Seraphim Space Investment Trust Plc ($SSIT)

Good morning, and welcome to the Seraphim Space Investment Trust Plc Investor Presentation. [Operator Instructions] Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Will Whitehorn, Non-Executive Chairman. Good morning, sir.

Good morning, everybody. Welcome to SSIT's quarterly results for the period ending 31st of March 2026. After last quarter's record set of results, we are delighted to report this quarter represents yet another record quarter and a continuing outstanding performance from the company and its key fund holdings. Standing as the #1 performing investment trust over the last year as measured by the increase in the share price, the last quarter has been a watershed moment for both SSIT, but also for the wider SpaceTech market as a whole. SpaceTech is now increasingly recognized as a key enabler for the AI revolution and increasingly directly impacting many other sectors, including defense, climate change science, agriculture, insurance and indeed, the dual use of satellites means that they are very flexible in many different uses. The prospects for SSIT have never been brighter. The SpaceX IPO, and we are not an investor in SpaceX, targeted for this month is likely to be a defining moment for the sector, some will call it a seismic event. I'll now hand over to Mark Boggett, CEO of Seraphim Space Manager, to talk you through these latest results. Thank you.

Thank you, Will, and good morning, everyone. So before we go into the detail of the Q3 report, I just wanted to take a step back and remind folks about the big picture for Seraphim. So Seraphim is the most prolific investor in the space market globally with a portfolio of over 150 SpaceTech companies across our public and private portfolio. Seraphim was the first VC to focus on space in 2016, and SSIT represents the one and only listed investment fund focused on space. Our partners and backers include some of the world's largest space corporates, and we continue to receive a massive global deal flow. We're seeing virtually all deals at all stages, a privileged position that provides us with an information asymmetry over the global sector. We triage deal flow between early and late stage, with early going to our affiliated accelerator program and early-stage Space Venture fund and the later stage going to SSIT. We're a value-add hands-on investor, joining the boards of most portfolio companies, and this allows us to build conviction over time. So information asymmetry and conviction is the bedrock of our past and our future success. So now let's turn to the SSIT third quarter results, and what a set of results. Let's start with the headlines. Another record quarter with NAV per share increasing by 25% from GBP 1.42 to GBP 1.78. The SSIT share price has rallied strongly from GBP 1.20 as at the 31st of December to GBP 1.50 as at the 30th of March to GBP 2 today. Net assets of GBP 421 million were valued by the market at GBP 356 million as at the 31st of March. SSIT share price performance has significantly outperformed both the benchmark indices and the whole AIC peer group. And in this presentation, I will clearly set out why we believe that SSIT is well positioned to continue this positive trajectory of recent quarters and to also sustain a healthy premium to NAV. So taking this to the detail, let's start with this attribution analysis table. The value of the portfolio increased from GBP 332 million to GBP 433 million during the period, representing a 31% increase quarter-on-quarter. Investment activity was limited to just GBP 0.7 million in follow-on funding, an unrealized FX gain of GBP 5.5 million and an unrealized fair value gain of GBP 95.5 million. This is the primary driver through excellent performance of the underlying portfolio. The primary drivers of this fair value gain were substantial increases in the value of 3 of the trust's biggest holdings, namely ICEYE, HawkEye 360 and Xona Space, which we'll discuss in a lot more detail in subsequent slides. So next, let's turn to the balance sheet as at the 31st of March, and this table sets out the NAV bridge. So NAV increased by 25% over the period from GBP 338 million to GBP 421 million. The portfolio fair value, including FX movements, increased by GBP 101 million over the period. Factoring costs, income from interest and a further GBP 16 million provision for the performance fee, NAV per share reached GBP 1.77 at the quarter's close. Liquid resources remained above GBP 20 million, representing 5% of NAV. And with much of the portfolio well capitalized and a range of post-period developments boosting potential liquidity, the conditions for paying out any performance fee are still yet to be met. SSIT is well positioned to continue to support the funding needs of the portfolio as they require. So this slide provides a snapshot of the portfolio, and we're delighted to see that fair value of both the current private and listed portfolios are now being valued above cost with the private portfolio now standing at 261% versus cost and the listed portfolio 111%. As a result of the continued strong performance of some of our largest holdings led by ICEYE, the top 10 investments now account for 95% of the overall portfolio value. And we see this level of capital concentration as just as a natural byproduct of having a portfolio that's performing so well. It's fairly typical in a venture and growth portfolio for overall returns to be driven by just a handful of outliers. We're also seeing encouraging performance from holdings outside of the top 10, and we expect some further diversification of portfolio value to develop from these companies in due course. So turning next to the investments during the period. And as already mentioned, investment activity during the period was limited to just one single follow-on investment in ALL.SPACE. There's been some significant developments with this company, which I'll go into more detail on the next slide. So let's talk about the recent developments across the portfolio. So as Will mentioned in his introduction, this was a landmark