REG-Molten Ventures Plc Final Results
12/06/2024 07:15
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Molten Ventures Plc (GROW; GRW)
Final Results
12-Jun-2024 / 07:00 GMT/BST
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Molten Ventures Plc
("Molten Ventures", “Molten”, “the Group” or the "Company")
FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2024
Molten Ventures (LSE: GROW, Euronext Dublin: GRW), a leading venture capital firm investing in and developing disruptive, high-growth
technology companies, today announces its final results for the year ended 31 March 2024.
Financial highlights
• £1,379m Gross Portfolio Value* (31 March 2023: £1,371m)
• £1,251m Net assets (31 March 2023: £1,194m)
• 662p NAV per share* (31 March 2023: 780p)
• £57m Consolidated Group cash (31 March 2023: £23m)
• -1% Gross Portfolio fair value movement* (31 March 2023: -16%)
• £39m Cash proceeds from realisations (year to March 31 2023: £48m)
• £55m Net of fees raised during the year (31 March 2023: £Nil)
• 0.1% Operating costs (net of fee income and exceptional items) (31 March 2023: <0.1%) below the targeted 1% of year-end NAV*
• £65m invested, £40m direct and £25m representing Forward Partners share-for-share exchange, in addition a further £37m from the
managed EIS/VCT funds (year to March 31 2023: £138m from plc and £41m from EIS/VCT funds)**
*The above figures contain alternative performance measures (“APMs”) - see Note 35 for reconciliation of APMs to IFRS measures in the
Annual Report.
**EIS and VCT funds are managed by Molten Ventures plc group but are not consolidated. See Accounting Policies on page 116 and Glossary
on page 162 for defined terms in the Annual Report.
Performance highlights
• Investments of £65m during the year from the Molten Ventures balance sheet, with a further £37m from the managed EIS/VCT funds,
alongside cash proceeds from realisations during the year of £39m
• Completed share-for-share acquisition of Forward Partners plc (‘Forward Partners’) in March 2024
• Stake acquired in Seedcamp Fund III in February 2024, continuing the strategy of acquiring portfolios with high potential for near-term
realisation
• Committed to 6 new seed funds via our Fund of Funds programme, bringing the overall Fund of Funds portfolio to 80 funds.
• Weighted average revenue growth of Core portfolio forecast to be over 50% for calendar year 2024
• Over 85% of companies in the Core portfolio with at least 18 months of cash runway as at 31 March 2024 (based on existing budgets and
growth plans)
ESG highlights
• Launched inaugural stand-alone Sustainability Report on our website
• Delivered tailored climate workshops to portfolio companies with the aim of improving their climate literacy and alignment to the Net
Zero transition, in line with the commitments set out in our Climate Strategy
• Joined the Steering Group of ESG_VC, became a member of Ventures ESG and continued to report against external standards and frameworks
including PRI, CDP, TCFD, Investing in Women Code and SECR
• Formally launched the Esprit Foundation (part of the Molten Ventures Group) and awarded its first grants to the Social Mobility
Foundation, Included VC and Foundervine
Post period-end
• On 30 April 2024, Hologic, Inc, a NASDAQ listed entity, signed definitive agreement to acquire Endomagnetics Ltd. (‘Endomag’). The
acquisition, which is subject to completion conditions and regulatory approval as well as working capital and other customary closing
adjustments, values Endomag at approximately $310 million, which is modestly above NAV
Capital Allocation Policy
As reported in our announcement on 30 April, we provide an update to our capital allocation policy which outlines how the Company intends
to deploy its capital resources across NAV per share accretive opportunities in order to deliver long-term value for its shareholders
whilst ensuring the Company has appropriate liquidity headroom.
1. The Company will continue to focus its efforts on deploying capital into exceptional primary and secondary investments
2. The Company manages liquidity risk by maintaining adequate reserves with ongoing monitoring of forecast and actual cash flows. Capital
resources are managed to ensure there is sufficient headroom for 18 months’ rolling operating expenses
3. Given the strong realisation pipeline, the Directors likewise believe that the current share price provides an opportunity to deliver
accretive benefits to shareholders by purchasing its own shares at the prevailing discount levels. The Company therefore intends to
allocate a minimum of 10% of realisation proceeds to buy back its own shares, utilising the existing authority granted to the Board at
the AGM
The Company will continue to balance the pipeline of new investment opportunities against the ability to drive returns to shareholders
through share buy backs whilst maintaining sufficient reserves.
Martin Davis, Chief Executive Officer, Molten Ventures, commented:
“This has been a productive year for Molten. We’ve continued to enhance our innovative platform to capture the exceptional investment
opportunities available in backing high growth, disruptive, UK and European technology firms. The underlying performance of our portfolio
companies remain strong, with valuations continuing to stabilise as the macroeconomic environment shows signs of improvement.
“Looking ahead, we expect to see a step up in realisations, in the region of £100 million of capital back to the balance sheet this
financial year, the proceeds of which we expect to deploy towards NAV per share accretive opportunities as outlined in our capital
allocation policy today, and in doing so, continuing to maximise value for our shareholders”.
As previously announced, a live webcast presentation including Q&A will be held today at 9.00am for analysts and will be available
on 1 https://brrmedia.news/GROW_FY_24. Conference call details for the Q&A are available upon request via Powerscourt.
In addition, Molten will provide a further presentation for retail investors via the Investor Meet Company platform on at 10.00 on Friday
14 June. Existing and potential investors can sign up to Investor Meet Company for free via the link below.
2 https://www.investormeetcompany.com/molten-ventures-plc/register-investor
Enquiries:
Molten Ventures plc
+44 (0)20 7931 8800
Martin Davis (Chief Executive Officer)
ir@molten.vc
Ben Wilkinson (Chief Financial Officer)
Deutsche Numis
Joint Financial Adviser and Corporate Broker
Simon Willis
+44 (0)20 7260 1000
Jamie Loughborough
Iqra Amin
Goodbody Stockbrokers
Joint Financial Adviser and Corporate Broker,
Euronext Dublin Sponsor
Don Harrington +44 (0) 20 3841 6202
Dearbhla Gallagher
William Hall
PowerscourtPublic relations
Elly Williamson +44 (0)20 7250 1446
Nick Hayns molten@powerscourt-group.com
Ollie Simmonds
About Molten Ventures
Molten Ventures is a leading venture capital firm in Europe, developing and investing in disruptive, high growth technology companies. We
inject visionary companies with energy to help them to transform and grow. This energy comes in many forms - capital, of course, but also
knowledge, experience, and relationships. We believe it is our role to support the entrepreneurs who will invent the future, and that
future is being built, today, in Europe.
As at 31 March 2024, Molten Ventures had a diverse portfolio with shareholdings in 118 companies, 20 of which represent our Core holdings
and account for 62% of the Gross Portfolio Value. Our Core companies include Thought Machine, Coachhub, Aiven, Ledger and Aircall. We
invest across four sectors: Enterprise Technology, Hardware and Deeptech, Consumer Technology, and Digital Health and Wellness, with
highly experienced partners constantly looking for new opportunities in each. We look for high-growth companies operating in new markets,
with high potential for global expansion, strong IP, powerful technology, and strong management teams to deliver success. We also look
for businesses with the potential to generate strong margins to ensure rapid, sustainable growth in substantial addressable markets.
A member of the London Stock Exchange’s FTSE 250, Molten Ventures provides a unique opportunity for public market investors to access
these fast-growing tech businesses, without having to commit to long term investments with limited liquidity. Since our IPO in June 2016,
we have deployed over £1bn capital into fast growing tech companies and have realised over £520m to 31 March 2024. For more information,
go to 3 https://www.moltenventures.com/
Chairman’s introduction
In the years preceding my appointment, Molten developed and built an innovative platform, cementing itself as one of Europe’s leading
venture capital firms. We support high-growth, disruptive technology companies, and through our listing on the London Stock Exchange and
secondary listing on Euronext Dublin, we provide access to the returns attainable from venture capital to both institutional and retail
investors. I am looking forward to helping Molten Ventures build an even more successful business in the coming years.
After two years of a very challenging economic and market backdrop, we are beginning to see some signs of increased market stability,
helped by improved visibility on global interest rates. Our portfolio remains in good health and the overall underlying performance of
our assets has been strong. While reduced M&A activity since the end of the pandemic has resulted in fewer transactions and
correspondingly fewer realisations, the coming year shows more promise, highlighted most recently by the announced sales of Perkbox in
the period, and Endomag post-period end, both subject to completion conditions and regulatory approval. We anticipate further exits in
the course of the current financial year. In the past year, the management team has continued to enhance the platform through the equity
capital raise, the all-share acquisition of Forward Partners and the subsequent purchase of a stake in Seedcamp Fund III. These were
important initiatives in ensuring that Molten is favourably positioned going forward. We have the firepower to pursue attractive
opportunities in a buyer’s market for venture capital investment in our preferred areas of expertise.
I was pleased to welcome some of the portfolio companies and colleagues coming across with Forward Partners at Molten’s annual Investor
Day in February, which was also my first. I have also begun a programme of meeting many of our major Shareholders, as well as industry
bodies and other key stakeholders for the Group. Our AGM in 2025 will be a policy approval year for executive remuneration, and we will
be proactively engaging with Shareholders on this matter in the months ahead. In January, the Financial Reporting Council announced the
revisions it is making to the UK Corporate Governance Code that enhance the transparency and accountability of UK public companies, as
well as help support the growth and competitiveness of the UK, and preparation is well under way to ensure that Molten continues to be
fully compliant.
In my role as Chairman, ensuring Molten has best-practice governance is an important priority. We commenced our first externally
facilitated Board evaluation in February, and more can be found on this in the Governance section of this report. We will continue to
address such issues as Board diversity, mindful of the Parker Review’s recommendations. Ensuring that Molten’s culture, ethos and mission
is carried across future key employees is critical, and succession planning both for the Board and executive management is underway. We
refer to this in more detail in the Nomination Committee report. We appointed Lara Naqushbandi as a Non-Executive Director in September.
Lara brings with her a wealth of global commercial, strategic, and investment experience. Gervaise Slowey has succeeded Richard Pelly as
the designated Non-Executive Director for employee engagement.
ESG issues are important to us, and as we have stated in the past, Molten’s contribution to sustainability is two-fold, both through our
consideration of ESG in investment decision-making and our excitement about investment opportunities in the climate tech space in
particular. We also continue to develop our reporting and remuneration structure in alignment to ESG and wider sustainability best
practice. More information can be found in the ESG pages of our Annual Report, and in our inaugural stand alone Sustainability Report
which has also been released today.
I am conscious that Karen Slatford and Grahame Cook (who adeptly covered her role as Interim Chair) will be hard acts to follow. They
have served Molten with distinction over several years – Grahame continues to do so as Senior Independent Director and Chairman of the
Audit, Risk and Valuations Committee – and have helped to develop the firm into the innovative venture capital investor it is today. I
would like to thank them both for their leadership of the Board, and in particular Grahame for an informed and seamless handover. I look
forward to supporting management and the wider team in continuing to develop a platform that provides inspirational founders with
long-term capital, access to international networks and decades of experience building businesses. Finally, I would like to thank our
Shareholders for their support during the past year as well as our Executive Directors, and, importantly, each of our employees who are
so vital in ensuring the continued growth of Molten Ventures plc.
Laurence Hollingworth
Chairman
CEO’s statement
Overview
It has been a busy and productive year for Molten Ventures, marked with significant achievements amid an economic backdrop that has been
challenging for most technology companies and those who invest in them.
We continued to develop our platform, operating model, and acquisition strategy while simultaneously navigating ‘higher-for-longer’
interest rates, inflationary pressures and the ongoing geopolitical tensions which have cast a cautionary shadow over some notable signs
of stabilisation in the second half of the year.
Our focus within this context has been on what we can control. We have maintained discipline around our own investment process and worked
closely with our portfolio companies to extend cash runways, control costs, and retain talent. Our business performance and the revenue
growth of our portfolio companies has remained strong, and the disruptive entrepreneurs we have backed across UK and Europe continue to
transform the industries in which they operate.
Our adaptable model allowed us to act quickly to identify opportunities at attractive valuations in the year, with a focus on providing
value for our Shareholders. Data from previous downturns suggests that investments made in periods of economic decline have yielded some
of the greatest returns of all vintages for technology investors. We continued to support innovation through our fundraising activity,
and by offering exposure to investors of privately owned technology assets in the year.
Forward Partners acquisition
In November 2023, we announced a share-for-share acquisition of Forward Partners, adding a portfolio of over 40 companies. The
acquisition, completed in March 2024, blends the maturity of our assets with a more diverse pipeline of earlier-stage companies for
follow-on investment.
Forward Partners was founded in 2013 by Nic Brisbourne, a former Molten Partner. Forward Partners investment strategy has been focused on
earlier-stage businesses than Molten has traditionally invested in previously. We see significant opportunity for continued growth in
these portfolio companies and to accelerate value creation. The Molten platform can provide the winners with the additional support and
resource to reach their potential and generate returns.
We extended an official welcome to Nic Brisbourne and the rest of the Forward Partners team in March, with the history between Molten and
Forward allowing for a smooth integration which can be attributed in part to a similar set of experiences, investment ethos and cultural
affinity. Several of our Forward Partners colleagues have now joined our investment and finance teams, leading to cost synergies and
alignment across operational functions.
Alongside the Forward Partners transaction we successfully completed an oversubscribed fundraise of £55 million (net of fees) by way of
issuance of new shares on the London Stock Exchange, and the Euronext Dublin, to capitalise on attractive primary and secondary
investment opportunities during a period of market dislocation.
Seedcamp III acquisition
Our acquisition of a stake in Seedcamp III in February 2024, builds on Molten’s strategy to access exceptional Secondary investments at
attractive valuations. Our Secondaries acquisition strategy acts to leverage our network in the venture capital market to provide
liquidity to Limited Partners in later life funds, with a focus on acquiring portfolios of high-quality assets with nearer-term
visibility on realisation opportunities. To date, the Secondaries strategy has delivered 2.5x returns (as a multiple on invested
capital).
The Seedcamp acquisition is an illustration of our strategy in action and comes on the back of a strong track record of Secondary
investments; including Seedcamp Funds I & II, Earlybird DWES Funds IV and Earlybird Digital East Fund I.
Third-party asset activity
Elsewhere, we continued to make progress with our third-party assets strategy through the launch of our Irish-focused fund in July 2023,
which continues our long-standing relationship with the Ireland Strategic Investment Fund as a strategic partner – as we continue to back
promising Irish technology companies and founders, in a key European centre for the global tech industry.
We are pleased to welcome Isabel (‘Izzy’) Fox as the Head of Third-Party Funds, a new strategic role aimed at expanding the firm’s impact
through various targeted investment funds complementing its publicly listed core model, EIS and VCT investment vehicles. With Izzy’s
appointment, Molten intends to make further progress in building its third-party assets under management and associated income, including
via its syndicated Fund of Funds programme and other third party private funds strategies.
Venture capital as an asset class has typically generated equal or better returns compared with listed equities or other alternative
asset classes, and the UK Government is keen that Defined Contribution (‘DC’) pension schemes are able to invest in these types of
assets. This has the full support of the British Private Equity & Venture Capital Associations (‘BVCA’), and is something we at Molten
are supporting wholeheartedly. Facilitating access to venture capital for high-growth companies remains a priority for UK and European
governments, and forms part of the UK’s proposed pension system reforms. Molten Ventures is among the 20 signatories to the BVCA’s
Venture Capital Compact, supporting the UK government’s Mansion House initiative to improve DC pension schemes’ access to venture capital
investments.
Molten Board
Our most valuable asset is our people, and we continue to bolster our strength and expertise year-on-year. We appointed Lara Naqushbandi
as a Non-Executive Director in September 2023, followed by the appointment of Laurence Hollingworth in January 2024 as Chair of the
Board. Lara brings a wealth of experience from previously held roles in both finance and sustainability, and Laurence brings significant
capital markets, investment banking and leadership experience to Molten.
Integrating ESG
We continue to develop our ESG agenda as part of our commitment to being a responsible investor. The integration of ESG across our
portfolio is a business priority throughout the full investment cycle, and through our portfolio management we continue to fulfil our
broader corporate purpose of advancing society through technological innovation.
We aim to invest in businesses and entrepreneurs who recognise and embrace the need for more sustainable practices, and strive to improve
their ESG performance to contribute towards a more sustainable and prosperous future for all. You can read more about these efforts in
our Sustainability Report, also published today.
During the year, we have made significant progress against the commitments set out in our Climate Strategy, particularly with regards to
our portfolio engagement programme. We have also continued to disclose against PRI, CDP, TCFD and the Investing in Women Code.
Finally, The Esprit Foundation awarded its first four grants to charities and organisations, whose objectives focus on the advancement of
education for the public benefit (especially those aged under 30), with particular emphasis on the fields of technology, business and
entrepreneurship.
Market environment and the Molten model
The cost of capital remains a significant factor for investors, and we have adapted to an environment of higher-for-longer interest
rates. More recently, we have seen forecasts for interest rates stabilising, which is set to allow greater visibility of the cost of
capital over the next 12 to 24 months.
We have seen early shifts towards fresh capital raising, with a much higher proportion of ‘flat rounds’, and in some cases small
up-rounds, compared to last year. General Partners are typically raising less and taking longer to close funds due to a more restricted
liquidity environment.
We believe the visibility over the interest rates provides further confidence across the private market valuations. Although public and
private markets are interconnected, any anticipated rise in confidence among public investors will take time to reflect in private market
valuations.
We remain confident that our unique and flexible model will lead to significant returns for our investors.
Financial position and our portfolio
We have retained the discipline of preserving our balance sheet, and raised funds, which has provided us with a sufficient cash position
of £57 million, along with the £60 million additional headroom that our undrawn revolving credit facility provides. I am pleased to say
that these measures have provided us with the ability to support our existing portfolio and to invest in high-quality opportunities where
identified. Our portfolio has remained resilient and well-funded, and we have continued to realise investments which provides capital
back for reinvestment in a period of muted liquidity.
The Gross Portfolio Value at 31 March 2024 was £1,379 million, which is marginally up from £1,371 million at 30 September 2023,
predominantly resulting from investments in Seedcamp III and Forward Partners. We have generated realisations of £39 million and a fair
value uplift (excluding the impact of FX) of £6 million.
We are rightly proud of our strong track record, having deployed more than £1 billion of capital and realised over £520 million since our
IPO in 2016, achieving a 16% average return per year for our Shareholders.
Realisations and exits
During the period, realisations remained fairly low relative to previous years as a consequence of uncertain global macroeconomic
conditions and the resulting downturn in corporate transactions across almost all industries and markets. While we do not anticipate the
IPO market for high-growth technology companies to return to pre-downturn levels immediately, there is evidence that some high-tech
companies are publicly considering an IPO.
Historically, most of our exits have been through trade sales, and we have seen an uptick in M&A enquiries, alongside the exits of
Perkbox and Endomag, subject to completion conditions and regulatory approvals (both due to take place above our holding NAV).
Capital allocation
With a number of realisation processes either underway or planned across the portfolio, we expect to be able to deliver in the region of
£100 million in realisations this upcoming financial year alongside our existing meaningful cash resources.
As reported in our announcement on 30 April, we provide an update to our capital allocation policy which outlines how the Company intends
to deploy its capital resources across NAV per share accretive opportunities in order to deliver long-term value for its shareholders
whilst ensuring the Company has appropriate liquidity headroom.
1. The Company will continue to focus its efforts on deploying capital into exceptional primary and secondary investments.
2. The Company manages liquidity risk by maintaining adequate reserves with ongoing monitoring of forecast and actual cash flows. Capital
resources are managed to ensure there is sufficient headroom for 18 months’ rolling operating expenses.
3. Given the strong realisation pipeline, the Directors likewise believe that the current share price provides an opportunity to deliver
accretive benefits to shareholders by purchasing its own shares at the prevailing discount levels. The Company therefore intends to
allocate a minimum of 10% of realisation proceeds to buy back its own shares, utilising the existing authority granted to the Board at
the AGM.
The Company will continue to balance the pipeline of new investment opportunities against the ability to drive returns to shareholders
through share buy backs whilst maintaining sufficient reserves.
