TIDMCHRY
RNS Number : 2438J
Chrysalis Investments Limited
20 August 2021
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, any member state of the European Economic Area
(other than professional investors in the Republic of Ireland,
Netherlands, Luxembourg and Denmark), Canada, Australia, Japan or
the Republic of South Africa.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
20 August 2021
Chrysalis Investments Limited ("Chrysalis" or the "Company")
Quarterly NAV Announcement
Net Asset Value
The Company announces that as at 30 June 2021 the unaudited net
asset value ("NAV") per ordinary share was 233.93 pence.
The above NAV calculation is based on the Company's issued share
capital as at 30 June 2021 of 547,273,076 ordinary shares of no par
value.
June's NAV represents a 13.48% uplift since 31 March 2021,
driven by a further funding round from Klarna and the successful
IPO of Wise. The following investee companies were the most
significant drivers of NAV movement in the quarter:
-- Klarna Holding AB ("Klarna") - which undertook a $639m
funding round at a valuation of $45bn pre new-money, compared with
a post new-money valuation of $31bn in March 2021, and which
represented a material mark up in the Company's carrying value of
the asset;
-- Wise plc ("Wise") - which saw a successful debut on the
London Stock Exchange via a direct listing IPO. The Company's
carrying value of Wise was approximately 511p per share as of 31
March 2021 and the shares performed strongly in the after market.
Given the IPO's proximity to the period end, Wise has been valued
with reference to the closing auction price at IPO of 800p which
fell within the range of valuation indicated by the external
valuers of the Company; and
-- You&MrJones LLC - which saw its assessed value increase,
reflecting the strong performance of both the company and listed
market comparables since the investment was made.
Overview
The trading performance of the portfolio over the period
continues to be robust and the Company's Investment Adviser remains
excited about the growth and valuation potential of the Company's
investments.
Portfolio activity
The IPO of Wise on 7 July marked another milestone for
Chrysalis. Following on the heels of THG in September 2020, Wise
has become the Company's second IPO and means that two of the three
original "seed" investments from Chrysalis' own IPO have now
floated. The Investment Adviser's initial engagement with these two
assets in late 2017 predates the formation of Chrysalis, but using
that as a benchmark means that the Investment Adviser's
relationship with these companies has been approximately three
years to three and a half years, consistent with Chrysalis' aim of
targeting companies two to five years out from IPO. Wise continues
to account for a meaningful proportion of the portfolio, and with a
small market share in a vast market, with a proven platform, the
Investment Adviser believes the runway for growth remains
strong.
During the quarter, the following investments were
undertaken:
-- In May the Company invested circa GBP19m into THG as part of
an equity placing led by SoftBank, in order to allow the company to
pursue its M&A pipeline;
-- In June the Company invested circa EUR30m in wefox as part of
its $650m series-C funding round, which saw the latter achieve a
post-money valuation of $3bn. The capital will be used to allow
wefox to continue its aggressive scaling. The round was four-times
oversubscribed. As previously announced, the Company's four prior
investments into wefox via a series of convertible loans converted
to equity at the same time as the series-C funding round;
-- In June the Company invested circa GBP35m in Starling Bank as
part of its series-D round announced in March 2021; and
-- In June the Company invested circa GBP75m into Smart Pension,
to provide it with capital to continue to develop its offering and
accelerate its global expansion.
Post period end, new investments in Deep Instinct and Revolution
Beauty were undertaken in early July, followed by investments in
InfoSum and Tactus in August.
At the time of the GBP300m fund raising in March 2021, the
Investment Adviser described a pipeline of up to GBP250m of
follow-on and GBP1bn of new investment opportunities that was
available for consideration. Since the fund raise, Chrysalis has
deployed approximately GBP80m into follow-ons and over GBP250m into
new investment opportunities. The pace of new investment sourcing
has outperformed the Investment Adviser's expectations in March,
such that its target of adding between one to three new positions
per annum has been exceeded. As of the date of this announcement,
the Company currently has 17 holdings. Removing Growth Street (in
liquidation) and Embark (sale agreed to Lloyds Banking Group) from
this calculation means Chrysalis currently has 15 effective
positions. This means the Company has now achieved the bottom end
of the Investment Adviser's target range of 15-20 holdings.
The Company's Investment Adviser continues to consider a range
of investment opportunities. The partial realisation of the Wise
stake has allowed recycling of capital into new ideas; the expected
proceeds from the Embark transaction (which is subject to
regulatory approval) will also allow us to fund further
investments.
