Molten Ventures plc (LON:GROW), a leading venture capital firm investing in and developing disruptive, high-growth technology companies, has announced its final results for the year ended 31 March 2023.
Financial highlights
- £1,371m Gross Portfolio Value (31 March 2022: £1,532m)
- £1,194m Net Assets (31 March 2022: £1,434m)
- 780p NAV per share (31 March 2022: 937p)
- -16% Gross Portfolio fair value movement (31 March 2022: 37%)
- £138m Cash invested in the year, and a further £41m from EIS/VCT funds (year to 31 March 2022: £311m from plc and £45m from EIS/VCT funds)
- £48m Cash proceeds from realisations (year to 31 March 2022: £126m)
- £23m Consolidated Group cash (31 March 2022: £78m)
- £150m Expanded debt facility (£90m drawn at 31 March 2023)
- <0.1% Operating costs (net of fee income) continue to be substantially less than the targeted 1% of year-end NAV (31 March 2022: <0.1%)
- -£243m Loss after tax (year to 31 March 2022: Profit of £301m)
The above figures contain alternative performance measures (“APMs”) – see Note 33 for reconciliation of APMs to IFRS measures.
Highlights
- Cash investments of £138m during the year from the Molten Ventures balance sheet (year to 31 March 2022: £311m), with a further £41m from EIS/VCT funds (year to 31 March 2022: £45m).
- Made eight primary investments with a combined funding of £61m; and £44m in 17 companies for follow-on deals and secondaries (direct).
- Successful first close and syndication of part of our Fund of Funds programme.
- Committed to 18 new seed funds via our Fund of Funds programme, bringing the overall Fund of Funds portfolio to 75 funds.
- Cash proceeds from realisations during the year of £48m.
- Portfolio remains well funded with more than £1bn of capital raised by investee companies in the last 12 months, of which over 90% have been at higher or equivalent valuations than our holding value.
- Over 80% of companies in the Core portfolio with at least 18 months of cash runway as at 31 March 2023 (based on existing budgets and growth plans).
- Reported weighted average revenue growth of our Core portfolio of 39% in the calendar year 2022 and forecast to be over 65% for calendar year 2023.
ESG highlights
- Delivered on ESG targets as part of a broader ESG roadmap, including our first Climate Disclosure Project (CDP) submission.
- Strategic and tactical support through portfolio engagement events, focusing on ESG-related risks and opportunities; and toolkit resources to assist with development of portfolio companies’ own ESG strategies.
- Implemented a Climate Strategy which defines the Group’s greenhouse gas reduction targets, KPIs and roadmap to net zero.
- Developed and formalised Molten’s Corporate Purpose, in alignment with the Group’s ESG Policy.
- Developed and published a Group Human Rights Policy.
Post period-end highlights
- As part of our portfolio management and to generate additional liquidity, we have agreed a secondary sale for 10% of our Earlybird Fund VI investment on 28 April 2023, realising €14 million (£13 million).
Martin Davis, Chief Executive Officer of Molten Ventures, commented:
“After a difficult twelve months for the technology industry, we are cautiously optimistic for the year ahead as markets stabilise and, in places, recover.
In the year, we’ve continued to make strategic progress by increasing our funding flexibility and leveraging third party assets so we are well positioned to continue to invest in high-growth, disruptive technology companies.
While market turbulence may persist, we believe that our seasoned team, active approach to portfolio management and long term, thesis-led approach to investing will be able to deliver for both shareholders and for the European entrepreneurs inventing our future”.
