Molten Ventures upbeat on positive first half

(Sharecast News) - Molten Ventures reported a rise in portfolio value, net asset value and realisations in the first half of its financial year on Tuesday, as the venture capital group said it was sustaining the progress set out in its strategic plan. For the six months ended 30 September, net asset value per share increased 7.9% to 724p, bringing the 12-month gain to 12%.

Gross portfolio value rose 5% over the period to £1.44bn, while net assets reached £1.29bn.

The FTSE 250 company recorded a 6.3% net fair value gain across its holdings and generated £62m of cash from realisations, with a further £23m raised since the period ended.

Molten Ventures said it invested £33m during the half, supplemented by £11m from its managed EIS and VCT funds, and held £77m in cash at the end of September.

Operating costs fell to 0.1% of period-end NAV, well below the firm's 1% year-end target.

The group also returned £19m to shareholders via buybacks, adding another £5m after the period closed.

The Core Portfolio accounted for £888m, or 62%, of gross portfolio value across 16 companies with average annual revenue of more than $500m.

Molten said six of those businesses were on track to deliver profitability this year, while 81% were forecast to be funded for at least 12 months.

Gross margins averaged 68%, excluding pre-revenue firms.

The remaining £548m of value came from emerging companies and fund investments, including Earlybird and seed fund-of-funds holdings.

Molten said its top 15 emerging revenue generators were forecasting revenue growth of 100%.

The group also highlighted active innovation and job creation across its portfolio and said investment momentum remained strong, with recent Series A and B commitments to Duel, General Index and Polymodels Hub and £20m deployed since the half-year point.

It also continued its secondary strategy through a £15m majority stake in Speedinvest Continuation Fund I, which the company said provides nearer-term realisation prospects.

Total commitments to the share buyback programme reached £50m after an additional £10m allocation in October, supported by what the company described as a strong run of realisations.

General administrative expenses fell 8% as the group continued to streamline costs while adding talent to support future performance.

Chief executive Ben Wilkinson said the half year "sustained strong momentum, marked by continued growth in our portfolio value and NAV per share, ongoing strong level of realisations, and effective delivery on our capital allocation policy."

"We are pleased with the progress we made on the strategic priorities outlined in February 2025, and remain committed to delivering against these," he added.

Wilkinson said the company was advancing co-investment structures, pursuing buybacks that are accretive to NAV per share and preparing for further developments on both realisations and new investments.

"As well as nearer-term realisation opportunities in our secondary investments, top assets in our core portfolio are also moving up the maturity curve, underpinning our confidence in building up a strong pipeline of future realisation opportunities and returns.

"We remain focused on the most accretive uses of our capital to build maximum value across the group for all our stakeholders."

At 0948 GMT, shares in Molten Ventures were up 2.58% at 430.2p.

Reporting by Josh White for Sharecast.com.