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.
Ben Wilkinson
CFO
Martin Davis
CEO
Forecast net debt (£m)
N/A
Forecast gearing ratio (%)
N/A
% | 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 |
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 |
Get access to the very latest content matched to your personal investment style.