Outlook
Our flexible investment model has consistently demonstrated its resilience and ability to generate significant returns. We have
implemented a capital allocation policy that aligns with our current share price discount to NAV and the anticipated timeline for
realisations. This policy ensures that we are well-positioned to maximise value for our Shareholders while maintaining a prudent approach
to capital management.
We remain cautiously optimistic on the stabilisation of interest rates, and the early signs of renewed capital raising activity
indicating a potential shift towards a more favourable investment climate. The strength of our business model stands us in good stead.
I extend my thanks to the Molten team and look forward to delivering on our strategy in the year to come.
Martin Davis
Chief Executive Officer
Market overview
Venture capital: an overview
We believe that venture capital works best when VCs give their energy to help companies succeed. At Molten, this ‘energy’ can come in the
form of capital, experience or knowledge, as well as building relationships with our portfolio companies that demonstrate our commitment
for the long term.
In its most basic form, venture capital (VC) is a form of financing where capital is invested into a company—a privately held start-up or
small business—in exchange for equity or convertible debt in the company.
While investing in early-stage technology companies comes with a degree of risk, VCs are driven by a conviction that tomorrow’s problems
won’t be solved by today’s conventions, and that the process of rapid technological innovation and transformation is set to continue.
As well as generating returns for investors, VC is about empowering start-up businesses with capital, mentorship, and advice to help them
succeed in their endeavours, and in doing so, helping them create products and services that improve the human experience.
Sometime these endeavours are connected to some of the world’s largest and most complex challenges, and at other times they could involve
entirely new problem sets which are yet to be clearly defined.
Starting a new business is always a daunting experience, and entrepreneurs often find themselves having to educate investors, customers,
and the broader market as to why they exist at all.
Companies raise money from VC investors to:
1. help build their business and products
2. recruit and retain a good pipeline of talent
3. make acquisitions and invest further into intellectual property
4. acquire access to relevant networks and relationships, and
5. gain advice and guidance from seasoned operators
VC investors take the opportunity to assess companies, and invest in those they believe to have highly credible management teams, a
unique product offering, and a framework to execute a business plan to become a prominent competitor in their respective market niche.
There are three major VC markets globally which are the US, Europe, and Asia, and in 2023, over $300bn was invested between those regions
in start-up businesses. While the US and Asia are larger than the European VC market, Europe is growing at a faster rate, and the capital
sought to support that market growth is failing to keep pace. For this reason, Molten continues to see great opportunities to invest in
the category-defining businesses of tomorrow, with a focus on investing in the best venture-stage opportunities throughout Europe.
Who are Molten and how do they fit in the VC sphere?
Molten disrupted the conventional venture capital model, recognising the limitations of traditional approaches in driving sustainable,
transformative growth by pursuing an IPO in 2016. Our focus is to collaborate with entrepreneurs who share in our conviction that
disruptive innovation is imperative for building enduring, category-defining businesses.
Molten’s legacy traces back to 2006 when Esprit Capital Partners was established as a spin-off from a larger asset manager. Since then,
we have scaled into a well-established VC platform, supported by a team of over 60 professionals dedicated to investing in promising
start up and growth-stage businesses.
While headquartered in London and Dublin, Molten’s investment platform has a pan-European mandate, spanning the entire lifecycle from
seed stage (typically as a limited partner) to later stages (typically as a direct investor) through to IPO or acquisition. Our adaptable
platform is designed to facilitate long-term investments and support companies throughout economic cycles, with a focus on businesses
capable of fundamentally disrupting the status quo and becoming category leaders.
As a minority equity investor, Molten fosters early relationships with portfolio companies, and adds value through active Board
participation. Beyond capital, we provide entrepreneurs and management teams with strategic advice, mentorship, and access to a global
network, which creates outcomes for all stakeholders, including our Shareholders.
Molten operates a unified strategy across three vehicles: the plc, and the managed EIS and VCT funds. Where investments qualify, this
structure enables us to combine three capital pools to invest in the UK and Europe’s most promising technology companies in a
risk-adjusted and tax-efficient manner for our respective investors.
Additionally, our Fund of Funds programme, established in 2017, enables us to gain exposure and invest in the most promising seed and
early-stage venture capital funds across the UK and Europe. Seed and early-stage investing is a highly localised endeavour, requiring
deep networks within local ecosystems of angel investors, incubators, and technology entrepreneurs. We believe that nascent businesses
are best funded by investors who can engage founders locally or within specific verticals, and our Fund of Funds programme (complemented
by the acquisition of Forward Partners) allows us to effectively leverage this expertise.
Our decision in 2016 to IPO on the AlM growth market of the London Stock Exchange, and Euronext Dublin, thereby adapting beyond the
traditional GP/LP model to become one of the largest public venture capital firms in Europe, was partly driven by our commitment to
‘democratise’ the returns available from venture capital as an asset class, and make the rewards of our investments accessible to public
market investors, not just a small group of Limited Partners.
Our innovative structure as a public company allows us to direct capital from institutional and retail investors towards our portfolio
companies. We benefit from an evergreen balance sheet strategy that offers flexible investment terms, and allows Molten to focus on
helping portfolio companies grow, while evaluating the market for optimal exit conditions, which we aim to achieve above NAV to maximise
value for our Shareholders. This structure also provides us with the flexibility to raise capital from public market investors, including
retail investors via the PrimaryBid platform, giving us the ‘firepower’ to pursue investment opportunities.
Our direct investment strategy primarily focuses on early and growth-stage opportunities. We maintain a balanced portfolio that is
diversified across four key sectors of consumer tech, enterprise tech, digital health and wellness, hardware and deeptech.
Our market at a glance
17% European VC market CAGR (2015-2023)
$66bn European VC market valuation (2023)
189 No. of active unicorns in Europe combined value over $500bn (2023)
Market events that have occurred in VC in the past year
Over the past 12 months the global economy has experienced stabilised high interest rates across most major currencies, including the
USD, EUR and GBP. Towards the end of 2022 (and into the beginning of 2023) asset prices were volatile which seeped into the private
markets. Across 2023 and early 2024, both valuations and volatility began to stabilise, with recent new heights on the S&P 500, STOXX
600, and the FTSE 100.
Going forward, the consensus for global monetary policy appears to favour dovish sentiment which historically has supported upside
potential for equity prices. As these market dynamics filter into the VC market there is a sense of cautious optimism for new compelling
investment opportunities. In September 2023 we saw the highly anticipated Tech IPO for ARM Holdings which was widely regarded as a
barometer for the IPO market. ARM successfully raised nearly $5 billion and has shown promising after-market performance. This is
evidencing that ‘good deals can get done’ and that the public market is ready to support outstanding high growth technology businesses.
The market is showing signs of improvement, and technology businesses are coming back into focus to drive performance through innovation.
Much of the tailwind experienced in the technology market over the past 12 months has been driven by the potential productivity gains
through rapid adoption of artificial intelligence. Microsoft’s most recent investment in Open AI valued the business at $80 billion,
NVIDIA’s market cap had crossed $2 trillion, surpassing Google and closing in on Apple and Microsoft. At the earlier stages of the
business lifecycle, Molten is seeing companies take the next step in this market and focusing more closely on real-world applications to
drive productivity gains.
Private markets typically lag public markets and 2023 displayed the largest contraction in European VC within the last ten years. 2023
saw $66 billion invested in European VC deals which was down 42% from the previous year. Much of that contraction was due to liquidity
restrictions in a challenging fundraising environment coupled with repricing dynamics as a result of a higher interest-rate environment.
Given the public sphere showed more promising returns than anticipated over the last 12 months to March 2024, we anticipate seeing
improvements in the private market over the next 12 months due to that lag effect.
Currently in 2024, we are witnessing more capital invested in European VC than in 2023. Since 2015 that continues to follow a growth
trajectory for the market which is scaling more rapidly than the US or Asia.
Looking closely at the quarterly investment data for European VC (see charts on bottom of this page), it was the larger rounds in excess
of $100 million that saw the biggest contractions throughout 2023, while investment in smaller/earlier rounds continued to persist at
more modest valuations. Q1 2024 saw some larger deals (in excess of $250 million) come to market, raising over $7 billion in aggregate in
the first quarter. Comparatively, the total investment in rounds at or above $250 million over all four quarters in 2023 was only $11
billion.
Heading into the remainder of 2024, Molten sees value opportunities in the market. With the recent acquisition of Forward Partners, and
having acquired a stake in Seedcamp III, we have an expanded portfolio of assets, combined with those in our Fund of Funds programme,
which continue to present us with unique investment opportunities. With this in mind, Molten is well positioned to invest in the most
interesting and competitive deals in the market throughout the next 12 months.
Our strategy
Our strategy consists of six clear objectives, underpinned by our corporate purpose ‘to advance society through technology and
innovation’.
Strategic objective FY24 progress FY25 outlook Links
• Continued development of our platform and
team.
• Investments of £65 million made during the
year, including £25 million share-for-share
exchange for Forward Partners, with an Link to
additional £37 million from the managed principal risks
To back disruptive high‑growth EIS/VCT funds. • Expected level of annual (pages 58 to 65 of
technology companies to invent the deployment in the region of the Annual Report)
future • Invested into 13 new and existing companies £100-150 million, including the 1, 2, 3, 5, 6, 7, 8
(direct) and committed to 6 new funds via our managed EIS/VCT funds.
Fund of Funds strategy. Link to KPIs
3, 4
• Trading performance of our portfolio
companies continues to be strong, with
weighted average revenue growth rates in the
core portfolio expected to be over 52% in
2024.
Link to
• Investments of £65 million made during the principal risks
year, including £25 million share-for-share • Expected level of annual (pages 58 to 65 of
To fuel their growth with access to exchange for Forward Partners, with an deployment in the region of the Annual Report)
capital additional £37 million from the managed £100-150 million, including the 1, 3, 4, 5, 9
EIS/VCT funds. managed EIS/VCT funds.
Link to KPIs
3
• £57 million of cash and £60 million undrawn
RCF at 31 March 2024, with a further £66 • Continue to utilise our flexible Link to
million available for investment from EIS/VCT model to support entrepreneurs principal risks
To provide a holistic capital funds. through the duration of their (pages 58 to 65 of
model, supporting entrepreneurs journey. the Annual Report)
through the duration of their • Committed to a further six Fund of Funds, 1, 3, 4, 7, 8
journey leading to total commitments in 80 funds as • Continue to support our Fund of
part of our Fund of Funds programme. Funds programme. Link to KPIs
3, 5
• Investments from the managed EIS/VCT funds.
• The platform’s AUM (including EIS and VCT) • Continue to consider Link to
is c. £1.8 billion. opportunities to introduce principal risks
third-party capital, enabling the (pages 58 to 65 of
To scale our platform for growth • Share-for-share acquisition of Forward Group to build a more material the Annual Report)
while maintaining the integrity of Partners contributing 40+ companies to the stake in companies. 1, 2, 3, 4, 7, 9
the investment process portfolio, and new Investment and Finance team
members. • Continue to develop our Link to KPIs
processes as we grow. 1, 3, 5
• Continued development of our team.
Link to
• Continued target of 20% fair principal risks
To maintain a high‑quality bar for • Fair value increase of 0.4% in the gross value growth through the cycle. (pages 58 to 65 of
investments to continue to deliver portfolio. the Annual Report)
strong investment returns • Continued target of 10% in 3, 4, 7, 9
underpinned by cash realisations • Realisations of £39 million during the year. realisations of the Gross
Portfolio Value through the cycle. Link to KPIs
1, 2, 4
Link to
To support visionaries who find new principal risks
ways for the world to work in the Achievement of FY24 ESG KPIs - see page 48 of (pages 58 to 65 of
future. We want that future to be the Annual Report of this report for further • See page 49 of the Annual Report the Annual Report)
sustainable, fair and accessible to details, or see more in our inaugural for details of FY25 ESG KPIs. 3, 4, 5, 7, 9
all Sustainability report, also published today.
Link to KPIs
6
KPIs
We are focused on delivering a strong financial performance and achieving the targets we have set. These core KPIs demonstrate our
strategy’s effectiveness, and validate the value delivered to Shareholders.
KPIs Measurement Progress this year Focus for 2025
01
Gross Portfolio Value has increased to £1,379
Growth in value of the Gross Portfolio Value determined million, with a fair value movement of £6 Continued target of 20% fair
portfolio using IPEV Guidelines. million, reflecting a fair value increase of value growth through the cycle.
0.4% from FY23 (FY23: £1,371 million).
02 Continued target of 10% in
Cash generated from portfolio £39 million realised in the year (FY23: £48 realisations of the Gross
Realising cash company exits against original cost. million). Portfolio Value through the
cycle.
03 Deploying funds for investments into Investments of £65 million
new portfolio companies, follow-on made during the year, including £25 million Expected level of annual
New investments investments into existing companies, share-for-share exchange for Forward deployment in the region of
stake building into existing Partners, (FY23: £138 million), with an £100-150 million, including
companies and secondary investments. additional £37 million from the managed EIS/VCT.
EIS/VCT funds (FY23: £41 million).
04 We continually track deals done at stages
We maintain an internal database of earlier than our target investment criteria Through our brand and network,
Dealflow opportunities. and filter to pre-qualify future potential continue to access high quality
deals. dealflow across Europe.
£117 million cash available to plc, incluidng
undrawn £60 million revolving credit facility
balance from our £150 million debt facility
05 Maintaining sufficient liquidity to at year-end with £90 million term debt drawn
meet operational requirements, take (FY23: £83 million, £90 million drawn, with Target maintenance of 12-18
Cash balances advantage of investment undrawn revolving credit facility of £60 months of cash resources.
opportunities and support the growth million) at year-end.
of portfolio companies.
£66 million (FY23: £48 million) cash in the
managed EIS and VCT funds available for
investment.
We continued to make progress in our ESG
06 efforts, particularly with regard to tailored Execute on the Company’s FY25
Progress and track ESG performance portfolio engagement (Please refer to our ESG KPIs, which can be found in
ESG in line with our ESG KPIs (see page Sustainability Report for more detail). the Sustainability section of
48 of the Annual Report). the report on page 49 of the
Summary of our progress against FY24 ESG KPIs Annual Report.
(see page 48 of the Annual Report).
Financial review
The current market cycle has been characterised by higher interest rates leading to lower valuations, as a function of the cost of
capital increasing, and reduced liquidity in an environment with less M&A and IPO activity. This backdrop has been in place since March
2022, and we responded quickly to reflect the reduced public market valuation multiples for technology businesses into our portfolio
holding values in September 2022 (the first valuation period following the market adjustment). Alongside ensuring our portfolio holding
values are consistent with the prevailing market, in line with IPEV guidelines, we focused on preserving the balance sheet capital by
reducing the amount invested and ensuring there was sufficient liquidity to support our existing portfolio.
The resilience of the portfolio has been demonstrated by: (1) the capital raisings that have been undertaken during this past two years,
with over £1.2bn raised in FY23 and FY24, in spite of a less active fundraising environment, (2) the continued commercial traction and
revenue growth of the portfolio businesses, and (3), the limited capital support that was required from Molten.
As we appear to be entering an improving environment for realisations, the robustness of our valuation processes and the quality of our
underlying portfolio is being validated as demonstrated by our recent announcements, relating to portfolio companies Perkbox and Endomag,
modestly above their holding values.
The flexibility of our evergreen balance sheet model has been further illustrated through the equity fundraise in the year to take
advantage of opportunities presented by a disconnected market, where asset prices have been depressed alongside limited liquidity. This
provided an opportunity for the Group to acquire high-quality assets via a share acquisition of Forward Partners ,and also through a
stake in Seedcamp Fund III.
The financial year 2024 reflects a continuation of this more challenged market environment, but also demonstrates stability in the
portfolio values in the second half of the year. The first half of the year saw further reduction in valuation multiples across the
broader technology sector before stabilising in the latter half of the year. In addition to the decline in public market technology
valuations, private company fundraising has continued to stutter across the broader market, outside of specific pockets of interest. We
have seen the impact of these factors in our own portfolio valuations. Despite this macroeconomic picture, it has been pleasing to see
continued value creation stemming from our secondary strategy. Our acquisition of a stake in Seedcamp’s Fund III, along with an all-share
acquisition of Forward Partners (both which took place in the second half of the year) contributed fair value uplifts to the portfolio.
As ever, cash runway and preservation of liquidity remain key for our portfolio, and we are encouraged by the resilience demonstrated by
our portfolio companies, as they continue to balance capital preservation and growth priorities.
The first half of the financial year saw a reduction in portfolio value which was offset in the second half by a slight increase in the
valuation of the existing portfolio, and increases in fair value following the acquisitions of Forward Partners and Seedcamp III. As at
31 March 2024, net assets stood at £1,251 million, an increase of £57 million on the prior year.
We have generated fee income during the year of £20 million, which serves to offset our cost base such that our costs (net of income)
remain substantially less than 1% of NAV. As we continue to build a broader platform to incorporate third-party assets alongside our own
balance sheet, we have seen the benefit of fee income covering 93% of our general administrative expenses, including salaries. Minimising
the cost drag on investment returns remains an area of focus for our management team.
The Forward Partners acquisition is recognised at fair value through profit or loss (“FVTPL”) in the Consolidated Statement of Financial
Position and as a gain on bargain purchase in the Consolidated Statement of Comprehensive Income. The terms of the acquisition for
Forward Partners were one new Molten share for nine Forward Partners shares, resulting in a portfolio cost of £25 million (net of cash
acquired). On acquisition, the Forward Partners portfolio was valued at £65 million, representing a gain on bargain purchase of £39
million. For more information of this transaction see Note 14.
Statement of financial position
Portfolio
The Gross Portfolio Value at 31 March 2024 is £1,379 million (£1,371 million at 31 March 2023). The Gross Portfolio Value is an APM (see
Note 35) and there is a reconciliation from the gross to net portfolio value (see Note 30).
Molten has maintained a disciplined approach to its capital allocation through FY24, with cash investments below historical investment
rates, and aligned to realisations during the period. Investments of £65 million, including £25 million representing the Forward Partners
share-for-share exchange (net of cash acquired), were made during the year; and cash proceeds from exits, escrows and sales of shares
were received of £39 million.
The gross fair value reduction on the portfolio was £18 million, of which £24 million results from a decline in foreign exchange and
offset by an increase of £6 million from fair value movements. Further details on the Group’s valuation policy and valuations basis as at
31 March 2024 can be found in Notes 4 and 30 to the consolidated financial statements. The gross portfolio fair value has stabilised from
and is broadly flat for the year at constant currency, reflecting a modest increase in the like-for-like portfolio in the second half of
the year.
The Gross Portfolio Value, presented on page 26 of the Annual Report, is subject to adjustments for the fair value of accrued carry
liabilities and deferred tax to generate the net portfolio value of £1,292 million. Both carried interest liabilities and deferred tax
arise at the level of our investment vehicles and are taken into account when arriving at the fair value of these vehicles to be
recognised in the consolidated statement of financial position.
The Net Portfolio Value has increased by £15 million to £1,292 million (31 March 2023: £1,277 million) with the summary of the movements
in financial assets held at fair value through the profit and loss (FVTPL) which is recognised on the Consolidated Statement of Financial
Position, is shown on page 112 of the Annual Report.
The fair value reduction of £29 million, in accordance with the relevant IFRS in Note 4, comprised of fair value movement on investments
of £68 million is reflected in the consolidated statement of comprehensive income, offset by a £39 million gain on bargain on purchase.
Carry balances of £87 million are accrued to previous and current employees of the Group based on the current fair value at the year-end
and deducted from the Gross Portfolio Value. Carry payments totalling £2 million were made in the year following the realisation of
assets in the underlying fund holdings that exceeded threshold returns. The non-investment movements to entities held at FVTPL were made
of £16 million, including for settlement of priority profit share (“PPS”). The Gross Portfolio Value table below reconciles the gross to
net portfolio values, and the movements between 31 March 2023 to 31 March 2024. The percentage of net portfolio value to Gross Portfolio
Value is 94% (31 March 2023: 93%), which reflects the decrease to carry balances in line with the movements of the portfolio.
Total liquidity
The consolidated cash balance at 31 March 2024 was £57 million (31 March 2023: £23 million).
