SERAPHIM SPACE INVESTMENT TRUST PLC
(the "Company" or "SSIT")

Full Year Results

Seraphim Space Investment Trust plc (LSE: SSIT), the world's first listed SpaceTech investment company, announces its results for the financial year ended 30 June 2025.

The Annual Report and Accounts can be found here. A summary is set out below.

Financial Summary

¹ Alternative performance measure - see Alternative Performance Measures on pages 135 and 136 of the full report.

Full Year Highlights

·      Portfolio valuation up by £58.3m (28.9%) to £259.8m at 30 June 2025, with additional investments and increased fair value net gains driven by defence tailwinds (particularly from the Company's largest holding, ICEYE, which doubled in value) partially offset by disposals and FX losses.

·      £14.2m deployed in one new portfolio company and six existing portfolio companies.

·      The private portfolio, which comprises an increasing part of the Company's investments, representing 96.4% of fair value and 89.1% of NAV at 30 June 2025, performed solidly, with its fair value closing the year at 155.8% vs. cost (162.8% excluding FX losses). In aggregate, the fair value of the private portfolio (excluding Voyager, which went public during the year) increased 33.4% over the year.

·      66% of the portfolio by fair value has a robust cash runway, with 58% fully funded and 8% funded for 12 months or more from 30 June 2025, including raises completed post period end.

·      The private holdings continued to deliver on key milestones, and a number have seen substantial revenue growth, leading to their management teams expecting them to become EBITDA profitable before the end of 2025. 

·      In the year, the Company received £12.5m in proceeds from disposals. Astroscale went public on the Tokyo Stock Exchange on 5 June 2024, and on 10 April 2025, SSIT exercised the options it held in AST SpaceMobile and disposed of some of its holding.

·      Cash balance of £21.5m at year end.

Acquisitions Completed During the Year

Acquisitions

Portfolio Company Developments During the Year

Major Funding Rounds

·      ICEYE (37.4% of NAV at 30 June 2025) closed $65m extension to bring Series E round led by Solidium to $158m.

·      D-Orbit (11.9% of NAV) completed second close to bring Series C round led by Marubeni to €150m.

·      Xona Space Systems (3.7% of NAV) raised $92m Series B round led by Craft Ventures with participation from SSIT.

·      Skylo (1.6% of NAV) closed $30m Series B round led by NGP Capital and Westly Group, including a follow-on investment by SSIT.

·      Pixxel (1.2% of NAV) closed $24m Series B round extension from new investors including M&G Investments and Glode Brook Capital Partners.

·      AST SpaceMobile (0.3% of NAV) completed the redemption of existing warrants and two at-the-market equity financings to raise over $800m in equity. In addition, issued $460m in convertible senior notes.   

Major Operational Milestones

·      ICEYE (37.4% of NAV) saw significant demand for its Synthetic Aperture Radar capabilities from defence customers, signing multiple nine figure contracts with nation states, including a €200m deal with the Polish Ministry of Defence. Announced collaborations with Rheinmetall (Europe) and IHI (Japan).

·      D-Orbit (11.9% of NAV) extended its market leadership through launching its 19th successful space taxi, with a double mission in June. Signed a €120m contract with the European Space Agency to develop servicing capabilities for GEO satellites.

·      HawkEye 360 (7.3% of NAV) successfully launched its 11th cluster of satellites, further building its sector leadership in radio frequency signals intelligence for defence customers globally.

·      Xona Space Systems (3.7% of NAV) successfully launched its first production satellite and delivered first live-sky navigation signals.

·      Skylo (1.6% of NAV) service went live in the US with partner Verizon, the largest mobile phone carrier, connecting its customers' Samsung phones with the Skylo satellite network.

·      Tomorrow.io (1.3% of NAV)  successfully launched and commissioned the second batch of its two microwave sounder satellites.

·      Pixxel (1.2% of NAV) launched its first three commercial satellites for its hyperspectral imaging constellation.

·      Spire Global (0.9% of NAV) sold its commercial maritime tracking business for $241m to Belgian analytics provider Kpler.

·      AST SpaceMobile (0.3% of NAV) successfully deployed and commissioned its first five commercial satellites. Successfully tested its service with mobile phone carriers including Vodafone. Received first radio spectrum to enable first responder solutions. Included in the US Large-Cap Russell 1000® Index.

IPO and M&A:

·      D-Orbit (11.9% of NAV) completed the acquisition of the geospatial analytics business Planetek Group.

·      Voyager (1.1% of NAV) completed an oversubscribed IPO on New York Stock Exchange in June 2025 raising $382.8m in the process.

Post Period Events

·      ALL.SPACE: the Company invested a further $1.5m in additional bridge financing alongside other existing investors in August 2025.

·      Arqit: the Company fully exited its holding on the back of a share price rally in early October 2025, when the price reached levels not seen since February 2023. £3.3m proceeds were received for the holding which was valued at £2.4m at 30 June 2025. However, the sale price was 15% of the initial Sterling cost of the holding.

·      Spire Global: the Company fully exited its holding in October 2025. While the sale was completed at 29% of the original Sterling cost, it was at a higher Sterling price than that used to determine fair value on 30 June 2025 (by 15%). The Company realised £2.9m in cash on the back of the sale (vs. fair value at 30 June 2025 of £2.5m).

·      HawkEye 360: successfully launched its 12th satellite cluster aboard Rocket Lab's Electron rocket in July 2025, further expanding its commercial radio frequency geolocation constellation and capabilities.

·      Pixxel: won a contract to build India's National Earth Observation constellation.

·      Altitude Angel: on 7 October 2025, the company appointed joint administrators after an acquisition process to sell the company unexpectedly fell through at a very late stage in the process. As a very small holding, this has a negligible impact on the Company's NAV as at 30 June 2025.

Will Whitehorn OBE, Chair of Seraphim Space Investment Trust plc, commented: 

'The past year has been one of profound change, both globally and within the space sector. The change in the US presidency has triggered major geopolitical shifts, reverberating through the space industry. As 'Pax Americana' dwindles, we are witnessing potentially the most significant geopolitical shift since World War II. The US's changing priorities have prompted Europe to recognise the urgency of greater responsibility and autonomy for its own security. Governments worldwide are striving for greater security sovereignty, with SpaceTech at the forefront. Record defence budgets are driving huge demand for cutting-edge SpaceTech capabilities.

SSIT's portfolio has significantly benefited from this evolving landscape over the past year. Key holdings have seen substantial traction, profits and valuation uplifts, most significantly, ICEYE which has doubled in value over the last year on the back of a string of major commercial successes. With a well-funded portfolio and fund liquidity boosted through further IPOs and sell-downs of listed holdings, the SSIT portfolio is well-positioned to continue benefiting from favourable market conditions.'

Mark Boggett, Chief Executive Officer, Seraphim Space Manager LLP, said: 

"The past year has marked a profound inflection point for the portfolio, shaped by the tectonic shifts in global geopolitics and the accelerating rearmament of Europe in the wake of the waning 'Pax Americana'. As nations recalibrate their strategic autonomy and invest heavily in sovereign capabilities, demand for advanced space-based intelligence and surveillance has surged and is driving sustained growth across many of the Company's core holdings.

This geopolitical realignment has catalysed a new era of profitability for key portfolio companies. ICEYE and HawkEye 360, emblematic of this transformation, are now delivering consistent quarter-on-quarter profits, reflecting both operational maturity and strategic relevance. As a result, we have changed the valuation methodology of both holdings to a comparable multiples approach using EV/revenue multiples. The portfolio has also benefited from robust capital inflows, with more than $390 million raised by private companies and a successful IPO for Voyager, signalling strong investor confidence in the sector's trajectory amid heightened security imperatives.

While market volatility has impacted a handful of smaller holdings, these effects have been largely confined to underperformers. The portfolio remains well-capitalised, and the majority of companies are on track to scale, leading the Company to a position where it can thrive in a world where space and defence technologies are no longer peripheral, but central to national resilience."

Analyst and Investor Presentations

There will be a webinar for equity analysts at 09:30 (UK time) today and an online presentation for retail investors at 11:00 (UK time) today. To register for either event, please contact SEC Newgate by email at seraphim@secnewgate.co.uk.

Both presentations will be hosted by the Chair, Will Whitehorn and Seraphim Space Manager LLP's CEO Mark Boggett, CIO James Bruegger and COO Sarah Shackleton.