quarter for the funds portfolio with record increases in fair value tied to a range of significant corporate activity. Our conviction in ICEYE continues to be vindicated with another standout quarter as rapidly scaling defense revenues have driven valuation progression. Across the portfolio, there's been a breadth of positive momentum. So let's start with ICEYE, now 47% of NAV. They reported unaudited 2025 revenue of over EUR 250 million. EBITDA was in excess of EUR 100 million with a contracted order backlog of EUR 1.5 billion. This performance reflects continued strong growth, profitability and cash generation. Operationally, ICEYE launched a further 6 satellites during the period, bringing their total in orbit to over 70. The company also secured a number of new significant contracts, including the Polish Armed Forces and the Portuguese Air Force. As a reminder, we detailed in the last quarter's report some insights into our valuation methodology for ICEYE, which is based on applying a composite EV valuation multiple from a basket of more than 15 publicly traded comparables to blend ICEYE's trailing 12 months and next 12 months revenues. The material GBP 67 million uplift in ICEYE's valuation this quarter is primarily a reflection of the significant uplift in both ICEYE's trailing 12 months and the next 12 months revenue figures. This is reflective of a slew of large contract wins that ICEYE announced last year now starting to translate into recognized revenues. The composite multiples were also slightly up on the quarter-on-quarter, contributing to just 13% of the overall uplift in ICEYE's valuation, and that excludes the impact of FX. So on the assumption that these composite EV revenue multiples remain constant, we would expect further significant increases in ICEYE's fair value in the quarters ahead as these revenues that are in the backlog continue to be recognized and the company continues to win large contracts. Next of all, I'm going to talk about Xona Space Systems, which is now 6.7% of NAV. This is one of the companies that has been through our accelerator, our venture fund and is now in the SSIT growth fund. So they raised an oversubscribed $170 million C Series as the business scales production to deliver 258 satellite constellation focused on position, navigation and timing, so GPS services. This funding round resulted in a GBP 17.9 million uplift in the fair value of the holding. So we see Xona as one of the future stars of the portfolio and hopefully we'll see it follow the trajectory of ICEYE. Next up is HawkEye 360 at 9.8% of NAV. So they raised an extra $23 million following its $150 million E Series round that was announced in December 2025. So this money is supporting the integration of its recent acquisition of Innovative Signals Analysis. So this enhances its capabilities in signal processing, classified intelligence systems and further deepens its relationship with U.S. government agencies. But most importantly, post the period end, the company listed on the New York Stock Exchange on the 7th of May, raising a further $416 million. The shares opened at $33, which was above the $26 offer price, which implies a valuation of approximately $2.8 billion. So the fair value of HawkEye as at the 31st of March is reflective of the midpoint between the price of the Series E round and the $26 per share price at the IPO. So from next quarter, the valuation of HawkEye will be mark-to-market based on where its share price is trading at the quarter's close. And last but not least, ALL.SPACE, now 13.6% of NAV. So they closed their latest equity and debt funding round as previously reported and subsequently signed a definitive agreement to be acquired by York Space Systems in a $355 million cash and stock transaction. So completion of this acquisition remains subject to regulatory approvals in both the U.S. and the U.K. So given that a significant part of the so-called consideration is being issued in York stock, it's not possible to determine the valuation of the consideration to be received by SSIT from this disposal until such a time as this transaction completes. So the modest increase in fair value this quarter is primarily as a result of now fully reflecting the impact of the funding round that closed during the quarter. As a reminder, ALL.SPACE's valuation increased significantly last quarter as a result substantially of being the pricing of this equity round. So this strong performance in the period continued across the broader portfolio. So let's talk about LeoLabs next, 3.7% of NAV. So they secured a number of strategically important cross-government contracts for its orbital traffic coordination platform. This is reflecting growing demand from space domain awareness and traffic management capabilities. So this is complemented by a further contract win with the U.S. Space Force to advance their radar development, and this reinforces LeoLabs' position as the leading provider of space tracking and operational resilience infrastructure. So next of all, SatVu, and this is another one of the companies that's been through our accelerator into our Space Venture Fund and then more recently financed by the Space Growth Fund, SSIT. So this is now 2.6% of NAV. They've just raised $38 million in a new funding round. And the investment also came in from the NATO Innovation Fund and the British Business Bank to accelerate the deployment of its thermal intelligence satellite constellation. So operationally, the company successfully launched its second high-resolution infrared satellite at the end of March. And then in May, SatVu released its first imagery, demonstrating the ability to detect real-world industrial activity where they actually focused on Cuba, and this highlights a key differentiation. It's the capability to see what's actually operating, not just what exists. So this enables commercially actionable insights, including early warning indicators across energy, defense and many industrial markets. Tomorrow.io, they completed the $175 million financing round, which was led by StoneCourt Capital and HarbourVest, a valuation