Chrysalis Investment shares decreased 3.5% to 84.2p in early morning trading on Monday, following its updated NAV report of 163.48p per ordinary share at 30 June 2022.
The NAV result represented a 22.8% decline since March 2022, with wefox, Klarna, Starling, Brandtech and Wise acting as the significant drivers behind the movement across the period.
The firm commented its valuations were negatively impacted by inflation and material interest rate rises. However, the group noted a “strong rebound” in equity markets and performance of listed peer benchmarks post period end.
Chrysalis Investments announced a balance sheet with £48 million in cash and £57 million in listed assets, making total liquid assets of 20.4% of current market cap.
The company mentioned several highlights over the financial term, including strong performance from Wise, offset by Revolution Beauty’s share price fall.
Chrysalis Investments also confirmed $1.4 billion raised in investments yeat-to-date, including Starling, Klarna and Featurespace, which the group noted were either profitable or considered funded through to profitability.
“We are encouraged that our NAV outturn was in line with the 23% NASDAQ decline in Q2, particularly when our second largest holding, which represented 19% of the portfolio at the beginning of the period, was marked down by almost 80%. The implied write down for the rest of the portfolio is approximately 8% which reflects strong trading, a positive funding round for wefox and the inherent downside protections we have structured into many of our investments,” said Chrysalis Investments co-portfolio managers Richard Watts and Nick Williamson.
“Equity markets have rebounded very strongly since the 30 June, and we note the very strong performance of some of the listed peers we benchmark our portfolio assets against. This has already been reflected in one of our portfolio assets raising primary capital at a premium to its previous funding round and should lead to future NAV progression, if these recent gains are sustained.”
“With over £48m cash and £57m of listed assets, which together represent 20.4% of the market capitalisation, Chrysalis is in a very strong position heading into H2 and we remain confident in the future potential of this portfolio and the outlook of the Company.”