Capital Markets Day

The Company will be hosting a Capital Markets Day in London on Wednesday, 26 November 2025. To register to attend, please contact: seraphim@secnewgate.co.uk.

- Ends -

Media Enquiries

Notes to Editors

About Seraphim Space Investment Trust plc

Seraphim Space Investment Trust plc (the "Company") is the world's first listed fund focused on SpaceTech. The Company seeks exposure predominantly to 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 Company is listed on the Main Market of the London Stock Exchange.

Further information is available at: https://investors.seraphim.vc.

About Seraphim Space Manager LLP

Seraphim Space Manager LLP ("Seraphim Space" or the "Manager") is based in the UK and manages Seraphim Space Investment Trust plc.

Further information is available at www.seraphim.vc

Investment Manager

The Company is managed by Seraphim Space Manager LLP (the 'Investment Manager' or 'Seraphim Space'), the world's most prolific SpaceTech investment group. The Investment Manager's team consists of seasoned venture capitalists and some of the space sector's most successful entrepreneurs who scaled their businesses to multi-billion Dollar outcomes.

The Investment Manager has supported more than 140 SpaceTech companies across its fund management and accelerator activities since 2016 and has a proven track record of delivering value.

Positioned at the heart of the global SpaceTech ecosystem, the Investment Manager has a differentiated model, using information asymmetry generated from its global deal flow, partnerships with leading industry players and primary research to back the most notable emerging SpaceTech companies shaping a new industrial revolution.

The Investment Manager is a signatory to the UN Principles for Responsible Investment ('UN PRI'). Its first UN PRI report was filed in 2024.

Key Highlights
As at 30 June 2025

Key Performance Indicators

For the year ended 30 June 2025

Financial Summary

¹ Alternative performance measure - see Alternative Performance Measures below.

Portfolio Snapshot

As at 30 June 2025

¹ Holdings that listed as part of SPAC transactions before being acquired by the Company have experienced poor price performance over the last several years (fair value vs. cost: 17.7%) compared to those holdings that have had IPOs since their acquisition by the Company (fair value vs. cost: 103.4%).

² Source: Portfolio company data and management projections.

³ Between 1 July 2024 and 30 June 2025.

⁴ Fair value weighted average (as defined in the Glossary) number of months of cash runway from 30 June 2025 for the private portfolio companies that are not fully funded, representing 39% of the portfolio fair value, taking into account cash as at year end and any fundraising raised post year end (30 June 2024: 33% of the portfolio fair value was not fully funded).

Portfolio Key Developments

1.     Major funding rounds

·      ICEYE: Closed $65m extension to bring Series E round led by Solidium to $158m.

·      D-Orbit: Completed second close to bring Series C round led by Marubeni to €150m.

·      Xona Space Systems: Raised $92m Series B round led by Craft Ventures with participation from SSIT.

·      Skylo: Closed $30m Series B led by NGP Capital and Westly Group, including a follow-on investment by SSIT.

·      Pixxel: Closed $24m Series B extension from new investors including M&G Investments and Glode Brook Capital Partners.

·      AST SpaceMobile: Completed the redemption of existing warrants and two at-the-market equity financings during the period to raise over $800m in equity. In addition, issued $460m in convertible senior notes.

2.     Major milestones

·      ICEYE: Saw significant demand for its SAR capabilities from defence customers, signing multiple nine figure contracts with nation states, including a €200m deal with the Polish Ministry of Defence. Announced collaborations with Rheinmetall (Europe) and IHI (Japan).

·      D-Orbit: Extended its market leadership through launching its 19th successful space taxi with a double mission in June 2025. Signed a €120m contract with the European Space Agency to develop servicing capabilities for GEO satellites.

·      HawkEye 360: Successfully launched its 11th cluster of satellites, further building its sector leadership in radio frequency signals intelligence for defence customers globally.

·      Xona Space Systems: Successfully launched its first production satellite and delivered first live-sky navigation signals.

·      Skylo: Service went live in the US with partner Verizon, the US's largest mobile phone carrier, connecting its customers' Samsung phones with the Skylo satellite network.

·      Tomorrow.io: Successfully launched and commissioned the second batch of its two microwave sounder satellites.

·      Pixxel: Successfully launched the first three commercial satellites for its hyperspectral imaging constellation.

·      Spire Global: Sold its commercial maritime tracking business for $241m to Belgian analytics provider Kpler.

·      AST SpaceMobile: Successfully deployed and commissioned its first five commercial satellites. Successfully tested its service with mobile phone carriers including Vodafone. Received first radio spectrum to enable first responder solutions. Included in the US Large-Cap Russell 1000® Index.

3.     IPOs, M&A, Exits

·      D-Orbit: Completed the acquisition of geospatial analytics business Planetek Group.

·      Voyager: Successfully completed an oversubscribed IPO on New York Stock Exchange in June 2025 raising $382.8m in the process.

Significant Sector Events

The space sector continued to expand rapidly throughout the year, marked by record commercial activity, major policy developments and significant milestones. Geopolitical interest in space remains high, with countries and private actors alike accelerating investment and innovation.

Sep 24: SpaceX launched the Polaris Dawn mission, carrying four private astronauts aboard its Crew Dragon capsule. The mission marked the furthest humans have travelled since Apollo and the first-ever commercial spacewalk by private astronauts.

Sep 24: Boeing's Starliner capsule returned uncrewed from the International Space Station due to technical issues, ending its Crew Flight Test. NASA astronauts remained aboard awaiting alternative return.

Oct 24: SpaceX conducted Starship Flight Test 5, featuring the first successful booster recovery using the 'Mechazilla' tower system.

Dec 24: Airbus, Leonardo and Thales initiated talks to form a European satellite venture aiming to rival Elon Musk's Starlink.

Jan 25: Blue Origin successfully launched its New Glenn rocket from Cape Canaveral, marking a significant milestone in the space race against SpaceX.

Mar 25: NASA astronauts Wilmore and Williams returned to Earth onboard SpaceX's Crew-9 mission after being stranded on the International Space Station for nine months due to Boeing Starliner delays.

Mar 25: Firefly Aerospace's Blue Ghost lander successfully soft-landed on the moon's Mare Crisium region, becoming the first private company to achieve a fully successful lunar landing.

Jun 25: The European Commission unveiled the draft EU Space Act aimed at harmonising space regulation across member states, enhancing safety, sustainability and market access.

Chair's Statement

'The past year has been one of profound change, both globally and within the space sector. The change in the US presidency has triggered major geopolitical shifts, reverberating through the space industry. As 'Pax Americana' dwindles, we are witnessing potentially the most significant geopolitical shift since World War II. The US's changing priorities have prompted Europe to recognise the urgency of greater responsibility and autonomy for its own security. Governments worldwide are striving for greater security sovereignty, with SpaceTech at the forefront. Record defence budgets are driving huge demand for cutting-edge SpaceTech capabilities.

SSIT's portfolio has significantly benefited from this evolving landscape over the past year. Key holdings have seen substantial traction, profits and valuation uplifts, most significantly, ICEYE which has doubled in value over the last year on the back of a string of major commercial successes. With a well-funded portfolio and fund liquidity boosted through further IPOs and sell-downs of listed holdings, the SSIT portfolio is well-positioned to continue benefiting from favourable market conditions.'

Will Whitehorn

Chair

I am pleased to present the fourth Annual Report of Seraphim Space Investment Trust PLC for the year ended 30 June 2025.

I would like to thank all shareholders for their ongoing support, despite the continuing macroeconomic and geopolitical challenges.

Progress in the Year

During the year, the Company invested £14.2m in one new portfolio company and six existing portfolio companies, leading to a portfolio of 25 active SpaceTech companies and the investment in the Seraphim Space Ventures II LP fund, valued at £259.8m at 30 June 2025 (2024: 24 active companies and the VC Fund, £201.5m). In addition, the Company also made a number of disposals from its listed portfolio during the year, realising £12.5m in proceeds versus a total cost of the shares sold of £9.8m. This resulted in the Company holding £21.5m (2024: £27.0m) of cash reserves at the year end.

As outlined in my reports for previous periods, the Company continues to reserve cash to support existing portfolio companies whilst continuing to actively seek to invest modest amounts in new target companies. As explained in the Investment Manager's Report, overall, the portfolio continues to be well capitalised, with a number of management teams of portfolio companies believing their companies are already fully funded and/or expected to be EBITDA positive in the near term. A detailed review of the performance of the portfolio companies can be found in the Investment Manager's Report.

