2nd Nov 2022 10:25
(Alliance News) - Molten Ventures PLC on Wednesday said it expects its gross portfolio value to grow but net asset value to fall on lower realisations as the technology sector declines.
The London-based venture capital firm focused on technology companies anticipates a gross portfolio value of not less than GBP1.45 billion as at September 30, up 7.4% from GBP1.35 billion a year prior. Revenue for its core portfolio grew on average by 60%.
However, it expects its net asset value per share to fall by about 6.4% to around 830 pence from 887p a year ago and by 11% from 937p at March 31.
Molten explained its half-year underlying portfolio fell in fair value by around 17%.
Cash on the balance of sheet fell to GBP28 million from GBP156 million, while cash proceeds from realisations fell to GBP13 million from GBP67 million a year ago. The firm added it anticipates its cost base to be 20% below budget for financial year 2023 ending March 31.
"The first six months of the financial year have been against the backdrop of a challenging market environment, with inflation and rising global interest rates feeding through to a decline in the value of publicly listed high growth technology companies. Nasdaq has declined 25% in the past six months, while technology sub-sectors such as semi-conductors and e-commerce have declined further. In the private markets, deployment of investment capital has slowed while companies, and investors, adapt to an environment with a higher cost of capital," the company said.
Molten Ventures shares were 2.7% higher at 356.40 pence each in London on Wednesday morning.
By Tom Budszus; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.