Molten Ventures describes resilient full-year performance

23rd Apr 2024 08:41

(Sharecast News) - Technology-focussed venture capital firm Molten Ventures reported a resilient portfolio performance in a full-year trading update on Tuesday, with the gross portfolio value (GPV) expected to reach £1.377bn.

The London-listed company said that despite currency fluctuations, the underlying gross portfolio fair value remained relatively stable, reflecting consistent performance across core assets.

It added that its core portfolio showed robust revenue growth.

Throughout the financial year ended 31 March, Molten Ventures said it maintained a disciplined approach to capital allocation, investing £65m while generating cash proceeds of £39m through realisations.

During the 12 months, the firm completed a £55m capital raise in December, bolstering its liquidity position.

It also expanded its portfolio through strategic acquisitions, including a stake in Seedcamp's Fund III and the all-share acquisition of Forward Partners.

Financially, Molten Ventures said it remained in a strong position, with cash reserves of £57m as of 31 March, further supported by available investment capacity from managed funds and a revolving credit facility.

Additionally, the company noted that it had strengthened its governance structure with key board appointments.

Looking ahead to the 2025 financial year, Molten said it was optimistic about its prospects, adding that it was well-positioned to capitalise on opportunities in the market.

Its focus on third-party capital strategy was expected to be intensified, leveraging the expertise of its newly-appointed leadership to drive growth and profitability in the coming year.

"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," said chief executive officer Martin Davis.

"With £123m of cash resources across PLC, the managed EIS/VCT funds, as well as a £60m 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."

Molten Ventures said it would release its full-year results for the 12 months ended 31 March on 12 June.

At 0820 BST, shares in Molten Ventures were up 6.19% at 240p.

Reporting by Josh White for Sharecast.com.