Molten Ventures (AIM: GROW)

Currency in GBP

Last close As at 26/01/2023

GBP3.64

−23.40 (−6.03%)

Market capitalisation

GBP593m

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.

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.

Sector

Financials

Equity Analyst

Milosz Papst

Milosz Papst

Director, Financials

Key Management

  • Ben Wilkinson

    CFO

  • Martin Davis

    CEO

Balance Sheet

Forecast net debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 6.7 23.5 (51.1)
Relative 2.7 11.7 (52.3)
52 week high/low 811.0p/247.0p

Financials

Molten Ventures reported a c 11% decline in NAV per share to 837p in H123 versus FY22, broadly in line with its trading update in early November. Its gross portfolio value was down 17% in constant currency, partially offset by a 5% positive foreign exchange impact from a stronger US dollar. While the enterprise values (EVs) of its portfolio holdings were marked down on average by c 35% (primarily in response to the softening valuations across public equities year-to-date), we note that the portfolio was more resilient than the broader IT market on the back of exposure to disruptive tech, including enterprise software. On top of that, the impact on Molten’s NAV was partially offset by 90% of its investments being structured as preference shares. The company invested £112m in H123 but plans a slower pace in H223 and targets £150m for FY23.

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 1.8 1.7
2022A 351.2 N/A 331.1 218.0 1.7 1.6
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

Thematics

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