.

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