Molten Ventures plc
("Molten Ventures", "Molten", or the "Company")
Half Year Trading Update
and Notice of Results
Stable portfolio performance offset by currency headwinds. Strong delivery of realisations positioning the Group well to take advantage of market opportunities
Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a leading venture capital firm investing in and developing high-growth technology businesses, today announces an update on its portfolio and NAV (unaudited) ahead of announcing half year results for the six months ended 30 September 2024 scheduled for release on 20 November 2024.
Half Year Highlights:
- NAV per share (unaudited) expected to be circa 644p (30 September 2023: 735p, 31 March 2024: 662p)
- Gross Portfolio Value (“GPV”) (unaudited) expected to be circa £1,343 million (30 September 2023: £1,299 million, 31 March 2024: £1,379 million)
- Step up in realisations, generating cash proceeds for Molten of £76 million in the period. Following the anticipated completion of M-Files’ announced exit, which is pending regulatory approval, aggregate total gross proceeds for this financial year would total £124 million to date, representing ~9% of GPV
- £51 million invested from Molten’s balance sheet during the period (30 September 2023: £17 million, 31 March 2024: £65 million) of which £25 million represented Forward Partners share-for-share exchange), with a further £12 million deployed from managed EIS and VCT funds (30 September 2023: £35 million)
- Executing on capital allocation strategy, including completion of £10 million share repurchase programme in September 2024 utilising a proportion of realisation proceeds
- Re-entry into the FTSE 250 during the period
- CEO transition separately announced today sees CFO Ben Wilkinson succeed Martin Davis as Molten CEO with immediate effect
| Six months to 31 March 2024 | % change to opening GPV | Six months to 30 September 2024 (unaudited) | % change to opening GPV |
| £’million | | £’million | |
Opening Gross Portfolio Value | 1,299 | | 1,379 | |
Investments | 49 | | 51 | |
Realisations | (6) | | (76) | |
Movement in Foreign Exchange (a) | (19) | -1.46% | (30) | -2.18% |
Movement in Fair Value (b) | 56 | 4.31% | 20 | 1.45% |
Total Fair Value Movements (a+b) | 37 | 2.85% | (10) | -0.73% |
Closing Gross Portfolio Value | 1,379 | | c.1,343 | |
Fair value movements and portfolio performance:
- Total gross portfolio value lower in the six-month period to 30 September 2024 by £35 million driven by a combined impact of significant delivery of realisations above the investment level for the period, with a modest uplift in fair value of existing portfolio, offset by adverse foreign currency movements.
- £20m uplift in fair value (excluding FX) reflecting movements across the broader portfolio and the continuation of the secondary investment strategy. Fair value movement reflects the net of £110 million increases offset by reductions of £90 million.
- £76m in realisations rising to £124m following the anticipated post period completion of M-Files pending regulatory approval. This surpasses the guidance given at the full year results to obtain in the region of £100 million this financial year which would represent ~9% of Gross Portfolio Value ('GPV'). Announced realisations include:
- M-Files (due to complete pending regulatory approval) via a majority recapitalisation investment and delivering 7.4x multiple on invested capital,
- Endomag acquired by Hologic delivering 3.7x multiple on invested capital
- Perkbox acquired by Great Hill Partners delivering 1.3x multiple on invested capital and
- Graphcore via its acquisition by SoftBank delivering 0.9x multiple on invested capital
- Capital deployed during the period was £51m, including the secondary investment to acquire a majority position in Connect Ventures Fund I for £19 million
- Our portfolio companies continue to be active, having raised in aggregate over £800 million of capital in the last 12 months, with Core portfolio companies, ISAR Aerospace, ICEYE, RavenPack, Revolut and Riverlane all raising capital or transacting at increased valuation rounds.
Cash resources and investment cadence:
- Molten continues to target new investments in disruptive, high-growth technology companies.
- Discipline on the quality of investments remains a core focus, with realisations exceeding the amount invested in the period.
- Molten’s balance sheet has been strengthened over the six months with cash at 30 September 2024 of £82 million, and a further £44 million available for investment by managed EIS/VCT funds.
- New Debt Facility comprises a £120 million loan and an undrawn revolving credit facility of up to £60 million providing further funding flexibility subject to availability and certain drawing conditions.
Ben Wilkinson, Chief Executive Officer of Molten Ventures, commented:
“Molten is at an exciting point in its growth driven by excellent people and a unique platform and I am privileged to accept the opportunity to continue the evolution of the business as CEO. We’ve seen a good level of activity so far this year primarily driven by strong realisations, generating cash proceeds to the balance sheet and providing the capital to take advantage of further opportunities. In our full-year results, we spoke about cautious optimism in the stabilising economic climate, and this sentiment still prevails, with attractive entry pricing and an opportunity to deploy capital on the right deals. We remain well-positioned to take advantage of the best opportunities as and when they arise.”
-ENDS-
Enquiries:
Molten Ventures plc Ben Wilkinson (Chief Executive Officer) Andrew Zimmermann (Interim Chief Financial Officer) | +44 (0)20 7931 8800 ir@molten.vc |
Deutsche Numis Securities Joint Financial Adviser and Corporate Broker Simon Willis Jamie Loughborough Iqra Amin | +44 (0)20 7260 1000 |
Goodbody Stockbrokers Joint Financial Adviser and Corporate Broker, Euronext Dublin Sponsor Don Harrington Tom Nicholson William Hall | +44 (0) 20 3841 6202 |
Sodali & Co Public relations Elly Williamson Jane Glover | +44 (0)7970 246 725 / +44 (0)771 324 6126 |
About Molten Ventures
Molten Ventures is a leading venture capital firm in Europe, developing and investing in disruptive, high growth technology companies. We inject visionary companies with energy to help them to transform and grow. This energy comes in many forms - capital, of course, but also knowledge, experience, and relationships. We believe it is our role to support the entrepreneurs who will invent the future, and that future is being built, today, in Europe.
As at 30 September 2024, Molten Ventures had a diverse portfolio with shareholdings in 118 companies, 20 of which represent our Core holdings and account for 62% of the Gross Portfolio Value. Our Core companies include Thought Machine, Coachhub, Aiven, Ledger and Aircall. We invest across four sectors: Enterprise Technology, Hardware and Deeptech, Consumer Technology, and Digital Health and Wellness, with highly experienced partners constantly looking for new opportunities in each. We look for high-growth companies operating in new markets, with high potential for global expansion, strong IP, powerful technology, and strong management teams to deliver success. We also look for businesses with the potential to generate strong margins to ensure rapid, sustainable growth in substantial addressable markets
A member of the London Stock Exchange’s FTSE 250, Molten Ventures provides a unique opportunity for public market investors to access fast-growing tech businesses, without having to commit to long term investments with limited liquidity. Since our IPO in June 2016, we have deployed over £1bn capital into fast growing tech companies and have realised circa £600m to 30 September 2024. For more information, go to https://www.moltenventures.com/
