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Molten Ventures reports steady performance amid currency challenges

EditorFrank DeMatteo
Published 10/30/2024, 08:28 PM
© Reuters.
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LONDON - Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a prominent venture capital firm, has provided a trading update highlighting the performance of its portfolio ahead of its half-year results for the six months ending on September 30, 2024. The company is preparing to announce these results on November 20, 2024.

The firm expects an unaudited Net Asset Value (NAV) per share of approximately 644p, a decrease from the 735p reported on September 30, 2023, and 662p on March 31, 2024. The Gross Portfolio Value (GPV) is anticipated to be around £1,343 million, reflecting a slight decrease from £1,379 million as of March 31, 2024.

Molten Ventures has seen a step up in realisations, generating £76 million in cash proceeds during the period. The expected completion of the M-Files exit, pending regulatory approval, would bring the total gross proceeds for the financial year to £124 million, about 9% of the GPV.

Investments from Molten's balance sheet during the period totaled £51 million, with an additional £12 million deployed from managed EIS and VCT funds. A £10 million share repurchase program was completed in September 2024, and the company re-entered the FTSE 250 index.

The company announced a CEO transition, with CFO Ben Wilkinson succeeding Martin Davis with immediate effect.

The total GPV decreased by £35 million in the six months to September 30, 2024, due to realisations exceeding investments and a modest fair value uplift in the existing portfolio, offset by adverse foreign exchange movements. The fair value increase (excluding FX) was £20 million, reflecting net increases of £110 million against reductions of £90 million.

Realisations during the period included high multiples on invested capital from acquisitions such as Endomag by Hologic (NASDAQ:HOLX) and Perkbox by Great Hill Partners. Capital deployment included a £19 million secondary investment to acquire a majority position in Connect Ventures Fund I.

Molten's portfolio companies have raised over £800 million of capital in the last 12 months, with core companies like ISAR Aerospace, ICEYE, RavenPack, Revolut, and Riverlane raising capital or transacting at increased valuation rounds.

Molten continues to focus on high-quality investments in disruptive, high-growth technology companies, with realisations exceeding the amount invested. The balance sheet has been strengthened, with cash at £82 million as of September 30, 2024, and £44 million available from managed funds. A new debt facility includes a £120 million loan and an undrawn revolving credit facility of up to £60 million.

Ben Wilkinson, the new CEO, expressed optimism about the company's growth and opportunities for capital deployment in the current economic climate.

This update is based on a press release statement from Molten Ventures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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