London, UK, 4 August 2022

Edison issues review on Seraphim Space Investment Trust (SSIT)

So far in 2022 long-duration growth stocks have seen a significant de-rating due to a variety of reasons such as the war in Ukraine, supply chain issues and monetary contraction as interest rates have risen to counter soaring inflation. Seraphim Space Investment Trust's (SSIT's) share price has been hard hit given the relatively early-stage growth companies into which it invests. However, the long-term secular drivers of demand for the industries that space technology enables, such as defence and climate change mitigation, have, if anything, come into sharper focus in 2022 with the war in Ukraine and notable climate events such as flooding and prolonged heat waves. It is also important to separate the current market sentiment towards such companies and their operational performance and balance sheet strength. Average revenues across the top 10 portfolio positions (which accounted for 91% of the 31 March 2022 NAV) grew at 58% y-o-y to June 2022, while bookings increased by 77% over the same period. In addition, the majority of SSIT's portfolio is fully funded through June 2023, mitigating the need to raise additional finance in less favourable capital markets.

While the share price has declined substantially versus the 31 March 2022 NAV of 104.7p, the fundamental attractiveness of the addressable market and investment proposition has not diminished. Arguably, the long-term drivers of the investment case have become even more relevant with the events surrounding the war in Ukraine and various environmental disasters experienced around the world in 2022. We would highlight to investors the improving operational performance of the underlying companies, the £57.7m of cash (23% of 31 March 2022 NAV) held within SSIT and the on average five quarters of cash runway within the top 10 portfolio positions, allowing these entities to ride out the volatility in markets. It is also worth noting that SSIT is not structurally geared. The NAV for the end of June 2022 will be published in October when we will provide investors with a further update. 

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

David Holder +44 (0)20 3077 5700 [email protected]

Andy Chambers +44 (0)20 3077 5700 [email protected]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-group-/

Twitter           www.twitter.com/Edison_Inv_Res

YouTube       www.youtube.com/edisonitv