REG-Molten Ventures Plc Full year trading update and notice of results

Molten VenturesAnnouncement

23/04/2024 07:00

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   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:

     • £55 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
       £1,377 million (31 March 2023: £1,299 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 £65 million (year to 31  March 2023: £138 million), of  which
       £40 million from Molten’s  balance sheet for the  year ended 31  March
       2024,   and   £25   million   representing   the   Forward    Partners
       share-for-share exchange (net  of cash acquired),  with a further  £37
       million from the managed EIS and VCT co-investment strategies.
     • Realisations generated cash  proceeds for  Molten in the  year of  £39
       million (year to 31 March 2023: £48 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  £40m  (excluding Forward  Partners)  below  historical
       investment rates  and  aligned  to  £39m  of  realisations.  Focus  on
       secondary acquisitions to broaden the portfolio at attractive prices.
     • Molten balance sheet cash as  at 31 March 2024  of £57 million, and  a
       further £66 million available for investment from the managed  EIS/VCT
       funds. Undrawn Molten Revolving Credit  Facility of up to £60  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  £55 million  arose
       mainly from  the  Forward Partners  and  Seedcamp Fund  III  portfolio
       acquisitions, offset by  adverse FX  movements of  £19m. 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 £123  million of cash  resources across PLC,  the
   managed EIS/VCT funds, as well as a £60 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       %  Year to 31       %
                               change to 31 March  change  March 2024  change
                 30 September      to        2024      to                  to
                         2023 opening             opening (unaudited) opening
                                  GPV (unaudited)     GPV                 GPV
                  (unaudited)
                    £’million           £’million           £’million  
   Opening Gross
   Portfolio           £1,371              £1,299              £1,371        
   Value
   Investments            £17                 £48                 £65        
   Realisations         (£33)                (£6)               (£39)        
   Movement in
   Foreign               (£5)   -0.4%       (£19)   -1.5%       (£24)   -1.8%
   Exchange (a)
   Movement in
   Fair Value           (£51)   -3.7%         £55    4.2%          £4    0.3%
   (b)
   Total Fair
   Value                (£56)   -4.1%         £35    2.7%       (£20)   -1.5%
   Movements
   (a+b)
   Closing Gross
   Portfolio           £1,299           c. £1,377           c. £1,377        
   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
                                               +44 (0) 20 3841 6202
   Don Harrington

   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  £1bn capital into fast  growing tech companies  and
   have realised £520m 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


    
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