Total available cash for Molten Ventures at 31 March 2024 was £117 million, including £60 million undrawn on the Company’s revolving
credit facility (31 March 2023: £83 million, including £60 million undrawn on the Company’s revolving credit facility).
In November 2023, we completed an equity fund raise of £55 million (net of fees) from new and existing investors (including a PrimaryBid
retail element), to enable our position for new follow-on direct and secondary investments. Molten issued 21,261,548 shares comprising a
placing, subscription, retail offer and offer for subscription. The proceeds of the placing are recognised in the cash balance at the
year end and within the share capital movements (please see Note 26 for further detail).
Debt facility
The existing debt facility with J.P. Morgan Chase Bank N.A. London Branch (‘JPM’) and HSBC Innovation Bank Limited (‘HSBC’) (the ‘Debt
Facility’) comprises a £90 million term loan and a revolving credit facility (‘RCF’) of up to £60 million on three and two-year
availability periods respectively, and is secured against various assets and LP interests in the Group. The Debt Facility interest rate
is SONIA plus a margin of 5.5% per annum and is underpinned by the value of the investment portfolio. The value of the portfolio
companies is subject to periodic independent third-party valuation. The Debt Facility is utilised for investment and working capital
purposes.
We have been compliant with all relevant financial covenants throughout the duration of the debt facilities and at period-end.
During the year, we amended the terms of the covenants relating to loan to value and market adjusted GAV to provide additional
flexibility, see Note 24(i) for more information.
As at 31 March 2024, the £90 million term loan is fully drawn and the £60 million RCF is undrawn and fully available, subject to
utilisation conditions. The drawn amount is recognised in the Consolidated Statement of Financial Position at 31 March 2024, offset by
capitalised fees from the set-up of the Debt Facility, which are being amortised over its life. Drawdowns and paydowns on the Debt
Facility will be driven by portfolio investments and realisations. For further information, please see Note 24(i).
Net assets
Net assets in the Consolidated Statement of Financial Position at 31 March 2024 have increased by £57 million from 31 March 2023, to
£1,251 million, an increase of 4.7%. This is mainly the result of the increase in the investments balance and cash due to the fund raise
and Forward Partners’ acquisition, along with a decrease in deferred tax liability recognised in the statement of financial position.
The Net Asset Value per share for the year ended 31 March 2024 was 662p (31 March 2023: 780p) after the issuance of new shares for the
equity fund raise and share-for-share acquisition of Forward Partners.
Statement of comprehensive income
We recognised a loss after tax in the year of £41 million, compared to a £243 million loss in FY23.
Income recognised during the year ending 31 March 2024 comprises investment fair value decreases of £29 million (year ending 31 March
2023: £240 million decreases), including the gain on bargain purchase attributed to the Forward Partners portfolio of £39 million. Fee
income of £20 million was generated in the year (year ended 31 March 2023: £23 million), which is principally comprised of priority
profit share (“PPS”), management fees from the managed EIS/VCT funds, performance fees and promoter fees. PPS is generated from
management fees charged on the underlying plc funds, as invested capital, net of realisations, increases so too does the PPS income. The
decrease in fee income in the year is a result of a decrease in PPS percentage held in older vintages with the decreased level of
investments in 2024. This has resulted in management fees decreasing by 12.7% in the period.
Our operating costs (net of fee income) continue to be less than our target of 1% of NAV. It is anticipated that further income from fees
generated from management of third-party funds will provide a further positive contribution to our cost base and profitability in the
future.
Finance expenses have increased to £11 million from £7 million in 2023 due to the debt facility being utilised for the full 12 months and
an increase in the rate of SONIA. General and administration costs (“G&A”) of £21 million, compared to the £19 million recognised in the
year to 31 March 2023, have increased in comparison to the prior year following the growth of the Investment Team and supporting
infrastructure.
Post-period end
On 30 April 2024, Hologic, Inc, a NASDAQ listed entity, signed a definitive agreement to acquire Endomagnetics Ltd. (‘Endomag’). The
acquisition, which is subject to regulatory approval as well as working capital and other customary closing adjustments, values Endomag
at approximately $310 million, which is at a slight uplift to NAV.
Ben Wilkinson
Chief Financial Officer
11 June 2024
Gross portfolio value table
Fair value Fair Fair value Cost of Multiple
of Movement Fair value of of
Investments Realisations Non-investment in value movement Investment Ownership
Investments investments cash movements foreign investments Invested interest
£’m £’m exchange movement 31-Mar-24 31-Mar-24 Cost range*
31-Mar-23 £m 31-Mar-24
£’m £’m £’m £m 31-Mar-24
£’m £’m
ThoughtMachine 109.6 – – – – (10.4) (10.4) 99.2 36.5 2.7× A
Coachhub 96.6 – – – (2.6) (2.1) (4.7) 91.9 31.3 2.9× C
Aiven 94.5 – (6.7) – (2.3) (3.5) (5.8) 82.0 4.6 14.0× B
Ledger 71.8 – – – (1.7) (9.0) (10.7) 61.1 28.5 2.1× B
Aircall 58.6 – – – (1.3) 3.2 1.9 60.5 14.3 4.2× B
Form3 52.4 – – – – 6.8 6.8 59.2 30.1 2.0× B
Revolut 54.5 4.0 – – (1.1) 7.7 6.6 65.1 11.1 5.9× A
M-Files 44.9 – – – (1.4) 4.2 2.8 47.7 6.5 7.3× B
ICEYE 35.7 – – – (0.9) 8.1 7.2 42.9 22.5 1.9× B
Ravenpack 41.0 – – – (0.8) (3.0) (3.8) 37.2 7.5 5.0× D
Endomagnetics 34.0 – – – – 0.7 0.7 34.7 9.3 3.7× C
FintechOS 28.3 2.6 – – (0.8) (0.5) (1.3) 29.6 29.6 1.0× D
ISAR AeroSpace 27.4 – (1.9) – (0.7) (1.4) (2.1) 23.4 4.1 4.6× A
Schuttflix 21.1 1.7 – – (0.6) (0.1) (0.7) 22.1 21.5 1.0× B
Graphcore 37.2 – – – (0.4) (16.2) (16.6) 20.6 24.0 0.9× A
Hive MQ 20.9 – – – (0.6) – (0.6) 20.3 20.2 1.0× B
Perkbox 16.2 – – – – 0.1 0.1 16.3 14.0 1.2× C
Riverlane 13.4 – – – – 2.4 2.4 15.8 5.1 3.1× B
Freetrade 9.9 – – – – 4.6 4.6 14.5 14.0 1.0× B
Smava 8.5 – – – (0.4) 5.0 4.6 13.1 14.5 0.9× A
Remaining 494.3 57.0 (30.3) – (8.3) 9.0 0.7 521.7 509.7 1.1x
Gross
portfolio 1,370.8 65.3 (38.9) – (23.9) 5.6 (18.3) 1,378.9 858.9 1.6x
value
Carry external (94.0) – 1.9 – – 5.0 5.0 (87.1)
Portfolio – – – – – – – –
deferred tax
Trading carry 0.3 – – – – – – 0.3
& co-invest
Non-investment – – – 15.8 – (15.8) (15.8) –
cash movement
Net portfolio 1,277.1 65.3 (37.0) 15.8 (23.9) (5.2) (29.1) 1,292.1
value
* Fully diluted interest categorised as follows: Cat A: 0–5%, Cat B: 6–10%, Cat C: 11–15%, Cat D: 16–25%, Cat E: >25%.
Portfolio review
Molten remained well-diversified across our four key sectors of investments which capture technology subsector themes such as fintech,
climate-tech, cloud-native and security with early use cases of AI evident in our portfolio.
Consumer technology
Consumer-facing services and products, innovative business models, and proven execution capabilities that bring exceptional opportunities
enabled by technology.
allplants crowdcube Freetrade
Juno LYST N26
Onefootball perbox PrimaryBld
Revolut smava sweepr
SPOKE ZOPA***
Enterprise technology
The software infrastructure, applications and services that make enterprises more productive, cost-efficient, and smoother to run.
&Open ably aircall
aiven* ALTRUISTIQ*** APEXX**
reedr CHOCO CoachHub***
FINALCAD FintechOS*** FORM3
Genesis GETSAFE gravity sketch
HiveMQ MAKERS*** MANNA
Material Exchange M-Files*** MOSTLY-AI*
OutThink** Pigmant Pliant
RavenPack** realeyes Robin*
SCHUTTFLIX*** sennder SettleMint
SimScale*** SPOTQA*** Up LEARN***
Hardware & Deeptech
R&D-heavy technologies which emerge to become commercially dominant, upending industries and enabling entirely new ways of living and
doing business.
Bezero FocalPoint GRAPHCORE*
hadean ICEYE** INDY KITE
isaeaerospace LEDGER PARAGRAF
Ravelin** riverlane sorare
Thought Machine** XMOS
Digital health & wellness
Using data, software and hardware to create new products and services for the health and wellness market.
AKTIA** CLUE endomag
evonetix ieso digital health* lifesum
Companies included in our company numbers and associated analysis are direct investments, co-investment, Earlybird and assets under third
party management companies above a £2.0 million fair value threshold to Molten Ventures.
Key
* AI First
** AI-Powered
*** AI-Enhanced
Cash runway within the portfolio remains a key focus within the current environment. We have continued with discipline around our
investment process, deploying £40 million into the portfolio, including the acquisition of a stake in Seedcamp fund III, and investments
into Fund of Funds and Earlybird strategies.
Portfolio valuations
The Gross Portfolio Value as at 31 March 2024 is £1,379 million, an increase of £8 million, net of investments, realisations and total
fair value movement, from the 31 March 2023 value of £1,371 million. This represents a 1% increase in gross fair value, due to the
increase in investments made in the year. £18 million is a net decrease, resulting from a £6 million increase in the gross fair value,
offset by negative currency movements of £24 million. Valuations remain robust due to 97% of the portfolio value holding downside
protection thanks to preference rights.
Our portfolio valuations process continues to follow the IPEV Guidelines and aligns to the market movements in the period; we have seen
movements in some of our key assets to reflect public market comparatives. We continue to see overall revenue growth in our portfolio
companies with forecast weighted average revenue growth in the core of over 63% in the year, reflecting the ongoing innovation and
digital transition continuing across sectors.
The Core Portfolio is made up of 20 companies representing 62% of the Gross Portfolio Value. The core portfolio constituents has been
updated to reflect the increase in valuation attributed to Freetrade, Perkbox, Riverlane and Smava, with PrimaryBid moving to the
emerging portfolio category.
During the period, we invested £12 million directly into new and existing companies, including:
New Companies
Company Stage Who they are?
Oliva is a B2B mental health platform offering online therapy to employees. By analysing thousands of data points on
Oliva Early how employees use Oliva, created the Employee Wellbeing Index. Based on this, Oliva’s advanced triaging matches
employees with the ideal professional and wellbeing plan for them.
Morressier Growth The Morressier platform supports the entire pre-publishing journey, from hybrid and virtual conferences where research
is shared in its earliest stages, to journal submissions, peer-review workflows, and AI-powered integrity checks.
Binalyze is a cybersecurity company offering a digital forensics and incident response (DFIR) platform named AIR,
binalyse Growth designed to automate and streamline the collection, analysis, and management of digital evidence. It enables rapid
evidence acquisition, compromise assessment, and triage at scale across network assets, significantly reducing incident
response times and facilitating collaborative investigations.
Anima provides a comprehensive healthcare platform that integrates various care management tools into one system,
anima Growth automating manual tasks and enhancing care team productivity. It supports online consultations, facilitates document
processing, enables detailed analytics, and improves communication. Anima aims to streamline workflows, improve patient
outcomes, and save clinical hours.
IMU Biosciences is led by a team of world-class scientists in immunology. IMU has developed leading-edge biological and
imu Growth computational tools to interrogate the immune system. The company’s technology platform generates a comprehensive
analysis of immune system components in patient samples, so the company is generating novel data using existing
hardware.
Follow-on
Company Stage Who they are?
allplants is an online platform and chef-to-customer delivery service aimed at providing delicious and healthy
allplants Growth chef-made meals to make eating more plants less effort and more exciting. allplants dishes are flash-frozen, ensuring
nutrition and taste are locked in and ready to eat in minutes.
Clue is a period tracking app, a trusted menstrual health resource, and a thought leader in femtech. By combining
Clue Growth science and technology, Clue are actively changing the way people learn, access, and talk about menstrual and
reproductive health around the world.
Schüttflix is a digital logistics platform for the construction industry, linking contractors, bulk material sellers,
carriers, and disposers to enhance efficiency. Schüttflix digitizes traditional processes, providing timely deliveries,
SCHUTTFLIX Growth price transparency, and efficient route management to reduce emissions and waste. Schüttflix aims to streamline
operations across Germany and expand into other European countries, driving sustainability and digital innovation in
construction logistics.
Aktiia is a health technology company specialising in continuous blood pressure monitoring without the use of a
AKTIA Growth traditional cuff. The innovative wrist-worn device provides accurate and convenient monitoring, empowering individuals
to manage their cardiovascular health pro-actively.
Sweepr has developed a contextually adaptive technical support platform for connected homes. With Sweepr, consumer
sweepr Growth service providers and connected product manufacturers can transform how they offer technical support, enabling
customers to resolve issues without calling customer care and improving time to resolve for any remaining issues that
are escalated to traditional support channels.
Realeyes utilizes AI and computer vision to analyse how viewers react emotionally and attentively to digital media. By
realeyes Growth measuring real-time responses through device cameras, it enhances advertising effectiveness, supports identity
verification, and improves applications in wellbeing and telehealth, providing insights across various industries.
FintechOS is a technology company that simplifies the creation and delivery of financial services. It provides a
platform that accelerates the development of financial products, facilitating rapid deployment and service
fintechOS Growth improvements. The platform supports sectors like retail banking, insurance, and embedded finance, helping businesses to
efficiently launch and manage personalized financial services and enhance customer experiences. FintechOS aims to
democratise access to advanced financial technology for companies of all sizes.
Fund of Funds Earlybird
Our seed and early-stage Fund of Funds programme continues to expand, providing access
to earlier stage companies, as well as deal flow opportunities for the highest quality During this period, funds managed by Earlybird VI
companies from within these portfolios. During the financial year, we committed to and Earlybird VII drew down £6 million. This
another 6 funds, bringing our total commitments to 80 funds. Molten’s commitments to allows us to continue to access earlier stage
new and existing seed funds at 31 March 2024 are £133 million, of which £84 million has companies in Germany and Europe with the benefit
been drawn to year-end £15 million during the year excluding external LPs). It is of Earlybird’s expertise.
anticipated the remaining £49 million will be drawn over the next three to five years.
Realisations
Total cash proceeds from realisation and distribution during the year are £39 million, comprised of £9 million during the period from the
sale of Trustpilot shares in the public market, proceeds of £4 million from the acquisition of Friday Finance (formerly known as
Airbank), and proceeds of £12 million from the sale of Earlybird VI shares.
Included within the £39 million of realisations in the year is realisations of £5 million from the Fund of Fund programme.
Molten Ventures Core Portfolio is made up of 20 companies representing 62% of the Gross Portfolio Value. New entrants to the core consist
of Freetrade, Perkbox, Riverlane and Smava, with PrimaryBid moving to the emerging portfolio.
Note – narrative updates based on publicly available information from the Core Portfolio companies.
aircall
Aircall is a cloud-based customer phone and communication platform that is designed exclusively for sales and
support teams. It is a fully cloud-based voice platform that integrates with existing CRM systems and Location:
helpdesk tools voice solution that eliminates any need for desk phones, and company teams can be set up across Paris, France
several locations in an instant with an internet connection.
Sector:
Aircall won the “Business Phone System Innovation of the Year” award from RemoteTech Breakthrough for the Enterprise Technology
second consecutive year in 2023. This recognises Aircall’s innovations in their cloud-based business phone
system. Further, Aircall participated in the “2023 Service Quality Benchmark Report Webinar” as part of World Invested:
Certification Week hosted by HubSpot Academy.
£14m
Aircall launched their AI-powered call and voicemail transcription feature in May, which has expanded to new
suite of AI features which will help business reduce time spent on busywork, admin, and training each week, Fair Value:
saving on average 21 hours of time. Customers will be able to take a deep dive into AI-generated Call
Summaries, Key Topics, and Talk-to-Listen Ratios. £61m
The telephony market has evolved and with the introduction of VOIP (Voice Over Internet Protocol) Aircall UN Sustainable Development
drives value to its customers through actionable analytics, sentiment analysis and now AI applications. Goals Mapping: 8, 9
Aircall’s integrations with CRMs and other lead generation-customer service applications has resulted
substantial benefits for its clients. Aircall’s early adoption into the call centre market positions it as a
pioneer in the space having a deep longstanding customer relationships and expansion potential.
aiven
Aiven is a multi-cloud managed service provider which hosts and manages open-source databases and Location:
messaging-system solutions on all major cloud platforms. Aiven’s products are built using public cloud Helsinki, Finland
infrastructure such as Apache Kafka, Cassandra, Elasticsearch, M3 and PostgreSQL, supporting developers around Sector:
the world with building new applications, without having to manage backend infrastructure. Enterprise Technology
Invested:
Aiven was named the 2023 Google Cloud Breakthrough Partner of the Year for the Europe, Middle East, and Africa
(EMEA) region. This award recognizes Aiven’s achievements in the Google Cloud ecosystem and helping joint £5m
customers unleash cloud innovation. Fair Value:
Aiven focused on lowering their CO2 emissions from IT infrastructure, with key achievements including: £82m
developing an open source solution called “Cloud Carbon Footprint” to calculate CO2 emissions and creating the UN Sustainable Development
ability for Aiven and its customers to calculate granular cloud emissions and energy consumption. Goals Mapping: 8, 9
Aiven is a look-through investment held via Earlybird.
CoachHub
CoachHub is a global digital coaching and talent development platform that helps organisations to create
personalised, measurable, and scalable coaching programmes on a one-to-one basis for entire workforces and Location:
teams. Coaching sessions are based on scientific research and market insights led by behavioural scientists Berlin, Germany
and global research leaders to maximise business impact and drive innovation. These are delivered via an
AI-enabled technology platform and seamless user experience. The coaching journey is delivered by c. 3,500
business coaches across six continents in more than 80 languages. Sector:
Enterprise Technology
CoachHub launched the Innovation Lab, a transformative research initiative to facilitate innovation in digital
coaching. The goal of CoachHub’s Innovation Lab is to bridge the gap between research in people development Invested:
and real-world organisational needs, ensuring that coaching practices are effective and aligned with the
constantly evolving requirements of businesses. £31m
CoachHub announced their new “Co-Development Hubs” offering in September 2023, offering a collective coaching Fair Value:
appraoch. Co-development Hubs are 90-minute sessions with four to six peers facilitated by a trained coach who
follows the co-development methodology. £92m
Coachhub’s platform and offering meets the needs of a rapidly transforming industry which is growing rapidly UN Sustainable Development
and where traditional formats are disrupted and new talent generations ask for more career development Goals Mapping: 4, 11
options. The business started in 2018 and is merging to be a global category leader with an impressive blue
chip customer base. We currently observe that every major corporation is expected to coach their talent at
scale by the end of the decade and that Covid-19 accelerated this transformation, which was already in motion.
endomag
Endomag is a global developer of breast cancer technolgies, on a mission to improve breast cancer care by Location:
preventing unnecessary surgery, improving surgical outcomes, and making treatments more accessible, which can Cambridge, UK
be made available at any hospital. Endomag produces surgical guidance products which allow surgeons to
accurately remove cancerous tumours. Its products include the Magseed marker for magnetic tissue localization Sector:
before surgery, the Magtrace lymphatic tracing injectable for breast cancer staging and the Sentimag platform, Digital Health & Wellness
which supports both localisation and lymphatic tracings, without the use of radioactive materials.