that exceeded $1 billion. The proceeds will support the continued development of DeepSky, which is its AI-native weather satellite constellation. The company is scaling both its space-based infrastructure and its AI-driven weather intelligence platform with a focus on delivering mission-critical insights across sectors such as aviation, defense, logistics and energy. And then finally, Voyager. So Voyager secured a follow-on multi-million dollar NASA contract under the Expendable Launch Vehicle Integrated Support program, which supports launch services for robotic science and exploration missions. In addition, they were also selected by NASA to support the seventh Private Astronaut Mission to the International Space Station, which will happen early in 2028. And this really evidences both Voyager and the broader commercial sectors a growing role in this new market. So a lot going on in the post period this time. And we've already covered the trade sale of ALL.SPACE and the public IPO of HawkEye 360. So I'll focus on the C share issue. So on the 7th of May, SSIT announced the successful completion of GBP 137 million capital raise through the issuance of C shares. So this represented a significant milestone for the company and a clear endorsement both of the strategy and of the recent performance. The raise attracted strong support from existing shareholders, whilst also broadening the register through the introduction of high-quality new investors. Participations fund a diverse investor base, including leading endowment funds, institutional investors, family offices, wealth managers and, of course, alongside robust demand from the retail segment. Importantly, the transaction provides the company with substantial additional firepower to capitalize on a deep pipeline of investment opportunities. And this is at a time when space and defense technology ecosystem is experiencing an acceleration through structural demand. It also reinforces SSIT's position as the leading listed vehicle for gaining access to this asset class. The successful execution of the C share issuance further underlines the strength of investor appetite for differentiated high-growth exposure and supports our confidence in the company's ability to maintain a premium rating. So this slide provides a snapshot of the portfolio and highlights a number of important structural characteristics. So starting with the ecosystem breakdown on the top right, platform businesses, specifically satellite constellations. They remain the key segment, now representing more than 2/3 of the total value. These companies are building scalable digital infrastructure in orbit, enabling the delivery of high-value data and connectivity from large fleets of low-cost satellites. Today, the primary customer for these capabilities is the defense sector, reflecting the significant and sustained increase in defense spending since the outbreak of the war in the Ukraine and the growing strategic importance of space-based intelligence and resilience. From a geographic perspective, Europe represents about half of the portfolio with the U.S. comprising the majority of the remainder. This is following the ALL.SPACE reincorporating in the U.S. as part of its recent funding round. In terms of stage, bottom left doughnuts, the portfolio is now firmly weighted towards later-stage growth with approximately 75% of the value invested in the Series D and -- Series C and Series D rounds. This reflects a deliberate shift towards scaling revenue-generating businesses with a clear pathway towards liquidity. So turning to the NAV composition, the right-hand side table, the top 10 holdings account for approximately 98% of NAV with ICEYE by itself representative of 47% of NAV. As I mentioned earlier, we're comfortable with this level of capital concentration. It's aligned to our conviction-led investment approach and is reflective of the breakout success ICEYE in particular, has had over the last year, but there's plenty more to come. This is a high conviction, late-stage portfolio concentrated in category leaders of a structurally growing market. It positions SSIT to translate the sector tailwinds into sustained NAV growth and long-term share price outperformance. So this is now my final slide, and I really wanted to use this as a sort of wrap-up to talk about the broader industry. The space domain is no longer a niche or a speculative technology vertical. It's rapidly becoming a core layer of global infrastructure, and it sits alongside energy, defense and digital networks in strategic importance. What has changed is not just scale, but purpose. Space is now fundamentally about sovereignty, security and data control. It's not simply about exploration and connectivity as it has in the past. The most important shift, and this is central to Seraphim's lens, is that defense and national security now anchor the market where governments are deploying proliferated LEO constellations for missile warning, for communication, and for ISR. So sovereign programs in the U.S., in Europe, in Japan, in the Middle East, they're all prioritizing independent space capability. Space has become operationally decisive as demonstrated in the Ukraine, where satellite data and connectivity has become mission-critical. This has got 3 implications. One, demand is structural and long term. It's not cyclical. Two, procurement is increasingly budget backed. It's not discretionary. And number three, commercial companies are becoming embedded in defense architectures. They're not just suppliers. So I can't conclude my part of the presentation without mentioning the SpaceX IPO, set to become one of the largest listings ever, and potentially a sector-defining price discovery event for the entire space economy, making the sector more mainstream investable and lifting sentiment, liquidity and coverage. So given SSIT's position as a listed vehicle providing diversified access to the venture-backed SpaceTech ecosystem, we would hope that both SSIT and its portfolio will benefit from this seismic shift. So that ends my presentation. We'll now open for Q&A.

