Molten Ventures (GROW) H2 2024 earnings summary

Executive summary

• Gross portfolio value remained flat year-over-year, with stabilization in private valuations in the second half offsetting earlier declines; H2 FY24 saw a 3% increase in portfolio value, offsetting a 4% reduction in H1.

• Core assets, representing 60% of NAV, delivered strong performance with average revenue growth of 50% and gross margins above 60%; core portfolio revenue growth was 63% in 2023 and forecasted at 52% for 2024, with gross margins stable at 67%.

• Successful and oversubscribed fundraise during a challenging market provided capital for opportunistic acquisitions, notably Forward Partners and Seedcamp III portfolios.

• Focused on building a multi-stage, pan-European tech investment platform, leveraging both balance sheet and third-party capital, with emphasis on platform development, disciplined investment, and strategic M&A.

• Over 85% of core portfolio companies have more than 18 months of cash runway.

Financial highlights

• Gross portfolio value at 31 March 2024: £1,379m (up from £1,371m YoY); net assets: £1,251m (up from £1,194m); NAV per share: 662p (down from 780p YoY); platform AUM: c.£1.8bn.

• Loss after tax: £41m (improved from £243m loss YoY), driven by a -1% fair value movement; operating costs at 0.1% of NAV, well below the 1% target.

• Cash invested: £65m (down from £138m YoY); cash proceeds from realisations: £39m (down from £48m YoY); consolidated group cash: £57m (up from £23m).

• First half saw a -4% portfolio decline, but the second half stabilized with £56m net uplifts.

• Gross portfolio fair value movement: -1% YoY (vs. -16% prior year); 0.4% uplift excluding FX.

Outlook and guidance

• Guidance for £100m in realisations over the coming year, driven by improved M&A activity rather than IPOs; proceeds to be redeployed into NAV-accretive opportunities.

• Deployment expected to return to historic levels as cost of capital stabilizes and market conditions improve; focus on climate tech, Central/Eastern Europe, and further growth in third-party assets.

• Continued focus on secondary market opportunities and disciplined follow-ons in top-performing companies.

• Targeting 20% NAV growth and 10% cash realizations per year over a 3-5 year cycle.

• Announced exits of Perkbox and Endomag post year-end, subject to completion.