Invested:
Endomag was highly commended in the 2023 Medtech Company of the Year category by Cambridge Independent Science
and Technology. In July 2023, Endomag raised over £2,000 for cancer charities. In September 2023 it named £9m
Royal Bolton Hospital as one of the UK’s first ‘Centres of Excellence’, offering peer-to-peer education to
physicians around the world to learn from experts in its technology. Fair Value:
Endomag pioneers the use of magnetic sensing technology to improve surgical guidance and accuracy for breast £35m
cancer treatment, through its range of innovative products: Sentimag, Magtrace and Magseed, now adopted in
over 300 hospitals globally. It operates in a rapidly growing medical device space, particularly for UN Sustainable Development
technologies enhancing breast cancer care standards and patient experience. With significant funding rounds Goals Mapping: 3, 9
totalling more than $22 million, regulatory approvals, and a proposed strategic acquisition by Hologic (a
global leader in women’s health) in 2024 for c. $310 million, the deal is subject to working capital and other
closing adjustments.
fintechOS
FintechOS is a global leader in high productivity fintech infrastructure (HPFI), and aims to simplify and
accelerate the launch and service of innovative financial products. FintechOS achieves high speed product Location:
launches for major retail banks and insurance companies. These solutions give companies the ability to engage London, UK
customers across new digital channels. With a low code/no code approach, their product facilitates interaction
across technical and non-technical product teams at banks and insurers. Sector:
Enterprise Technology
FintechOS announced 40% year-over-year revenue growth in 2023, with the company expecting to achieve
profitability in 2024. Growth has been driven by winning new customers in strategic markets, including the US, Invested:
UK, Continental Europe, and most recently Asia-Pacific.
£30m
In 2023, FintechOS announced strategic partnerships and collaborations, including with Mircrosoft,PwC,
Weanalyze, and EY. FintechOS also received several accolades in 2023 - being named as a Representative Vendor Fair Value:
in the 2023 Gartner Market Guide for Core Banking, Europe and Commercial Loan Origination Solutions, named as
a Technology Standout Provider by Celent, and winning Insurtech Company of the Year at Fintech Awards London. £30m
FintechOS’s product is designed to be all about speed to market. The repeal and replace legacy technology UN Sustainable Development
method works for certain types of banks, typically larger Tier 1 banks, where it takes many years and at high Goals Mapping: 8, 9
cost. However, for the vast majority of the banks and insurance market, their technology stacks remain an
amalgamation and accumulation of technology, they require technology that can seamlessly integrate with their
existing stack and enable them to innovate to match and compete with FintechOS.
FORM3
Form3 is a cloud native payments-as-a-service platform that designs, builds, and runs the technology that
powers the future of payments. Removing reliance on outdated, complex and costly payments infrastructure Location:
through provision of a modern, real-time account-to-account payment platform, Form3’s product is designed as a London, UK
single-instance, multi-tenant architecture, meaning a single instance of the software supports multiple
clients. When payment scheme rules change, banks face difficulties in adapting - Form3’s technology once
implemented is applied to all customers in real-time, seamlessly. Sector:
Enterprise Technology
In September 2023, Visa announced its investment in Form3 embarking on a partnership to offer Form3’s payment
technology to its client base. Form3 continues to scale in the UK, Europe and the US, where it is has
partnered with Thought Machine, another Molten portfolio company, to add FedNow, TCH RTP and SEPA Instant Invested:
Credit Transfer connectivity to Thought Machine’s payment platform, Vault Payments. This partnership brings
together two next-generation payment solutions, offering banks and financial and financial institutions an £30m
end-to-end solution for seamless real-time payment processing.
In 2023, Form3 and its staff won multiple awards - including CEO of the Year (RemoteTech Breakthrough Awards), Fair Value:
Payment Tech of the Year (UK Fintech Awards), Team of the Year - Engineering Team (Europe Fintech Awards), and
Tech of the Future for Banks & Financial Institutions (Paytech Awards) - also being shortlisted for several £59m
others.
Payment schemes and systems are largely regional and defined by currency, they are governed by a combination UN Sustainable Development
of Governments, central and commercial banks. When payments scheme rules change, banks face difficulties in Goals Mapping: 8, 9
adapting, Form3’s technology once implemented is applied to all customers in real-time, seamlessly. All major
payments schemes around the world are shifting into and/or are looking at building real-time schemes which by
design will require cloud-native software to support the implementation and continued maintenance.
Freetrade
Location:
Freetrade is a commission-free investment platform that allows users to buy and sell shares in companies and London, UK
exchange-traded funds (ETFs) without paying any trading fees or commissions. Freetrade aims to make investing Sector:
more accessible and affordable by eliminating the traditional trading commissions charged by many brokers. Enterprise Technology
Invested:
In 2023 Freetrade rolled out a beta version of its web interface, Freetrade Web, for Plus members to test.
They now have over 1.5 million users with over 6,000 UK, EU and US stocks as well as ETFs. £14m
Fair Value:
Freetrade is the leading challenger broker in the UK and has an ambitious expansion plan across Europe.
Freetrade positions itself as an investment platform designed to make investing more accessible and affordable £15m
for everyone, their mission is “to get everyone investing” by simplifying the process and offering UN Sustainable Development
commission-free trading, which to Molten, having decided to innovate the venture capital model and publicly Goals Mapping: 8
list ourselves via our IPO to open up the VC model further to public investors.
GRAPHCORE
Graphcore is a machine intelligence semiconductor company, which develops Intelligent Processing Units Location:
(“IPUs”) that enable world-leading levels of AI computing. Graphcore has built a new type of processor for Bristol, UK
machine intelligence to accelerate machine learning and AI applications for a world of intelligent machines.
The IPU architecture enables AI researchers to undertake entirely new types of work - such as building and Sector:
deploying AI-native products and platforms using Graphcore’s cloud services, pre-trained models, optimised Hardware & Deeptech
inference engines, and APIs - thereby helping to drive advances in machine intelligence.
Invested:
In 2023, Graphcore joined the PyTorch Foundation as a general member, and announced it was expanding its AI
tools ecosystem, via IPU support from UbiOps. In December 2023, Graphcore also presented FP8 (8-bit floating £24m
point) research at the NeurIPS conference in New Orleans.
Fair Value:
Graphcore is pioneering next-generation AI compute with its Intelligence Processing Unit (IPU), a massively
parallel processor architecture optimized for machine learning workloads, delivering up to 100x better £21m
performance than legacy technologies. With over $300 million raised from strategic investors like Samsung,
Microsoft, and leading VCs, Graphcore is well-positioned to become the global standard for accelerating AI UN Sustainable Development
applications across industries. Its IPU products are already shipping in production volumes, addressing the Goals Mapping: 8, 9
rapidly growing $50+ billion AI compute market. With proven technology execution, strategic partnerships, and
a vast market opportunity, Graphcore represents a compelling investment in the AI hardware landscape.
HiveMQ
HiveMQ’s messaging platform (MQTT) is designed for the fast, efficient and reliable bi-directional movement of
data between device and the cloud. The HiveMQ MQTT platform is the proven enterprise standard designed to Location:
connect, communicate, and control IoT data under real-world stress. From its roots in the automotive industry Munich, Germany
in Germany, HiveMQ has grown into other sectors and internationally. Leading brands choose HiveMQ to build
smarter IoT projects, modernise factories, and create better customer experiences in use cases in automotive, Sector:
energy, logistics, smart manufacturing, transportation, and more. Hardware & Deeptech
In 2023, HiveMQ expanded community channels and platform offerings, released several new versions of the Invested:
platform, and released new integrations. 2024 marks the 25th anniversary of MQTT, now the standard IoT
protocol, and in early 2024 HiveMQ received a 2024 IoT Evolution Industrial IoT Product of the Year Award from £20m
IoT Evolution World.
Fair Value:
HiveMQ, announced the opening an office in Boston in response to the company’s rapid growth. HiveMQ’s Boston
office will serve as a hub for U.S. sales, support and executive leadership, as total revenues have doubled £20m
year over year and the U.S. market currently accounts for 60 percent of the German company’s revenues.
UN Sustainable Development
HiveMQ provides an enterprise MQTT messaging platform that enables reliable, scalable and secure connectivity Goals Mapping: 9
for IoT devices to the cloud. With an early mover advantage in MQTT, the de-facto IoT messaging standard,
HiveMQ is well-positioned to capitalize on the rapidly growing $2.4 trillion IoT market. Already generating
significant revenue with over 130 Fortune 500 customers, HiveMQ has raised over €49 million from investors.
ICEYE
ICEYE operates a synthetic-aperture radar satellite constellation designed to deliver monitoring capabilities
for any location on earth. ICEYE US - a subsidiary of ICEYE, delivers reliable and innovative remote sensing Location:
capabilities to the United States Government, its allies and commercial partners using SAR technology. It is a Espoo, Finland
commercial radar imaging satellite company and provides imaging services, designed to deliver frequent
coverage, 24/7, to help clients resolve challenges in sectors such as maritime, disaster management,
insurance, and finance. ICEYE’s SAR (synthetic aperture radar) satellites enable the company to develop
unparalleled insights without the need for line-of-sight. Sector:
Hardware & Deeptech
In April 2023, ICEYE US was awarded a five-year blanket purchase agreement by NASA to provide radar satellite
imagery for evaluation in support of Earth Science and Research. In November 2023, ICEYE announced its
landmark partnership with the European Space Agency (ESA) that promises to redefine Earth Observation (EO) for
enhanced disaster management and community resilience. As of 2024, ICEYE is also partnering with WWF Finland Invested:
and the global Arctic Programme to protect whale migration routes in the Arctic region.
£23m
In April 2024, ICEYE, announced a definitive agreement signed for an oversubscribed $93M growth funding round.
The financing will further accelerate investment in constellation of SAR satellites and expand the company’s
portfolio of innovative data and subscription products. The round builds on the success of the Series D round
in February 2022, bringing the total amount raised to $438M. Fair Value:
Satellite imagery is fast becoming a standardised tool to gain valuable insights across a variety of £43m
industries. With the global climate and international defence in focus, governments have leaned heavily on
public funded space programs which in more recent years has sparked strong participation from the private
sector. ICEYE’s SAR (synthetic aperture radar) satellites enable the company to develop insights without the UN Sustainable Development
need for line-of-sight, ICEYE can see through clouds and offer more reliable data for their clients around the Goals Mapping: 9, 13
world, including some of the largest global insurance companies and governments. ICEYE has signed deals with
the likes of the Centers for Disease Control and Prevention (CDC) in the US and the Australian government to
detect natural disasters like floods and bushfires.
isaraerospace
Isar Aerospace develops and builds launch vehicles to perform satellite launch operations. To disrupt the
space industry by lowering the entry barriers to space and to make space access affordable and sustainable, Location:
Isar Aerospace is developing a fully in-house designed space launch vehicle. As a launch service provider, Munich, Germany
Isar Aerospace transports small and medium sized satellites, and satellite constellations, into Earth’s orbit
and beyond, contributing to humanity’s progress and our planet’s sustainable technological and economic
development. Sector:
Hardware & Deeptech
In November 2023, Isar Aerospace opened Andøya Spaceport, its future launch site, in an official ceremony with
Crown Prince Haakon of Norway. The launch site supports the two-stage launch vehicle Spectrum. Isar Aerospace
is on track towards the first test flight, and will soon offer the first fully privately funded European Invested:
launch solution to meet the growing demand for transporting small and medium-sized satellites into space.
£4m
Isar Aerospace conducted a successful test of its fully in-house designed and built Aquila rocket engine at
the Esrange test site in Sweden as in October 2023. Further, Isar was named “Startup of the Year” at the 2023 Fair Value:
SpaceNews ICON Awards, recognizing the company’s achievements and growth over the past year.
£23m
Isar Aerospace is a look-through investment held via Earlybird.
Ledger
Ledger produces hardware wallets to store private keys in a secure, offline environment. Hot wallets are
susceptible to online attacks and Ledger’s hardware wallets provide enhanced security to prevent fraudulent Location:
access to crypto assets digitally, so customers can integrate their Ledger device with 50+ software wallets. Paris, France
In addition to their hardware wallet product offering, Ledger has also built a full stack software platform to
help customers buy, sell, swap, stake, and lend their crypto assets securely - the Ledger Live app provides a
secure gateway to access dApps and blockchain apps, allowing you to manage your cryptocurrencies, finances, Sector:
NFTs and Crypto assets from one easy-to-use interface. Hardware & Deeptech
In June 2023, Ledger announced Ledger Enterprise TRADELINK - core tech and governance to help institutions
manage crypto trading risk and regulation with custodial trading solutions. Throughout 2023, Ledger also Invested:
consistently announced that it had partnered with various protocols, apps, and networks, integrating them into
its Ledger Live ecosystem, which were featured to customers through the ‘Discover’ feature on the Ledger Live £29m
app.
Fair Value:
Ledger Stax is Ledger’s latest hardware wallet, it features a large, curved E Ink touch screen in a compact,
credit card-sized form factor that is easy to carry and use on the go. Despite its innovative design, the Stax £61m
maintains Ledger’s industry-leading security standards. It uses the same secure element chip and proprietary
BOLOS operating system as other Ledger devices to keep your private keys and crypto assets safe offline. UN Sustainable Development
Goals Mapping: 8
Ledger is the leading provider of secure hardware wallets and software solutions for managing cryptocurrencies
and other digital assets. The company’s innovative products, like the Nano S and Nano X hardware wallets,
enable individuals and institutions to safely store, trade and grow their crypto holdings.
M-Files
M-Files is an intelligent file management platform allowing its customers to organise their content to improve Location:
search efficiency, categorisation, and document security. From document creation and management to workflow Austin, USA
automation, external collaboration, enterprise search, security, compliance, and audit trail, knowledge
workers can increase productivity and unlock efficiencies with M-Files’ industry-tailored solutions. Its Sector:
metadata-driven document management platform enables knowledge workers to instantly find the right information Enterprise Technology
in any context, and the platform connects to existing folder networks and uses AI to help best categorise
information. Invested:
In 2023, M-Files announced it had made enhancements to its platform, offering knowledge workers a truly £7m
end-to-end automation solution. Powered by emerging Generative AI (GenAI) technology, the M-Files Aino
platform uses natural language to help organise information, understand the context of documents, and interact Fair Value:
with an organisation’s knowledge.
£48m
M-Files is operating at significant scale with high quality customers, the business has executed well and
grown their share of the document and content management space. They have been able to architect their product UN Sustainable Development
offering using a location agnostic approach allowing their powerful AI and workflow automation features to Goals Mapping: 8
create real value for customers. Their sticky product has resulted in low churn across their 5k+ customers
currently generating over $100m in annual revenues (2023). At this scale, the company is an interesting asset
for a variety of market participants.
perkbox
Location:
Perkbox is an employee experience platform that provides a suite of employee benefits, rewards, recognition, London, UK
and wellbeing tools to help companies engage and motivate their workforce. Being an all-in-one platform that Sector:
helps companies attract, engage, and retain employees by offering a comprehensive suite of benefits, rewards, Enterprise Technology
recognition, wellbeing support, and communication tools tailored to their needs. Invested:
Perkbox is striving to become a disruptor and innovator in the employee benefits and engagement space; through £14m
its cloud-based, comprehensive product offerings, and growth-focused approach.In March 2024, Perkbox announced Fair Value:
that it is combining with Vivup, a leading provider of health and wellbeing benefits, through a strategic
majority investment from private equity firm Great Hill Partners. £16m
UN Sustainable Development
Goals Mapping: 3, 4
RavenPack
RavenPack is a leading provider of insights and technology for data-driven companies. The company’s AI tools
and products allow financial institutions (including the most successful hedge funds, banks, and asset Location:
managers in the world) to extract value and insights from large amounts of information to enhance returns, Marbella, Spain
reduce risk, and increase efficiency by systematically incorporating the effects of public information on
their models and workflows. RavenPack delivers structured analytics on published content from high-quality Sector:
sources (including gated content) and over 40,000 web and social media sources, including news and information Enterprise Technology
in 13 languages for local-level precision and global perspectives.
Invested:
In 2023, RavenPack was shortlisted at the 2023 Allstars Awards - a recognition platform for outstanding
achievements in Europe’s technology sector, organised by GP Bullhound. Throughout the year, RavenPack £8m
representatives also attended and presented at numerous national and international events to share recent
research and insights, including details of the latest trends. Fair Value:
We have been invested in Ravenpack since 2017 where we were the first institutional backers of the business. £37m
The team has been together for over 20 years and offers a truly differentiated data product focused on the
financial services and buy side sector. Their high-quality client base of well-known investment banks and UN Sustainable Development
hedge funds have been using Ravenpack data for many years to help optimise returns and understand market Goals Mapping: 8
sentiment on companies around the world. With the rich nature of Ravenpack’s underlying data, they are leading
the AI charge with respect to financial services and will undoubtedly be bringing more interesting products to
market.
Revolut
Revolut is a global financial services company that specialises in mobile banking, card payments, money
remittance, and foreign exchange. With 40+ million personal customers globally, Revolut’s platform allows Location:
users to send money to 160+ countries, hold up-to 36 currencies in the app, and spend in 150+ currencies. London, UK
Revolut also boasts 500k+ business customers to date. Revolut’s goal is for everyone to do all things money -
spending, saving, investing, borrowing, managing, and more - in just a few taps.
Sector:
In 2023, Revolut expanded into new markets, including Brazil and New Zealand. In the same year, Revolut also Consumer Technology
significantly overhauled the design and layout of the app, launched Ultra (its exclusive top-tier plan for
retail customers) in specific markets, and rolled out new features across specific territories and customer
segments - including Automated Investing (US), local IBANS (Spain and Ireland), and enabling Tap to Pay on Invested:
iPhone for Business and Freelance customers in specific markets. Revolut, has surpassed 40 million retail
customers worldwide, growing at almost one million customers per month, and is now processing over 400 million £11m
transactions a month.
Fair Value:
Revolut is transforming the banking industry by providing a comprehensive financial super app that offers
retail and business customers a wide range of innovative digital financial services. From multi-currency £65m
accounts and cards to commission-free stock trading, cryptocurrency exchange, insurance, and business banking
tools, Revolut aims to be a one-stop-shop for all financial needs. UN Sustainable Development
Goals Mapping: 8, 9
Revolut generates revenue from a variety of sources including interchange fees, foreign exchange spreads,
trading commissions, premium subscription fees, and business account fees. This diversification, along with a
focus on cross-selling products to existing customers, has enabled Revolut to achieve strong revenue growth.
river lane
Riverlane is a quantum computing company that is building the Quantum Error Correction Stack to Location:
comprehensively control all qubit types and correct the millions of data errors that prevent today’s Cambridge, UK
generation of quantum computers from achieving useful scale. Riverlane’s customers are governments, quantum
computer hardware companies and world-leading research labs. Sector:
Hardware & Deeptech
Riverlane hosted the 4th edition of Quantum Computing Theory in Practice conference in Cambridge, UK with over
240 attendees from academia, industry, and government. The conference explored advances in practical quantum Invested:
computing, including NISQ algorithms, error-corrected quantum computers, and frontiers in quantum computing
theory. £5m
Fair Value:
Riverlane demonstrated the world’s first scalable quantum error decoder, a critical component for the first
generation of error-corrected quantum computers, at this UK government-backed event. £16m
UN Sustainable Development
They are pioneering quantum computing company focused on developing the critical quantum error correction Goals Mapping: 9
stack, including high-speed decoders, orchestration, and universal interfaces, to enable large-scale,
fault-tolerant quantum computing in partnership with hardware makers.
SCHUTTFLIX
Schuttflix is Europe’s leading logistics platform and B2B marketplace for bulk construction materials and
adjacent products in Europe. Bringing together partners from the whole industry - including materials sellers, Location:
waste disposers, transport carriers, and contractors - the app connects suppliers and carriers directly with Gütersloh, Germany
customers, enabling the supply of materials and products on demand to professionals in relevant sectors, such
as landscaping, gardening, civil engineering, and road construction. By providing a comprehensive overview of
project details - such as materials ordered, prices, delivery dates, key carrier company contacts, and more - Sector:
Schuttflix has laid the foundation for the digital evolution of construction industry logistics, and is on a Enterprise Technology
mission to be the digital cornerstone of every construction project.
In 2023 year Schuttflix further expanded its circle of new strategic partners - including Goldbeck (leaders in Invested:
commercial construction), IK Umwelt (waste management specialist), WaVe-X (Lower Austrian investment company).
In August Schuttflix announced that it had received a total of 45 million euro in fresh capital. The new £21m
financing round is led by the founders and existing investors and supplemented by a working capital line.
