**Chrysalis Investments Limited Quarterly NAV Announcement and Trading Update (November 4, 2025)**
**Key Highlights**
**Net Asset Value (NAV)** As of September 30, 2025, the unaudited NAV per ordinary share was **171.65 pence**, reflecting a **1.1% decrease** (1.92 pence) since June 30, 2025. The decline was driven by a **3.88 pence per share** decrease in portfolio fair value, partially offset by **1.17 pence per share** from foreign exchange gains and **1.46 pence per share** accretion from share buybacks.
**Financial Year Performance** NAV per share grew **21.5%** over the financial year ended September 30, 2025, primarily driven by strong performance from **Starling**, which remains a key growth driver.
**Portfolio Activity**
**Klarna IPO** Klarna listed on the NYSE on September 9, 2025, at $40 per share, valuing the company at $15 billion. Despite initial gains, shares ended the quarter **8% below the IPO price** due to sector-wide weakness.
**Share Buyback** Chrysalis continued its £100 million shareholder return program, repurchasing **£17 million** in shares during the quarter, bringing the total to **£86 million** by quarter-end (subsequently increased to **£93 million** as of October 31).
**Portfolio Updates**
**Starling** Launched **Scam Intelligence**, an AI tool to detect fraud, and acquired **Ember**, an accounting software provider, to support SME compliance with HMRC’s "Making Tax Digital" regulations. Starling’s Engine proposition remains a key growth driver, with a robust pipeline.
**Smart Pension** Continued strong growth in its Master Trust, with assets under management (AuM) approaching **£9 billion** post-Options acquisition. Well-positioned to meet the Pension Schemes Bill’s scale threshold requirements.
**Klarna** Reported accelerated growth in GMV (+19%) and revenues (+20%) in 2Q25, driven by strategic partnerships. Profit growth constrained by rising impairment provisions under IFRS9, but underlying delinquency rates improved.
**wefox** Achieved significant operational streamlining, with adjusted EBITDA expected to improve by **€100 million** between FY23 and FY26e. On track for first full year of profitability in 2025.
**Brandtech** Enhanced its AI marketing platform, **Pencil**, with integrations into Google Cloud and social media platforms. Pipeline growth remains strong, though market adoption of AI is slower than anticipated.
**Liquidity Position** As of September 30, 2025, Chrysalis held **£118 million** in gross cash and equivalents, with total liquidity (including Klarna and Wise holdings) at **£236 million** (27% of NAV). The company repaid **£10 million** of its term loan post-period, reducing outstanding debt to **£60 million**.
**Portfolio Composition** Starling remains the largest holding at **46.5% of NAV**, followed by Smart Pension (14.1%), Klarna (13.2%), and wefox (10.5%).
**Management Commentary**
Managing Partners Richard Watts and Nick Williamson expressed optimism about future NAV progression, citing strong performance from major assets and robust pipelines. They highlighted Starling’s AI innovations and Klarna’s growth prospects as key drivers.
**Disclaimer**
The announcement is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors are advised to seek professional advice before making investment decisions.
**Contact Information**
Details provided for mediainvestment adviserAIFMand other stakeholders.
**End of Summary.**
Below is an HTML table comparing the financials and debt year-on-year based on the provided text. Since the text does not provide explicit year-on-year financial or debt data, the table focuses on key financial metrics and changes mentioned in the report.
### Notes:
1. **NAV per Share**: The NAV per share decreased by 1.92 pence (-1.1%) from 30 June 2025 but increased by 21.5% year-on-year.
2. **Gross Cash and Equivalents**: Reduced due to the ongoing share buyback program.
3. **Net Cash Position**: Improved after repaying £10 million of the term loan post-period.
4. **Term Loan Outstanding**: Reduced from £70 million to £60 million after repayment.
5. **Total Liquidity Position**: Includes gross cash, Klarna, and Wise positions, totaling £236 million.
6. **Portfolio Value**: Based on the NAV of approximately £875 million as of 30 September 2025. Since the text does not provide explicit year-on-year data for all metrics, some fields are marked as "N/A".
