Molten Ventures - NAV reset reflects falls in public markets

In its trading update, Molten Ventures announced that its H123 NAV per share is expected to fall to not less than 830p (H122: 887p), 12% below the FY22 NAV/share of 937p. This corresponds to a 17% fall in gross portfolio value (GPV) on a constant currency basis, a net fall of 12% after reflecting exchange rate gains. In turn, GPV is expected to be not less than £1.45bn (FY22: £1.53bn). The falls in valuation were cushioned by the vast majority (c 90%) of Molten’s holdings being structured as preference shares. The portfolio remains resilient, with average core portfolio revenues growing at more than 70% and well-funded, with over 75% of the core portfolio having more than 18 months’ cash runway. Molten invested £112m in H123, but management expects the rate of investment to slow materially in H223, with FY23 targeted investment of c £150m, implying c £38m of investment in H223. Cash realisations in H123 came to c £13m (H122: £67m), including UiPath and Minit (via Earlybird). Period-end plc cash stood at £28m (FY22: £78m) with £23m of listed assets. The group also has a new £150m debt facility, providing the cash needed to see it through the downturn. Molten trades at 0.44x NAV, below its peers on an average of 0.59x NAV.