Fantastic, Mark. Thank you very much indeed for your present remitted. [Operator Instructions] I'd like to remind you the recording of the presentation along with a copy of the slide can be accessed via the Investor Meet Company platform. James, if I may, obviously, we've had a number of questions submitted both prior to the presentation, throughout today's presentation. Thanks to all the investors for submitting those. If I could just ask you to read out the questions where appropriate to do so, and I'll pick up from you at the end, and Will, I'll just pop your camera back on as well.

Thanks. So first question is, what does the pathway to profitability look like for your largest holdings? How will they convert IPO and revenue momentum into cash profits for shareholders? So in terms of pathway to profitability, the guidance that we provided at the time of the C share issuance is that companies reflective of 85% of NAV that was last quarter's NAV are either already profitable or projecting to be profitable this year. And I think the guidance we can give, if you look at our biggest holdings, including the likes of ICEYE and HawkEye is that a majority of the NAV as at 31st of March is in companies that are already EBITDA profitable. So we've seen a significant transition in the last year or so of companies becoming profitable already. How they can convert IP and revenue momentum into cash profits for shareholders? Well, as a reminder, as an investment trust, clearly, our shareholders hopefully make a return from seeing share price appreciation in SSIT, which is tied to NAV appreciation. So we're not necessarily looking to sell down positions in companies at the point that they go public. Next question, I've got a number of questions here on portfolio that I suggest we take together. When can we expect to see a more realistic potential investor market valuation of ICEYE rather than its current funding valuation only? So just to clarify on that, our valuation of ICEYE is not based on the price of the last round. As reported last quarter, we transitioned back to valuing ICEYE on the basis of a composite of EV revenue multiples based on a basket of more than 15 listed comparators. And we've done that on the basis of the business having gone through major inflection points since its last funding round, most specifically, of course, the EUR 1.7 billion contract that they signed via the joint venture with Rheinmetall with the German military. And I think Mark has provided more context around the changes quarter-on-quarter and the basis of that. Next question also on ICEYE. What is the TAM, total addressable market for ICEYE? And what realistic share can they achieve and within what time frame? So I think the short answer to that is we have seen, as Mark has alluded to, some very significant structural shifts in the market that the likes of ICEYE is addressing, namely increasing demand for sovereign space-based capabilities from nation states around the world. What's the scale of that opportunity? I think it is measured in significant billions. How much of that is ICEYE able to capture? Well, clearly, within the context of radar satellites, they are by some magnitude, the biggest player globally and have won the lion's share of those contracts that have been awarded to date. And again, as we've talked about in this presentation, we see that opportunity set accelerating for the company, both in the short and medium term. Next question is on ALL.SPACE. When is cash expected back from the ALL.SPACE disposal for SSIT to redeploy? So to be clear, the disposal to York Space has not yet closed. It's pending regulatory approval in both the U.S. and U.K. And the consideration that will be paid to ALL.SPACE shareholders, including SSIT, will be a combination of cash and shares in York Space and some of that cash will be coming to shareholders as and when the transaction is actually consummated, timing of which remains in the hands of regulators. Next question is on SatVu. When is SatVu expected to launch its next satellite? Is it Q3, i.e., next quarter? So the latest status on SatVu's next satellite is that it's built, it's being tested and should be ready to launch in the short term. Timing of when it will be launched remains subject to the availability of capacity from its launch partner, SpaceX and the timing of SpaceX's rocket launches, which do tend to sort of vary somewhat month-to-month. No specific timing has been published around that. Can you please give us some sense of the magnitude and timing of the new investment pipeline for the C share issue. I think there's another C share issue question, which I'll join together. What share of the C fund are you currently expecting to be invested in either completely new investments or follow-on investments already held in the ordinary fund? So in terms of the magnitude and timing of the investment pipeline, as we reported at the time of raising the C shares, we have a prequalified pipeline of about 50 companies across both SSIT's existing portfolio, Seraphim's wider portfolio and new opportunities that collectively equate to about $1 billion worth of investment potential. In the few short weeks that we've had post raising the C share, we're now actively working on about half a dozen different investment opportunities with a view to consummating those in the quarter ahead. How does that break down between new and follow-on? And the first cohort of investments is more weighted to follow-on opportunities within existing SSIT portfolio companies and opportunities to invest in the growth rounds of some of the venture portfolio key highest performing companies with a handful of new companies. And over time, we'd expect that to probably transition to being more of a balance between follow-on within existing Seraphim Group portfolio and new ones. And then I think the last question that we've got is, when do you expect to join the FTSE 250? And do you expect that to be beneficial or detrimental? Mark, do you want to take that one as the last one?

