**Summary of Kelso Group Holdings PLC Interim Results for Six Months Ended 30 June 2025**
Kelso Group Holdings PLC, a UK-listed acquisition vehicle focused on small and mid-cap companies, released its unaudited interim results for the first half of 2025. The company, founded in November 2022, aims to capitalize on undervalued UK-listed firms, with a strategy of active engagement to drive value enhancement. Key highlights include
1. **Portfolio Performance**
Net Asset Value (NAV) per share remained flat at 2.4p compared to December 2024, with total net assets at £9.0m.
Since inception in January 2023NAV/share returns reached 55.8%despite a flat return in H1 2025.
The portfolio includes five investments, four of which have net cash balance sheets.
2. **Market Context**
The UK small and mid-cap market shows early signs of recovery, though the FTSE 250 and Small Cap indices remain below their September 2021 peaks.
Kelso remains confident in its investments intrinsic value and targets a 25% medium-term IRR.
3. **Portfolio Highlights**
**TheWorks.co.uk Plc**Share price up 149.4% year-to-date, trading at 3.2x EV/EBITDA, significantly below the sector average.
**Angling Direct Plc**: Sales up 17%share price up 29.6% year-to-date
considered undervalued.
**THG Plc**Share price down 14.5% year-to-date but showed recent momentum post-positive trading statement.
**NCC Group Plc**Under strategic review, with potential value uplift expected by year-end.
**Selkirk Group Plc**Cash shell seeking acquisitions, retaining £7m net cash.
4. **Financial Performance**
Revenue of £369k in H1-25 from unrealised gains, with an operating profit of £27k.
Loss before tax was £55k, primarily due to unrealised losses on investments.
Cash balance at £39.3kwith no debt.
5. **Strategic Moves**
Exploring limited gearing (up to 20% of net assets) in H2-25 to enhance returns.
Board changesMark Kirkland stepped down as CFO, replaced by Ian Selby as non-Board Finance Director.
6. **Outlook**
Kelso believes the UK small and mid-cap market is at an inflection point, with its targeted investments well-positioned for recovery.
The company remains committed to its 25% IRR target, leveraging its experienced Board and low-cost structure.
**Conclusion**Kelso Group Holdings PLC remains optimistic about its portfolios potential, despite a slower-than-expected market recovery. The company is actively exploring strategic initiatives to enhance shareholder value, with a focus on disciplined investment and cost management.