DJ Full year trading update and notice of results
Molten Ventures Plc (GROW; GRW)
Full year trading update and notice of results
23-Apr-2024 / 07:00 GMT/BST
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23 April 2024
Molten Ventures plc
("Molten Ventures", "Molten", or the "Group")
Full year trading update and notice of results
Stable and enhanced platform, in an improving market with greater expectation for realisations
Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a leading venture capital firm investing in and developing
high-growth digital technology businesses, today announces an update on its portfolio, NAV (unaudited) and highlights
for the year ahead of its full year results for the 12 months ended 31 March 2024, due to be announced on 12 June 2024.
Highlights:
-- GBP55 million capital raise (net of fees) completed in December 2023, providing additional liquidity to
pursue follow-on investments and access exceptional secondary investments at attractive valuations.
-- Acquisition of a stake in Seedcamp's Fund III as part of our secondary strategy; with value concentrated
in six mature, proven assets in attractive market segments.
-- All-share acquisition of Forward Partners completed with integration underway, adding a balanced,
well-positioned and well-capitalised portfolio of 40+ assets, enhancing the Group's access to early-stage deal flow
opportunities.
-- Gross Portfolio Value ("GPV") (unaudited) is expected to be circa GBP1,377 million (31 March 2023: GBP1,299
million).
-- Underlying Gross Portfolio fair value (unaudited) stabilised and broadly flat for the year at constant
currency, reflecting a modest increase in the like-for-like portfolio in the second half and positive contribution
from the two acquisitions (first half: 3.7% decrease, second half: 4.2% increase at constant currency).
-- Uplifts in fair value from the acquisition of Forward Partners and the investment stake in Seedcamp's
Fund III. Currency movements from the weaker US and Euro continued in the second half of the year resulting in
larger foreign exchange losses in the second half.
-- Core portfolio remains well funded, focused on capital efficiency and continues to trade positively with
very limited exceptions: in the calendar year to 31 December 2023, value-weighted revenue growth in our Core
portfolio was 63%.
-- Invested GBP65 million (year to 31 March 2023: GBP138 million), of which GBP40 million from Molten's balance
sheet for the year ended 31 March 2024, and GBP25 million representing the Forward Partners share-for-share exchange
(net of cash acquired), with a further GBP37 million from the managed EIS and VCT co-investment strategies.
-- Realisations generated cash proceeds for Molten in the year of GBP39 million (year to 31 March 2023: GBP48
million).
-- NAV per share (unaudited) is expected to be circa 661p (31 March 2023: 780p).
-- Disciplined approach to capital allocation through FY24 with cash investments of GBP40m (excluding Forward
Partners) below historical investment rates and aligned to GBP39m of realisations. Focus on secondary acquisitions to
broaden the portfolio at attractive prices.
-- Molten balance sheet cash as at 31 March 2024 of GBP57 million, and a further GBP66 million available for
investment from the managed EIS/VCT funds. Undrawn Molten Revolving Credit Facility of up to GBP60 million provides
further funding flexibility.
-- Strengthened Board with two key appointments in Laurence Hollingworth as Non-Executive Chair, and Lara
Naqushbandi as Non-Executive Director - adding further capital markets, investment banking, technology, climate
technology and leadership experience.
Portfolio performance and fair value movements:
-- Portfolio companies continue to maintain revenue growth momentum, demonstrating the underlying resilience
of these businesses and the structural demand for their products across their respective end-markets.
-- Total fair value movements in the second half of GBP55 million arose mainly from the Forward Partners and
Seedcamp Fund III portfolio acquisitions, offset by adverse FX movements of GBP19m. These aside, valuations across
both our Core and Emerging portfolio assets have held essentially flat in aggregate in the second half.
-- Our portfolio remains well funded with over 90% of the Core projecting more than 12 months of cash
runway, and over 50% projecting greater than 24 months.
Outlook for FY25 (year to 31 March 2025):
-- We have continued to make strategic progress in enhancing our platform and believe Molten is
well-positioned to generate returns for our investors. We have the skillset, market positioning and the firepower
available to capture opportunities while market valuations remain subdued.
-- FY25 showing promise of delivering a more normalised realisations market with divestment proceeds
expected to be meaningfully higher than the last two years.
-- A continued focus on our third-party capital strategy to be spearheaded by a newly hired head of
third-party funds.
Martin Davis, Chief Executive Officer of Molten Ventures, commented:
"We are grateful to all our investors who supported us through the period, most notably with our fundraise and with the
addition of the Forward Partners portfolio. With GBP123 million of cash resources across PLC, the managed EIS/VCT funds,
as well as a GBP60 million undrawn debt facility and a stable and enhanced platform, we are in a strong position to
deploy capital selectively to maximise returns for our investors in a stabilising but still challenging environment for
high-growth companies. Our portfolio remains in good health, and we expect to see a step up in realisations in the
current financial year, with a number of potential exit processes ongoing across our portfolio."
Notice of Full Year Results:
-- Molten Ventures Full Year Results are scheduled for release on 12 June 2024. Presentation and conference
call details will be confirmed in due course.
Six Months
to
Six Months to 31 Year to 31
30 % change to March 2024 % change to March 2024 % change to
September opening GPV opening GPV opening GPV
2023 (unaudited) (unaudited)
(unaudited)
GBP'million GBP'million GBP'million
Opening Gross GBP1,371 GBP1,299 GBP1,371
Portfolio Value
Investments GBP17 GBP48 GBP65
Realisations (GBP33) (GBP6) (GBP39)
Movement in Foreign (GBP5) -0.4% (GBP19) -1.5% (GBP24) -1.8%
Exchange (a)
Movement in Fair Value (GBP51) -3.7% GBP55 4.2% GBP4 0.3%
(b)
Total Fair Value (GBP56) -4.1% GBP35 2.7% (GBP20) -1.5%
Movements (a+b)
Closing Gross GBP1,299 c. GBP1,377 c. GBP1,377
Portfolio Value
Enquiries:
Molten Ventures plc
+44 (0)20 7931 8800
Martin Davis (Chief Executive Officer)
ir@molten.vc
Ben Wilkinson (Chief Financial Officer)
Deutsche Numis
Joint Financial Adviser and Corporate Broker
Simon Willis
+44 (0)20 7260 1000
Jamie Loughborough
Iqra Amin
Goodbody Stockbrokers
Joint Financial Adviser and Corporate Broker,
Euronext Dublin Sponsor
Don Harrington +44 (0) 20 3841 6202
Dearbhla Gallagher
William Hall
Powerscourt +44 (0)7970 246 725
Public relations +44 (0)7880 744 379
Elly Williamson molten@powerscourt-group.com
Nick Hayns
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 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 2023, Molten Ventures had a diverse portfolio with shareholdings in 74 companies, 17 of which represent our Core Portfolio holdings and account for 62% of the Gross Portfolio Value. Our core companies include Thought Machine, Coachhub, Form3, 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 aspirations 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.
Molten Ventures provides a unique opportunity for public market investors to access these 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 GBP1bn capital into fast growing tech companies and have realised GBP520m to 30 September 2023.
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ISIN: GB00BY7QYJ50 Category Code: MSCH TIDM: GROW; GRW LEI Code: 213800IPCR3SAYJWSW10 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 317167 EQS News ID: 1886393 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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April 23, 2024 02:00 ET (06:00 GMT)
