Chrysalis Investments Limited has released its unaudited net asset value ("NAV") per ordinary share as of 31 December 2023, which stood at 143.37 pence. This represents an increase of 8.72 pence per share (6.5%) since 30 September 2023. The rise in NAV was primarily driven by revaluations for key assets, Klarna and Starling Bank, due to their strong financial performances and increases in the valuation of respective peers. The company's investment advisers, Richard Watts and Nick Williamson, highlighted the potential for a significant realization from the portfolio, particularly from Klarna, which could impact the company's liquidity and lead to the initiation of the capital allocation policy.
The company reported no investment activity in the quarter, with most investments well-funded. However, it announced a likely disposal, subject to certain conditions. The portfolio, particularly the later-stage assets, continues to perform well. wefox, for instance, crossed the €1.5 billion milestone in Gross Platform Value and achieved its first full month of profits in December 2023. Starling Bank announced initiatives to share increased interest rates with its customers and its subsidiary, Engine, secured deals with Salt Bank and AMP, demonstrating its ability to monetize its technology.
Despite a slowdown in advertising markets, Brandtech continued to grow and consolidated its recent acquisitions of Jellyfish and Pencil AI. The company also focused on reducing its cost base over the year. Overall, the company's key investments continue to show strong momentum, which is expected to be a key determinant of share price progression.