Seraphim Space Investment Trust PLC on Wednesday reported slightly lower net asset value in the third quarter, but maintained that its outlook is ‘robust’.

The London-based venture capital firm focused on space technology said net asset value per share at March 31 was 100.78 pence, down 0.3% from 101.04p at December 31. Overall NAV edged down 0.3% quarter-on-quarter to £239.0 million from £239.7 million.

This came despite a 3.0% rise in the firm’s portfolio value to £222.7 million from £216.3 million in December. Seraphim’s cash reserves fell to £16.5 million at March 31 from £23.5 million at December 31, though the company said it has a further £11.2 million of potential liquidity in holdings.

During the third-quarter, LeoLabs and Xona Space Systems, which account for roughly 5.3% and 2.5% of NAV, respectively, were selected by Spacewerx, the commercial branch of the US Space Force, to receive strategic funding.

In the same period, AST SpaceMobile - around 3.2% of NAV - secured a $43 million contract with the US Space Development Agency for ‘proliferated warfighter space architecture’. Separately, AST entered a joint venture with Vodafone Group PLC for a European satellite operator providing direct-to-smartphone services.

Since March 31, Seraphim said it has realised 95% of its holding in AST, generating an estimated £7.9 million in net proceeds.

Meanwhile ICEYE, which comprises 26% of NAV, signed a €200 million deal with the Polish government to supply its military with satellites for border monitoring. Seraphim claimed this will support ‘rapid responses to emerging threats, particularly along NATO’s eastern frontier’. ICEYE is also in talks for a joint venture with German weapons-maker Rheinmetall AG, and Tokyo-based heavy industries group IHI Corp.

Seraphim has £22.6 million in cash reserves as of June 2, and £4.7 million in potential liquidity.

‘The strategic importance of space has never been clearer. As geopolitical tensions rise and defence priorities shift, governments are turning to space-based technologies to secure their borders, enhance intelligence capabilities and ensure technological sovereignty. This is driving a new wave of procurement in the space sector,’ commented Seraphim Chair Will Whitehorn.

‘Despite the ongoing broader market volatility, the outlook for space remains robust. We believe this is just the beginning of a generational shift in how space is valued, not just as a commercial frontier, but as a critical pillar of defence infrastructure.’

Seraphim shares were down 1.1% to 72.58p midday Wednesday in London.

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