Half-year Results

Financial Summary

The NAV per share calculation is based on the Company's issued share capital as at 31 March 2025 of 542,192,153 ordinary shares of no par value.

Headlines

• NAV per share of 152.62 pence, representing an 8.0% increase over the first half of the financial year
• Realisations totalling £80 million, including £79 million from the sale of Featurespace. A further £49 million was realised from the sale of InfoSum just after the period end
• Follow-on investments into wefox (£17 million) and InfoSum (£2 million), and an increase in the position size of Klarna (£8 million)
• £51.7 million of capital returned to shareholders as of period end as part of the share buyback programme announced on 26 September 2024; £68.9 million returned to date, representing 11.9% of shares outstanding prior to commencement of the buyback
• The Company continues to execute its commitment to return up to £100 million to shareholders through the share buyback programme; part of the Company's current Capital Allocation Policy ("CAP")
• Equity markets were generally risk-on from the start of the period through to late February, buoyed by monetary easing and U.S. political developments, before weakening significantly through March amid rising trade tensions and rebounding post period end
• The Investment Adviser remains focused on maximising portfolio companies' potential valuations, while looking for opportunities to crystallise value where appropriate
• The Investment Adviser remains optimistic over the outlook for the portfolio, with several levers available to Starling Bank to reaccelerate its growth and the recent recovery in stock markets potentially supporting a Klarna IPO

Andrew Haining, Chair, commented:

"The strong NAV per share performance in the period continues the progress made since its low point in 2023 and was driven by the positive impact of the share buyback programme and the upward revaluation of certain portfolio companies.

Recent exits have left the portfolio focused on the more mature, later-stage assets, which arguably are the most exciting in terms of possible valuation upside; the Investment Adviser continues to work closely with the management teams at these companies to unlock their potential.

The Board is encouraged to note that the Company's share price has increased by 14.0% post period end, which has underpinned a narrowing of the discount to NAV at which its shares trade, from 40% at 31 March 2025 to 31% at 24 June 2025. The Company continues to repurchase its own shares in the market in line with its CAP, and the Board and the Investment Adviser continue to evaluate options to further reduce the discount.

Over the period since the approval of the CAP, the Company has seen accelerated disposals from some of the less mature assets in the portfolio, namely Graphcore, Featurespace and InfoSum, resulting in a stronger liquidity position than anticipated. As announced in May 2025, the Board will propose a vote on the future operation of the CAP at the 2026 AGM. A consultation process will be undertaken prior to this, to take into account the wishes of shareholders in any proposed amendments to the CAP; I would encourage as many shareholders as possible to take part."

Richard Watts and Nick Williamson, Managing Partners of Chrysalis Investment Partners LLP, commented:

"Over the last two years, the characteristics of the portfolio and its potential to deliver value to shareholders have both substantially improved. The strong performance and active management of the Company's assets, including the restructurings undertaken at both Smart and wefox and the cost control at Klarna have resulted in a substantial decrease in the funding risk of the top five portfolio holdings - that account for 81% of NAV - as evidenced by them all generating profits on an adjusted basis (before exceptional and certain non-cash items).

We are excited about Starling: it has several angles from which to enhance its investment case, particularly the opportunity to reaccelerate growth in its core UK market, and the capacity to monetise its technology platform - Engine - across a global market. Accounting for 33% of NAV, Starling's prospects are clearly crucial to the overall success of Chrysalis; we are optimistic that it is well positioned over the second half of 2025 to further demonstrate its potential."

The Company is an alternative investment fund ("AIF") for the purposes of the AIFM Directive and as such is required to have an investment manager who is duly authorised to undertake the role of an alternative investment fund manager ("AIFM"). G10 Capital Limited is the AIFM to the Company. Chrysalis Investment Partners LLP is the investment adviser to G10 Capital Limited. Chrysalis Investment Partners LLP (FRN: 1009684) is an Appointed Representative of G10 Capital (FRN: 648953) Limited, which is authorised and regulated by the Financial Conduct Authority.