Half-year snapshot: NAV up 7.4% and £37 million returned to shareholders
Schroders Capital Global Innovation Trust plc has reported a stronger first half to 30 June 2025 as its managed wind-down gathers pace. Net asset value (NAV) per share rose 7.4% to 21.42p (from 19.94p), while the share price jumped 39.1% to 15.30p. The discount to NAV narrowed from 44.8% to 28.6%.
The Board completed the first capital return via tender offer in July: up to £37 million (less costs) was returned at 21.119983p per share. Following the tender, there are 635,361,925 ordinary shares in issue. The trust remains listed and will keep trading its shares during the realisation phase for as long as practicable.
| Key numbers (six months to 30 June 2025) | Detail |
|---|---|
| NAV per share | Up 7.4% to 21.42p (from 19.94p) |
| Total NAV | £173.2 million, up 6.7% (31 Dec 2024: £162.4 million) |
| Share price | Up 39.1% to 15.30p (from 11.00p) |
| Discount to NAV | Narrowed to 28.6% (from 44.8%) |
| Cash and money market funds | £57.3 million (33% of NAV) |
| Realisations | £30.2 million in H1 |
| Tender offer | £37 million less costs at 21.119983p per share (completed July) |
| Shares in issue | 808,582,899 at 30 June; 635,361,925 after July tender |
What drove performance: life sciences strength, mixed elsewhere
Life sciences surge on Araris exit
The stand‑out contributor was the life sciences sleeve. It added 10.4% to NAV as the fair value of Araris Biotech increased by £17.8 million following its sale to Taiho Pharmaceutical Co. Ltd. The deal generated upfront cash of £18.5 million at closing, with potential milestone payments to come. Overall, life sciences holdings increased in value by 81.2% during the half.
Growth and venture: AI boost offset by downgrades
On the growth side, AI Company II secured a significant new strategic investment, resulting in a £6.6 million fair value gain and an £8.4 million special capital dividend to the trust. This was partly offset by downward revaluations at Ada Health and AgroStar. Venture detracted 3.0% from NAV, chiefly due to a lower valuation multiple at Federated Wireless.
Public equities: Autolus volatile despite clinical progress
Public holdings shaved 0.7% off NAV. Autolus Therapeutics fell 30.0% in value over the half. Operationally, its lead therapy, obe cel (AUCATZYL), received conditional approvals in the UK and EU for adults with relapsed or refractory B‑ALL. US sales were $29.9 million in H1, with coverage exceeding 90% of US medical lives by period end. In the UK, draft NICE guidance recommended against routine NHS funding, and European access is likely delayed pending reimbursement agreements. A run of milestones is due, including a final NICE decision in October.
Managed wind-down: how capital will come back
Shareholders approved a managed wind-down at the 27 February 2025 General Meeting. The Board favours a series of tender offers to return capital ahead of a later voluntary liquidation, which will require fresh shareholder approval. As assets are sold, the portfolio will naturally shrink and concentrate, which the Board warns could increase NAV and share price volatility.
To receive direct updates on future distributions, shareholders can register for email communications at https://www.schroders.com/inovcomms. The half-year report will also be available at the Company’s website.
Liquidity and cash discipline look solid
At 30 June 2025 the trust held £57.3 million in cash and liquid money market funds, alongside £2.8 million in public equities. That cash funded the initial £37 million tender completed in July, covers ongoing costs and provides firepower for existing commitments. Investment activity in the half included £30.2 million of realisations, primarily from Araris (£21.3 million distribution, equating to £18.5 million net proceeds after a technical loan conversion), plus the £8.4 million special dividend from AI Company II. A small follow-on of £0.7 million went into Neurona Therapeutics with Board approval.
Foreign exchange was a mixed bag: USD holdings were marked down due to sterling strength, while CHF and EUR exposures benefited as sterling weakened against those currencies.
Portfolio concentration and the biggest holdings
The 20 largest positions now account for 95.6% of investments by value – a function of the wind-down. Unquoted assets make up 69.3% of total investments, quoted equities 1.7%, and money market funds 29.0%.
- Atom Bank – £23.1 million, 13.3% of NAV
- Revolut – £14.5 million, 8.4% of NAV
- Nexeon – £7.8 million, 4.5% of NAV
- Back Market – £7.7 million, 4.4% of NAV
- Salica Environmental Technologies Fund – £7.2 million, 4.1% of NAV
- AI Company II – £6.2 million, 3.6% of NAV
Atom Bank reported deposit growth of 31% to £7.5 billion and loan book growth of 29% to £5.3 billion for the year to 31 March 2025, though net interest margin eased to 2.2%. Revolut’s 2024 report showed strong growth: revenues up 72% to £3.1 billion and net profit up 130% to £790 million.
Why this matters for investors
- Capital is coming back: the first £37 million tender was larger than initially projected (£30 million), underpinned by cash proceeds from Araris and AI Company II. In a wind-down, delivery of cash matters more than paper gains.
- Discount narrowed, but remains wide: at 28.6%, there is still a meaningful gap between the share price and NAV. Future tenders and further exits could be catalysts, but the path and timing are not disclosed.
- Concentration and volatility will rise: as assets are realised and the portfolio shrinks, individual outcomes – positive or negative – will move the dial more. The Board flags this explicitly.
- Pipeline of exits likely mixed: management expects trade sales and IPOs, often with deferred consideration. That means some proceeds could be staged over time rather than immediate.
- Watch the moving parts: Autolus milestones, any milestone receipts from the Araris sale, and funding or valuation updates at venture names. After the period end, the Company estimated a £0.6 million negative valuation adjustment to Bizongo.
My take: a constructive first step in the wind-down
On the numbers disclosed, this was a decent half. NAV per share rose, the discount tightened, and – crucially – the Company turned valuation gains into hard cash, allowing a larger-than-planned capital return. The life sciences book, led by Araris, did the heavy lifting. Growth and venture were more mixed, which is typical at this stage of the cycle.
Investors should expect bumpier quarters from here. The portfolio is becoming more concentrated, and several holdings are subject to external milestones, funding rounds and reimbursement decisions. The trust’s cash position looks sensible, and the Board’s use of tenders gives a clear mechanism to keep distributing proceeds. No timetable for a formal liquidation is given; it will be proposed once a “significant proportion” of assets has been realised.
For holders, the message is simple: exits are happening, cash is being returned, but volatility and timing risks remain part of the package. If you want updates on future distributions, the Board wants you on the mailing list at https://www.schroders.com/inovcomms.