NAV

Net asset year-over-year growth of 23.2%, from £228.1m to £281.1m at 30 June 2025 was driven predominantly by an increase in the fair value of the portfolio, which was partially offset by running costs. The NAV per share increased by 23.2%, from 96.18p to 118.52p at the year end, driven by the portfolio fair value increase.

The private companies in the portfolio continue to account for the majority of the portfolio (80.8% by number of portfolio companies and 96.4% by fair value). The fair value of the private portfolio (excluding Voyager which listed during the year) increased 33.4% over the year, reaching 155.8% vs. cost (162.8% excluding FX impact) at the year end.

The listed element of the portfolio remained depressed at 25.8% fair value vs. cost[1] (29.1% excluding FX impact). During the year, the Company disposed of 95% of its holding in AST SpaceMobile, whose price was one of the strongest performing of the listed holdings during the year.

FX losses accounted for £12.3m (-5.20p per share) in the year.

Share Price

The Company's share price showed significant positive momentum during the year, reaching 85.6p on 30 June 2025, an increase of 56.8% from 54.6p at 30 June 2024. While the share price remained depressed, at a discount of 27.8% vs. the NAV per share at the year end, there has been a narrowing of the discount over the year (30 June 2024: -43.2%), reflecting positive momentum for defence-related stocks following announcements of increased defence spend particularly in Europe (as explained in the 'Market overview' section).

Capital Allocation Policy

Each year, the Company seeks shareholder approval at the AGM to have the ability to repurchase shares. Similar to its peers in the market, the Company continues to trade at a discount to NAV, although, as noted above, this discount narrowed materially over the year. A buy-back of shares is usually in the interests of all shareholders as it helps to stabilise the share price, and, when trading at a substantial discount to NAV, it also increases NAV per share. However, it also reduces the liquid resources of the Company and results in the capital that has been used for buy-backs no longer being available for investments.

The Board regularly considers multiple factors to determine the best use of the Company's capital, including the positive impact on NAV per share from buy-backs, the opportunity cost of using capital for buy-backs, potential returns from investments and the benefits of supporting portfolio companies through follow-on investment. The latter was the primary use of the Company's capital in the year. In addition, the Company also disposed of listed holdings during the year to increase its liquid resources.

Earnings and Dividend

The Company made a gain after tax of £53.0m for the year (2024: £6.7m), equal to 22.33p (2024: 2.83p) per share, made up of a revenue loss after tax of £3.6m (2024: loss of £3.7m), equal to -1.52p (2024: -1.57p) per share, and a capital gain after tax of £56.6m (2024: £10.5m), equal to 23.85p (2024: 4.40p) per share.

Due to the nature of the Company's investments and its focus on achieving capital growth over the long term, we do not anticipate recommending payment of a dividend in the foreseeable future.

Responsible Investment

During the year, the Investment Manager continued to use its proprietary due diligence tool in order to assess sustainability opportunities and ESG risks associated with each potential investment, as well as annually monitoring existing investments. In addition, the Investment Manager completed its second carbon footprint assessment, achieving carbon neutrality for the year ended 31 March 2025 by retiring 258 tCO₂e (2024: 263 tCO₂e) in accordance with the One Carbon World Carbon Neutral International Standard. Please refer to the Responsible Investment section for more details.

Availability of Annual Reports

In the interests of the environment and for ease of access, Annual Reports are available on the Company's website and can be viewed and downloaded at https://investors.seraphim.vc/. Copies of Annual Reports will only be available on request.

Annual General Meeting

The AGM of the Company will be held at 11.00 a.m. on 25 November 2025 at Seraphim Space's offices, 1 Fleet Place, London, EC4M 7WS (GPS postcode EC4M 7RA). The AGM will include a presentation from the Investment Manager (a video of the presentation will be added to the website as soon as practicable after the AGM). Details of the resolutions to be proposed at the AGM, together with explanations, will be included in the notice of meeting to be distributed to shareholders on 21 October 2025. As a matter of good practice, all resolutions will be conducted on a poll and the results will be announced to the market as soon as possible after the AGM.

The Directors and representatives of the Investment Manager will be available at the AGM (either in person or via video conference) to answer shareholder questions. We do recognise that some shareholders may be unable to come to the AGM and, if you have any questions about the Annual Report, the investment portfolio or any other matter relevant to the Company, please write to us via email at seraphimteam@ocorian.com or by post to The Company Secretary, Seraphim Space Investment Trust PLC, 5^th Floor, 20 Fenchurch Street, London, EC3M 3BY. If you are unable to attend the AGM, I urge you to submit your proxy votes in good time for the meeting, following the instructions on the proxy form. If you vote against any of the resolutions, we would be interested to hear from you so that we can understand the reasons behind any objections.

Material events After the Year End

·      ALL.SPACE: the Company invested a further $1.5m in additional bridge financing alongside other existing investors in August 2025.

·      Arqit: the Company fully exited its holding in Arqit on the back of a share price rally in early October 2025, when the price reached levels not seen since February 2023. £3.3m proceeds were received for the holding which was valued at £2.4m on 30 June 2025. However, the sale price was 15% of the initial Sterling cost of the holding.

·      Spire Global: the Company fully exited its holding in Spire Global in October 2025. While the sale was completed at 29% of the original Sterling cost, it was at a higher Sterling price than that used to determine fair value on 30 June 2025 (by 15%). The Company realised £2.9m in cash on the back of the sale (vs. fair value at 30 June 2025 of £2.5m).

·      HawkEye 360: successfully launched its 12th satellite cluster aboard Rocket Lab's Electron rocket in July 2025, further expanding its commercial radio frequency geolocation constellation and capabilities.

·      Pixxel: won a contract to build India's National Earth Observation constellation.

·      Altitude Angel: on 7 October 2025, the company appointed joint administrators after an acquisition process to sell the company unexpectedly fell through at a very late stage in the process. As a very small holding, this has a negligible impact of the Company's NAV as at 30 June 2025.

Outlook

The outlook for the year ahead within the space sector appears once again to be positive, driven by increasing defence budgets. Europe has committed €1 trillion in new defence budgets which are now being allocated, with space expected to be a major beneficiary. The US federal government is also expected to pass a new defence budget surpassing $1 trillion for the first time, with space identified as a strategic focus and greater prominence is expected to be given to commercial players.

Despite broader economic volatility and fears of trade wars impacting capital markets, SpaceTech investment is set to continue growing rapidly, with strong-performing companies likely to attract the capital required to meet surging customer demand. There are early signs of improved public market investor appetite for space-related companies with three recent IPOs, including portfolio company Voyager, successfully raising new money. Consequently, we expect our key holdings to continue strengthening and thriving in the year ahead.

Will Whitehorn  

Chair

17 October 2025

Investment Manager's Report

'The past year has marked a profound inflection point for the portfolio, shaped by the tectonic shifts in global geopolitics and the accelerating rearmament of Europe in the wake of the waning 'Pax Americana'. As nations recalibrate their strategic autonomy and invest heavily in sovereign capabilities, demand for advanced space-based intelligence and surveillance has surged and is driving sustained growth across many of the Company's core holdings.

This geopolitical realignment has catalysed a new era of profitability for key portfolio companies. ICEYE and HawkEye 360, emblematic of this transformation, are now delivering consistent quarter-on-quarter profits, reflecting both operational maturity and strategic relevance. As a result, we have changed the valuation methodology of both holdings to a comparable multiples approach using EV/revenue multiples. The portfolio has also benefited from robust capital inflows, with more than $390 million raised by private companies and a successful IPO for Voyager, signalling strong investor confidence in the sector's trajectory amid heightened security imperatives.

While market volatility has impacted a handful of smaller holdings, these effects have been largely confined to underperformers. The portfolio remains well-capitalised, and the majority of companies are on track to scale, leading the Company to a position where it can thrive in a world where space and defence technologies are no longer peripheral, but central to national resilience.'

Mark Boggett

CEO, Seraphim Space Manager LLP

Overview

FY2024/25 was marked by an evolving macroeconomic landscape. Amid ongoing uncertainty and the continued Ukraine-Russia war, the inauguration of the new US administration in January 2025 signalled a notable shift in previously held global norms.

As a result, we have seen increasing uncertainty resulting in a potentially unprecedented shift of mindset in the outlook of other global powers, including Europe. To prepare for this new world order, major actors, including the US, the EU and NATO, have significantly increased their defence budgets.

