Molten Ventures Reports Steady Performance Despite Currency Challenges
LONDON - Leading venture capital firm Molten Ventures (LSE: GROW, Euronext Dublin: GRW) provided a trading update highlighting the performance of its portfolio ahead of its half-year results for the six-month period ended September 30, 2024. The company is set to announce these results on November 20, 2024.
The firm expects an unaudited Net Asset Value (NAV) of approximately 644p, compared to the reported 735p as of September 30, 2023, and 662p as of March 31, 2024. The Gross Portfolio Value (GPV) is expected to be around £1.343 billion, down slightly from £1.379 billion as of March 31, 2024.
Molten Ventures saw an increase in realizations during the period, generating £76 million in cash revenue. With regulatory approval pending, the completion of the M-Files exit is expected to raise total gross revenues for the financial year to £124 million, representing about 9% of the GPV.
Investments from Molten’s balance sheet totaled £51 million during the period, with an additional £12 million deployed from managed EIS and VCT funds. A £10 million share buyback program was completed in September 2024, and the company re-entered the FTSE 250 index.
The company announced the appointment of CFO Ben Wilkinson as CEO, effective immediately, succeeding Martin Davis.
During the six months leading up to September 30, 2024, the total GPV decreased by £35 million. This decline was due to realizations exceeding investments and modest fair value increases in the current portfolio, offset by adverse currency movements. The fair value increase (excluding currency effects) was £20 million, reflecting net increases of £110 million against £90 million in declines.
The realizations during the period included high multiples on invested capital, such as Hologic's acquisition of Endomag and Great Hill Partners' acquisition of Perkbox. Capital distribution included a £19 million secondary investment to obtain a majority position in the Connect Ventures Fund I.
Molten's portfolio companies raised over £800 million in capital over the past 12 months. Core companies such as ISAR Aerospace, ICEYE, RavenPack, Revolut, and Riverlane have raised capital or executed transactions in increased valuation rounds.
Molten continues to focus on high-quality investments in disruptive, high-growth potential technology companies, with realizations exceeding invested amounts. The balance sheet has been strengthened, with cash available at £82 million and £44 million from managed funds as of September 30, 2024. A new debt facility includes a £120 million loan and a revolving credit facility of up to £60 million.
New CEO Ben Wilkinson expressed optimism regarding the company's growth and capital distribution opportunities in the current economic climate.