Seraphim Space Investment Trust – shares up 44% in a month, Q3 Update tomorrow could well spell out further upside

03.06.2025

Six weeks ago, in my feature on the Seraphim Space Investment Trust (LON:SSIT), I wrote about just how much I liked the look of the trust and how undervalued I felt its shares were at the then price of 50p.

“There is definitely space for growth in this trust’s portfolio valuation, while its shares at just 50p represent an excellent purchase of over 100p per share of value. 

There is potential upside of an easy 40% to rest then at around the 70p level and still be favourably discounted.”

The fund’s shares, after hitting 75.60p in the middle of last week, are now at 72p, but still showing a useful 44% gain in just over a month.

SSIT, which is the world's first listed fund focused on SpaceTech, seeks exposure in predominantly growth-stage private-financed SpaceTech businesses that have the potential to dominate globally and that are sector leaders with first-mover advantages in areas such as climate, communications, mobility and cybersecurity.

Tomorrow morning, Wednesday, 4th June, the trust will report on its Q3 results for the period to end-March.

The Business 

This trust can be traced back to 2016 and the launching of the world’s first ‘New Space’ technology venture fund – the Seraphim Space Fund, which rapidly established itself as the ‘go to’ venture capitalist funder. 

It quickly built up a portfolio of some 50 international space-related companies, with global tech investors taking a positive view and position in several of its early-stage investment situations. 

In May 2021 the Seraphim Space Investment Trust was established as a closed-ended investment company, with the purpose of providing investors with exposure to a portfolio of investments in Space Tech businesses. 

It raised funds to acquire an Initial Portfolio of 15 investments from the Seraphim Space Fund, valued at some £26.1m, with an agreement to acquire investments in a further four companies, taking its aggregated estimated value up to £70m. 

In July that year, the trust floated on the Main Market having raised £178.4m by way of an oversubscribed IPO and, over the next few months, quickly added new investments to its portfolio. 

By the end of September that year the trust’s shares touched 132.78p, despite ongoing Covid market pressures, while its net assets had increased to £221m. 

Its net asset value had increased 6% to 104p a share, while its portfolio was valued at £99m, with its liquid resources available totalling some £124m, representing 56% of its NAV. 

Now Speed On 

Today the trust seeks exposure to predominantly growth stage private financed SpaceTech businesses that have the potential to dominate globally and that are sector leaders with first mover advantages in areas such as climate, communications, mobility and cyber security. 

The trust’s entrepreneurs see the infinite possibilities of Space and transform those possibilities into game changing companies, while its portfolio companies are at the frontier of tomorrow shaping a better future on Earth. 

Its management team has been involved in investing in more than 100 such businesses, by the end of 2024 the trust had a portfolio of 24 SpaceTech companies and one fund investment valued at £216.3m, while also holding £23.5m of cash reserves. 

The Top Ten holdings included ICEYE (Earth Observation), D-Orbit (In-orbit Services), ALL.SPACE (Ground Terminals), HawkEye 360 (Earth Observation), LeoLabs (Data Platforms), SatVu (Earth Observation), AST SpaceMobile (Satcomms), Xona Space Systems (Navigation), PlanetWatchers (Data Analytics) and Seraphim Space Ventures II (Various) – those ten investments cost £134.6m and are ‘fair valued’ at £182.0m, making up 75.9% of the trust NAV. 

The other investments cost £58.6m and were valued at £34.3m, some 14.3% of the trust NAV. 

The Equity

There are some 170m shares in issue.

The larger holders include British Business Finance (14.1%), Schroders (9.89%), Hargreaves Lansdown Asset Management (5.0%), RBC Brewin Dolphin (5.0%), Legal & General Investment Management (0.92%), Trinity Bridge (0.88%), BlackRock Investment Management (0.74%), Rathbones Investment Management (0.68%), Activus Wealth (0.61%), IG Markets (0.52%) and Walker Crips Investment Management (0.45%).

In My View

The Space and Defence sectors have been in the news lately, which plays favourably for the SSIT portfolio constituents.

While awaiting tomorrow’s Q3 Update, the trust’s shares at 72p are showing and holding their strength, due mainly to their continually undervalued asset position.

After the recent surge in price, it would be sensible to ‘top slice’ a portion of recently purchased holdings.