This has produced good tailwinds for SSIT's portfolio given the significant role SpaceTech is playing in modern defence across multiple verticals such as secure communication, intelligence gathering and global positioning systems. Related publicly-listed defence and space companies have seen strong share price performance since the beginning of the year and select companies, including SSIT portfolio company Voyager, have seen successful IPOs in America.

As a reaction to the geopolitical and macroeconomic realities over recent years, we previously evolved our strategy to preserve liquid resources given an adverse fundraising environment. During the year, the focus remained on protecting and growing existing portfolio value, including, very selectively, making new and follow-on investments. In addition, we carefully monitored and, when appropriate, took advantage of divestment opportunities.

We are pleased to report that 17 of the companies in SSIT's portfolio at the start of the year successfully secured additional funding during the year, raising approximately $2.1bn in total. Notably, the majority of these rounds were led by new investors joining existing syndicates. While capital raised by SSIT's private portfolio companies declined to more than $390m (2024: more than $540m), this reflects the increasing maturity of the portfolio, with a growing number of companies now fully funded.

More specifically, and a testament to the further maturing of the portfolio, the management teams of eight of SSIT's portfolio companies, representing 58% of the fair value of the portfolio, believe their companies are fully funded based on their latest projections. In a similar vein, management teams representing a majority of the fair value of the portfolio expect their companies to reach EBITDA profitability by the end of 2025.

On the investment side, SSIT participated in select funding rounds across its portfolio, most notably doubling down on Skylo with an additional investment in its Series B round. SSIT also made a new $5m investment in US-based company Zeno, which is developing nuclear batteries for deep space and the deep sea.

On the divestment side, we sold the majority of SSIT's holding in AST SpaceMobile, taking advantage of a strong increase in the company's share price to realise a gain and with a view to optimising SSIT's cash position.

Market overview

·      SpaceTech continues to significantly outperform the broader venture capital market, both in terms of investment volume and deal activity, driven by strong tailwinds in defence, national security and climate change.

·      The sector recorded its second-largest fundraising quarter on record, with $3.1bn invested in Q2 CY25, up from $2.0bn in Q1 CY25. Over the 12 months to 30 June 2025, total SpaceTech VC investment reached $8.7bn, representing a 3% increase from the $8.5n recorded in the previous trailing 12 months to 30 June 2024.

·      Early-stage and growth-stage deal-making has hit new highs. A record 571 SpaceTech deals were completed over the 12 months to 30 June 2025, up from 528 the year prior, including 171 in Q2 CY25 alone, the second-highest quarterly total ever recorded.

·      Capital concentration has shifted in recent years towards Series B and C rounds, which accounted for 65% of total investment in Q2 CY25. This is in strong contrast to quarters in CY20 and CY21, where individual SpaceX or Oneweb deals alone could account for more than 50% of total investment. This reflects strong investor conviction in scaling next-generation SpaceTech unicorns, and a more diversified base of highly investable opportunities.

·      Despite ongoing macroeconomic and geopolitical uncertainty, confidence in the sector remains robust across private and public markets. Publicly-listed SpaceTech companies rebounded sharply during the year. Meanwhile, the heavily oversubscribed IPOs of a number of space companies, including portfolio company Voyager, underlined investor appetite for high-quality, defence-aligned space ventures.

We believe that the European defence sector is currently undergoing an unprecedented shift as a reaction to new geopolitical realities, including the break with international norms established after the Second World War. This is leading to policy reform at both the level of the EU and the individual European nation states.

As a result, Europe has seen a drastic increase in defence spending in both 2024 and 2025. Countries, including the UK, Germany, France, Italy, Spain and Poland, have significantly increased their defence budgets to achieve and exceed NATO's 2% of GDP target, to ultimately reach 5% of GDP by 2035 with at least 3.5% committed to core defence capabilities. To accelerate rearmament, certain nation states have implemented immediate budget measures, such as Germany with its €100bn special fund.

Further, the EU agreed various supporting initiatives, including a framework for rearmament, 'ReArm Europe 2030', and €150bn in long-maturity loans, 'Security Action for Europe'.

Our view is that these drastic changes in both policy and budgets are less a blip and more the beginning of a secular trend as major geopolitical powers have changed tack and Europe needs to adapt quickly and firmly.

We expect the impact on SpaceTech to be positive and lasting, driven by both the importance of SpaceTech to the defence sector and the way modern war fighting has evolved. More specifically, we expect modern defence to continue to rely on space technology, including geospatial intelligence, secure communications and robust timing and positioning data. At the same time space itself has become a contested environment with the space forces of the global superpowers building out their capabilities.

Investment Activity

Year ended 30 June 2025

In August 2024, the Company completed a $5m (£3.8m) follow-on investment into ALL.SPACE alongside other existing investors, with a further $2.5m (£2.0m) subsequently invested between February and April 2025. This additional funding extends the runway as the company stands at a potential critical inflection point as it is transitioning out of R&D and into the commercial ramp up phase.

In December 2024, the Company completed a $1m (£0.8m) follow-on investment into Xona Space Systems' $12.5m post-Series A round, alongside a number of existing and new investors. Xona Space Systems used this funding to place orders and secure launch slots for its next four production satellites. In June 2025, the Company completed a further $1m (£0.7m) follow-on investment into the company's $60m Series B round, alongside a number of existing and new investors. The company plans to use this funding to scale its satellite constellation, deliver initial commercial services and continue to secure additional government contracts.

Also in December 2024, the Company completed a £300k follow-on investment into ChAI's £600k pre-Series A round, alongside existing investors. With this funding, ChAI expects to write its first commodity insurance product.

Also in December 2024, the Company completed a $250k (£0.2m) follow-on investment in Skylo's Series B+ round alongside new and existing investors, followed by an acquisition of $1.3m (£1.1m) worth of common shares as part of the Series B+ round second close in January 2025.

In January 2025, the Company completed a $5m (£4.0m) new investment into Zeno's $40m Series B round alongside new and existing investors. With this funding, Zeno will execute against its current US Department of Defense and NASA development contracts to deliver the first functional Radioisotope Power Systems.

In April 2025, the Company invested $1.5m (£1.1m) to exercise the options it held in AST SpaceMobile in order to hold the listed shares.

In May 2025, the Company made a follow-on investment of $250k (£0.2m) through a bridge simple agreement for future equity into PlanetWatchers as part of a $950k raise. The bridge provides the business 18 months of cash runway, during which it plans to develop a new tool focused on agricultural insurance provider agents.

Details of the new investment in Zeno, made in January 2025, are included in the case study.

In the year, the Company received £12.5m in proceeds from disposals.

Astroscale went public on the Tokyo Stock Exchange on 5 June 2024. The IPO was oversubscribed at a subscription price of JPY850 per share and backed by both institutional and retail investors. Following the IPO and within the year to 30 June 2025, SSIT sold 629,240 of its shares in the company, equivalent to 47% of its holding, for £3.5m. This is equivalent to 78% of the original Sterling cost of investment of those shares that were sold and a 22% premium over the IPO price.

On 10 April 2025, the Company exercised the options it held in AST SpaceMobile. Following this, it sold 95% of its holding by 30 June 2025, realising £9.0m. This is equivalent to 170% of the original Sterling cost of investment of those shares.

New investment case study: Zeno

Portfolio Performance

Year ended 30 June 2025

Holdings

¹ Includes the cost of new and follow-on investments less the cost of disposals, where relevant, made since 30 June 2024 of £4.5m in aggregate.

² Prior year includes assets partially disposed of during the year to 30 June 2025.

Private portfolio

·      The private portfolio, which comprises an increasing part of the Company's investments representing 96.4% of fair value and 89.1% of NAV, performed solidly, with its fair value closing the year at 155.8% vs. cost (162.8% excluding FX losses).

·      In aggregate, the fair value of the private portfolio (excluding Voyager which went public during the year) increased 33.4% over the year.

·      The private holdings continued to deliver on milestones and a number have seen substantial revenue growth leading to their management teams expecting them to become EBITDA profitable during CY25.

·      Over the year, there were significant increases in the fair values of ICEYE (fair value vs. cost: 266%), driven by large contracts signed in the year and a move to a multiples-based valuation methodology, as well as Xona Space Systems (fair value vs. cost: 148%) and Skylo (fair value vs. cost: 156%), driven by new rounds raised at higher prices than the previous rounds.

