Seraphim Space Invesment Trust shares fall despite sharp rise in NAV

(Sharecast News) - Seraphim Space Investment Trust shares fell more than 6% on Thursday morning, despite the company reporting a sharp rise in third-quarter net asset value, as investors appeared to focus on the portfolio's heavy reliance on unrealised valuation gains and its large exposure to ICEYE. The listed SpaceTech investor said NAV rose 24.8% over the three months to 31 March to £421.3m, from £337.5m at the end of December.

NAV per share increased to 177.63p from 142.30p, while the portfolio valuation rose 30.7% to £433.3m.

The increase was driven by £101.7m of unrealised fair value gains, largely reflecting the continued strong performance of ICEYE, funding rounds at Xona Space Systems and Tomorrow.io, and indicative IPO pricing for HawkEye 360.

The portfolio also benefited from a £5.5m foreign exchange gain and £0.7m of follow-on investment in ALL.SPACE.

However, the scale of the share-price fall suggested investors were looking through the headline NAV uplift, particularly given that ICEYE, the trust's largest holding, accounted for 47.1% of NAV at the period end.

The company's shares also continued to trade at a discount to NAV, which was broadly unchanged at 15.6% during the quarter.

Seraphim said 85% of the portfolio by fair value had a "robust cash runway", with around 73% fully funded and a further 13% funded for at least 12 months from the end of March.

Cash reserves stood at £20.9m, down from £22.1m, with a further £4.1m of potential liquidity from listed holdings.

ICEYE reported unaudited 2025 revenue of more than €250m, EBITDA above €100m and a contracted order backlog of €1.5bn.

The satellite radar imaging company also launched six satellites during the quarter, taking its total number of launched satellites to 70.

Other portfolio developments included Xona Space Systems raising an oversubscribed $170m Series C round to scale production of a planned 258-satellite navigation network, while Tomorrow.io completed a $175m financing at a valuation of more than $1bn.

SatVu secured £30m of new funding to expand its thermal intelligence satellite constellation, and HawkEye 360 raised a further $23m following its $150m Series E round in December.

After the period ended, ALL.SPACE signed binding documents for its sale to York Space Systems, subject to regulatory approvals.

Seraphim said it did not currently expect the final consideration to be materially different from ALL.SPACE's 31 March valuation.

HawkEye 360 also listed on the New York Stock Exchange on 7 May, raising $416m.

Its shares opened above the IPO price and, as of 1 June, Seraphim's holding was valued at $76.9m, a 41% uplift to its 31 March valuation.

Seraphim also completed a £136.5m C Share equity raise on 7 May, which it said attracted demand from existing and new investors, including institutions, endowment funds, family offices, wealth managers and retail investors.

Chair Will Whitehorn said the period showed "continued portfolio appreciation" and validated the investment manager's strategy.

"The recent successful completion of our recent C Share issue further strengthens the company's position to capture the next wave of opportunities across the space domain at one of the most exciting times for the sector," he said.

Mark Boggett, chief executive of Seraphim Space Manager, said ICEYE had delivered "another standout quarter" as defence revenues scaled, while the wider portfolio had seen positive momentum from funding rounds, commercial progress and value realisation.

"Momentum continues to build, and we remain confident that NAV will continue to appreciate, supported by strong defence tailwinds and a structural shift in investor appetite," he said.

At 1035 BST, shares in Seraphim Space Investment Trust were down 6.16% at 196.6p.

Reporting by Josh White for Sharecast.com.

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