Kelso Group lifts NAV in 2026 as concentrated UK small-cap strategy gains traction

Insight Business Support Plc ( (GB:KLSO) ) has shared an update.

Kelso Group Holdings reported audited results for 2025 showing a slight dip in net asset value per share from 2.4p to 2.3p, but highlighted a recovery in 2026 with NAV per share rising to about 2.6p and net assets up to around £11.3 million. The investment vehicle, which maintains a tightly controlled cost base and uses modest leverage of roughly 25%, has expanded its declarable holdings from five to eight, with positions spanning FTSE 250 and AIM names such as NCC Group, Saga, CVS, TheWorks, Filtronic, Selkirk and Angling Direct.

Performance was mixed across the portfolio in 2025 and early 2026, with three of four core active stocks delivering an average 24% share price gain last year and new additions Saga and Filtronic posting strong advances this year, while Selkirk initially dragged on returns before partially recovering. Management argues that the UK small and mid-cap market is at a turning point and that Kelso’s concentrated, agile approach and ability to enter smaller situations inaccessible to larger funds position it to capture a “generational” value opportunity, with the board signalling an intention to use share buybacks when the stock trades below NAV to enhance capital returns and liquidity for shareholders.

Spark’s Take on KLSO Stock

According to Spark, TipRanks’ AI Analyst, KLSO is a Neutral.

The score is weighed down primarily by the sharp deterioration in financial performance and cash generation in 2024 versus 2023, despite a relatively solid balance sheet. Technical indicators are broadly neutral with slightly weak short-term momentum, and valuation cannot be assessed due to missing P/E and dividend yield data.

To see Spark’s full report on KLSO stock, click here.

More about Insight Business Support Plc

Kelso Group Holdings is a London-listed investment vehicle focused on undervalued, established and profitable UK small and mid-cap companies, predominantly market leaders with strong balance sheets. The company runs a concentrated portfolio of fewer than ten UK-listed stocks, avoids early-stage, speculative, highly cyclical and resources businesses, and aims to deliver private equity-style compounded returns for shareholders, with its board holding about 17% of the equity and bringing extensive City experience.

Kelso was established in 2023 and has raised equity at incrementally higher prices as it scaled its strategy, keeping operating costs low through modest board remuneration and a lean structure. Backed by over 75 known investors and a handful of institutions, the firm positions itself to exploit perceived inefficiencies in the UK small and mid-cap markets, particularly where market prices do not reflect intrinsic value, and seeks to add value through active engagement on strategy, capital allocation and investor relations.

Average Trading Volume: 596,361

Technical Sentiment Signal: Buy

Current Market Cap: £13.71M

See more data about KLSO stock on TipRanks’ Stock Analysis page.