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LONDON - Seraphim Space Investment Trust PLC (LSE: SSIT), a pioneering SpaceTech investment company, has announced a positive performance in its interim results for the six-month period ending December 31, 2024. Amidst a volatile global landscape, the company reported a net asset value (NAV) increase of 5.1% to £239.7 million, up from £228.1 million as of June 30, 2024.
The portfolio’s fair value appreciated by £14.1 million, primarily driven by market comparables and strong performance from ICEYE, as well as a funding round for Skylo and rises in listed holdings’ share prices. The NAV per share rose by 5.1% to 101.04p, reflecting a continued upward trajectory from 94.57p on December 31, 2023.
Seraphim’s portfolio, with half of its assets representing 71% of fair value, boasts robust cash runways, with fully funded companies or those having over 12 months of cash runway. The remaining companies average a 9-month cash runway. During the reported period, the company invested £5.1 million in follow-on investments into existing portfolio assets, signifying confidence in their growth potential.
Chair Will Whitehorn highlighted the strategic importance of space in government defence spending, particularly in the US and Europe. The company’s major holdings, including ICEYE, D-Orbit, and ALL.SPACE, are European entities with capabilities being procured by defence departments in Europe and the US. These investments seem poised to benefit from the increased defence spending and the drive for sovereign space capabilities, particularly in light of the uncertain US support for European security.
The Trust’s liquid resources stood at £23.6 million at the end of the period, with a further £14.1 million of potential liquidity through holdings in listed companies. Despite a slight decrease in market capitalization, the share price remained stable, and the ongoing charge rate improved, dropping to 1.70% from 1.83% as of June 30, 2024.
In terms of portfolio funding, several companies, including ICEYE and ALL.SPACE, successfully closed significant funding rounds, while D-Orbit signed a contract with the European Space Agency and announced the final close of a substantial Series D growth financing round.
Post-period highlights include a rebranding and planned IPO for Voyager Technologies and successful satellite launches and contracts for Pixxel, Skylo, Astroscale, and AST SpaceMobile. However, Spire (NYSE:SR) Global commenced legal action against Kpler for failing to finalize a transaction after announcing the sale of its maritime business unit.
Mark Boggett, CEO of Seraphim Space Manager LLP, commented on the SpaceTech sector’s performance and the portfolio’s strategic positioning in light of upcoming US policies and ongoing global challenges. With sufficient liquid resources and potential liquidity, SSIT is well-capitalized to support its existing portfolio and seek new investment opportunities.
This article is based on a press release statement from Seraphim Space Investment Trust PLC.
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