Molten Ventures (AIM: GROW)

Currency in GBP

Last close As at 06/02/2023

GBP3.95

43.20 (12.28%)

Market capitalisation

GBP538m

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, the technology sector faces a challenging macroeconomic environment triggering market rotation towards value and out of growth (impacting valuations of listed high-growth tech companies). Moreover, VC deal activity slowed down recently, with Q322 European VC deal value down 36.1% q-o-q (the lowest level since Q420) and European exit value down 81.7% q-o-q (though remaining strong in the software sector this year), according to PitchBook. At the same time, the market downturn is likely to create opportunities for long-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 11.5 8.8 (51.3)
Relative 5.6 (1.2) (51.8)
52 week high/low 801.0p/247.0p

Financials

Molten Ventures recently announced that its H123 NAV per share fell to 837p, c 11% below the FY22 NAV/share of 937p. This corresponds to a 17% fall in gross portfolio value on a constant currency basis, a net fall of 12% after reflecting fx gains. The falls in valuation were cushioned by the vast majority (c 90%) of Molten’s direct investments being structured as preference shares. Management expects average core portfolio revenues to grow by more than 60% and 70% in 2022 and 2023, respectively. Over 75% of the core portfolio has more than 18 months’ cash runway based on current projections. Molten invested £112m in H123, but management expects this to slow in H223, with FY23 targeted at c £150m.

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 1.9 1.9
2022A 351.2 N/A 331.1 218.0 1.8 1.8
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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