Molten Ventures portfolio stable as new CEO takes reins

30th Oct 2024 08:27

(Sharecast News) - Molten Ventures announced a stable portfolio performance for its first half on Wednesday, tempered by currency headwinds and shifting leadership.

The FTSE 250 venture capital firm, which focuses on high-growth technology investments, reported an estimated net asset value per share of 644p as of 30 September, down from 662p at the end of the prior financial year.

It said the portfolio's gross value stood at £1.34bn, bolstered by significant realisations but weighed down by adverse foreign exchange movements.

Molten's half-year results were scheduled to be published on 20 November.

Despite currency challenges, Molten said it realised £76m in cash proceeds through strategic exits, including the pending divestiture of M-Files, expected to bring total proceeds to £124m, or around 9% of the portfolio's gross value.

Notable exits included Endomag's acquisition by Hologic and Perkbox's sale to Great Hill Partners, delivering multiples of 3.7x and 1.3x, respectively, on invested capital.

In line with its capital allocation strategy, Molten deployed £51m from its balance sheet, including a £19m acquisition of a majority stake in Connect Ventures Fund I.

Molten said its cash reserves were strengthened to £82m, with an additional £44m accessible through managed EIS/VCT funds, alongside a new £120m loan facility and a £60m undrawn credit line to support future investments.

Leadership changes accompanied the financial update, with chief financial officer Ben Wilkinson succeeding Martin Davis as chief executive, effective immediately.

Davis, who guided Molten's growth amid volatile market conditions, would stay on until April next year to aid the transition.

"Molten is at an exciting point in its growth driven by excellent people and a unique platform and I am privileged to accept the opportunity to continue the evolution of the business as CEO," said chief executive officer Ben Wilkinson.

"We've seen a good level of activity so far this year primarily driven by strong realisations, generating cash proceeds to the balance sheet and providing the capital to take advantage of further opportunities."

Wilkinson said that at its full-year results, the firm noted "cautious optimism" in a "stabilising economic climate", adding that the sentiment still prevailed, with attractive entry pricing and the opportunity to deploy capital on the right deals.

"We remain well-positioned to take advantage of the best opportunities as and when they arise."

At 0839 GMT, shares in Molten Ventures were down 0.82% at 363p.

Reporting by Josh White for Sharecast.com.