SSIT FY2025: Big NAV Uplift, Defence Tailwinds, and a Narrowing Discount
Seraphim Space Investment Trust (SSIT) has delivered a punchy set of full-year numbers to 30 June 2025. Net asset value (NAV) is up 23.2% with portfolio valuation up 28.9%, driven largely by defence-linked demand across its space intelligence names – most notably ICEYE, which doubled in value. The share price rallied 56.8% over the year, and while the discount to NAV remains sizeable, it narrowed sharply.
Below I’ve pulled out the key numbers and what I think matters for private investors weighing up the risk-reward here.
Key FY2025 numbers at a glance
| NAV | £281.1m (+23.2%) |
| NAV per share | 118.52p (+23.2%) |
| Portfolio valuation | £259.8m (+28.9%) |
| Fair value vs cost | 131.9% (up 2,720bp) |
| Share price | 85.6p (+56.8%) |
| Discount to NAV | -27.8% (from -43.2%) |
| Liquid resources (cash) | £21.5m |
| Ongoing charges | 1.77% |
Jargon buster:
- NAV – the value of the underlying assets minus liabilities.
- Discount – the gap between the share price and NAV per share. A negative number means shares trade below NAV.
- Fair value vs cost – how the portfolio’s current valuation compares with the total cost invested.
What drove the uplift – and why it matters
The story of the year is defence. Governments are spending more on space-based intelligence, surveillance and communications. SSIT’s largest holding, ICEYE (37.4% of NAV), saw “significant demand” and signed multiple nine-figure contracts, including a €200m deal with Poland’s Ministry of Defence. Management says ICEYE has reached the maturity to switch its valuation method to public comparable multiples – and its value doubled over the year.
Other momentum points:
- D-Orbit (11.9% of NAV) raised to €150m in Series C and signed a €120m ESA contract.
- HawkEye 360 (7.3% of NAV) continued to build its radio-frequency intelligence constellation.
- Xona Space Systems (3.7% of NAV) raised a $92m Series B and launched its first production satellite.
- Skylo (1.6% of NAV) went live with Verizon in the US.
In short, defence-aligned, data-rich space assets are getting paid. For shareholders, that translated into a stronger NAV and a meaningful narrowing of the discount.
The centre of gravity: private assets, higher quality
Private holdings are now the core of SSIT’s value – 96.4% of portfolio fair value and 89.1% of NAV. They closed at 155.8% of cost (162.8% excluding FX headwinds), with a 33.4% uplift across the year excluding Voyager, which listed in June.
There’s been an important quality shift too. SSIT changed valuation methodology for ICEYE and HawkEye 360 to EV/revenue multiples (a standard approach for scaling tech) as both are now posting consistent profits, according to the Manager. That is an encouraging signal on maturity and resilience.
Cash, funding and runway: largely robust but not uniform
SSIT ended the year with £21.5m in cash and received £12.5m from disposals during the year. Across the portfolio:
- 58% is fully funded on management projections, with a further 8% funded for 12+ months.
- 66% of fair value is deemed to have a “robust” cash runway.
- Nine companies (31% of fair value) have less than 12 months of runway – a watch item, though the Manager notes this is not atypical in VC-backed portfolios.
My take: the aggregate funding picture is sound, but dispersion is widening. The bigger, better companies are either funded through to profitability or close to it. The tail carries more fundraising risk.
Deal flow, exits and post-period moves
SSIT deployed £14.2m across seven deals – one new (Zeno, nuclear batteries for deep space and subsea) and six follow-ons (including ALL.SPACE, Xona, Skylo, AST SpaceMobile, ChAI, PlanetWatchers). New money was focused and supportive – consistent with a “protect and grow what’s working” strategy.
On the exit front:
- Astroscale listed in Tokyo; SSIT sold 47% for £3.5m, a 22% premium to the IPO price.
- AST SpaceMobile – SSIT exercised options and sold 95% of its holding by year-end, realising £9.0m at 170% of original sterling cost.
After the year end:
- Arqit – fully exited for £3.3m, above the 30 June fair value, but at 15% of original sterling cost.
- Spire Global – fully exited for £2.9m, 29% of original cost but 15% above 30 June fair value.
- ALL.SPACE – a further $1.5m bridge investment in August 2025.
- Pixxel – won a contract to build India’s National Earth Observation constellation.
- Altitude Angel – appointed administrators in October 2025; impact is negligible given position size.
Where the risks sit
- FX drag – foreign exchange losses were £12.3m (-5.20p per share). That’s the price of global exposure when sterling strengthens.
- Concentration – ICEYE is 37.4% of NAV, and the top-10 holdings account for 89.5% of portfolio fair value. Great when winners win – but it cuts both ways.
- Listed laggards – the listed sleeve (3.6% of fair value) sits at 25.8% of cost. Particularly tough outcomes for SPAC-era names (17.7% of cost).
- Runway dispersion – nine companies have less than 12 months of cash. The team is actively managing these with cost actions, grants and fundraising – but it is a risk to monitor.
Discount, buybacks and capital allocation
SSIT’s discount narrowed to -27.8% from -43.2%. The Board did not buy back shares in the year, prioritising support for portfolio winners and building liquidity from listed disposals. Given the discount remains wide by historical standards, buybacks could still be accretive – but deploying capital into high-conviction winners can be more value creative over time. It is a live trade-off, and the Board is clearly keeping it under review.
Outlook: more defence budgets, more optionality
The near-term setup looks supportive. Europe’s defence budgets are rising, the US is expected to pass a defence budget north of $1 trillion, and commercial space continues to prove its strategic value. The Manager expects more IPO opportunities for the best performers and potentially a pickup in M&A.
With multiple larger holdings already profitable or nearing breakeven, and cash plus listed liquidity available, SSIT believes it can selectively fund the portfolio without raising fresh capital. If execution continues, the gap between share price and NAV could keep closing.
My bottom line
This is the best SSIT has looked since listing. The portfolio’s centre of gravity has shifted to profitable or near-profitable defence-aligned assets, led by a standout ICEYE. The discount is still chunky, but the direction of travel is positive. Risks remain – FX, concentration, and a handful of shorter-runway names – yet the funding picture is broadly healthy and the Manager is deploying with discipline.
For investors comfortable with SpaceTech and VC-style volatility, SSIT is increasingly a focused bet on a handful of potential category leaders benefiting from structural defence demand. Momentum is finally on their side.