The construction industry is under pressure to improve efficiency, reduce emissions, and adopt digital Fair Value:
solutions. Schüttflix’s platform provides key capabilities like paperless delivery documentation, live
tracking, price comparison, and optimized route planning to help construction companies streamline operations £22m
and reduce waste. The company connects contractors, bulk materials suppliers, waste disposal companies, and
freight forwarders to enable efficient procurement, disposal, and transportation of key materials like gravel,
sand, and concrete. UN Sustainable Development
Goals Mapping: 9
With its innovative digital platform, strong investor backing, rapid growth, and ability to address key
industry challenges, Schüttflix represents a leader in the digital marketspace in the construction technology
sector.
smava
Smava is an online credit marketplace in Germany, providing individuals access to personal loans and debt Location:
consolidation solutions. Founded in 2007 and based in Berlin, Smava connects borrowers with a diverse network Berlin, Germany
of lenders, empowering them to compare and secure the best loan offers. Through its user-friendly platform and Sector:
data-driven algorithms, Smava streamlines the loan application process, fostering transparency and competition Enterprise Technology
among lenders. With a commitment to responsible lending practices and customer satisfaction, Smava has earned Invested:
a reputation as a trusted partner in the German financial landscape, enabling consumers to make informed
financial decisions and achieve their goals. £15m
Fair Value:
In 2023, Smava optimized their data platform by leveraging Amazon Redshift Serverless and data sharing
capabilities. This optimization enabled them to achieve up to cost savings compared to their previous £13m
analytics setup, produce reports in a shorter lead time and reducing daily reporting time from 3 hours to less UN Sustainable Development
than 1 hour. Goals Mapping: 8, 9
Smava is a look-through investment held via Earlybird.
Thought Machine
Enabling service of customers in a real-time ecosystem, Thought Machine provides cloud-native core banking
infrastructure to both incumbent and challenger banks. With an existing library of 200+ products, its Location:
cloud-native offering - including Vault Core (core banking platform) and Vault Payments (payments processing London, UK
platform) - is designed to give banks total flexibility in designing products that are scalable. The company’s
technology provides an alternative, flexible, cloud-based solution that can be configured to provide product,
user experience, operating model, or data analysis capability. Emerging as a global category leader in this Sector:
space, Thought Machine’s ability to build and deliver core banking transformations for Tier 1 banks and Hardware & Deeptech
fintechs is world class.
Invested:
In 2023, Thought Machine announced strategic partnerships with several national and international fintech
businesses, including HMBradley, Cordada (Latin America), Form3 (US and EU) and Trafalgar (Mexico). £37m
Thought Machine, has partnered with another Molten Core company, Form3, to add FedNow, TCH RTP and SEPA Fair Value:
Instant Credit Transfer connectivity to Thought Machine’s payment platform, Vault Payments. This partnership
brings together two next-generation payment solutions, offering banks and financial institutions an end-to-end £99m
solution for seamless real-time payment processing.
UN Sustainable Development
Banks are struggling with siloed information sources in on-premise technology stacks with leading neobanks Goals Mapping: 8, 9
paving the way towards a real-time world class customer experience, banks have no choice but to adopt a cloud
native core banking systems and build a single source of truth, that will help then build highly personalised
products early in the journey of interacting with customers and be able to do so at lower costs.
Risk management
In order to achieve our strategic objectives and manage our business responsibly and sustainably, we operate an effective risk-management
framework that aims to balance risk and reward, while protecting the business, our Shareholders, employees, and other stakeholders. The
Board has ultimate responsibility for setting and managing the risk framework, as well as defining appetite for risk. Ongoing oversight
of the Company’s risk profile and risk framework is delegated to the Audit, Risk and Valuations Committee supported by the Compliance
Team.
Risk appetite
The nature of our business fundamentally involves an assumption of a level of risk if we are to achieve our strategic aim of creating and
maintaining a pipeline of investment opportunities and supporting our diversified portfolio of high growth early stage businesses over
the long-term to attain meaningful returns. However, we will accept risk only where we have assessed that it can be appropriately managed
and offers sufficient reward. The Board has determined its risk appetite for each of the principal risks described on pages 58 to 65 of
the Annual Report and considered appropriate ways to monitor performance and mitigate against each risk to ensure that the level of
exposure remains acceptable.
Risk governance
We adopt a top-down approach to risk governance, with a culture of compliance that flows from the Board and its Committees through to the
Executive Team and Compliance Team who have delegated authority to oversee the application of the risk framework across the business, and
thereafter to all staff, encouraging a thoughtful and transparent attitude towards risk that is grounded in principles of responsible
stewardship for our stakeholders. For the Group, the first line of defence comprises management controls and internal control measures
administered by all managers and staff. The second line of risk management is administered and overseen by the Compliance Team. The
Compliance Team reports directly into the Executive Team and Audit, Risk and Valuations Committee on all compliance matters and have
direct access as needed to the Chair of the Board and the Chair of the Audit, Risk and Valuations Committee.
Both the Audit, Risk and Valuations Committee and the Executive Team regularly consider and review the existing and emerging risks faced
by the business to ensure that any exposure and associated mitigations align with the business’s strategic objectives. Risks associated
with the Group and its activities that are considered material are entered into the Company’s Corporate Risk Register which applies a
scoring system to assist the Audit, Risk and Valuations Committee in its decision-making by capturing inherent risks; mitigations; and
the resultant residual risks, as well as any proposed or ongoing actions. Risks are translated to a heat map for ongoing monitoring
purposes, while controls are in place and regularly reviewed in order to mitigate the Group’s exposure.
The Audit, Risk and Valuations Committee meets formally at least four times a year, with other informal meetings convened as necessary.
The Group operates clear reporting lines throughout the business and engages external compliance specialists, IQ-EQ, to assist the
Compliance Team in monitoring and advising on all regulatory compliance matters at a fund manager level within the Group structure.
We identify and monitor risks closely throughout the business, which ultimately involves all employees in overseeing and mitigating risk
on a day-to-day level in accordance with the Group Compliance Manual and Group Code of Conduct. Periodic internal checks are administered
by the Compliance Team; enhanced IT security measures are employed by the IT Manager supported by external IT specialists, Rock IT and
Softwerx; weekly meetings are conducted at an Executive level where risk is a standing item; and dedicated risk-review sessions are
undertaken periodically by the Executive Team structured around the Corporate Risk Register.
A summary of the Company’s full suite of Policies, Procedures, Systems and Controls can be found on our website at
https://investors.moltenventures.com/investor-relations/plc/documents.
Third-party review
There is a formal compliance report issued to the Board annually in addition to the output of monitoring reports issued quarterly by
IQ-EQ, which during the year ended 31 March 2024 included a consistent focus on the newly introduced Consumer Duty, which the Company
(working alongside IQ-EQ) has taken relevant steps to be compliant with.
Depositary services in the financial year were provided to the Company and the Fund of Funds programme by Langham Hall UK Depositary LLP
including safekeeping of Company assets, oversight, and reporting any breaches, anomalies and discrepancies. Representatives of the
Depositary attended a meeting of the Audit, Risk and Valuations Committee prior to the year-end in order to report on activity completed
during the year and any associated recommendations, with no items identified as being high risk or in need of remedial action.
Training
Externally-led mandatory compliance-focused training is provided to all staff at least annually to ensure a suitable level of awareness
and understanding of both the theory and the practical application of the Group’s culture towards risk awareness, risk mitigation and
applicable professional and ethical standards to which all employees are required to perform in the fulfilment of their roles (including
where relevant under the Senior Managers and Certification Regime (“SM&CR”)).
During the year, IQ-EQ delivered targeted training on the subjects of SM&CR; market abuse; bribery and corruption; whistleblowing; and
fraud. A separate refresher session was also delivered by IQ-EQ, in conjunction with the Compliance Team, on the the Group’s Client
Assets Sourcebook (CASS) obligations to relevant members of the compliance, legal, finance and administrative teams involved in the
safekeeping and reconciliation of client assets.
Mandatory online training is conducted not less than annually (including associated testing) on a variety of core topics including
anti-money laundering, anti-bribery and corruption, SM&CR, anti-bullying and harassment, anti-modern slavery, cyber security and data
protection.
Targeted internal-led compliance training sessions are delivered during the onboarding process for new joiners and to different teams
within the business as required. The Investment Team also explore market themes, opportunities and risks as part of the wider approach
towards investments in the weekly Investment Committee meetings and the bi-annual Strategy Days to review the Group’s existing portfolio
and assess risks and opportunities on both an asset-by-asset level and at a wider aggregated portfolio performance.
Whistleblowing
The Group operates established procedures whereby employees may, in confidence, raise concerns relating to possible improprieties in
matters of financial reporting, financial control, adequate management of risks or any other matter. The Whistleblowing Policy applies to
all employees of the Group and is the subject of annual training.
Principal and emerging risks
A principal risk is a risk, or a combination of risks, from our corporate risk register that can seriously affect the performance or
reputation of the Group. We regularly consider and assess the principal and emerging risks and opportunities, both internal and external,
which may affect the Group in the near, medium, and long term. The Executive Team and Audit, Risk and Valuations Committee consider risk
at meetings periodically as required and during the year. The Audit, Risk and Valuations Committee additionally perform a dedicated
annual review of the Group’s principal risks, assessing the severity and mitigation strategies in place for previously identified risks,
and identifying whether any new risks had materialised in the period.
The heat map (below) highlights what we consider to be our principal risks and uncertainties by potential impact and likelihood of
occurrence. Detailed descriptions of those principal risks are set out on pages 58 to 65 of the Annual Report.
Emerging risks are those risks not yet considered to be “principal” by the Audit, Risk and Valuations Committee on recommendation by the
Executive Directors, but which have been identified through horizon scanning, scenario analysis and third party professional advice.
These are risks that are either new and therefore may, in time, pose a threat to the Company and/or its business model; or they can be a
pre-existing risk that has emerged in a new or unfamiliar context. The following are some of the emerging risks that have been identified
and are currently being monitored:
• Global elections, including in the UK and US, the outcome of which could lead to as-yet-unknown shifts in policy, regulation or
international relations, as well as polarising sentiment that could have a material impact on the Company or the wider venture capital
industry
• Increased regional and international tension in Israel and the Middle-East
• Potential escalation of China/Taiwan tensions and conflict with the US
• Global supply chain pressure due to concentration risk of various key component materials that are embedded into many applications
relevant to the portfolio, or the underlying technologies on which they are built
• Increased adoption and regulation of artificial intelligence, the application of which remain unclear
• Cost of borrowing to finance investment /deployment with lack of certainty about interest rates from central banks
• Continued cost of living pressures effect on B2C/B2B sales
Risk framework updates
Updates to our risk framework for the year include:
• Appointment of a new IT Manager supported by new external IT and cyber security support function - Rock IT to ensure that the business
remains cyber resilient and secure.
• Embedded Consumer Duty across the Group.
Our principal risks
1. Macroeconomic environment Static risk
Potential impact
Risk management and mitigation
Challenges in the macroeconomic
environment events such as banking Executive management engage in strong and
volatility, change in UK, US and other major consistent investor relations with well-established
governments, high inflationary environment, and diversified Shareholder base
unpredictable government policy, or
recessions could lead to: Diverse portfolio across different stages of
development, geographies and markets, and syndicated
Increased cost of living and strategy of minority equity ownership alongside
commensurate reduction consumer or B2B strong syndicate partners
spending, diminishing the revenues of
portfolio companies, lowering their Strong Board-level and investment team
valuations and extending the period to experience of previous challenging macro-economic
realisations conditions
Enhanced portfolio company Cash reserves maintained and debt facility
Volatility of global public and requirement for liquidity available for liquidity purposes
private markets
Reduced confidence in growth stocks Strength of the Molten Ventures brand and
Link to KPIs in a higher interest rate environment reputation to retain and continue to attract
(page 19 of the Annual Report) Shareholders and operate in the VC/tech environment
1, 2, 3, 4, 5 Risk of the Company breaching its
debt facility covenants
Changes/activities during the year
Focus for FY25
High, but stabilising, UK and
international inflationary and interest Continued emphasis on appropriate levels of
rates environment liquidity through access to debt facility, cash
realisations, additional fee income from third-party
Geopolitical developments, including co-investors with funds under Group management and
in Ukraine, Israel and the Middle East and ability to raise from the market
China/Taiwan relations
Expansion of syndicated fund strategies with
Signals of IPO market in recovering third-party investors to share risk and provide
in the UK and US enhanced income streams
UK government commitment to Maintain focus on investor relations to
unlocking UK pension money into venture communicate the strategy and resilience of the Group
capital
2. Geopolitical protectionism Static risk
Potential impact
International protectionism fuelling
the escalation of geopolitical tensions and
impacting upon supply chains, which may be Risk management and mitigation
further accelerated by a change of
government at the next UK and US elections Supporting portfolio with international
structural optionality
Inter-governmental policies
presenting additional hurdles to Participation in lobbying efforts on UK
cross-border M&A opportunities, particularly government (e.g. through BVCA membership)
impacting upon later stage large-scale tech
businesses, limiting route to a meaningful Continued monitoring of Group exposure to
exit sanctioned persons or corporates, through our
Direct and portfolio, Shareholders, suppliers, or other
indirect impact of Raised tariffs making it harder for investors into our portfolio companies
geopolitical events portfolio supply chains and deeptech
hardware companies to obtain required
Link to KPIs materials or make sales of their own
(page 19 of the Annual Report) products
1, 2, 4 Focus for FY25
Changes/activities during the year
Continued participation with BVCA to lobby
Escalation of conflict in Israel and UK government on benefits of access to wider pools
the Middle East and ongoing war in Ukraine of capital including both in and outside the exit
disrupting stability of region and process of the UK and Europe, including in the
associated supply chains context of cross-border portfolio exit opportunities
Increased tensions between China and Providing access, network opportunities and
US in respect of Taiwan and broader economic strategic advice to portfolio company founders and
and political relations managing teams to explore US and wider global
markets
Period of greater stability in UK
politics and government. Ongoing monitoring and management of Group
exposure to sanctioned persons or entities
throughout the Group and its investments
3. Liquidity and access to capital Static risk
Potential impact
The reduce availability of capital
and resulting reduction in liquidity may
impair the ability of the Company to make
investments (new or follow-on) or limit the
frequency or quantum of deals in which the Risk management and mitigation
Company is able to participate
Liquidity is available to the Company
The reduced availability of capital through its revolving credit facility maintained
across the public and private markets is with JP Morgan and HSBC Innovation Banking
likely to impact upon funding models and the
ability to execute on strategic business Cash flow forecasts and borrowing structures
plans, both at a Company and a portfolio are considered at each meeting of the Executive
level, which could include: Directors and every Company Board meeting to monitor
and ensure that a minimum quantum of cash is
reduced access to revolving credit available to maintain sufficient headroom to satisfy
facility and/or capital raising mechanisms the Company’s debt covenants and regulatory capital
requirements
slower or halted progress on
strategic initiatives or longer-term Frequent investor engagement with all key
planning Shareholders and stakeholders by the Company’s CEO
and CFO as well as wider marketing activity
reduced cost base and decisions over
prioritisation of capital, which could Continued emphasis on appropriate levels of
Reduced availability of capital result in reductions in headcount liquidity through access to debt facility, cash
precluding the Company from realisation and additional fee income from
executing on its investment depressed valuations where portfolio third-party co-investors with funds under Group
strategy and/or meeting deployment companies are unable to demonstrate a path management
targets to liquidity or profitability without
further funding, or their likely exit paths
Link to KPIs are blocked
(page 19 of the Annual Report)
1, 2, 3, 5 reduced likelihood of realisations
due to slowed IPO market and tighter
controls over capital in PE and M&A spaces
Focus for FY25
Focus upon realisations from the portfolio
to generate cash returns to the balance sheet for
redeployment
Changes/activities during the year
Development of the acquired Forward Partners
£60m of available revolving credit earlier stage portfolio to consider whether there
facility from £150m debt facility with JP are opportunities for realisations by way of an exit
Morgan and HSBC Innovation Banking Company or secondary sale
Engagement with Shareholders through Continued emphasis on appropriate levels of
annual Investor Day, and Investor Meet liquidity through access to debt facility, cash
Company meetings held through the course of realisations and additional fee income from
the period to engage with the Company’s third-party just retain funds with funds under Group
retail base, as well as individual meetings management
with key shareholders
Expansion of additional syndicated fund
strategies with third-party investors to share risk
and provide enhanced income streams
Maintain focus on investor relations to
communicate the strategy and resilience of the Group
4. Public market risk Decreasing risk
Potential impact
A share price persistently trading
at a significant discount to NAV could lead
to:
o reduced value in management and
employee LTIPs which may affect hiring and
retention of key personnel Risk management and mitigation
o potential concentration of share Work alongside the Company’s brokers and PR
register agencies to engage with institutional and retail
Shareholders and build upon the Company’s
o the Company becoming an well-diversified Shareholder base with frequent
acquisition target or leading to Shareholder investor engagement and marketing activity
activism
Close active monitoring of the Company’s
Information concerning the Company share register to track Shareholder movement and
is significantly more public relative to ensure the Company’s Shareholder base is
Molten Ventures’ peer group which are well-diversified
overwhelmingly structured as private GP/LP
structures with far reduced public reporting Expansion of syndicated fund strategies with
As a publicly listed entity, the requirements third-party investors to share risk and diversify
Company is exposed to the risks income streams away from reliance on the capital
associated with that status and Immediate exposure to fluctuations markets
being traded on public markets in the public markets and broader market
trends which can be volatile and
Link to KPIs disconnected from the performance or
(page 19 of the Annual Report) activities of the Company
1, 2, 5,
Ongoing administrative, regulatory
and compliance burden relative to non-listed
peer group
Focus for FY25
Changes/activities during the year
Continued work alongside the Company’s
Addition of new strategic brokers to engage with institutional and retail
shareholder in Blackrock as part of the Shareholders and build upon the Company’s
Forward Partners transaction to help well-diversified Shareholder base
consolidate the share register
Engage directly with Shareholders to try to
Public markets showing signs of build share price relative to NAV and in so doing,
stabilising, particularly in the US and UK deliver value and returns for Shareholders
Engagement with Shareholders through Continued focus on ESG to meet, and where
annual Investor Day, and Investor Meet possible surpass, the public market expectation for
Company meetings held during the course of sustainable investing
the period for engagement with the Company’s
retail base, in addition to individual Expand the syndication of investment
meetings with key shareholders strategies and launch new fee-paying funds with
third-party capital under management to reduce
reliance on capital markets
5. Climate change Static risk
Potential impact
Risk management and mitigation
Transitioning to a lower-carbon economy will
entail policy, legal, technology, and market Adherence to the Company’s ESG Policy and
changes to address mitigation and adaptation Climate Strategy to integrate consideration of
requirements related to climate change, climate-related risks and opportunities throughout
including: the Group’s activities
physical risk of climate Continued climate-related engagement with
change-related events directly impacting portfolio companies as a component part of the
upon the Company or its people, or the Molten Climate Strategy
companies and personnel within the Molten
Ventures portfolio Continued climate-related reporting
supported by external domain experts as set out on
changing stakeholder expectations on pages 50 to 51 and our inaugural Sustainability
licence to do business for the Group and/or Report
the portfolio
Increasing need to navigate the A proportion of variable pay for Executive
energy transition, including increase in GHG emissions-related Directors and all employees linked to completion of
regulatory, market, technology, and regulation, including mandatory reporting ESG KPIs
reputational aspects as well as the requirements
potential physical impacts of Changes/activities during the year
climate change
Continued engagement with Accenture
Link to KPIs to further develop and articulate or Climate
(page 19 of the Annual Report) Strategy Focus for FY25
1, 3, 4, 6
Continued engagement with Altruistiq Delivery of the Company’s FY25 ESG KPIs
to support our data collection and carbon details of which can be found on page 49 of the
footprinting Annual Report
Enhancement of climate-related Continued development and delivery against
engagement with portfolio companies, the Company’s Climate Strategy
including in the course of four towards the
FY24 ESG KPIs, a summary of which can be Continued engagement with our portfolio on
found on page 13 of the Annual Report. climate-related topics including carbon footprint
measurement and GHG reduction plans
Ran bespoke climate-focussed
workshops with four portfolio companies with Evolve and develop the application of
a material emissions profile to Molten climate within the valuations process
Ventures, more details of which can be found
in our inaugural Sustainability Report .
