Chrysalis half year report (pinched from THG BB)10 Aug 2022 14:41
Very interesting and worth a read very relevant here
So at End of March
The main focus in capital preservation to support unprofitable companies within the portfolio, they estimate that they have cash runways of 14 months and can support that and perhaps another year with care.
60 % of the portfolio was unprofitable at that time and will need cash to continue.
They are cutting back investments so as to have cash to support the unprofitable business and will not necessarily participate in fund-raising rounds. ( They did not take part in the latest round for we fox earlier in July).
At end of March they had 72.5 million of cash to support the group going forward.
At end of June they had 55 million cash to support the group.
So cash burn looks high at 17.5 million in the last three months.
They stress that it's about getting companies in the group cash flow positive.
In the 6 months to end of March they bought 15 million pounds worth of THG at Circa 195.
They also make multiple mentions of the fact that they can see equity in Public companies as a means to support liquidity in the fund.
Overall i think they are in a bit of bother, i suspect that trading in some of their unlisted companies will have deteriorated , meaning that the trust will have to help those companies shrink to fit their cloth or increase cash to support growth.
I wonder how much cash they have spent in the last 6 weeks, 5 million, 7.5 million 10 million? who knows.
In fact i think they are in more than a bit of bother and will be looking to get cash in one way or another.
So the state of play in the trust suggest to me that they are indeed sellers of their listed companies.
Sign In
Follow the stocks
