Molten Ventures

LN: GROW

Market Cap£450m

Last Close 294p

Molten Ventures is a London-based venture capital (VC) firm that invests in the European technology sector. It has a portfolio of c 70 investee companies and includes a range of funds (seed, EIS and VCT) within the group, as well as its flagship balance sheet VC fund.

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Investment summary

Molten had a very strong FY22 (net growth in fair value of 37%), delivering a solid series of cash exits. Despite this, Molten’s shares trade at 0.5x FY22 NAV/share of 937p, which seems an unjustifiably deep discount given its 26% y-o-y NAV/share growth and five-year NAV/share CAGR of 22%. Moreover, Molten has a broad-based portfolio, weighted towards more robust B2B business models, with quoted holdings representing only 4% of FY22 fair value. Allowing for share price falls to 8 June 2022, adjusted NAV/share still stood at c 925p. In our opinion, this level of discount is undeserved, with the core portfolio well-funded (80% funded to exit/24 months’ runway) and with recent funding rounds (Aiven, CoachHub, Thought Machine) having delivered material valuation uplifts.

Y/E Mar
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2021A 288.8 N/A 268.9 207.3 1.4 1.4
2022A 351.2 N/A 331.1 218.0 1.3 1.3
2023E N/A N/A N/A N/A N/A N/A
2024E N/A N/A N/A N/A N/A N/A
Industry outlook

After a strong run in 2021, sector discounts have widened across the board in 2022, with the market rotation towards value and out of growth. Despite this, the underlying portfolio performance has remained robust. This may present an attractive buying opportunity for longer-term investors.

Last updated on 28/09/2022
Content on Molten Ventures
Molten Ventures – Readying the ship for choppy waters
Financials | research Update | 22 June 2022
Investing In Ideas
Molten Ventures – A compelling story at an attractive discount
Financials | research Flash note | 29 April 2022
Investing In Ideas
Molten Ventures – A core tech holding through the cycle
Financials | research Outlook | 21 March 2022
Investing In Ideas
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (20.4) (35.9) (71.2)
Relative* (15.0) (32.3) (69.6)
52-week high/low 1042.0p/294.0p
*% relative to local index
Key management
Martin Davis CEO
Ben Wilkinson CFO