Agronomics turns profitable and lifts NAV – what stood out in the half-year
Agronomics Limited has swung to a solid profit for the six months to 31 December 2025, with net assets moving higher and the share price still sitting at a hefty discount to NAV. The company posted a net profit of £10,012,754, reversing a £6,555,201 loss a year ago, as portfolio revaluations and foreign exchange tailwinds did the heavy lifting.
Net asset value (NAV) per share rose 11.7% to 13.78 pence, up from 12.34 pence at 30 June 2025. Against a 31 December 2025 share price of 6.2 pence, the stock trades on a 55% discount to NAV. That gap is hard to ignore.
Key numbers at a glance
| Metric | Six months to 31 Dec 2025 | Reference |
|---|---|---|
| Net profit | £10,012,754 | vs. £6,555,201 loss (H1 FY2025) |
| Basic and diluted EPS | 0.991 pence | vs. (0.649) pence |
| NAV per share | 13.78 pence | +11.7% vs. 12.34 pence (30 Jun 2025) |
| Share price (31 Dec 2025) | 6.2 pence | 55% discount to NAV |
| Net investment gains | £10,714,736 | vs. £5,872,621 losses |
| Operating expenses | £701,982 | Directors £75,000; other costs £626,982 |
| Invested assets | £137,954,854 | vs. £121,009,941 (30 Jun 2025) |
| Cash and cash equivalents | £2,153,140 | vs. £3,606,187 |
| Net assets | £139,973,459 | vs. £124,520,935 |
| Shares in issue | 1,015,905,830 | at period end |
What drove the swing to profit and the 11.7% NAV rise
The improvement came from net investment gains of £10,714,736. These include portfolio revaluations, interest income and foreign exchange movements, offset by routine operating costs.
- BlueNalu uplift: an unrealised fair value gain of £4 million following its preferred share and convertible note raise.
- Liberation Bioindustries uplift: an unrealised fair value gain of £4.1 million after its Series A1 equity round.
- FX tailwind: unrealised foreign exchange gains of £2.8 million on USD, EUR and AUD investments.
- Solar Foods trim: an unrealised fair value loss of £0.9 million, marking to its latest traded price.
- Interest income: £662,586 from loans and deposits helped offset costs.
- Costs contained: operating expenses totalled £701,982, with no performance fees accrued.
There were also NAV accretions from equity issuance used to settle portfolio investments: £1 million from issuing 6,488,535 new Agronomics shares to SuperMeat (for a US$1.25 million SAFE) and £4.5 million from issuing 30,643,003 new shares to BlueNalu (for a US$6 million preferred shares investment). These are non-cash from a company-level perspective but do lift reported net assets.
Operational momentum: precision fermentation leads the line
The update shows the portfolio’s centre of gravity tilting further toward precision fermentation – producing specific proteins or ingredients via microbes – which is seeing faster regulatory progress and nearer-term commercialisation than cultivated meat.
Regulatory green lights that de-risk revenue
- Onego Bio: FDA “no questions” letter confirming GRAS status for Bioalbumen, opening broad US food applications for its egg protein.
- Geltor: FDA “no questions” letter for PrimaColl – a biodesigned vegan collagen polypeptide.
- Clean Food Group: approval for CLEAN Oil 25 as a cosmetic ingredient across the UK, EU and US.
These approvals matter because they unlock routes to market and validate safety dossiers, giving customers and partners the confidence to sign supply agreements.
Manufacturing capacity is arriving – a bottleneck starts to ease
- Clean Food Group acquired Algal Omega 3’s fermentation plant, adding 1 million litres of capacity to accelerate scale-up.
- Liberation Bioindustries closed the first tranche of its Series A1 round, with its Richmond facility nearing completion and partners lining up for capacity.
- BlueNalu completed an initial closing of a convertible promissory note financing (~US$8 million) and raised US$6 million in new preferred shares, with Agronomics participating in both.
Scaling biomanufacturing has been a sector-wide constraint. Backing platforms and contract manufacturers can unlock growth across multiple downstream products, and Agronomics is clearly leaning into this theme.
Cultivated proteins: selective progress and a reminder of the risks
- SuperMeat raised US$3.5 million via a SAFE, with Agronomics investing US$2 million (US$0.75 million cash and US$1.25 million in Agronomics shares).
- BlueNalu funding strengthens a high-profile cultivated seafood player.
- Meatable’s dissolution led to a full write-down of £11.9 million, recognised in the June 2025 audited results.
The Meatable outcome underlines that cultivated meat remains capital intensive with longer timelines. Agronomics’ stance is now clearly selective in this area, prioritising pathways to scale and cost discipline.
Where the portfolio weight sits today
At 31 December 2025, the top exposures were:
- Liberation Bioindustries – 25% (contract manufacturer for precision fermentation)
- BlueNalu – 12% (cultivated bluefin tuna)
- SuperMeat – 11% (cultivated poultry)
- Onego Bio – 8% (egg proteins via fermentation)
- Formo – 7% (dairy proteins)
This mix backs the thesis: near-term traction from precision fermentation and infrastructure, with measured exposure to cultivated protein names that can clear regulatory and cost hurdles.
The 55% discount to NAV – opportunity or value trap?
A 55% discount to a 13.78 pence NAV is eye-catching. The bull case is straightforward: continued regulatory wins, commissioning of manufacturing capacity, and more external funding rounds at or above last marks could support NAV resilience and, in time, narrow the discount.
The bear case is also clear. Most assets are unquoted and valued under IFRS at the last funding round, so marks can move both ways as the sector reprices. Cash is modest at £2.15 million and the funding environment remains “challenging,” so future investments may be satisfied in shares as seen post-period with All G Co (AU$3 million settled via 10,026,375 new Agronomics shares at 14.65 pence). Investors should expect volatility.
My take: the direction of travel has improved – profit returned, NAV up, and real regulatory and capacity milestones. The discount likely reflects perceived risk on unquoted valuations and cash. If the precision fermentation bets convert into commercial revenues in 2026 as hinted, sentiment could shift. Until then, the wide discount is both a cushion and a warning label.
Costs, cash and capital deployment
- Operating expenses were contained at £701,982, and no performance fees were accrued.
- Net cash used in operating activities was £1,502,913, with cash ending at £2,153,140 after a £1,453,047 decrease during the period.
- Share capital rose to 1,015,905,830 shares, with share premium increasing by £5,439,732 during the half.
The company is prioritising selective deployment into assets showing commercial readiness – especially fermentation and manufacturing capacity. That alignment between strategy and what is working in the portfolio is sensible.
What to watch next
- Commissioning timelines and initial throughput for Liberation Bioindustries and Clean Food Group’s facilities.
- Commercial contracts or revenue updates following Onego Bio and Geltor GRAS clearances.
- Further financings for key holdings and whether marks support
