Molten Ventures — FY25 trading update – key takeaways

Molten Ventures (LSE: GROW)

Last close As at 29/04/2025

GBP2.70

−5.80 (−2.10%)

Market capitalisation

GBP496m

More on this equity

Research: Financials

Molten Ventures — FY25 trading update – key takeaways

Molten’s FY25 trading update (to end-March 2025) showed a positive uptick in portfolio valuations in the second half of the company’s financial year, resulting in a c 4% increase in NAV per share to 671p in H225, and in turn a marginally positive NAV per share total return for FY25 of 1.4%. Molten delivered a strong level of realisation proceeds in FY25 of c £135m (above original management guidance of £100m) and has seen continued traction in recent months with further expected proceeds of £30m (despite the overall soft European VC exit market in Q125), supporting its share buybacks. Molten’s cash balance at end-March 2025 stood at £89m (which further improved to £110m as of 23 April 2025 following the receipt of Freetrade proceeds). Together with its undrawn revolving credit facility of up to £60m and limited near-term funding requirement across its portfolio for FY25 (up to £20m according to management’s previous statements), this provides it with a good balance sheet position for new and follow-on investments (Molten invested £73m in FY25).

Milosz Papst

Written by

Milosz Papst

Director of Content, Investment Trusts

Investment companies

Listed venture capital

30 April 2025

Price 270.40p
Market cap £495m
Shares in issue 183.1m
Code/ISIN GROW/GB00BY7QYJ50
Primary exchange LSE
AIC sector N/A
52-week high/low 432.5p 215.6p

Fund objective

Molten Ventures is a UK 250, London-based venture capital (VC) firm that invests in the European technology sector. It has a portfolio of 100+ investee companies and includes a fund of funds programme (as well as EIS and VCT schemes) in the group, as well as its flagship balance sheet VC fund.

Analysts

Milosz Papst
+44 (0)20 3077 5700
Dan Ridsdale
+44 (0)20 3077 5700

Molten Ventures is a research client of Edison Investment Research Limited

The fair value change of Molten’s gross portfolio at constant currency was 5.2% in FY25 (3.6% including fx), with notable positive contributors being Ledger, Aircall and Revolut, more than offsetting the H125 markdown of Thought Machine. The value-weighted revenue growth across Molten’s core holdings (making up 61% of its portfolio value) was a robust 51%. Molten has a solid cash runway across its portfolio, with 88% of core companies funded for at least 12 months or already profitable, and 71% for more than 18 months or already profitable. The share of holdings with a cash runway of at least 12 months went up from 78% at end-September 2024, which may suggest some progress in closing new funding rounds. Encouragingly, JPMorgan recently indicated a solid momentum in growth rounds in Europe with 58 VC-backed transactions exceeding US$50m between end-December 2024 and end-February 2025. The €16.7bn deal volume in the European VC market in Q125 was quite robust and represents a run-rate that implies 10.8% growth for the full year, according to PitchBook, supported by continued European Central Bank rate cuts. Management highlighted that Molten’s technology- and software-focused portfolio is less exposed to the direct impact of tariffs. Still, the recent macroeconomic and geopolitical uncertainty may weigh on VC deal activity and affect further fund-raising and realisation activity in the short term.

Molten’s FY25 realisations include the full exits of M-Files, Endomag, Perkbox and Graphcore (all completed at or above last carrying value), as well as a minor £7m partial realisation of Revolut as part of the company-led secondary share sale (at a 25% uplift to previous carrying value). These transactions were completed at an average multiple on invested capital (MOIC) of 1.8x, with M-Files (7.4x) and Endomag (3.9x) generating attractive returns for Molten. After the reporting date, Molten completed the exit of Freetrade, a commission-free self-directed investment platform sold to IG Group at a moderate 1.5x MOIC, and Lyst, a global fashion shopping platform sold to ZOZO at an undisclosed MOIC. These transactions were realised at uplifts of 17% and 7% to last carrying values, respectively. The healthy realisation activity allowed Molten to complete a £15m buyback programme in FY25 and, given the persistent wide discount to NAV (currently at 60%), initiate another £15m programme on 13 March 2025, of which £3.8m had been spent as at the trading statement release date. This brings the total buyback volume above the minimum level of 10% of realisation proceeds earmarked for share repurchases as part of Molten’s capital allocation policy.

NOT INTENDED FOR PERSONS IN THE EEA

General disclaimer and copyright

This report has been commissioned by Molten Ventures and prepared and issued by Edison, in consideration of a fee payable by Molten Ventures. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright 2025 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or sol icitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Molten Ventures

View All

Latest from the Financials sector

View All Financials content

Research: Financials

Record — Robust AUM and opportunity amid volatility

Record has reported robust assets under management (AUM) for Q425. Against a background of increased volatility in currency markets, the company’s core risk management services continue to demonstrate their value to both existing and potential clients, while providing opportunities in asset management products. An additional £0.3m of performance fees in the quarter has taken the FY25 total to £3.2m and we have slightly lifted our FY25 earnings forecast. FY25 results will be reported on 20 June.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free