Bullsh*t CG. I can assure you it is as bad if not worse at other networks. Do you think your local IFA has robust records to demonstrate servicing has been taking place regularly? The reality is the vast majority of financial adviser, inside or outside SJP look after their clients well. They just don't have belt the and braces paper trail to prove if not that consumer duty demands it. Ultimately it is the clients with small pots of money who miss out as the advice gap grows further. If advisers can service fewer clients in the new consumer duty world the will be cutting those clients with smaller pots.
Chrysalis turns ugly against Revolution Beauty as it looks to win continuation vote
The growth capital fund considers legal action against the failed make-up provider as it outlines its capital allocation policy ahead of a continuation vote by shareholders in March.
Kathleen Gallagher
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KATHLEEN GALLAGHER
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Chrysalis (CHRY) flagged its maturing portfolio, refined a capital return policy and said it may take legal action against troubled make-up company Revolution Beauty as it sought to prove its worth to investors ahead of a critical continuation vote.
In the 12 months to the end of September, growth capital trust Chrysalis reported that its underlying portfolio had dropped 8.9% to 134.65p largely driven by currency movements, non-asset related costs and decline in valuations of Smart Pensions, Graphcore, Deep Instinct and Sorted.
However, performance improved at the end of the year as to the end of December the net asset value (NAV) was 143.37p, up 6.5% thanks to the revaluation of buy-now-pay-later lender Klarna and fintech Starling Bank.
Fund managers Richard Watts and Nick Williamson, who are set to leave fund manager Jupiter to set up Chrysalis Investment Partners to focus on the running of the company, stressed that most of the portfolio was profitable or expected to be funded to profitability.
They also reiterated their realisation hopes, pointing to Starling, wefox and Klarna, with the CEO of the latter already teasing the market saying the company was ready to IPO. Klarna was valued at £57m at the end of September.
Revolution revolt
Chrysalis’ board and managers are also hoping to prove their reputation should not be judged by a failed investment in Revolution Beauty.
At the end of 2022 the duo fully divested from their position in Revolution, taking a 90% haircut as they took back just £5.7m of the initial £45m investment.
The beauty company’s shares were suspended from trading at the beginning of September 2022 following a failure to publish its audited results. An independent investigation into the company was ordered which revealed a series of questionable business deals, undisclosed loans and unnecessary stockpiling of inventory.
Chrysalis chair Andrew Haining said that the company has ‘potential claims’ for actions of deceit, negligent misstatement and misrepresentation.
‘The original share purchase was made on the basis that information provided to the Company by Revolution prior to the Company’s purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omissions,’ Haining wrote in the results.
Chrysalis issued a formal letter of claim to Revolution on 22 November, which requested a response in 28 days. A response has been received asking for a further 28 days.
The investment company said it ‘is now considering next steps with its
No idea. Website is years out of date and there has been absolutely no communication. I've a fair chunk tied up here and would love a decent update to bank some of the profits and move on to something else.
Now it’s clear why the share price has tanked since the start of the year. I’m struggling to see how people are reading these results as positive. We clearly can’t add growth organically. I’d also love to know what they hope the FCA will change. Get on with the premium listing ffs nearly every other company is premium listed what are you scared of?!