Seraphim Space Investment Trust reported a sharp rise in its net asset value, lifted by a surge in the valuation of its largest holding, ICEYE, as defence-related demand continued to bolster the space technology sector.

The London-listed investor said its net asset value per share climbed 23 per cent to 118.52p at the end of June, up from 96.18p a year earlier. The overall portfolio value increased 29 per cent to £259.8mn, reflecting new investments and higher fair-value gains “driven by defence tailwinds”.

Espoo-based ICEYE, which builds radar and satellite systems capable of imaging the Earth through cloud and darkness, doubled in value over the year, Seraphim said. The Finnish company now accounts for just over 37 per cent of the trust’s portfolio.

Seraphim struck an upbeat tone on the outlook, citing record levels of global defence spending as a key growth driver for the sector. “Europe has committed €1tn in new defence budgets which are now being allocated, with space expected to be a major beneficiary,” the company said. It added that the US government was also on track to approve a defence budget exceeding $1tn for the first time, with an increased focus on commercial space ventures.

Despite wider macroeconomic uncertainty and concerns over trade tensions, Seraphim said investment in space technology was likely to continue expanding rapidly. It noted a recovery in public market appetite for space-related stocks, pointing to three recent listings – including its portfolio company Voyager – that successfully raised fresh capital.

“Strong-performing companies are expected to attract the funding needed to meet surging customer demand,” the trust said, adding that it anticipated its key holdings would “continue strengthening and thriving in the year ahead.”

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