·      These gains more than offset fair value reductions experienced by other private portfolio companies, including Altitude Angel (fair value vs. cost: 9%) and PlanetWatchers (fair value vs. cost: 39%), both due to underperformance, as well as Opteran (fair value vs. cost: 0%) which has been fully written down to reflect the terms of its recent round.

Listed portfolio

·      The listed portfolio, including Voyager, (19.2% of the portfolio by number of companies) represented just 3.3% of NAV and 3.6% of portfolio fair value at the end of the year (fair value vs. cost: 25.8%) following disposals through the year of both Astroscale and AST SpaceMobile.

·      Within the listed portfolio, holdings acquired as part of the Initial Portfolio (as defined in the Glossary) at the time of the Company's IPO and which had listed as part of SPAC transactions have suffered poor price performance over the last several years (fair value vs. cost: 17.7%) compared to those holdings which had IPOs since they were acquired by the Company (fair value vs. cost: 103.4%).

·      AST SpaceMobile (NASDAQ: ASTS; fair value vs. cost: 310%), Spire Global (NYSE: SPIR; fair value vs. cost: 25%) and Arqit (NASDAQ: ARQQ; fair value vs. cost: 11%) all experienced share price increases in the year as public market performance improved.

·      Voyager went public on the New York Stock Exchange under the ticker VOYG on 11 June 2025. The IPO was priced at $31 per share, above its marketed range of $26-29, offering approximately 12.35m shares and raising around $382.8m. The listing drew strong institutional and retail demand.

Portfolio fundraising activity

·      In aggregate, c.$2.1bn was raised by new and existing portfolio companies during the year (2024: c.$900m), including additional closes on rounds closed in the prior year, with over $390m (2024: over $540m) raised by privately-held portfolio companies and c.$1.7bn (2024: over $350m) by public portfolio companies.

·      Of the 10 existing privately-held portfolio companies that raised new rounds in the year:

o  60% were led by or had significant participation from external investors (2024: 80%) demonstrating the attractiveness of those companies to new investors;

o  30% raised up rounds (2024: 40%) and 60% raised unpriced rounds (2024: 10% flat and 10% unpriced); and

o  only 10% closed funding rounds at reduced valuations relative to their previous round (2024: 40%).

Portfolio cash runway

·      The Company is satisfied with the cash position of the portfolio companies in aggregate and the success of the portfolio in accessing funding during the past year.

·      66% of the portfolio by fair value has a robust cash runway, with 58% fully funded based on latest projections from the companies' management teams and 8% funded for 12 months or more from 30 June 2025, including raises completed post period end (2024: 77% robust cash runway, 60% fully funded and 17% funded for 12 months or more).

·      The management teams of six companies (five of which are top 10 holdings) are projecting that the companies are fully funded (2024: six, of which five were in the top 10 holdings).

·    Nine companies representing 31% of the fair value of the portfolio have less than 12 months of cash runway (2024: five companies, 16% of fair value). These companies are executing measures to extend cash runway, including reducing cash burn, increasing their focus on government business development and grants to increase revenues and reducing costs to extend their cash runways (from 30 June 2025). The companies are actively fundraising, with several having closed new funding rounds post period, and, where appropriate, sale processes are under consideration.

·      We note that it is not atypical for VC-backed companies to have less than 12 months cash runway. Most companies typically raise on c.18-month cycles. To date, SSIT's portfolio companies that have required additional financing to extend their cash runways have been able to raise the necessary funding.

·      Excluding the fully funded companies, the remainder of the private portfolio has a fair value weighted average cash runway of nine months from 30 June 2025 (2024: 14).

Portfolio fair value

Portfolio valuation methodologies

All but three portfolio companies representing 86.2% of the portfolio by fair value are valued using either available market price, comparable multiples, a calibrated price of recent investment less than six months old or an enterprise value ('EV') that has been recalibrated in the last six months using the extended process associated with a recalibration event as explained under the 'Valuation policy' section above.

As explained in the 'Investment Manager's report', the valuation methodology for ICEYE and HawkEye 360 changed from recalibrated enterprise value to comparable multiples due to the maturity of the companies. This has resulted in a significant uplift to ICEYE's enterprise value, which has in turn boosted ICEYE's fair value, and only very modest change to both HawkEye 360's enterprise value and fair value.

Top 10 holdings' EV recalibrations

Changes in EV relate to either new funding rounds or adjustments from quarterly valuation recalibration exercises. On a fair value weighted basis, the EV of the holdings in the top 10 increased 60.7%.

Quarterly valuation changes in the three months ended 30 June 2025

·      During the quarter ended 30 June 2025, the portfolio fair value increased by £37.1m, increasing fair value to 131.9% vs. cost (136.5% excluding FX losses).

·      £9.0m in unrealised FX losses and disposals of £9.0m were offset by an unrealised fair value increase of £48.4m, a £3.7m realised fair value gain and additions of £3.0m.

·      Fair value increases during the quarter at ICEYE, Xona Space Systems and Arqit offset FX losses and fair value adjustments at Opteran, Altitude Angel and QuadSAT.

Performance of the Company

Year ended 30 June 2025

Portfolio Attribution

·      £4.1m in new investments and £10.2m of follow-ons more than offset £12.5m in proceeds from disposals in the year.

·      Increase in unrealised fair value of £66.2m and £2.7m of realised fair value gain more than offset £12.3m of FX losses during the year.

·      £259.8m fair value of portfolio at the end of the year.

·      2720bps increase in closing portfolio fair value vs. portfolio cost, including FX movements.

NAV

·      NAV increased 23.2% over the year to £281.1m (30 June 2024: £228.1m).

·      The portfolio fair value (including FX movements) increased by £58.3m over the year (2024: £14.1m).

·      £0.4m was received in dividend income from a dividend paid by Voyager ahead of its IPO.

·      The NAV per share increased from 96.18p to 118.52p over the year.

·      £21.5m liquid resources (7.7% of NAV) at 30 June 2025 (30 June 2024: £27.0m, 11.8% of NAV).

The Company is targeting an annualised total return on the Company's portfolio of at least 20% over the long term. The Company has no formal benchmark index but has tracked its NAV per share and share price movements against the following the indices for reference.

·      MSCI World Aerospace and Defense Index (£) - a significant proportion of portfolio companies' revenues are derived from the broader aerospace and defence industry and/or have governments as significant customers.

·      MSCI World Climate Change Index (£) - a significant proportion of portfolio companies' revenues are derived from climate change products and services.

·      FTSE All-Share Index (£) - the Company is listed on the London Stock Exchange.

·      NASDAQ (£) - the Company invests in SpaceTech, a subset of the broader technology market, and two of its listed holdings are listed on NASDAQ.

·      Dow Jones Global Technology Index (£) - the Company invests globally in SpaceTech, a subset of the broader technology market.

·      S&P Kensho Space Index (£) - the Company invests globally in SpaceTech, a subset of the broader space sector.

·      Goldman Sachs Future Tech Leaders Equity ETF (£) - the Company invests globally in SpaceTech, a subset of the broader technology market.

Longer term performance

The tables below show how an investment in the Company has performed since IPO compared to its underlying net asset value.

Cumulative performance                                                                                                                          Discrete yearly performance

Outlook

The prospects for the portfolio as a whole look promising for the year ahead. Market conditions are expected to remain favourable, which should naturally lead to more sustained growth and greater visibility on the pathway to profitability for key holdings.

For the best-performing companies, this could present opportunities for IPOs. Additionally, given the growth in defence budgets, we anticipate potential market consolidation through M&A, with incumbents looking to bolster their positions through acquisitions and emerging category leaders seeking greater scale by merging with peers.

With multiple of the Company's larger holdings now either already profitable or approaching breakeven, and with the portfolio well capitalised after another year of strong fundraising, we believe that the Company's cash reserves, combined with potential liquidity from listed holdings, should be sufficient to selectively support the anticipated funding needs of the portfolio for the year ahead.

With the portfolio currently comprising direct holdings in 25 companies, we expect to be primarily focused on supporting the existing portfolio, pending a major liquidity event within the portfolio or an additional capital raise by the Company itself.

Mark Boggett

CEO

Seraphim Space Manager LLP      

Investment Manager

17 October 2025

Top 10 Investments

Responsible Investment

'The Investment Manager continues to believe in the long-term benefit of the portfolio and the wider space industry delivering positive sustainability impacts.'

