Molten Ventures Trading Update

LONDON – Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a significant venture capital firm, has issued a trading update regarding its portfolio performance prior to its half-year results for the six months ending on September 30, 2024. These results are set to be announced on November 20, 2024.

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

Molten Ventures has witnessed an increase in realizations, generating £76 million in cash proceeds during the reported period. The M-Files exit, pending regulatory approval, is projected to bring total gross proceeds for the financial year to £124 million, which represents about 9% of the GPV.

Investments originating from Molten's balance sheet during this period amounted to £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 firm announced a CEO transition, with CFO Ben Wilkinson succeeding Martin Davis effective immediately.

In the six months leading to September 30, 2024, the total GPV decreased by £35 million due to realizations outpacing investments and a modest fair value uplift in the existing portfolio, although this was countered by negative foreign exchange movements. The fair value increase (excluding FX) was £20 million, which includes net increases of £110 million against reductions of £90 million.

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

Molten's portfolio companies have collectively raised over £800 million in capital over the past year, with key companies like ISAR Aerospace, ICEYE, RavenPack, Revolut, and Riverlane achieving capital raises or increased valuation transactions.

Molten continues to prioritize high-quality investments in disruptive, high-growth technology companies, noting that realizations have exceeded the total amount invested. The balance sheet stands strengthened, with cash reserves of £82 million as of September 30, 2024, alongside £44 million available from managed funds. Furthermore, a new debt facility has been established, incorporating a £120 million loan and an undrawn revolving credit facility of up to £60 million.

Ben Wilkinson, the new CEO, expressed optimism regarding the company's growth and the potential for capital deployment in the current economic landscape.

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.