Chrysalis Investments (CHRYL) H1 2025 earnings summary

Executive summary

• NAV per share increased 8% to 152.62p in 1H25, driven by wefox valuation recovery, portfolio revaluations, and share buybacks.

• Realisations from smaller positions generated cash at a 112% premium to nadir valuations, further derisking the portfolio.

• Portfolio is now more concentrated, with Starling Bank comprising one-third of NAV and the top five assets all profitable, representing over 80% of NAV.

• Significant cash returned to shareholders, with £59m-£69m distributed and c10% of market value retired at a 37% discount to NAV.

• Enhanced liquidity of £113.7m-£117m supports ongoing buybacks and portfolio support.

Financial highlights

• NAV per share grew from 141.26p to 152.62p between September 2024 and March 2025.

• Net gains before taxation for the six months ended 31 March 2025 were £38.6m.

• Sale of Featurespace and InfoSum generated approximately £129m in cash proceeds.

• InfoSum sale post-period end added c£49m in cash.

• £27m of capital was deployed in follow-on investments, mainly into wefox, InfoSum, and Klarna.

Outlook and guidance

• Medium-term modelling scenarios suggest NAV per share could double or nearly triple, depending on asset performance.

• IPO markets are gradually reopening, with key assets like Klarna expected to pursue IPOs when market conditions stabilize.

• Completing the remaining £40m buyback at 100p could further accrete NAV by 20-30p per share.

• Company remains well funded and committed to executing its capital allocation plan.

• Continued focus on realising value from mature assets and returning capital to shareholders while maintaining scale for long-term value creation.