Cash Update
The Company currently has GBP51m of cash available. The Company
also has significant headroom on its existing Revolving Credit
Facility; and subject to regulatory approval being provided, will
receive its share of the proceeds from the sale of its shareholding
in Embark.
Portfolio Composition
As of 18 August 2021, the portfolio composition was as
follows:
Portfolio Company % of investment portfolio
Klarna 25.3%
--------------------------
Starling 10.8%
--------------------------
wefox 7.8%
--------------------------
THG 7.5%
--------------------------
Wise 5.7%
--------------------------
Smart Pension 5.4%
--------------------------
You & Mr Jones 5.0%
--------------------------
Graphcore 4.9%
--------------------------
Embark 4.7%
--------------------------
InfoSum 3.4%
--------------------------
Deep Instinct 3.4%
--------------------------
Revolution Beauty 3.2%
--------------------------
Tactus 2.9%
--------------------------
Featurespace 2.7%
--------------------------
Secret Escapes 2.3%
--------------------------
Sorted 1.2%
--------------------------
Growth Street 0.1%
--------------------------
Cash 3.7%
--------------------------
Source: Jupiter Investment Management (UK) Limited. Holdings
size, as of 18 August 2021, are calculated using 30 June
valuations, adjusted for FX as of 18 August 2021 and capturing
transactions concluded post the NAV calculation period, and thus
using cash as of 18 August. The holding value of THG is based on
the closing share price of 610p, as at period end. The holding
value of Wise is based on number of shares held as at 18 August and
the IPO price of 800p. The holding value of Revolution Beauty is
based on number of shares held as at 18 August and the IPO price of
160p. Due to rounding the figures may not add up to 100%.
Investment Adviser Outlook
Nick Williamson and Richard Watts (co-portfolio managers)
comment:
"The portfolio continued to perform very strongly over the
quarter, with Klarna seeing accelerating growth and a further
material funding round. In addition, the IPO of Wise is a
tremendous addition to the UK stock market, and saw strong share
price performance, well above our previous carrying value.
We have spent the quarter focusing on investing the proceeds of
the Company's recent funding round and are delighted to have
undertaken three follow-ons and five new investments since March.
In addition, we have recycled a proportion of our Wise investment
to fund new investment opportunities, and proceeds from Embark
should further bolster our healthy cash position, pending
regulatory clearance.
The pipeline remains exciting. Having made a number of new
investments recently, we are currently considering selected
follow-ons to accelerate growth and enhance prospects in the
portfolio. Combined with the strong growth profiles of our assets,
we remain optimistic regarding prospects for the Company."
Factsheet
An updated Company factsheet will shortly be available on the
Company's website: https://www.chrysalisinvestments.co.uk
-ENDS-
For further information, please For further information, please
contact: contact:
Media: +44 (0) 20 3770 7920 +44 (0) 20 3770 7920
Montfort Communications chrysalis@montfort.london +44 (0) 20 3770 7920 chrysalis@montfort.london
Charlotte McMullen/ Toto Reissland- chrysalis@montfort.london
Burghart/ Miles McKechnie
Jupiter Asset Management:
Magnus Spence +44 (0) 20 3817 1325
Liberum:
Chris Clarke / Darren Vickers
/ Owen Matthews +44 (0) 20 3100 2000
Numis:
Nathan Brown / Matt Goss +44 (0) 20 7260 1000
Maitland Administration (Guernsey)
Limited:
Elaine Smeja / Aimee Gontier +44 (0) 1481 749364
LEI: 213800F9SQ753JQHSW24
A copy of this announcement will be available on the Company's
website at https://www.chrysalisinvestments.co.uk
The information contained in this announcement regarding the
Company's investments has been provided by the relevant underlying
portfolio company and has not been independently verified by the
Company. The information contained herein is unaudited.
This announcement is for information purposes only and is not an
offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective
investors are advised to seek expert legal, financial, tax and
other professional advice before making any investment decision.
The value of investments may fluctuate. Results achieved in the
past are no guarantee of future results. Neither the content of the
Company's website, nor the content on any website accessible from
hyperlinks on its website for any other website, is incorporated
into, or forms part of, this announcement nor, unless previously
published by means of a recognised information service, should any
such content be relied upon in reaching a decision as to whether or
not to acquire, continue to hold, or dispose of, securities in the
Company.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NAVFLFEATIIALIL
(END) Dow Jones Newswires
August 20, 2021 02:00 ET (06:00 GMT)
Chrysalis Investments (LSE:CHRY)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Chrysalis Investments (LSE:CHRY)
Gráfica de Acción Histórica
De May 2023 a May 2024