Sarah Shackleton

COO, Seraphim Space

The Company is focused on being a responsible investor and taking into consideration environmental, social and governance ('ESG') factors. 

The Investment Manager is a signatory to the Principles of Responsible Investment, the UN-supported network of investors dedicated to promoting sustainable investment through incorporating ESG factors into their investment and ownership decisions (the 'UN PRI').

Responsible Investment Policy

The Investment Manager's Responsible Investment Policy, which has been adopted by the Company, may be found at https://seraphim.vc/esg/. The Investment Manager reviews and updates its Responsible Investment Policy as necessary to reflect emerging regulations and best practices.

The Directors and Investment Manager believe that ensuring robust assessment of ESG-related risks and opportunities as part of the investment analysis and decision-making processes leads to investment in more robust businesses, ultimately creating long term, sustainable value. 

Potential Sustainability Impact

The Investment Manager believes that the portfolio companies' contribution to the United Nations Sustainable Development Goals (the 'SDGs') and their underlying targets is a key factor in the delivery of sustainability impact by the portfolio and, as such, consideration of the SDGs is an integral part of Seraphim Space's decision-making process. Each portfolio company contributes to at least one SDG, and every SDG is addressed by at least one portfolio company. SDG 9 (innovation/infrastructure) is, unsurprisingly, the most common SDG, with 24 portfolio companies contributing to it.

Seraphim Space is represented on the Advisory Board of the Space Sustainability Principles by the Earth & Space Sustainability Initiative ('ESSI')[2].

Ownership and ESG reporting

Seraphim Space works with the shareholders, boards and management teams of portfolio companies to help them achieve sustainability impacts and mitigate ESG risks. During the year, it helped portfolio companies, predominantly with improving board and senior management diversity.

In situations where a portfolio company fails to address adequately any significant risks identified at investment, Seraphim Space will take this into consideration when assessing follow-on investment opportunities into the company.

Objective Reporting Metrics for ESG Factors

¹ Desired measures as explained under 'ESG Governance and Risk Management'. Source: Portfolio company data.

² Fair value weighted average (as defined in the Glossary) of the holdings providing information (which represented 93% of the fair value as at 30 June 2025 and 93% of the fair value as at 30 June 2024). Source: Portfolio company data.

³ Active portfolio excludes the holding in Seraphim Space Ventures II LP.

93% of the portfolio by fair value as at 30 June 2025 (2024: 93%) provided the above data, with the remaining 7% (2024: 7%) comprised of Seraphim Space Ventures II LP, listed portfolio companies or private companies where SSIT had no information rights.

ESG governance and risk management

The Investment Manager allocates points (up to a maximum of 15) to private portfolio companies based on the number of measures that it would like to see and which they have in place to manage ESG risk, including frequency of discussion of such topics by the board and the policies and processes to assess and mitigate such risks. On a fair value weighted average basis, 77% of the desired measures were in place across the portfolio as at 30 June 2025 (in line with 77% at the prior year end), as companies continue to engage on ESG and risk matters, driven by shareholder influence and general market adoption.

Diversity

A growing body of evidence suggests that diverse teams outperform less diverse teams. A McKinsey study from December 2023 found that companies in the top quartile for gender or ethnic diversity are 39% more likely to achieve financial outperformance compared to those in the bottom quartile[3]. Forbes outlines the outperformance of diverse teams, explaining that companies with at least one female or ethnically diverse founder generate over 60% in business value[4]. The SSIT active portfolio (excluding Seraphim Space Ventures II LP) includes six companies (24%) with a diverse founder (i.e. one that identifies as female or from an ethnic minority) (2024: six, 25%).

Compared to the diversity information outlined in the BVCA and Level 20 Diversity in UK Private Equity and Venture Capital 2025 Report, as at 30 June 2025, Seraphim Space generally outperformed the market in overall female representation, but lagged slightly in terms of ethnic minority representation.

Job creation

As portfolio companies continue to access funding and continue to deliver against milestones, they also drive job creation. On a fair value weighted average basis, headcount grew 12% in the 12 months to 30 June 2025 (compared to 11% in the prior year).

Carbon emissions/energy reduction

In 2025, Seraphim Space conducted its second carbon footprint assessment, validated by One Carbon World Ltd. This assessment encompassed all activities under Seraphim Space's operational control, including Scopes 1, 2 and partial Scope 3, as outlined in The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) (the 'Protocol').

The Protocol aligns with international standards ISO 14064 and PAS 2060. During the measurement period from 1 April 2024 to 31 March 2025, Seraphim Space's greenhouse gas emissions were recorded at 258.03 tCO₂e (2024: 262.51 tCO₂e). To achieve carbon neutrality for this period, the Investment Manager balanced all emissions by retiring 259 tCO₂e through Verified Emission Reductions from tree planting in South America or Certified Emissions Reductions from UN projects in developing countries. The carbon neutrality of the Investment Manager's activities has been achieved in accordance with the One Carbon World Carbon Neutral International Standard.

Given the fact that the private portfolio companies are relatively early in their life, a number are not yet measuring energy consumption, and Scope 1/2 and 3 carbon emissions are only measured by five and four private portfolio companies respectively (in line with the prior year). On a fair value weighted average basis, 49% of energy consumption is renewable (up from 20% in the prior year).

Business Review

Business Model

SSIT is the world's first and only listed SpaceTech fund providing public access to private SpaceTech businesses.

The Company carries on business as an investment trust, which is a form of a collective investment vehicle constituted as a closed-ended public limited company. The Company's shares are traded on  the London Stock Exchange's main market.

The Company has no employees. It is managed by the Board, comprising four independent non-executive Directors who are responsible for the overall stewardship and governance of the Company. The management of the Company's investments in accordance with its investment objective and policy is delegated to the Investment Manager and the Company's other day-to-day functions, including administrative, financial and share registration services, are carried out by duly appointed service providers. The Board oversees the activities and performance of the Investment Manager and other key service providers.

Investment Strategy

The Company provides investors with exposure to nascent SpaceTech companies, being businesses which rely on space-based connectivity or precision, navigation and timing signals, or whose technology or services are already addressing, originally derived from or of potential benefit to the space sector. These businesses comprise companies providing the SpaceTech infrastructure for collecting and communicating data, principally via satellites, as well as companies with the technology that facilitates the exploitation of this data for terrestrial applications in areas such as climate, communications, mobility and security (including cyber security).

Investment Objective

The Company's objective is to generate capital growth over the long term through investment in a diversified, international portfolio of predominantly early and growth stage unquoted SpaceTech businesses with the potential to dominate globally.

Investment Policy

The Company seeks exposure to early and growth stage privately financed SpaceTech businesses, acquiring primarily minority holdings. The Company intends to realise long-term value through exiting its investments over time.

The Company invests internationally with a view to maintaining a diversified portfolio primarily located in the US, UK and continental Europe. The Company's portfolio is expected to comprise 20 to 50 holdings. The Company will at all times invest and manage the portfolio in a manner consistent with spreading investment risk.

Investments are mainly in the form of equity and equity-related instruments although the Company may invest in a range of financial instruments including, without limit, securities, derivatives, warrants, options, futures, convertible bonds, convertible loan notes, convertible loan stocks or convertible preferred equity. The Company may also on occasion invest in other debt-based investments not referred to above, including, without limit, loan stock, payment-in kind instruments and shareholder loans. In addition to participating in new issues, the Company may also undertake secondary transactions that involve the acquisition of existing stakes.

The Company may invest in companies, as well as other forms of legal entity, including partnerships and limited liability partnerships. The Company may acquire investments directly or by way of holdings in special purpose vehicles, intermediate holding entities or other structures. The Company will not invest in other listed closed-ended investment funds.

Investment restrictions

The Company will invest and manage its assets with the objective of spreading risk through the following investment restrictions:

·    other than the ability for the aggregate value of the Company's holding in one single portfolio company or other entity to represent up to 20% of gross asset value, the aggregate value of the Company's holding in any other single portfolio company or other entity will represent no more than 15% of gross asset value; and

·    the Company's aggregate investment in publicly quoted companies will represent no more than 30% of gross asset value.

The Company will generally only invest in publicly quoted companies that constituted part of the Initial Portfolio or the Retained Assets or in circumstances where it has already made an initial investment prior to the portfolio company's initial public offering. However, the Company may invest up to 5% of gross asset value in aggregate in publicly quoted companies that do not constitute part of the Initial Portfolio or the Retained Assets or in which it has not already made an initial investment prior to an initial public offering. For the avoidance of doubt, any process by which an unlisted investment of the Company becomes listed shall be deemed not to be a new investment by the Company.

