(Alliance News) - Chrysalis Investments Ltd said net asset value fell in its latest financial year, although its "well-funded" portfolio generated "strong revenue growth".

The London-based trust, which backs UK and European private companies with long-term growth potential, said net asset value at September 30 was 134.65 pence per share, down 8.9% from 147.79p at the same time one year prior.

Shares in Chrysalis rose 4.0% to 81.65p on Monday morning in London.

The trust said that nearly 40% of the NAV decline was due to foreign exchange differences and non-asset related costs. However, it was also due to declines in the valuations of investees Sorted Group Ltd, Deep Instinct, Smart Pension Ltd and Graphcore Ltd.

Chrysalis's net assets totalled GBP801 million, down 9.0% from GBP880 million.

Chrysalis also noted that during the year to September 30, it fully divested its position in Revolution Beauty Ltd for GBP5.2 million and in Wise PLC for GBP10.3 million. It also increased its position in Starling Bank Ltd for GBP20.1 million, "reflecting optimism for the prospects of Starling and its ability to generate future value for shareholders."

The trust continued: "The portfolio is well funded, with the majority either profitable or funded to profitability, and generated strong revenue growth of approximately 48% in the period.

"Chrysalis will have sufficient available liquidity to continue to support the portfolio and fund the Company for the foreseeable future."

The trust's investment managers meanwhile said they were encouraged by "recent strength in markets", and that the more optimistic backdrop should increase the possibility of exits for Chrysalis's investments.

"During a period of significant economic and political change, the NAV for the period...fell relatively modestly," commented Chair Andrew Haining. "In that period our exciting portfolio of high growth, tech enabled companies experienced a range of positive activity which we believe positions them strongly to benefit from a recovery in markets, which we would expect to see in 2024."

By Emma Curzon, Alliance News reporter

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