The manager of a London-listed investment trust focused on military applications in space expressed confusion over the lack of investor interest following significant announcements of increased defense expenditures.

Mark Boggett, who oversees the Seraphim Space Investment Trust (SSIT), noted that while many defense-related companies experienced significant surges in their stock prices, SSIT’s shares saw minimal movement. “We are actively promoting our growth potential,” he stated. On Thursday, SSIT’s share price increased by 2p, or 4.2%, closing at 55p, bringing the company’s valuation to £134 million.

Boggett highlighted that 78% of Seraphim’s net asset value is allocated to companies that are either fully or partially engaged in defense activities. The trust’s largest investment is in Iceye, a firm that operates radar satellite constellations capable of delivering high-resolution images in any weather condition, which is currently utilized by the Ukrainian military.

Other notable defense-related investments include Allspace, which provides advanced antennas that can receive signals from multiple satellites simultaneously and may assist in navigation during GPS disruptions.

Additionally, he mentioned D-Orbit, which has created a rocket-within-a-rocket system designed for launching military satellites into orbit.

For the fiscal year ending in December, Seraphim recorded a 6.8% increase in net asset value per share, rising to 101.04p. The company’s investment valuations remained “strong,” as reported.

Despite this, the trust continues to trade at a substantial discount to its net assets, standing at 46.2% at the year’s end, although this is an improvement from a 63.3% discount the previous year. Boggett characterized this situation as a “sad reflection” of the UK investment trust landscape, which is marked by widespread discounts, low liquidity, and a cautious investor sentiment.

Investors in Seraphim include Sir Richard Branson and British taxpayers via a stake held by the British Business Bank.

Boggett expressed optimism about potential exits for the company, highlighting a need to generate funds for further investments in promising portfolio companies. He remarked, “We anticipate considerable mergers and acquisitions activity in the upcoming year.” Currently, the company holds £23.5 million in cash and an additional £14 million in liquid listed stocks.

In recent months, European nations, including the UK, have announced substantial increases in defense budgets, especially following President Trump’s critical remarks towards President Zelensky, which represented a shift in NATO’s dynamics.

Defense companies have seen a sharp rise in their share prices, with BAE Systems climbing 27% over the past month. Eutelsat Communications, listed in Paris, has seen its stock soar fourfold in just two weeks amid speculation regarding its potential use as an alternative to SpaceX’s Starlink service in Ukraine.

Seraphim previously raised £180 million from investors at 110p per share in 2021, a time when excitement around space technology was peaking.