6. Key personnel Increasing risk
Risk management and mitigation
Competitive packages and enhanced employee
benefits offered to personnel, with periodic
externally-led market comparisons for both staff and
Executive packages
Potential impact Long-term incentives aligned to Group
strategy through the issue of performance-related
The work of the Group requires share options. Short-term incentives linked to a
specialist practitioners and, as a blend of personal and corporate targets that are
relatively small team, if the Group does not also aligned to the Company’s corporate purpose,
succeed in recruiting or retaining the values and stakeholder interests
skilled personnel necessary for the
development and operation of its business, Access to externally-led coaching and
it may not be able to grow as anticipated or mentoring through the CoachHub platform; mental
meet its strategic objectives. health support via Oliva; and ongoing focus on staff
development including with ringfenced budget towards
The Group may not be able to retain learning and development across the business
or attract staff with the right
skills and experience Continued focus on diversity and inclusion
across the Group, including through training and the
Link to KPIs continued usage of the firm’s DEI Recruitment Policy
(page 19 of the Annual Report) with recruiters used by the business.
3, 4 Changes/activities during the year
Focus for FY25
The team has been bolstered by the
addition of a number of highly skilled Continued integration of the Forward
personnel with highly relevant experience as Partners team functions into the Molten group
part of the Forward Partners acquisition following the Forward Partners acquisition
Further recruitment into the Continued hiring in line with the Company’s
investment team and operational roles within Diversity, Equality and Inclusion (DEI) Recruitment
the business Policy to source, interview and make hires from a
diverse, highly skilled talent pool to improve
Continued to conduct employee representation across the Group
surveys to solicit feedback on the working
environment and business culture Continued focus on improved mental and
physical wellbeing of all staff through outsourced
Assumption of the Designated providers
Non-Executive Director function by Gervaise
Slowey during the period and a programme of New LTIP issue on revised targets for the
employee engagement reported back to the next three‑year period
Board on a regular basis
7. Cyber security Static risk
Risk management and mitigation
Utilisation of reliable hardware, software
and cybersecurity measures including robust
Potential impact firewalls, anti-virus protection systems, email risk
management software and backup procedures
A significant cyber/information
security breach could result in financial Appropriate IT security structures, policies
liabilities, reputational damage, severe and procedures in place including the Group’s
business disruption or the loss of business Business Continuity Plan
critical or commercially sensitive
information Maintained risk register covering cyber
security
Cyber security incidents may affect Maintain cyber insurance including coverage
the operation and reputation of the for breach response costs, cyber extortion loss and
Group data protection
Changes/activities during the year
Hire of a new specialist IT Manager
with a background in funds IT Focus for FY25
Appointment of Rock IT to support Continued review and development and
the Group’s cyber and wider IT environment adaptation of cyber security and information
along with Softwerx’s ongoing provision of security systems, policies and procedures with the
Security Operation Centre services to the support and guidance of outsourced IT providers
business
Ongoing monitoring and development of
Continued external penetration internal policy relating to the usage and regulatory
testing programme parameters surrounding AI
Continued updates to hardware and
software environment to enhance robust
cybersecurity environment
8. Risk profile of venture investing and venture investments Static risk
Risk management and mitigation
Potential impact
Rigorous due diligence undertaken by highly
Individual portfolio companies may qualified Investment Team and surrounding
not perform as anticipated and either fail operational platform
or have increased funding requirements
Active management of portfolio with consent
Significant commitment of time and rights and Board seats or observer roles typically
resource to the active management of required as a pre-requisite to investment
early-stage high-growth companies
Diversified portfolio across different
Due to the illiquid nature of the geographies, sectors and stages to mitigate impact
asset class in which the Company invests, of single investment failures
valuation of tech companies across global
markets may impair the Group’s NAV and Calibration of risk and reward for outsized
impact on the timing and/or quantum of returns on investment due to equity ownership at an
realisations at exit early stage in the life of the company
The timing of portfolio company Multi-faceted investment strategy focusing
realisations is uncertain and cash returns upon opportunities at different points of the growth
to the Group are therefore difficult to cycle from seed (through Fund of Funds), early
predict and could subject to a lockup period (acquired Forward Partners portfolio/managed
The profile of venture investing in the event of an IPO EIS/VCT) to later stage (Molten Ventures plc balance
and the companies into which sheet)
investments are made are rapidly Changes/activities during the year
scaling businesses with potential
for outsized returns, but are by Continued work to syndicate
their nature inherently riskier investment strategies and launch new
than other more stable lower yield fee-paying funds with third-party capital
investment opportunities or under management to reduce dependency on Focus for FY25
companies capital markets and provide visibility on a
greater range of investment opportunities Continuing to work closely alongside
Link to KPIs portfolio management teams to extend cash runway and
(page 19 of the Annual Report) Expansion of the Molten investing preserve/enhance value and prepare for recovery of
1, 2, 5 platform through the acquisition of the wider market conditions
Forward Partners portfolio providing
additional visibility alongside the managed Continued emphasis on appropriate levels of
EIS and VCT investment vehicles on a liquidity through access to debt facility, cash
pipeline of earlier stage investment realisations, and additional fee income from
opportunities third-party co-investors with funds under Group
management
Engagement with UK government
through participation on various BVCA Continued focus on identifying strong
committees and working groups, in connection best-in-class scalable technology companies with
with the LIFTs Programme and Mansion House very large addressable markets and a path to
Compact to facilitate greater in-flows of becoming a category leader
investment from DC Pension Schemes to expand
and diversify the profile of the UK venture Additional working alongside the BVCA and
industry other industry bodies to advocate the venture
ecosystem and early-stage tech businesses
Rich pipeline of deal opportunities
through the Fund of Funds strategy
Continued participation in follow-on
rounds where the asset is known and we can
continue to back the winners within the
portfolio
9. Industry competition Decreasing risk
Risk management and mitigation
Potential impact Proven thesis-driven investment strategy
with strong reputation in the market within
Presence of sophisticated capital in sector/geo-specialism
the European VC market leading to greater
competition for tier 1 deals Addition of the Forward Partners early-stage
portfolio provides greater market coverage and
Rise in pre-empted funding rounds visibility on pipeline for Series A and B deals
can limit access to strong deals where
opportunities are outside of the Group’s Differentiated model with strong pipeline
network sourcing and disciplined investment process
Reputational risk to the Molten Strong and visible brand with established
brand if tier 1 deals are not won by the presence in VC and tech ecosystem
The Group and its portfolio Group due to presence of competitors
companies are subject to Well networked team with proven syndication
competition risk opportunities across the industry
Changes/activities during the year Focus for FY25
Link to KPIs
(page 19 of the Annual Report) We announced a share-for-share Continue the strategic deployment of capital
2, 3, 4 acquisition of Forward Partners and into existing portfolio companies by way of
successfully completed an oversubscribed follow-on funding and working with portfolio
fund raise of £55 million (net of fees) by management teams to manage cash runway and
way of issuance of new shares on the London preserve/enhance value or raise money in challenging
Stock Exchange and the Euronext Dublin economic conditions
Retrenching by some global VCs from Expand the syndication of investment
the European market who had less experience strategies and launch new fee-paying funds with
or depth of networks in the region, reducing third-party capital under management to reduce
the competitive set for UK and European dependency on capital markets
deals
Continued focus on ESG as a competitive
Continue to demonstrate the advantage and thought leader in the VC space
flexibility of our model and structure to
maximise the ability for the Company to Further development of brand to entrench
participate along EIS and VCT pools of Molten Ventures position within the VC and tech
capital in qualifying deals communities
Principal risks
Board approval
The Strategic Report as set out on pages 6 to 66 of the Annual Report was approved by the Board of Directors on 11 June 2024 and signed
on its behalf by:
Ben Wilkinson
Chief Financial Officer
Going concern
The Directors confirm that they have a reasonable expectation that the Group will have adequate resources to continue in operational
existence for at least the next 12 months from the date of the approval of the financial statements and accordingly they continue to
adopt the going concern basis in preparing the financial statements. A statement in compliance with provision 31 of the Code can be found
on page 66 of the Annual Report.
Statement of directors’ responsibilities in respect of the financial statements
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and
regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared
the group financial statements in accordance with UK-adopted international accounting standards and the company financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced
Disclosure Framework”, and applicable law).
The group has also prepared financial statements in accordance with international financial reporting standards adopted pursuant to
Regulation (EC) No 1606/2002 as it applies in the European Union.
Under company law, directors must not approve the financial statements unless they are satisfied that they give a true and fair view of
the state of affairs of the group and company and of the profit or loss of the group and company for that period. In preparing the
financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• state whether applicable UK-adopted international accounting standards and international financial reporting standards adopted pursuant
to Regulation (EC) No 1606/2002 as it applies in the European Union have been followed for the group financial statements and United
Kingdom Accounting Standards, comprising FRS 101 have been followed for the company financial statements, subject to any material
departures disclosed and explained in the financial statements;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will
continue in business.
The directors are responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and
company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them
to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies Act 2006.
The directors are responsible for the maintenance and integrity of the company’s website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Directors’ confirmations
The directors consider that the Annual Report and accounts, taken as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the group’s and company’s position and performance, business model and strategy.
Each of the directors, whose names and functions are listed in Board of Directors section on pages 70 and 71 of the Annual Report confirm
that, to the best of their knowledge:
• the group financial statements, which have been prepared in accordance with UK-adopted international accounting standards and
international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, give a
true and fair view of the assets, liabilities, financial position and loss of the group;
• the company financial statements, which have been prepared in accordance with United Kingdom Accounting Standards, comprising FRS 101,
give a true and fair view of the assets, liabilities, financial position and loss of the company; and
• the Directors’ Report includes a fair review of the development and performance of the business and the position of the group and
company, together with a description of the principal risks and uncertainties that it faces.
By order of the Board
Ben Wilkinson
Chief Financial Officer
11 June 2024
Consolidated statement of comprehensive income
For the year ended 31 March 2024
Year ended Year ended
Notes 31 March 2024 31 March 2023
£m £m
Movements on investments held at fair value through profit or loss 6 (67.6) (240.1)
Gain on bargain purchase 14 38.6 –
Total movement in fair value through the profit and loss (29.0) (240.1)
Fee income 7 19.8 22.7
Total investment loss (9.2) (217.4)
Operating expenses
General administrative expenses 8 (21.2) (18.8)
Depreciation and amortisation 16, 19 (0.4) (0.7)
Share-based payments – resulting from Company share option scheme 15 (4.8) (4.4)
Exceptional items 36 (3.6) –
Total operating expenses (30.0) (23.9)
Loss from operations (39.2) (241.3)
Finance income 11 0.6 1.7
Finance expense 11 (11.2) (7.1)
Loss before tax (49.8) (246.7)
Tax benefit 12 9.2 3.3
Loss for the year (40.6) (243.4)
Other comprehensive income – –
Total comprehensive loss for the year (40.6) (243.4)
Loss per share attributable to owners of the parent:
Basic loss per weighted average share 13 (21p) (159p)
Diluted loss per weighted average share 13 (21p) (158p)
The consolidated financial statements should be read in conjunction with the accompanying notes.
Consolidated statement of financial position
As at 31 March 2024
Year ended Year ended
Notes 31 March 2024 31 March 2023
£m £m
Non-current assets
Intangible assets 16 10.4 10.5
Financial assets held at fair value through profit or loss 17 1,292.1 1,277.0
Property, plant and equipment 19 0.1 0.4
Total non-current assets 1,302.6 1,287.9
Current assets
Trade and other receivables 22 1.6 5.0
Cash and cash equivalents 21 57.0 22.9
Total current assets 58.6 27.9
Current liabilities
Trade and other payables 23 (9.1) (9.6)
Financial liabilities 24 – (0.3)
Total current liabilities (9.1) (9.9)
Non-current liabilities
Deferred tax 25 (11.7) (22.5)
Provisions (0.3) (0.3)
Financial liabilities 24 (89.4) (89.0)
Total non-current liabilities (101.4) (111.8)
Net assets 1,250.7 1,194.1
Equity
Share capital 26 1.9 1.5
Share premium account 26 671.2 615.9
Own shares reserve 27(i) (8.8) (8.9)
Other reserves 27(ii) 74.7 33.3
Retained earnings 511.7 552.3
Total equity 1,250.7 1,194.1
Net assets per share (pence) 13 662 780
The consolidated financial statements should be read in conjunction with the accompanying notes. The consolidated financial statements
were authorised for issue by the Board of Directors on 11 June 2024 and were signed on its behalf by:
Ben Wilkinson
Chief Financial Officer
Molten Ventures plc registered number 09799594
Consolidated statement of cash flows
For the year ended 31 March 2024
Year ended Year ended
Notes 31 March 2024 31 March 2023
£m £m
Cash flows from operating activities
Loss after tax (40.6) (243.4)
Adjustments to reconcile loss to net cash outflow in operating activities 28 36.7 241.7
Purchase of investments 17 (39.5) (138.2)
Proceeds from disposals in underlying investment vehicles 17 38.9 48.1
Net loans made to underlying investment vehicles and Group companies 17 (17.8) (16.2)
Share options exercised and paid to employees (0.3) –
Interest received 11 0.6 –
Net cash outflow from operating activities (22.0) (108.0)
Cash flows from investing activities
Cash acquired on purchase of subsidiary 14 12.0 –
Net cash inflow from investing activities 12.0 –
Cash flows from financing activities
Loan repayments 24 (38.0) (65.0)
Loan proceeds 24 38.0 125.0
Fees paid on issuance of loan 24(i) – (1.0)
Interest paid 11 (11.0) (6.9)
Disposal/(acquisition) of own shares 27(i) 0.1 (0.6)
Repayments of leasing liabilities 24 (0.3) (0.4)
Gross proceeds from issue of share capital 26 57.3 –
Equity issuance costs 26 (1.8) –
Net cash inflow from financing activities 44.3 51.1
Net increase/(decrease) in cash and cash equivalents 34.3 (56.9)
Cash and cash equivalents at beginning of year 22.9 78.1
Exchange differences on cash and cash equivalents 11 (0.2) 1.7
Cash and cash equivalents at end of year 57.0 22.9
Total cash and cash equivalents and restricted cash at year end 21 57.0 22.9
The consolidated financial statements should be read in conjunction with the accompanying notes.
Consolidated statement of changes in equity
For the year ended 31 March 2024
Year ended 31 March 2024
£m Note Share capital Share premium Own shares reserve Other Retained earnings Total equity
reserves
Brought forward as at 1 April 2023 1.5 615.9 (8.9) 33.3 552.3 1,194.1
Comprehensive expense
for the year
Loss for the year – – – – (40.6) (40.6)
Total comprehensive expense – – – – (40.6) (40.6)
for the year
Contributions by and distributions to the
owners:
Contributions of equity, 26, 27 0.4 55.3 – 36.9 – 92.6
net of transaction costs and tax
Options granted and awards exercised 15, 27 – – – 4.5 – 4.5
Disposal of treasury shares 27 – – 0.1 – – 0.1
Total contributions by and distributions to 0.4 55.3 0.1 41.4 – 97.2
the owners
Balance as at 31 March 2024 1.9 671.2 (8.8) 74.7 511.7 1,250.7
Year ended 31 March 2023
£m Note Share capital Share premium Own shares reserve Other reserves Retained earnings Total equity
Brought forward as at 1 April 2022 1.5 615.9 (8.2) 28.9 795.7 1,433.8
Comprehensive expense
for the year
Loss for the year – – – – (243.4) (243.4)
Total comprehensive expense – – – – (243.4) (243.4)
for the year
Contributions by and distributions to
the owners:
Contributions of equity, net of 26 – – – – – –
transaction costs and tax
Options granted and awards exercised 15, 27 – – (0.1) 4.4 – 4.3
Acquisition of treasury shares 27 – – (0.6) – – (0.6)
Total contributions by and – – (0.7) 4.4 – 3.7
distributions to the owners
Balance as at 31 March 2023 1.5 615.9 (8.9) 33.3 552.3 1,194.1
The consolidated financial statements should be read in conjunction with the accompanying notes.
Notes to the consolidated financial statements
1. General information
Name of the Company Molten Ventures plc
LEI code of the Company 213800IPCR3SAYJWSW10
Domicile of Company United Kingdom
Legal form of the Company Public limited company
Country of incorporation United Kingdom
Address of Company’s registered office 20 Garrick Street, London, WC2E 9BT
Principal place of business 20 Garrick Street, London, WC2E 9BT
Description of nature of entity’s operations and principal activities Venture capital firm
Name of parent entity Molten Ventures plc
Name of ultimate parent of Group Molten Ventures plc
Period covered by financial statements 1 April 2023 – 31 March 2024
Molten Ventures plc (the “Company”) is a public limited company incorporated and domiciled in England and Wales.
The Company is the ultimate parent company in which the results of all subsidiaries are consolidated in line with IFRS 10 (see Note 4(b)
for further details). The consolidated financial statements for the year ended 31 March 2024 and for the comparative year ended 31 March
2023 comprise the consolidated financial statements of the Company and its subsidiaries (together, the “Group”).
The consolidated financial statements are presented in Pounds Sterling (GBP/£), which is the currency of the primary economic environment
in which the Group operates. All amounts are presented in millions, unless otherwise stated.
2. Going concern assessment and principal risks
Going concern
The Group’s primary sources of liquidity are the cash flows it generates from its operations, realisations of its investments and
borrowings. The primary use of this liquidity is to fund the Group’s operations (including the purchase of investments). Responsibility
for liquidity risk management rests with the Board, which has established a framework for the management of the Group’s funding and
liquidity management requirements.
The Group manages liquidity risk by maintaining adequate reserves and with ongoing monitoring of forecast and actual cash flows. The
Group has undertaken a going concern assessment and the latest assessment showed sufficient headroom for liquidity for at least the next
12 months from the date of signing of these financial statements.
The assessment of going concern considered both the Group’s current performance and future outlook, including:
• An assessment of the Group’s liquidity and solvency position using a number of severe but plausible downside case to assess the
potential impact on the Group’s operations and portfolio companies. This downside scenario include (i) unpredictability of exit timing,
being only contractually committed realisations throughout the Going Concern period; (ii) portfolio company valuations subject to change,
being a 25% decrease in GPV to assess the impact on covenant compliance; and (iii) the impact of an additional 2% increase in interest
rates to take SONIA to 7.2%. The Group manages and monitors liquidity regularly and continually assesses investments, commitments,
realisations, operating expenses, and receipt of portfolio cash income including under stress scenarios ensuring liquidity is adequate
and sufficient. As at the date of signing, the Directors believe the Group has sufficient cash resources and liquidity, and is well
placed to manage the business risks in the current economic environment with the ability to utilise the Debt Facility as required.
• The Group must comply with financial and non-financial covenants as part of its Debt Facility agreement (see Note 24(i) for further
details). In order to assess forecast covenant compliance, management have performed an assessment to identify the level at which
covenants would be breached. This is based on the current portfolio and assuming no intervention to manage a breach. For a breach to
occur under these circumstances, a 31% decrease in gross asset value would need to occur which would trigger debt repayment. The
Directors do not consider this to be plausible based on the performance in the year and the current outlook. Management action would be
taken in advance of such a significant decrease to the gross asset value such as the sale of investments in the secondaries market to
repay the Debt Facility.
After making enquiries and following challenge and review, the Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for 12 months from the date of approval of these financial statements. For this reason,
they continue to adopt the going concern basis in preparing the financial statements.
For further information, please refer to the Audit, Risk and Valuations Committee Report on pages 83 to 85 and the Directors’ Report on
pages 99 to 101 of the Annual Report.
Principal risks
The Group has reviewed its exposure to its principal risks and concluded that these did not have a significant impact on the financial
performance and/or position of the Group for the year and as at 31 March 2024, respectively. For further details on the Group’s principal
risks, as well as its risk management processes, please see the Risk Management and Principal Risks section in the Strategic Report to
these financial statements.
3. Adoption of new and revised standards
i. Adoption of new and revised standards
No changes to IFRS have impacted this year’s financial statements.
ii. Impact of standards issued not yet applied
No upcoming changes under IFRS are likely to have a material effect on the reported results or financial position. Management will
continue to monitor upcoming changes.
