News has learned that Artemis, which holds a 2.3% stake in Reaction Engines, intends to write down the value of its holding by roughly 75%.
Should it be confirmed, it would corroborate Schroders Capital Global Innovation Trust’s announcement on Thursday afternoon that it had decided to lower the investment’s value from £10.6 million to £1.4 million.
This resulted in a £34 million revaluation of Reaction Engines as a whole, which includes the FTSE-100 firms BAE Systems and Rolls-Royce Holdings as shareholders.
Reaction Engines’ revenue growth has been slow, despite efforts to commercialize its heat exchanger technology and recent contract awards.
It’s rumored that Baillie Gifford and other fund managers are monitoring Reaction Engines’ valuation.
According to a source in asset management, Reaction Engines’ valuation may be raised if the company’s technology continues to show promise. They also stated that they remain confident in the company’s technology.
