29th Nov 2021 09:01
(Alliance News) - Molten Ventures PLC on Monday reported a strong performance for the first half of its financial year, with the technology sector driving the value of the company's portfolio higher.
Shares in Molten Ventures were up 4.5% at 914.49 pence on Monday in London.
As at September 30, the technology-focused venture capital firm's net asset value stood at 887p per share, up 60% from 555p the same date the year before and 19% higher from 743p at the end of March.
The company's gross portfolio value rose sharply over the six month period to GBP1.35 billion, a 37% increase from GBP984 million at March 31, driven by an increase in fair value from investee companies such as London-based financial services firm Revolut, consumer review website Trustpilot and payment services platform Form3.
In particular, the increase was due to GBP165.0 million in investments made and a net fair value increase of GBP252 million.
As at September 30, 2020, Molten's gross portfolio value stood at GBP702.4 million, in turn up 92% on a year prior.
Molten Ventures noted that its portfolio value was set against a backdrop of a strong market recovery from the Covid pandemic, particularly in technology, with equity markets trading at all-time highs in the period and a shift to online being made by more businesses.
Through this gain on investments, for the six month period, Molten's pretax profit rose more than fourfold to GBP247.4 million from GBP53.4 million.
Looking ahead, Molten Ventures expects to report 35% fair value growth for its current financial year, following the beating of its 15% objective with an increase of 27% for the half-year period.
"We have achieved a huge amount over the last six months both from a financial and operational point of view. We have been active in investing, building on the increased investment cadence we experienced in H2 FY2021, culminating in deployment being in excess of what we initially anticipated for H1," said Chief Executive Officer Martin Davis.
"Market conditions remained buoyant during the period. The shift to online, accelerated by the pandemic, has remained a permanent fixture of our daily lives largely due to advances in the technology infrastructure, which was available during previous investment cycles. While we cannot be certain about what the future holds in the technology landscape, I am confident in venture capital as an asset class and in our strategy, enhanced investment platform, and diversified, resilient portfolio which spans climate tech to health tech and fintech," Davis added.
By Dayo Laniyan; [email protected]
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