4. Material accounting policy information
a) Basis of preparation
The financial statements have been prepared in accordance with UK-adopted International Accounting Standards (“IAS”) and the requirements
of the Companies Act 2006 as applicable to companies reporting under those standards and International Financial Reporting Standards
(“IFRS”) adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (“EU”).
UK-adopted International Accounting Standards differ in certain respects from International Financial Reporting Standards as adopted by
the EU. The differences have no material impact on the financial statements for the periods presented, which, therefore, also comply with
International Financial Reporting Standards as adopted by the EU.
The consolidated financial statements have been prepared under the historical cost convention as modified for the revaluation of certain
financial assets and financial liabilities held at fair value. A summary of the Group’s principal accounting policies, which have been
applied consistently across the Group, is set out below. The consolidated financial statements have been approved for issue by the Board
of Directors on 11 June 2024.
The financial reporting framework that has been applied in the preparation of the Company’s financial statements (beginning on page 153)
is Financial Reporting Standard 101, ‘Reduced Disclosure Framework’ (FRS 101). The financial statements have been prepared under the
historical cost convention, as modified by the revaluation of certain financial assets and financial liabilities measured at fair value
through profit or loss, and in accordance with the Companies Act 2006. The Company has taken advantage of disclosure exemptions available
under FRS 101 as explained further in Note 1 of the Company’s financial statements. The financial statements are prepared on a going
concern basis as disclosed in the Audit, Risk and Valuations Committee Report (pages 83 to 85 of the Annual Report), in the Directors’
Report (pages 99 to 101 of the Annual Report) and in Note 2.
In preparing the financial statements we have considered the impact of climate change, particularly in the context of the disclosures
included in the Strategic Report this year. There has not been a material impact on the financial reporting judgements and estimates
arising from our considerations. Specifically, we note the following:
• For the fifth year running, we have offset 100% of our Scope 1 and Scope 2 and select Scope 3 emissions for the financial year (see
more details on page 53 of the Annual Report).
• We continue to engage ESG Consulting Partners to support us with respect to our ESG roadmap. During the year, we worked Altruistiq and
Accenture to support us with our Climate Strategy, GHG Verification and TCFD Report.
• As stated in Note 30, based on work performed so far, management have considered climate-related risks and consider these to be
currently immaterial to the value of our portfolio for FY24 (FY23: immaterial).
A summary of the Group’s principal accounting policies, which have been applied consistently across the Group, is set out below.
b) Basis of consolidation
The consolidated financial statements comprise the Company (Molten Ventures plc, 20 Garrick Street, London, England WC2E 9BT) and the
results, cash flows and changes in equity of the following subsidiary undertakings as well as the Molten Ventures Employee Benefit Trust:
Name of undertaking Nature of business Country of incorporation % ownership
Esprit Capital Partners LLP^ AIFM to the Company, Molten Ventures FoF I LP, Esprit England and Wales 100%
Funds and Irish Co-Invest
Elderstreet Holdings Limited^ Intermediate holding company England and Wales 100%
Elderstreet Investments Limited^ AIFM to Molten Ventures VCT plc and Molten SP I LLP England and Wales 100%
Grow Trustees Limited^ Trustee of the Group’s employment benefit trust England and Wales 100%
Molten Ventures Advisors Limited^ Investment Adviser England and Wales 100%
Molten Ventures (Nominee) Limited^ Dormant England and Wales 100%
Encore Ventures LLP^ AIFM to the Encore Funds England and Wales 100%
Esprit Capital I (GP) Limited^ General Partner and co-invest vehicle England and Wales 100%
Esprit Capital I General Partner^ General Partner England and Wales 100%
Esprit Capital II GP Limited† General Partner Cayman Islands 100%
Esprit Capital III Founder GP Limited* General Partner Scotland 100%
Esprit Capital III GP LP* General Partner Scotland 100%
Encore I Founder GP Limited† General Partner Cayman Islands 100%
Encore I GP Limited† Intermediate holding company Cayman Islands 100%
Esprit Capital Holdings Limited^ Dormant England and Wales 100%
Esprit Nominees Limited^ Nominee company England and Wales 100%
Esprit Capital I (CIP) Limited^ Dormant England and Wales 100%
Esprit Capital III MLP LLP^ Intermediate holding company England and Wales 100%
Esprit Capital III GP Limited^ General Partner (dormant) England and Wales 100%
Molten Ventures Growth Fund I GP S.a.r.l‡ General Partner (dormant) Luxembourg 100%
Molten Ventures Growth SP GP LLP^ General Partner (dormant) England and Wales 100%
Molten Ventures FoF I GP LLP^ General Partner England and Wales 100%
Molten Ventures Investments GP LLP^ General Partner England and Wales 100%
Molten Ventures Investment (Ireland) GP LLP^ General Partner England and Wales 100%
Forward Partners Group Limited^ Limited Partner to the Forward Funds England and Wales 100%
Forward Partners Management Company Limited^ Investment Manager to the Forward Funds England and Wales 100%
Forward Partners Venture Advance Ltd^ Revenue-based financing England and Wales 100%
Forward Partners General Partner Limited^ General Partner England and Wales 100%
Forward Partners Carried Interest General General Partner Scotland 100%
Partner Limited*
FPGP Nominees Limited^ Dormant England and Wales 100%
Registered addresses
^ 20 Garrick Street, London, England, WC2E 9BT
* 50 Lothian Road, Festival Square, Edinburgh, Scotland, EH3 9WJ
† c/o Maples Corporate Services Limited at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands
‡ 412F, Route d’Esch, Grand Duchy of Luxembourg, 1471, Luxembourg
Subsidiaries
Subsidiaries are entities controlled by the Group. Control, as defined by IFRS 10, is achieved when the Group is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the
investee. Subsidiaries are fully consolidated from the date on which the Group effectively obtains control. They are deconsolidated from
the date that control ceases. Control is reassessed whenever circumstances indicate that there may be a change in any of these elements
of control.
All transactions and balances between Group subsidiaries are eliminated on consolidation, including unrealised gains and losses on
transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying
asset is also tested for impairment from a Group perspective. Amounts reported in the financial statements of subsidiaries have been
adjusted where necessary to ensure consistency with consolidated accounting policies adopted by the Group. Profit or loss and other
comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up
to the effective date of disposal, as applicable. The Group attributes total comprehensive income or loss of subsidiaries between the
owners of the parent and the non-controlling interests based on their respective ownership interests.
Employee Benefit Trust
On 27 November 2020, Molten Ventures Employee Benefit Trust (the “Trust”) was set up to operate as part of the Molten Ventures employee
share option schemes. The substance of the relationship is considered to be one of control by the Group and, therefore, the Trust is
consolidated, and all assets and liabilities are consolidated into the Group. Grow Trustees Limited was appointed trustee of the Trust
and the substance of this relationship is also considered to be one of control by the Group and, as such, Grow Trustees Limited is
consolidated.
Investment entity
In accordance with the provisions of IFRS 10, Molten Ventures plc considers itself to be an investment entity. As a result of its listed
status, it obtains funds from its Shareholders to acquire equity interests in multiple high-growth technology businesses (indirectly)
with the purpose of capital appreciation over the life of the investments. These investments are made on behalf of investors in Molten
Ventures plc across a number of deployment strategies – see page 16. Exit strategies for the portfolio vary depending on each investment,
with realisations occurring typically five to ten years after the investment is made. Exit strategies for each of the portfolio companies
are documented and discussed as part of regular portfolio reviews. The Group reviews exit opportunities regularly and each member of the
Deal Team is responsible for an exit thesis for the investee companies they are responsible for prior to any investment being made. An
exit thesis is set out in the original investment papers and it is reiterated or amended thereafter, as appropriate, in the Group’s
regular quarterly reports. Exit strategies for successful investments include the sale of the investment via private placement or in a
public market, IPO, trade sale of a company, and distributions to investors from funds invested into. All exits are approved by a
sub-committee of the Investment Committee, following a similar approval process to any approval of a new investment, requiring a majority
vote. Although Molten Ventures plc holds these investments indirectly, it has been deemed appropriate to directly consider the investment
strategies for the portfolio as the intermediary investment vehicles discussed below were formed to hold investments on behalf of Molten
Ventures plc. Molten Ventures plc evaluates its investments on a fair value basis and reports this financial information to its
Shareholders.
The Directors have also satisfied themselves that Molten Ventures plc’s wholly owned subsidiaries, as well as certain partnerships listed
below, meet the characteristics of an investment entity. Although they have one or two investors, in substance these partnerships and
companies are investing funds on behalf of the Shareholders of Molten Ventures plc. They have obtained funds for the purpose of acquiring
equity interests in high-growth technology businesses with the purpose of capital appreciation over the life of the investments for the
benefit of Shareholders of Molten Ventures plc and this has been communicated directly to the Shareholders. Exit strategies for
investments (directly or indirectly) are previously discussed. The Group evaluates its portfolio on a fair value basis and this financial
information is communicated directly to the Molten Ventures plc Shareholders. In line with the IFRS 10 consolidation exemption, entities
meeting the definition of investment entity do not consolidate certain subsidiaries and instead measure those investments that are
controlling interests in another entity (i.e., their subsidiaries) as investments held at fair value through profit or loss on the
consolidated balance sheet. Loans to investment vehicles are treated as net investments at fair value through profit or loss.
The below is a list of entities that are controlled and not consolidated but held as investments at fair value through profit or loss on
the consolidated balance sheet.
Name of undertaking Principal activity Country of incorporation % ownership
Molten Ventures (Ireland) Limited1 Investment entity Republic of Ireland 100%
Esprit Capital III, L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Esprit Capital III (B), L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Esprit Capital IV LP2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
DFJ Europe X LP3 Limited partnership pursuant to which the Group makes certain Cayman Islands 100%
investments
Esprit Investments (1) L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Esprit Investments (2) LP2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Esprit Investments (1) (B) LP2 Limited partnership pursuant to which the Group and Molten England and Wales 89%7
Ventures FoF I LP hold Fund of Fund investments
Seedcamp Holdings LLP2 Limited liability partnership which holds investments acquired England and Wales 100%
from Seedcamp
Seedcamp Investments LLP4 Limited liability partnership which holds investments acquired England and Wales 100%
from Seedcamp
Seedcamp Investments II LLP4 Limited liability partnership which holds investments acquired England and Wales 100%
from Seedcamp
Esprit Investments (2) (B) LP2 Limited partnership pursuant to which the Group and Molten England and Wales 89%7
Ventures FoF I LP hold Fund of Fund investments
SC_4_OF1 LP5 Limited partnership pursuant to which the Group holds certain England and Wales 100%
investments
Molten Ventures Investments LP2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Molten Ventures Growth Fund I SCSp6 Limited partnership pursuant to which the Group makes certain Luxembourg 100%
investments (dormant)
Molten Ventures Holdings Ltd2 Intermediate Company and Qualifying Asset Holding Company England and Wales 100%
(“QAHC”)
Limited partnership pursuant to which the Group makes
Esprit Investments (2) (B) (I) LP2 England and Wales 100%
certain investments (dormant)
Esprit Investments 2(B) (II) LP2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Molten Ventures FoF I LP2 Limited partnership under the Group’s management which makes England and Wales 50%
Fund of Fund investments
Molten Venture Investments (Ireland) Limited Partnership under the Group's management which makes England and Wales 50%
I LP Irish domiciled investments
Forward Partners 1 L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Forward Partners II L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
Forward Partners III L.P.2 Limited partnership pursuant to which the Group makes certain England and Wales 100%
investments
1 32 Molesworth Street, Dublin 2, Ireland D02 Y512.
2 20 Garrick Street, London, England WC2E 9BT.
3 c/o Maples Corporate Services Limited at PO Box 309, Ugland House, Grand Cayman, KY1–1104, Cayman Islands.
4 16 Great Queen Street, London, England WC2B 5AH.
5 35 New Bridge Street, London, England EC4V 6BW.
6 412F, Route d’Esch, Grand Duchy of Luxembourg, 1471, Luxembourg.
7 circa 22% is held by Molten Ventures FoF I LP of which Molten and a third party are both 50% LPs
Limited partnerships (carried interest and co-invest)
Carried interest vehicles and co-investment limited partnerships (“CIPs”) – the Group’s general partners are members of these limited
partnerships. These vehicles are set up with two purposes: 1) to facilitate payments of carried interest from the fund to carried
interest participants; and 2) in certain circumstances to facilitate co-investment into the funds. Carried interest and co-investment
partnerships are investment entities and are measured at FVTPL with reference to the performance conditions described in Note 4(u) and
held at FVTPL, which equates to the net asset value attributable to the Group, in the statement of financial position in line with our
application of IFRS 10 for investment entities. The vehicles in question are as follows:
Name of undertaking Principal activity Country of incorporation
Encore I GP LP^ General partner Cayman Islands
Encore I Founder LP^ Co-investment limited partnership Cayman Islands
Encore I Founder 2014 LP^ Co-investment limited partnership Cayman Islands
Encore I Founder 2014-A LP^ Co-investment limited partnership Cayman Islands
Esprit Capital III Founder LP* Co-investment limited partnership/carry partner Scotland
Esprit Investments (2) (Carried Interest) Carry vehicle Scotland
LP*
Esprit Capital III (Carried Interest) LP* Carry vehicle Scotland
Esprit Investments (1) (Carried Interest) Carry vehicle Scotland
LP*
Molten Ventures Growth I Special Partner LP* Carry vehicle Scotland
Molten Ventures Investments (Carried Carry vehicle Scotland
Interest) LP*
Molten Ventures FoF I (Special Partner) LP* Carry vehicle Scotland
Molten SP I LLP† Third Party Capital Investment vehicle structured as a limited England and Wales
liability partnership
Forward Partners Carried Interest L.P.* Carry vehicle Scotland
^ c/o Maples Corporate Services Limited at PO Box 309, Ugland House, Grand Cayman, KY1–1104, Cayman Islands.
* 50 Lothian Road, Festival Square, Edinburgh, Scotland EH3 9WJ.
† 20 Garrick Street, London WC2E 9BT.
Each carry vehicle indirectly holds interests in a vintage of investments within our portfolio with the purpose of producing profits for
distribution among the carried interest partners. The Group evaluates its interest in carried interest at fair value as part of the
valuations cycle. Indirectly, the carry partnerships have exit strategies for each investment within which they have an interest as the
manager of both the carry partner and the investment vehicles regularly considers exit strategies as discussed above.
Limited partnerships (managed by Group entities)
A number of limited partnerships are managed by entities within the Group but are not considered to be controlled and, therefore, they
are not consolidated in these financial statements.
Legacy funds
The Group continues to manage three legacy funds, Esprit Fund 1, Esprit Fund 2 and Esprit Fund 3(i), and their general partners are
consolidated within the Group. These funds are in run-off. Historically, the Group has not had any direct beneficial interests in the
assets owned by these funds and the Group was not exposed to variable returns from these funds.
Other than Esprit Capital II LP, which is held at fair value through profit and loss, as an investment, management considers the legacy
funds are held under an agency relationship with the funds where the Group acts as an agent which is primarily engaged to act on behalf,
and for the benefit, of the fund investors rather than for its own benefit. Although the manager (Esprit Capital Partners LLP, subsidiary
to Molten Ventures plc) has the power to influence the returns generated by the fund, the Group does not have an interest in their
returns. As a result, the Group is not deemed to control these managed funds and they are not consolidated.
The legacy funds have the following details:
Esprit Fund 1: Esprit Capital I Fund No.1 Limited Partnership and Esprit Capital I Fund No.2 Limited Partnership – c/o Molten Ventures
plc, 20 Garrick Street, London WC2E 9BT.
Esprit Fund 2 : Esprit Capital II L.P. – c/o Maples Corporate Services Limited at PO Box 309, Ugland House, Grand Cayman, KY1–1104,
Cayman Islands
Esprit Capital 3(i): Esprit Capital Fund III(i) LP and Esprit Capital Fund III(i) A LP –
c/o Maples Corporate Services Limited at PO Box 309, Ugland House, Grand Cayman, KY1–1104, Cayman Islands.
EIS/VCT funds
Enterprise Investment Scheme funds and Molten Ventures VCT plc are managed by the Group. The Group has no direct beneficial interest in
the assets being managed and its sole exposure to variable returns are to performance fees payable on exits above a specified hurdle and
management fees based on subscriptions (and Promoter’s fees in certain cases), which is a small proportion of the total capital within
each fund. The Board believes that this results in an agency relationship with the funds where the Group acts as an agent, which is
primarily engaged to act on behalf, and for the benefit, of the fund investors rather than for its own benefit. Although the managers
(Encore Ventures LLP – EIS funds, Elderstreet Investments Limited – VCT fund and Molten SP I LLP) have the power to influence the returns
generated by the fund, the Group only has an insignificant interest in their returns. As a result, the Group is not deemed to control
these managed funds and they are not consolidated.
The EIS/VCT funds have the following details:
EIS funds: DFJ Esprit Angels’ EIS Co-Investment Fund, DFJ Esprit Angels’ EIS Co-Investment II, DFJ Esprit EIS III, DFJ Esprit EIS IV,
Draper Esprit EIS 5, Molten Ventures EIS and Molten Ventures Approved KI EIS 23/24.
VCT funds: Molten Ventures VCT plc – The Office Suite, Den House, Den Promenade, Teignmouth, United Kingdom, TQ14 8SY.
Audit exemption for members of the Group
The following entities are included in the parent’s consolidated accounts. As a result of section 479A of the Companies Act 2006, these
subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit of accounts under section 475 of the
Companies Act 2006.
Esprit Capital Holdings Limited, Esprit Capital I (CIP) Limited, Molten Ventures (Nominee) Limited, Esprit Nominees Limited, Grow
Trustees Limited, Esprit Capital III MLP LLP, Esprit Capital III GP Limited, Esprit Capital I (GP) Limited, Esprit Capital III Founder GP
Limited, Elderstreet Holdings Limited, Encore I GP Limited, Encore I Founder GP Limited, Esprit Capital I General Partner, Esprit Capital
III GP LP, Molten Ventures Growth Fund I GP S.a.r.l, Molten Ventures Growth SP GP LLP, Molten Ventures FoF I GP LLP and Molten Ventures
Investments GP LLP.
Esprit Foundation
Molten Ventures plc is the sole member of the Foundation. However, this is not controlled by Molten Ventures plc or the Group, as the
Esprit Foundation has a separate board of trustees with a separate governance and decision-making process. A donation was received
during the year ended 31 March 2023. A total of £0.1m in grants were made for the year ended 31 March 2024 (31 March 2023: £Nil).
Charitable Incorporated Organisation status was entered onto the Register of Charities with the Registered Charity Number 1198436 on 30
March 2022. Stuart Chapman is one of, and a donor to, the three Trustees of the Esprit Foundation and is also an Executive Director on
the Board of Molten Ventures plc.
c) Operating segment
IFRS 8, ‘Operating Segments’, defines operating segments as those activities of an entity about which separate financial information is
available and which are evaluated by the Chief Operating Decision Maker to assess performance and determine the allocation of resources.
The Board of Directors have identified Molten’s Chief Operating Decision Maker to be the Chief Executive Officer (“CEO”). The Group’s
investment portfolio engages in business activities from which it earns revenues and incurs expenses, has operating results, which are
regularly reviewed by the CEO to make decisions about resources and assess performance, and the portfolio has discrete financial
information available. The Group’s investment portfolio has similar economic characteristics, and investments are similar in nature.
Dealflow for the investment portfolio is now consistent across all funds (except for the Legacy funds – see below) and the Group’s
Investment Committee reviews and approves (where appropriate) investments for all of the investment portfolio in line with the strategy
set by the Molten Ventures plc Board of Directors (approvals from the Molten Ventures plc Board of Directors is required for higher value
investments where the proposed value of the investment to be made by plc is above £3.0 million). Although the managers of our EIS funds,
VCT funds and plc funds have a separate management committee, the majority of those sitting on the committees are consistent across all.
Taking into account the above points, and in line with IFRS 8, the investment portfolio (across all funds) has been aggregated into one
single operating segment.
