Seraphim Space Investment Trust’s net asset value (NAV) per ordinary share more than doubled to 240.49p in the year to 30 June 2026, helping narrow its discount from 27.8% to 21.9%, as defence demand and major funding rounds lifted its portfolio.

The gains were heavily concentrated in one company. ICEYE accounted for 53.9% of NAV at the year end, and its €1bn Series F round, at a valuation above €10bn, was by far the largest contributor to the increase in portfolio value. The trust lists portfolio concentration as a principal risk and said that risk increased following its additional investment in ICEYE during the year.

The portfolio rose 133.0% from £259.8m to £605.5m. The trust said the growth was “driven predominantly by substantial fair value gains across the portfolio, underpinned by strengthening defence tailwinds and major funding rounds”, partially offset by £26.3m of realised losses on the Arqit and Spire Global exits. The ordinary share price rose 119.4% to 187.8p.

NAV is stated after a £54.0m performance fee liability to Seraphim Space Manager. The fee was accrued at the year end but has not been paid. The board said the payout conditions have not been met, cash raised through the C share issue will not be used to pay it, and 15% of any fee must be reinvested by the manager in SSIT shares. The accounts say the fee, discounted from £57.5m, is not expected to be settled before the next calculation period.

Payment depends on the trust having sufficient cash after meeting its working capital needs, and on net realised gains, unrealised IPO gains, listed holding fair value changes and investment income together exceeding the amount owed.

The board has also changed how it measures performance. With no formal benchmark index, it has retained its target of at least 20% annualised NAV total return but will now measure it per ordinary share over the long term, which it said gives shareholders greater transparency. Over the roughly five years since IPO, annualised NAV total return per ordinary share was 19.1%, while the gross portfolio internal rate of return was 27.9%.

Total NAV grew 150.6% from £281.1m to £704.4m, driven by the rise in portfolio fair value and the C share issue, partially offset by costs including the performance fee. Ordinary share NAV rose 102.9% from £281.1m to £570.4m. C share NAV was £133.9m, or 98.11p per share, from the £136.5m raised in May, the largest fundraise by a UK-listed investment company since February 2023.

Private companies made up 93.0% of portfolio fair value and 80.0% of NAV, ending the year at 385.8% of cost (381.7% excluding FX gains). Excluding HawkEye 360, which listed during the year, their aggregate fair value rose 145.0%. The listed portfolio rose 40.9% to 188.5% of cost.

Portfolio companies collectively raised more than $4.8bn, the strongest financing period in the trust’s history, with five private companies completing six rounds of more than $100m each. HawkEye 360 raised about $416m in a New York Stock Exchange IPO in May, and Seraphim received £6.2m from the exits of Arqit and Spire Global. The trust ended the year with £152.9m of cash and liquid resources and £42.2m in listed holdings.

Since the year end, Xona Space Systems has completed a new financing round, lifting the fair value of the trust’s holding by about £52.4m, or 22.0p per ordinary share before any performance fee accrual, and making it the second-largest holding. By contrast, the sale of ALL.SPACE to York Space, which completed on 8 July, was worth up to £40.8m at completion against a £45.4m year-end valuation, and the value of the York Space shares Seraphim holds has since fallen from £21.3m to £6.1m. As of 13 October, £72.5m of C share proceeds had been deployed.

Will Whitehorn OBE, chair of Seraphim Space Investment Trust, said:”The past year was a watershed period for the space sector, cementing SpaceTech as a defining technological force. SpaceX’s record-breaking IPO was the exemplar, marking SpaceTech’s arrival as a mainstream investment category and underscoring the sector’s growing commercial and strategic importance.

“That momentum extended across the sector. M&A accelerated as technology majors such as Amazon and New Space leaders, including Rocket Lab and Intuitive Machines, emerged as consolidators. Public and private investment also reached record levels, driven by rapidly rising government demand for advanced SpaceTech capabilities.

“The company captured this momentum, delivering an exceptional year in which both portfolio value and NAV more than doubled. ICEYE was the principal driver, securing a multi-billion Euro contract and with funding rounds that established it as one of the world’s most valuable private SpaceTech companies.

“This performance enabled the company to raise £137m of fresh capital through its C share issue. The Company enters the new year strongly capitalised and ready to accelerate deployment into compelling new and follow-on investments.”

Mark Boggett, chief executive at Seraphim Space Manager, added: “This was a landmark year for the portfolio. Fair value more than doubled over the Period and now stands at 3.6x cost. This represents an important milestone: five years after the Company’s IPO, the gross portfolio IRR was 27.9% at the Period end. Over the same period, the annualised NAV total return per ordinary share was 19.1%, broadly in line with the Company’s long-term target of at least 20%.

“This accomplishment reflects strong performance across the portfolio, evidenced by accelerating commercial traction, fundraising and corporate activity. The private companies in the top 10 holdings grew revenue 237% year-on-year on a fair value weighted average basis. Five private portfolio companies completed six financing rounds of more than $100m during the 12 months to 30 June 2026, making it the portfolio’s strongest period of private financing to date. Much of this capital came from new investors prepared to invest at significant premiums to prior rounds, recognising the commercial progress achieved by these businesses.

“With the secular trends driving the sector set to persist following SpaceX’s blockbuster IPO, we anticipate another period of record investment activity and believe the portfolio is well placed to extend its recent momentum.”