Molten Ventures swings to loss in difficult year for tech

15th Jun 2023 10:36

(Sharecast News) - Technology investor Molten Ventures reported a gross portfolio value of £1.37bn as of 31 March on Thursday, representing a decrease from £1.53bn a year earlier.

The FTSE 250 company said in its final results that its net assets stood at £1.19bn, down from £1.43bn year-on-year, while its net asset value per share was reported at 780p, a decline from 937p at the end of the prior year.

Its gross portfolio fair value movement experienced a significant decline, reaching -16%, in contrast to a positive movement of 37% in the 2022 financial year.

Despite that setback, the company still invested £138m in cash during the year, while it secured an additional £41m from EIS/VCT funds to support its investment activities.

That still, however, represented a decrease from the prior year, when £311m was invested from the plc, along with £45m from EIS/VCT funds.

During the year, the firm realised £48m in cash proceeds, a decrease from the prior year's figure of £126m.

Molten Ventures also reported £23m in consolidated group cash, down from £78m at the end of the 2022 financial year.

The company expanded its debt facility by £150m during the period, with £90m drawn as of 31 March.

Operating costs net of fee income amounted to less than 0.1% of the firm's year-end net asset value - consistent with the prior year.

Molten Ventures reported a loss after tax of £243m, swinging from a profit of £301m a year earlier.

"After a difficult 12 months for the technology industry, we are cautiously optimistic for the year ahead as markets stabilise and, in places, recover," said chief executive officer Martin Davis.

"In the year, we've continued to make strategic progress by increasing our funding flexibility and leveraging third party assets so we are well positioned to continue to invest in high-growth, disruptive technology companies.

"While market turbulence may persist, we believe that our seasoned team, active approach to portfolio management and long term, thesis-led approach to investing will be able to deliver for both shareholders and for the European entrepreneurs inventing our future."

At 1007 BST, shares in Molten Ventures were down 1.07% at 296.8p.

Reporting by Josh White for Sharecast.com.