Yes, it's during the course of this week. And we think it's a very positive next step for Seraphim. All of the sort of index buyers are going to be acquiring the shares, which we think will provide a sort of short-term uplift in value. It also exposes Seraphim to a broader group of investors, which we think in due course will lead to more new names joining the cap table. So yes, we think net-net, it's positive.

Fantastic. James, Mark, both thanks indeed for taking those questions you can from investors, of course. Company can review all questions submitted and publish responses where appropriate to do so on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to you and the team. Mark, if I may just ask you for a few closing comments please.

Yes, absolutely. Well, thank you, first of all, everyone, for your time today. Hopefully, from the presentation, you've identified that the investment case for space has fundamentally changed. The space is no longer a niche or speculative technology theme. It's becoming a core layer of global infrastructure. So it's increasingly central to sovereignty, security, communication and data control. So defense and national security as anchor customers to the sector, demand is becoming much more structural and it's budget backed, which makes it much more durable. So against this backdrop, SSIT is uniquely positioned. We've got a diversified portfolio of the global category-leading companies. So these results witness the NAV generation of companies like ICEYE. M&A and IPOs are actually happening with more to come. Growth is widespread. And most importantly, we see a clear path for continued material NAV growth with visibility of strong growth next quarter and beyond. So thank you all for your time today and your continued support.

Fantastic. Thank you all for updating investors today. Can I please ask investors not to close this session to be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete and it's greatly valued by the company. On behalf of the management team of Seraphim Space Investment Trust Plc, I'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.