Each of the restrictions referred to above is calculated at the time of investment. The Company will not be required to dispose of any investment or to rebalance the portfolio as a result of a change in the respective valuations of its assets.

Hedging and derivatives

Save for investments made using equity-related instruments as described above, the Company will not employ derivatives of any kind for investment purposes other than to potentially hedge downside risk on a quoted portfolio company for specific reasons, such as where the Company is subject to lock-up provisions. Derivatives may be used for currency hedging purposes (note: no derivatives have been used to date).

Borrowings

Although the Company does not intend to use structural gearing with a view to enhancing returns on investments, the Company may, from time to time, use borrowings for the purpose of bridging investments, managing its working capital requirements and efficient portfolio management purposes. Borrowings will not exceed 10% of NAV, calculated at the time of drawdown of the relevant borrowings.

Cash management

The Company may hold cash on deposit and may invest in cash equivalent investments, which may include short-term investments in money market-type funds and tradeable debt securities ('Cash and Cash Equivalents'). There is no restriction on the amount of Cash or Cash Equivalents that the Company may hold or where it is held.

Cash and Cash Equivalents will be held with approved counterparties and in line with prudent cash management guidelines agreed between the Board and the Investment Manager.

The Company will hold sufficient Cash or Cash Equivalents for the purpose of making follow-on investments in accordance with the Company's investment policy and to manage the working capital requirements of the Company.

Target Returns and Dividend Policy

The Directors intend to manage the Company's affairs to achieve shareholder returns through capital growth rather than income.

The Company has no formal benchmark. However, the Company targets an annualised total return on the Company's portfolio of at least 20% over the long term (adjusted for any dividends paid or share buy-backs by the Company). This is a target only and reflects the Investment Manager's expectations of the potential returns that can be generated by investing in a portfolio of early and growth stage private SpaceTech companies which have the potential to generate substantial returns for their shareholders over the long term whilst recognising that not all portfolio companies will achieve their potential and that some may fail in their entirety. This should not be taken as an indication of the Company's expected future performance, return or results over any period and does not constitute a profit forecast. The actual return generated by the Company over any period will depend on a wide range of factors, including, but not limited to, the terms of the investments made, the performance of its portfolio companies, general macroeconomic conditions and fluctuations in currency exchange rates.

As the Company's priority is to produce capital growth over the long term, it has no dividend target and will not seek to provide shareholders with a particular level of distribution. However, the Company intends to comply with the requirements for maintaining investment trust status for the purposes of section 1158 of the Corporation Tax Act 2010 regarding distributable income. Therefore, in accordance with regulation 19 of the Investment Trust (Approved Company) (Tax) Regulations 2011, the Company will not (except to the extent permitted by those regulations) retain more than 15% of its income (as calculated for UK tax purposes) in respect of each accounting period and any excess will be distributed in the form of a final dividend.

Share Rating Management

The Board recognises the need to address any sustained and significant imbalance of buyers and sellers which might otherwise lead to the ordinary shares trading at a material discount or premium to their NAV.

The Board has not adopted any formal discount or premium targets which would dictate the point at which the Company would seek to buy back or issue ordinary shares. However, the Board is committed to utilising its share buy-back and issuance authorities where appropriate in such a way as to mitigate the effects of any such imbalance. In considering whether buy-back or issuance might be appropriate in any particular set of circumstances, the Board will take into account, amongst other things, prevailing market conditions, (in the case of buy-backs) the level of the Company's discount relative to those of other listed investment companies investing mainly in private companies, the cash resources readily available to the Company, the Company's immediate pipeline of investment opportunities, the level of the Company's borrowings (if any), the Company's working capital requirements and the degree of NAV accretion that will result from the buy-back or issuance, and, in the case of buy-backs, whether higher returns could be made from investing capital than buying back ordinary shares.

The Board will keep shareholders informed, on a regular and ongoing basis, of the approach which it has adopted to share rating management, principally through commentary in the Company's Annual and Interim Reports.

Key Performance Indicators

The Board uses a number of performance measures to assess the Company's success in meeting its strategic objectives. The key performance indicators ('KPIs') (also referred to as alternative performance measures) are:

·    the movement in NAV per share (as the Company does not pay dividends, this is the same as the NAV total return per share);

·    the movement in the share price (as the Company does not pay dividends, this is the same as the total shareholder return);

·    the premium/discount of the share price to the NAV per share;

·    ongoing charges; and

·    the portfolio fair value vs. cost.

The first four KPIs are established industry measures. Having regard to the Company's target return, we believe that, at this stage in the Company's life, the portfolio fair value vs. cost is an appropriate KPI to measure the portfolio's performance. The KPIs have not changed from the prior year.

Due to the unique nature of the Company's investment strategy, there are no direct listed competitors or directly comparable indices. Consequently, we do not consider that there is a relevant external comparison against which to assess the KPIs and, as such, performance against the KPIs is considered on an absolute basis.

An explanation of the KPIs can be found in the Alternative Performance Measures section below. The KPIs for the year ended 30 June 2025 (and the prior year) are shown above. Additional comments on the performance of the Company during the year are provided in the Chair's Statement and Investment Manager's Report above.

Environmental, Social and Governance Matters

Socially responsible investment

The Board has endorsed the Investment Manager's Responsible Investment Policy, which seeks to ensure that the Investment Manager's management of SSIT's investments takes account of environmental, social, governance and ethical factors, where appropriate. However, the Company does not have explicit sustainability investment objectives or policies and does not, and will not seek to, apply a sustainability label under the FCA's UK Sustainability Disclosure Requirements and investment labels regime.

The Investment Manager actively engages with portfolio companies on ESG factors and often has a participation role at board level with such companies, helping to guide their governance policies. Details of the Investment Manager's Responsible Investment Policy are included below.

Environment

As an investment company with all its activities outsourced to third parties, the Company does not have any physical assets, property, employees or operations of its own and, therefore, the Company's own direct environmental impact is minimal. The Company has no greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emissions producing sources under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Reporting) Regulations 2018. For the same reasons, the Company considers itself to be a low energy user (i.e. it used less than 40,000kWh of energy in the reporting period) for the purpose of Streamlined Energy and Carbon Reporting and, therefore, is not required to disclose energy and carbon information.

As an investment company, SSIT is exempt from the FCA's UK Listing Rules requirement to report against the Taskforce for Climate-related Financial Disclosures framework.

A key focus of the Investment Manager's Responsible Investment Policy, and its engagement with portfolio companies, is on their management of environmental risks, particularly those associated with climate change, and their ability to develop products and services that help address climate change impacts.

Employees, human rights and community issues

The Board recognises the requirement under section 414C of the Companies Act 2006 to provide information about employees, human rights and community issues, including information in respect of any of its policies in relation to these matters and their effectiveness. This requirement does not apply to SSIT as it has no employees, all of the Directors are non‑executive and it has outsourced all of its functions to third-party service providers. Consequently, SSIT has not reported further in respect of this requirement.

Modern slavery

The Company does not provide goods or services in the normal course of business and, as an investment company, does not have customers. Consequently, the Directors do not consider that the Company is required to make a statement under the Modern Slavery Act 2015 in relation to slavery or human trafficking.

Diversity

The Board and Investment Manager strongly believe that having diversity in professional skills, experience, identity and cognitive thought has significant benefits when making decisions.

The Board's diversity policy is set out on the Corporate Governance Report. The Board currently comprises four independent Directors appointed on merit-based qualifications. The professional skills and experience which the current members of the Board bring to SSIT's leadership are described below. Currently, the Board has 75% female representation (greater than the FCA's target for listed companies of 40%) and the Senior Independent Director (Sue Inglis) is also female (in line with the FCA's target for listed companies of one senior position being held by a woman). The Board does not currently have at least one member from a minority ethnic background (contrary to the FCA's target for listed companies). For the reasons set out in its Report, the Remuneration and Nomination Committee concluded, in its annual review of the Board composition, that recruitment of a Director solely to meet the ethnic diversity target was not appropriate for the time being but agreed that this will be a key consideration for future appointments.

The Investment Manager (together with its affiliates) has a diverse employee base (currently, 44% female and 19% from ethnic minority backgrounds) and continues to dedicate recruiting resources to increasing its diversity across all positions and levels.

