Quarterly NAV Announcement and Trading Update

The Company announces that as at 30 June 2025 the unaudited net asset value ("NAV") per ordinary share was 173.57 pence.

The NAV calculation is based on the Company's issued share capital as at 30 June 2025 of 523,574,538 ordinary shares of no par value.

June's NAV per share represents a 20.95 pence per share (13.7%) increase since 31 March 2025. The increase in the fair value of the portfolio accounted for approximately 21.10 pence per share, with foreign exchange generating an offset of approximately 1.91 pence per share. The share buyback led to 2.59 pence per share of accretion; other income, fees and expenses make up the balance.

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

"The strong NAV per share progression in the period reflects on-going robust delivery across the portfolio.

The material increase in the valuation of Starling was a function of both the progress made in the core UK bank, but also the inclusion for the first time of a valuation for Engine. Given the prospects for both sides of the Starling business, we continue to be optimistic about the company's future prospects.

Klarna saw a double-digit percentage increase in its assessed valuation, driven by a shift in the valuation horizon to the current year, from a trailing basis, supported by a rebound in peer valuations. We believe the top three portfolio investments, which now account for 71% of NAV, all have clear routes to continue to drive future value accretion."

Portfolio Activity

There were two significant events over the quarter.

First, Chrysalis received £49.8 million in relation to sale of InfoSum to WPP early in the period.

Second, the Company bought back approximately 19 million shares at an average share price of 98.11 pence, resulting in a total cost of £18.3 million. This led to 2.59 pence of NAV per share accretion (circa 1.7% increase in NAV per share versus March); as of 29 July 2025, the Company had spent £74.5 million on buying back shares.

Portfolio Update

Starling

Starling reported annual results to March 2025 in the quarter.

For the year ending March 2025, Starling maintained a strong level of profit, delivering PBT of approximately £290 million, on a run-rate basis, compared to £301 million in the prior period. Normalising for surplus capital, this gave Starling a post-tax return on capital employed of approximately 37%, which the Investment Adviser believes compares very favourably to traditional UK banks.

Following the successful launch of its Easy Saver product in late-2024, Starling continues to invest in various growth projects and has launched both a cash ISA product and an AI-powered tool to give customers insights into their spending habits.

Further investment was also made into Engine, Starling's "Banking-as-a-Service" platform, which continued to build out its pipeline of potential new customers, with Declan Ferguson - Starling's CFO - commenting that this gave it a "very creditable path to becoming a £100 million recurring revenue business within two years". Given the high valuation multiples commanded by similar software businesses, the Investment Adviser believes the Engine investment case could drive significant further value accretion in the future.

Smart Pension

The company continues to look to grow its Master Trust, which has now surpassed £6.5 billion in assets. This growth has been achieved by a combination of organic means as well as acquisitions, with the Options Master Trust due to add up to a further £600 million of assets once fully consolidated over 2025. In addition, new product initiatives and features continue to be developed.

On the Keystone side of the business - the platform that powers the Master Trust and is sold to third parties as a software offering - the pipeline of potential new customers remains highly encouraging, with several potential contracts at a late-stage of negotiation.

Klarna

Klarna released its 1Q25 results during the period.

Revenue rose 15% year-on-year to $701 million, with the US - its largest market - growing 33%, on Gross Merchandise Volume ("GMV") up 13%; the business was profitable (adjusted operating profit) for the fourth consecutive quarter.

Interestingly, merchant growth was 27% - with 150,000 new retail partners joining the network in the quarter (to 724,000) - due to the integration with Stripe. The Investment Adviser has previously highlighted the number of commercial relationships that Klarna has signed since the latter part of 2024 and sees this as evidence of their potential to drive growth over coming quarters; the company highlights that the deals struck with JPMorgan Payments, Worldpay and Nexi are all expected to drive further growth in merchant numbers.

Klarna has said it remains committed to an IPO.

wefox

Shortly post period end, wefox announced that it had secured €151 million of financing, of which €76 million came in the form of equity from existing investors and €75 million in the form of debt refinancing.

This investment is designed to support the company in pursuing its Managing General Agent ("MGA") model in the key markets of Austria, the Netherlands and Switzerland.

Brandtech

Brandtech continues to develop its Gen-AI proposition, and this was recently strengthened by the announcement of a global strategic partnership with Boston Consulting Group (BCG). The collaboration combines BCG's expertise in AI transformation and organizational change with Pencil's Gen-AI technology to help global brands swiftly transition from pilots and trial initiatives to full-scale deployments. The partnership is designed to drive meaningful efficiency gains, cost savings, and performance improvements across marketing functions. We remain excited about Pencil and the positive engagement it has created with current and prospective clients.

In recent weeks, Brandtech announced that Angela Tangas has been appointed the new Global CEO of Oliver, the Group's market leading company designing, building and running in-house agencies and marketing ecosystems. The former Dentsu UK Group CEO will also serve as Brandtech's first Chief Strategy Officer, with Oliver founder and Global CEO Simon Martin moving into a new role as Chair of the Company.

Cash Update

As of 30 June 2025, the Company had gross cash and equivalents of approximately £140 million and a position in Wise of approximately £3 million, to give a total liquidity position of approximately £143 million. The gross cash position increased over the quarter as a result of proceeds received on the sale of InfoSum and was subsequently reduced by the ongoing share buyback being pursued by the Company.

The Company had a net cash position of approximately £73 million, once the £70 million term loan is accounted for.

Portfolio Composition

As of 30 June 2025, the portfolio composition was as follows:

30-Jun

Source: Chrysalis Investments Limited. The above percentages are based on a net asset value of approximately £909 million for 30 June 2025.

Shareholder Consultation

The Board has reviewed the scope of the shareholder consultation which was announced in May 2025. The intention is that this process will launch in September 2025.

Factsheet