Seraphim Space Investment Trust (SSIT) H1 2025 earnings summary

Executive summary

• NAV rose 5.1% to £239.7m in H1, mainly reflecting a £14.1m unrealised portfolio fair-value gain; NAV per share reached 101.04p from 96.18p.

• Portfolio value reached £216.3m across 24 SpaceTech companies and one fund investment; management highlighted European defence demand as an opportunity, with policy and geopolitical uncertainty also affecting the outlook.

Financial highlights

• Net assets increased from £228.1m to £239.7m; total profit after tax was £11.5m, comprising a £13.1m capital gain and a £1.6m revenue loss.

• Portfolio fair value rose from £201.5m to £216.3m, reaching 112.0% of investment cost; reported portfolio value included £12.9m of unrealised fair-value gains and minimal unrealised FX gains, offset by a £1m realised loss.

• Net gain on investments at fair value was £13.145m; net cash used in operating activities was £3.624m, and period-end cash was £23.549m.

• £5.1m was invested in follow-on rounds and £3.5m of proceeds came from Astroscale share disposals.

• Ongoing charges were 1.70%, down from 1.83%; gearing was nil.

Outlook and guidance

• Strategy remains focused on dual-use businesses serving defence and commercial markets, supporting existing holdings and selectively pursuing new investments.

• Management expects increased European and NATO defence spending and procurement favouring SMEs, digitisation and AI to benefit new space businesses; an EU defence initiative of €800bn was cited.

• The portfolio was described as well-capitalised for CY25; £23.549m in liquid resources plus £14.1m of potential liquidity from listed holdings is expected to support follow-ons and selective new investments.

• Medium-term target is an annualised total return of at least 20% on the portfolio; no dividend is anticipated in the foreseeable future.

• Five portfolio businesses were said to be planning IPOs; four were mostly among the top 10 holdings, while Voyager Technologies was not a top 10 holding. Management said it would avoid prematurely realising key assets.