Integrity and business ethics

We have a zero-tolerance policy in relation to business ethics and tax evasion. As the Company's operations are delegated to third-party service providers, as part of the annual evaluation of the Investment Manager, Administrator and other key service providers, we seek confirmation that (a) adequate safeguards are in place in keeping with the Bribery Act 2010, the Criminal Finances Act 2017 and the sanctions element of the Economic Crime (Transparency and Enforcement) Act 2022 to protect against any such potentially illegal behaviour by employees or agents and (b) a zero-tolerance policy towards the provision of illegal services is maintained, together with details of the safeguards.

Risk and Risk Management

Risk appetite

The Board is ultimately responsible for defining the level and type of risk that the Company considers appropriate, ensuring it remains in line with the Company's investment objective and investment policy which set out the key components of its risk appetite. The Company's risk appetite is considered in light of the principal and emerging risks that the Company faces.

Risk management

The Board, through the Audit Committee, has established, in conjunction with the Investment Manager and Administrator, an ongoing process that is designed to identify, manage and mitigate on a timely basis both the principal and emerging risks inherent to the Company's business and activities.

The risk management process includes undertaking, at least half-yearly, a robust assessment of the principal and emerging investment, financial, regulatory and operational risks facing the Company. Particular attention is given to those risks that might threaten the long-term viability of the Company and identified key risks are recorded in the Company's risk matrix, which, in the case of each risk, assesses the likelihood of it occurring and its potential impact, the controls in place to mitigate it, the effectiveness of those controls and the residual likelihood of it occurring and the residual potential impact.

Further information on the Company's risk management and internal controls can be found in the Corporate Governance Report.

Principal risks and uncertainties

Based on the Company's risk matrix, the principal risks and uncertainties faced by the Company are those listed in the table below, which also summarises the potential impact of those risks and the controls in place to mitigate them. During the year the Board reviewed and concluded that the risks faced by the Company are consistent with those faced in the previous year, and also added a new emerging risk: portfolio concentration.

Emerging risks

Following consideration of the investment, financial, regulatory and operational risks facing the Company, the Board concluded that there was one emerging risk facing the Company that required to be added to the principal risks and uncertainties: portfolio concentration.

Longer-term Viability

As required by the AIC Code, the Directors have assessed the prospects of the Company over a longer period than 12 months from the approval of these financial statements The Board, with the assistance of the Audit Committee, has assessed the Company's prospects over the period of three years ending 30 September 2027. The Board has chosen this period because it is consistent with the three-year basis that the Directors evaluate the Company's financial position on a quarterly basis and projecting financial and economic scenarios over a longer period would be imprecise given the lack of long-term economic visibility. During the viability assessment period ending 30 September 2027, an ordinary resolution will be proposed at the AGM in 2026 pertaining to the Company continuing as an investment company.

In assessing the Company's prospects and longer-term viability, we have taken into account:

·    the nature of the Company's business;

·    the principal risks and their mitigation identified under 'Principal risks and uncertainties' above;

·    the Company's cash and cash equivalents, as well as the value of its listed holdings;

·    the Company's cash requirements to meet ongoing fees and expenses (including in stress-tested scenarios where fees and expenses are set to be 15% higher than budgeted) are monitored by the Investment Manager, and the Company expects to maintain sufficient assets in cash reserves to meet these obligations;

·    the ability of the Investment Manager and Directors to minimise the level of cash outflows, if necessary, as the Investment Manager considers the Company's future cash requirements before making investments and the Board receives regular updates from the Investment Manager on the Company's cash position and forecast cash flows, which allows the Board to limit funding for existing and/or new investments as required;

·    the circumstances in which a performance fee is payable to the Investment Manager as outlined in note 5 to the financial statements; and

·    the Company does not have any gearing or any obligation to pay dividends or buy back shares.

We have also assumed that SSIT's performance will continue to be satisfactory and that there will continue to be demand for UK-listed investment companies. Based on this and recent feedback received through regular shareholder engagement, we currently anticipate that the ordinary resolution to be proposed at the 2026 AGM to continue SSIT as an investment company will be passed.

The process for identifying, evaluating and managing significant and any emerging risks faced by the Company and periodic reports from the Investment Manager and Administrator regarding such risks are reviewed routinely at Audit Committee and Board meetings. The Board ensures that effective controls are in place to mitigate these risks and that a satisfactory compliance regime exists to ensure all applicable local and international laws and regulations are upheld. When required, the Company seeks expert advice regarding tax, legal and other factors.

Based on a robust assessment of the principal and emerging risks facing the Company, the Board believes that the most significant risks to the Company's longer-term viability are:

·    a significant and prolonged economic downturn which could affect the Company through adverse impacts to growth company valuations, leading to poor investment performance, a wide share price discount and a tough fundraising environment;  

·    a significant majority of the Company's investments are in private companies that are not liquid and may be subject to restrictions on sale or transfer, which may limit the Company's ability to realise investments at short notice and/or at a reasonable price or at all; and

·    the inability to raise funds, should the need arise.

The Board has considered the Company's viability over the three-year period, based on a working capital model prepared by the Investment Manager. The working capital model forecasts key cash flow drivers, such as capital deployment rate and operating expenses, and includes robust downside scenarios with continued high interest rates and a considered amount of additional investment activity in the near term. Capital raises, realisations and share buy-backs are assumed to not occur during the three-year period, unless already predetermined.

Based on its assessment, the Board has concluded there is a reasonable expectation that the Company will continue to meet its liabilities as they fall due and remain viable, even in a scenario where global macroeconomic uncertainty persists for an extended period and including severe but plausible downside scenarios over the three-year period of the assessment.

Life of the Company

The Company has no fixed life but, in accordance with its Articles of Association, an ordinary resolution proposing that it continues in existence as an investment company will be proposed at its AGM in 2026 and, if passed, every five years thereafter. If any such resolution is not passed, proposals will be put forward by the Directors within three months from the date of the resolution to the effect that the Company be wound up, liquidated, reconstructed or unitised.

Future Development of the Company

While the future development of the Company is dependent on the success of its investment strategy, which is subject to various factors including external ones (such as the macroeconomic environment and market developments) which are outside the control of the Board and Investment Manager, and the future attractiveness of the Company as an investment vehicle, the Board's intention is that the Company will continue to pursue its investment objective and policy. The Chair's Statement and the Investment Manager's Report include commentary on the outlook for the Company.

Approval of Strategic Report

The Strategic Report is provided in accordance with The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 and is intended to provide information about the Company's strategy and business needs, its performance and results for the year and the information and measures which the Directors use to assess, direct and oversee the Investment Manager in the management of the Company's activities. The Strategic Report has been approved by the Board and is signed on its behalf by:

Will Whitehorn

Chair

17 October 2025

Section 172: Promoting the Success of the Company

'Our responsibilities to shareholders, together with consideration of the long-term consequences of our decisions and maintaining high standards of business conduct, are integral to the way the Board operates.'

S.172 Responsibilities

Under section 172 of the Companies Act 2006 ('s.172'), the Directors have a duty to act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole. In doing so, the Directors are required to take into account (amongst other matters) the likely long-term consequences of their decisions, the need to foster relationships with the Company's wider stakeholders, the desirability of the Company maintaining a reputation for high standards of business conduct and the impact of the Company's operations on the community and environment.

As an externally managed investment company, SSIT has no premises, employees or customers and conducts its core activities through third-party service providers. Currently, SSIT has no debt finance. We consider, therefore, shareholders to be the Company's principal stakeholders but also regard potential shareholders, the Investment Manager, the Administrator, other key service providers (corporate brokers, Auditor, legal advisers, public relations and communications adviser, depositary and registrar) and portfolio companies as key stakeholders. The Investment Manager's Responsible Investment Policy is integrated into its investment process, ensuring that it has regard to the impact of SSIT's investments on the wider community and environment.

Our responsibilities to stakeholders, together with consideration of the long-term consequences of our decisions and maintaining high standards of business conduct, are integral to the way we operate as a Board and are foremost in our minds in our discussions, decision-making and reporting. We place great importance on our engagement with shareholders and other stakeholders and welcome, therefore, their views and concerns so that we can consider them in our discussions and decision-making.

Stakeholder Engagement

The table below sets out the principal ways in which we engage with the Company's key stakeholder groups.

Examples of Stakeholder Considerations and Outcomes

Set out below are examples of decisions and actions during the year which have required the Directors to have regard to applicable s.172 factors.