Legacy funds – the legacy funds (Esprit Capital I Fund No 1 LP, Esprit Capital Fund No 2 LP, Esprit Capital Fund III (i) LP, Esprit
Capital Fund III (i) A LP and Esprit Capital II LP) continue to be managed by the Group (Esprit Capital Partners LLP). These funds are in
run-off. Although the investments held within these funds are not consistent with the rest of the investment portfolio (although there
has been some cross-over in the past), they are similar in nature and the Group does not earn material revenue (neither is material
expenditure incurred) from the management of these funds that would meet the quantitative thresholds set out in IFRS 8. Management does
not believe that separate disclosure of information relating to the legacy funds would be useful to users of the financial statements.
The majority of the Group’s revenues are not from interest, and Management does not primarily rely on net interest revenue to assess the
performance of the Group and make decisions about resource allocation. Therefore, the Group reports interest revenue separately from
interest expense.
The Group’s management considers the Group’s investment portfolio represents a coherent and diversified portfolio with similar economic
characteristics and as a result these individual investments have been aggregated into a single operating segment. In the view of the
Directors, there is accordingly one reportable segment under the provisions of IFRS 8.
d) Revenue recognition
Revenue is comprised of management fees from EIS/VCT funds and Molten SP I LLP, as well as performance fees and promoter fees. Priority
Profit Share is incorporated within management fees, presented as management fees charged on the underlying investment vehicles.
Revenue is also generated from Directors’ fees from a small number of portfolio companies where members of the Investment Team act as
Directors for portfolio companies.
Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for
transferring services to a customer.
For each contract with a customer, the Group: identifies the contract with a customer, identifies the performance obligations in the
contract; determines the transaction price which takes into account the time value of money; allocates the transaction price to the
separate performance obligations on the basis of the relative standalone selling price of each distinct service to be delivered; and
recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the
services promised.
All revenue from services is generated within the UK and is stated exclusive of value added tax.
Revenue presented as fee income are services comprised of:
i. Management fees (Priority Profit Share)
Management fees are earned by General Partners of Limited Partnerships, through a Priority Profit Share arrangement. The basis of
calculation of fund management fees differs depending on the fund and its stage. Fund management fees are either earned at a fixed annual
rate or are set at a fixed percentage of funds under management, measured by commitments or invested cost, depending on the stage of the
fund being managed. Revenues are recognised as the related services are provided.
ii. Management fees earned by Encore Ventures LLP.
Fund Close April 2019 and prior.
Management fees are charged on the Net Subscription per annum for the first four years of the life of the portfolio. Management fees are
charged annually in advance. Cash received from the investor’s Net Subscription is received and will be recognised as revenue in the
period they become due, across the first four years in line with the investment and follow-on period for investing activities.
In this case, the transaction price is fixed for the life of the contract and, if management fees are recognised in the period for which
they are receivable.
Fund Close July 2019 onwards.
Management fees are charged on Net Subscription per annum for the first five years of the life of the portfolio, payable annually in
advance. Cash received from the investor’s Net Subscription is received and will be recognised as revenue in the period they become due,
across the first five years in line with the investment and follow-on period for investing activities.
Management fees are charged annually in advance. Cash received from the investor’s Net Subscription to cover the payment of management
fees relating to the first 2.75 years of the life of the portfolio. Thereafter, fees will be accrued and deducted from cash proceeds from
exits at the time of becoming highly probable. If no proceeds are received, these fees will not be charged to investors.
iii. Performance fees
Performance fees are earned on a percentage of returns over a hurdle rate. These are recognised in the statement of comprehensive income
on realisation of underlying investment. Amounts are recognised as revenue when it can be reliably measured and is highly probable funds
will flow to the Group, which is generally at the point of invoicing or shortly before due to the unpredictability associated with
realisations but is assessed on a case-by-case basis.
iv. Promoter’s fees
Promoter’s fees are earned by Elderstreet Investments Limited, as manager of the VCT funds, based on amounts subscribed during each
offer.
Fees are agreed on an offer-by-offer basis and are receivable when the shares are allotted. Elderstreet Investments Limited may also be
entitled to promoter’s fees when it promotes offers for new subscriptions into the funds it manages. Promoter’s fees are earned at a
percentage of subscriptions received. Revenue is recognised in full at the time valid subscriptions are received.
v. Directors’ fees
Portfolio Directors’ fees are annual fees charged to an investee company. Directors’ fees are only charged on a limited number of the
investee companies. Revenues are recognised as services are provided.
e) Deferred income
The Group’s management fees are typically billed quarterly or half-yearly in advance. Where fees have been billed for an advance period,
the amounts are credited to deferred income, and then subsequently released through the statement of comprehensive income during the
period to which the fees relate. Certain performance fees and portfolio Directors’ fees are also billed in advance and these amounts are
credited to deferred income, and then subsequently released through the statement of comprehensive income accounting during the period to
which the fees relate.
f) Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the Group to obtain
control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred, liabilities incurred, and the
equity interests issued by the Group, which includes the fair value of any asset or liability arising from a contingent consideration
arrangement.
Acquisition costs are expensed as incurred. Assets acquired and liabilities assumed are generally measured at their acquisition-date fair
values.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination, regardless of whether they have been
previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities assumed are
generally measured at their acquisition-date fair values. Goodwill is stated after separate recognition of identifiable intangible
assets. It is calculated as the excess of the sum of: a) fair value of consideration transferred; b) the recognised amount of any
non-controlling interest in the acquiree; and c) acquisition-date fair value of any existing equity interest in the acquiree, over the
acquisition-date fair values of identifiable net assets. If the fair values of identifiable net assets exceed the sum calculated above,
the excess amount (i.e. gain on a bargain purchase) is recognised in the statement of comprehensive income immediately.
g) Goodwill and other intangible assets
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the
acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the
acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net
acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceed the sum of the consideration transferred, the
amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if
any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
When the consideration transferred by the Group in a business combination includes an asset or liability resulting from a contingent
consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of the
consideration transferred in a business combination. Changes in fair value of the contingent consideration that qualify as measurement
period adjustments are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are
adjustments that arise from additional information obtained during the “measurement period” (which cannot exceed one year from the
acquisition date) about facts and circumstances that existed at the acquisition date.
Other intangible assets
Certain previously unrecognised assets acquired in a business combination that qualify for separate recognition are recognised as
intangible assets at their fair values, e.g. brand names, customer contracts and lists. All finite-lived intangible assets are accounted
for using the cost model whereby capitalised costs are amortised on a straight-line basis over their estimated useful lives. Residual
values and useful lives are reviewed at each reporting date. In addition, they are subject to impairment testing as described below.
Customer contracts are amortised on a straight-line basis over their useful economic lives, typically the duration of the underlying
contracts. The following useful economic lives for customer contracts were applied on the date of acquisition:
i. Encore Ventures LLP: eight years; and
ii. Elderstreet Investments Limited: three years.
h) Impairment
For the purposes of assessing impairment, assets are grouped at the lowest level for which there are largely independent cash inflows
(“cash generating units” or “CGU”). As a result, some assets are tested individually for impairment, and some are tested at
cash-generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the
related business combination and represent the lowest level within the Group at which management monitors goodwill. All other individual
assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable.
An impairment loss is recognised in the consolidated statement of total comprehensive income for the amount by which the assets or
cash-generating units carrying amount exceeds its recoverable amount that is the higher of fair value less costs to sell and
value-in-use.
To determine value-in-use, management estimates expected future cash flows over five years from each cash-generating unit and determines
a suitable discount rate in order to calculate the present value of those cash flows. Discount factors are determined individually for
each cash-generating unit and reflect their respective risk profile as assessed by management. Impairment losses for cash-generating
units reduce first the carrying amount of any goodwill allocated to that cash-generating unit. Any remaining impairment loss is charged
pro-rata to the other assets in the cash-generating unit with the exception of goodwill, and all assets are subsequently reassessed for
indications that an impairment loss previously recognised may no longer exist. An impairment charge is reversed if the cash-generating
unit’s recoverable amount exceeds its carrying amount where there has been a change in estimates used for the calculation of the
recoverable amount.
i) Foreign currency
Transactions entered into by Group entities in a currency other than the functional currency in which they operate are recorded at the
rates prevailing when the transactions occur. Foreign currency monetary assets and liabilities are translated at the rates prevailing at
the reporting date. Exchange differences arising on the retranslation of unsettled monetary assets and liabilities are recognised
immediately in the statement of comprehensive income.
The individual financial statements of the Group’s subsidiary undertakings are presented in their functional currency. For the purpose of
these consolidated financial statements, the results and financial position of each subsidiary undertaking are expressed in Pounds
Sterling, which is the presentation currency for these consolidated financial statements.
The assets and liabilities of the Group’s undertakings, whose functional currency is not Pounds Sterling, are translated at exchange
rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the period.
j) Financial assets
All financial assets are recognised when economic benefit is expected to be transferred to the Group.
On recognition, a financial asset is initially measured at fair value, plus transaction costs, except for those financial assets
classified at “fair value through profit or loss” (“FVTPL”), which are initially measured at fair value.
Financial assets are classified by the Group into the following specified categories:
• Financial assets “FVTPL”; and
• Amortised cost.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets through profit or loss
A financial asset may be designated as at FVTPL upon initial recognition if:
a. such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
b. the financial asset forms part of a group of financial assets or financial liabilities, or both, which is managed, and its performance
is evaluated on a fair value basis, in accordance with the Molten Venture Group’s documented risk management or investment strategy, and
information about the grouping is provided internally on that basis; or
c. it forms part of a contract containing one or more embedded derivatives, and IFRS 9 ‘Financial Instruments’ permits the entire
combined contract (asset or liability) to be designated as at FVTPL.
The Group considers its investment interests referred to in Note 4(b) are appropriately designated as at FVTPL as they meet criteria (b)
above. Further details of the accounting policy can be found in Note 30, Fair value measurements. Financial assets through profit or loss
are accounted for at settlement date.
Amortised cost
A financial asset is held at amortised cost under IFRS 9 where it is held for the collection of cash flows representing solely payments
of principal and interest. These assets are measured at amortised cost using the effective interest method, less any expected losses.
The Group’s financial assets held at amortised cost comprise trade and other receivables, and cash and cash equivalents in the
consolidated statement of financial position. Financial assets held at amortised cost are accounted for at trade date.
k) Financial liabilities
The Group’s financial liabilities include trade and other payables, and borrowings.
Trade and other payables
Trade and other payables are recognised when the Group enters into contractual arrangements with an expectation that economic benefits
will flow from the Group.
The carrying amounts of trade and other payables are considered to be the same as their amortised cost, due to their short-term nature.
Loans and borrowings
Borrowings are initially recognised at fair value that is deemed to be the carrying value at inception. Fees related to the debt facility
are amortised over the term of the loan, see Note 24(i) for further detail regarding the debt facility.
The carrying amount of borrowings is deemed to be presented at amortised cost as the fair value of future cash flows have not been
incorporated.
All interest-related charges are reported in profit or loss and are included within finance costs.
l) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that the outflow of resources embodying the economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
m) Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial
liability or financial asset.
The Group’s shares are classified as equity instruments. Equity instruments are recorded at the proceeds received, net of direct issue
costs.
Shares held by Molten Ventures Employee Benefit Trust are held at cost and disclosed as own shares and deducted from other equity.
n) Defined contribution scheme
Contributions to the defined contribution pension scheme are charged to the consolidated statement of comprehensive income in the years
to which they relate.
o) Share-based payments
When equity-settled share options are awarded to employees, the fair value of the options at the date of grant is charged to the
consolidated statement of comprehensive income over the vesting period on a straight-line basis. Non-market vesting conditions are taken
into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative
amount recognised over the vesting period is based on the number of options that eventually vest. Non-vesting conditions and market
vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a
charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure to
achieve a market vesting condition or where a non-vesting condition is not satisfied.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured
immediately before and after the modification, is also charged to the consolidated statement of comprehensive income over the remaining
vesting period. Where equity instruments are granted to persons other than employees, the consolidated statement of comprehensive income
is charged with the fair value of goods and services received.
The employee share option plans are administered by the Molten Ventures Employee Benefit Trust, which is consolidated in accordance with
the principles in Note 4(b).
p) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of
comprehensive income because it excludes items of income or expense that are taxable or deductible in other years, and it further
excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the balance sheet date.
q) Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance
sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred tax assets are recognised to the
extent that it is probable that taxable profits will be available, against which deductible temporary differences can be utilised. Such
assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial
recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient
taxable profits, against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is
realised based on tax laws and rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is charged
or credited in the income statement, except when it relates to items charged or credited in other comprehensive income, in which case the
deferred tax is also dealt with in other comprehensive income.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets
and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities, and
when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and
liabilities on a net basis.
r) Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is recognised to
write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method, on the
following basis:
• Leasehold improvements – over the term of the lease
• Fixtures and equipment – 33% per annum straight line
• Computer equipment – 33% per annum straight line
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of
any changes in estimate accounted for on a prospective basis.
s) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, and short-term highly liquid money market funds and deposits with a maturity
of three months or less, that are held for the purpose of meeting short-term cash commitments and are readily convertible to a known
amount of cash and subject to an insignificant risk of changes in value.
t) Interest income
Interest income earned on cash and deposits and short-term liquidity investments is recognised when it is probable that the economic
benefits will flow to the Group and the amount of income recognised can be measured reliably. Interest income is accrued on a time basis,
with reference to the principal outstanding and at the effective interest rate applicable.
u) Carried interest
The Company has established carried interest plans for the Executive Directors (see the following associated note), other members of the
Investment Team and certain other employees (together the “Plan Participants”) in respect of any investments and follow-on investments
made from IPO. To 31 March 2020 each carried interest plan operated in respect of investments made during the 24-month period from
inception of the fund, being the investment period, and related follow-on investments made for a further 36-month period. From 1 April
2020, a new carried interest plan was implemented, which operates for a five-year period in respect of any investment. From April 2020
onwards, the Executive Directors were not eligible to participate in new carried interest plans, and instead now participate in the
Long-Term Incentive Plan. Continued participation in existing carried interest schemes that pre-dated the start of the 2021 financial
year were not affected.
Subject to certain exceptions, Plan Participants will receive, in aggregate, 15% of the net realised cash profits from the investments
and follow-on investments made over the relevant period once the Company has received an aggregate annualised 10% realised return on
investments and follow-on investments made during the relevant period. The carried interest plan from 1 April 2020 has an aggregate
annualised 8% realised return on investments and follow-on investments made during the relevant period, to bring the plans more in line
with market. The Plan Participants’ return is subject to a “catch-up” in their favour. Plan Participants’ carried interests vest over
five years for each carried interest plan and are subject to good and bad leaver provisions. Any unvested carried interest resulting from
a Plan Participant becoming a leaver can be reallocated by an adjudication committee formed by Esprit Capital Partners LLP as manager of
the carried interest plan at their discretion, including to the Group, and, therefore, an assumption is made in the financial statements
that any unvested carried interest as at the reporting date would be reallocated to the Group. See Note 30 for further information on
amounts that have been attributed to the Group.
Carried interest is measured at FVTPL with reference to the performance conditions described above. This is deducted from the gross value
of our portfolio as an input to determine the fair value of our investment vehicles, which are held at FVTPL in the statement of
financial position in line with our application of IFRS 10 for investment entities. The external carry is deducted as it will be paid to
members external to the Group from proceeds of investments on realisation. Where the Group has a holding in the carried interest, this is
recognised at FVTPL.
v) Fair value movement
Management uses valuation techniques to determine the fair value of financial assets. This involves developing estimates and assumptions
consistent with how market participants would price the assets. Management bases its assumptions on observable data as far as possible,
but this is not always available, in that case, management uses the best information available. Estimated fair values may vary from the
amount which may be received as consideration for investments in normal market conditions, between two willing parties, at the reporting
date (See Note 5(a)).
w) Exceptional Items
The Group classifies items of income and expenditure as exceptional when the nature of the item or its size is likely to be material, to
assist the reader of the financial statements to better understand the results of the operations of the Group. Such items by their nature
are not expected to recur and are shown separately on the face of the consolidated statement of comprehensive income.
5. Critical accounting estimates and judgements
The Directors have made the following judgements and estimates that have had the most significant effect on the carrying amounts of the
assets and liabilities in the consolidated financial statements. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future periods. Actual results may
differ from estimates. The key estimate, (5)(a), and judgement, (5)(b), are discussed below. There have been no new critical accounting
estimates and judgements in the financial year ended 31 March 2024.
Estimates:
a. Valuation of unquoted equity investments at fair value through profit or loss
The Group invests into Limited Companies and Limited Partnerships, which are considered to be investment companies that invest for the
benefit of the Group. These investment companies are measured at fair value through profit or loss based on their net asset value (“NAV”)
at the year-end. The Group controls these entities and is responsible for preparing their NAV, which is mostly based on the valuation of
their unquoted investments. The Group’s valuation of investments measured at fair value through profit or loss is, therefore, dependent
upon estimations of the valuation of the underlying portfolio companies.
The Group, through its controlled investment companies also invests in investment funds, which primarily focus on seed investments. These
investments are considered to be “Fund of Fund investments” for the Group and are recognised at their NAV at the year-end date. These
Fund of Fund investments are not controlled by the Group and some do not have coterminous year-ends with the Group. To value these
investments, management obtains the latest audited financial statements or partner reports of the investments and discusses further
movements with the management of the funds following consideration of whether the funds follow the IPEV Guidelines.
Where the Fund of Funds hold investments that are individually material to the Group, management perform further procedures to determine
that the valuation of these investments has been prepared in accordance with the Group’s valuation policies for portfolio companies, as
outlined below, and these valuations will be adjusted by the Group where necessary based on the Group valuation policy for portfolio
companies.
The estimates required to determine the appropriate valuation methodology of investments means there is a risk of material adjustment to
the carrying amounts of assets and liabilities. These estimates include whether to increase or decrease investment valuations and require
the use of assumptions about the carrying amounts of assets and liabilities that are not readily available or observable.
The fair value of investments is established with reference to the IPEV Guidelines. An assessment will be made at each measurement date
as to the most appropriate valuation methodology.
The Group invests in early-stage and growth technology companies, through predominantly unlisted securities. Given the nature of these
investments, there are often no current or short-term future earnings or positive cash flows. Consequently, although not considered to be
the default valuation technique, the appropriate approach to determine fair value may be based on a methodology with reference to
observable market data, being the price of the most recent transaction. Fair value estimates that are based on observable market data
will be of greater reliability than those based on estimates and assumptions and, accordingly, where there have been recent investments
by third parties, the price of that investment will generally provide a basis of the valuation.
If this methodology is used, its initial use and the length of period for which it remains appropriate to use the calibration of last
round price depends on the specific circumstances of the investment, and the Group will consider whether this basis remains appropriate
each time valuations are reviewed. In addition, the inputs to the valuation model (e.g. revenue, comparable peer group, product roadmap,
and other milestones) will be recalibrated to assess the appropriateness of the methodology used in relation to the market performance
and technical/product milestones since the round and the company’s trading performance relative to the expectations of the round.
The Group considers alternative methodologies in the IPEV Guidelines, being principally price-revenue or price-earnings multiples,
depending upon the stage of the asset, requiring management to make assumptions over the timing and nature of future revenues and
earnings when calculating fair value. When using multiples, we consider public traded multiples as at measurement date (31 March 2024 for
this report) in similar lines of business, which are adjusted based on the relative growth potential and risk profile of the subject
company versus the market and to reflect the degree of control and lack of marketability as well as considering company performance
against milestones (e.g. financial/technical/product milestones).
The equity values of our portfolio companies are generally assessed via the methodologies described above. For direct investments, the
equity values are run through their relevant waterfalls to assess the fair value of the investment to Molten Ventures under the current
value methodology. Other methodologies would be considered if appropriate.
In all cases, valuations are based on the judgement of the Directors after consideration of the above and upon available information
believed to be reliable, which may be affected by conditions in the financial markets. Due to the inherent uncertainty of the investment
valuations, the estimated values may differ significantly from the values that would have been used, had a ready market for the
investments existed, and the differences could be material. Due to this uncertainty, the Group may not be able to sell its investments at
the carrying value in these financial statements when it desires to do so or to realise what it perceives to be fair value in the event
of a sale. See Note 30(iv) for information on unobservable inputs used and sensitivity analysis on investments held at fair value through
profit or loss.
Judgement:
b. The Company and certain subsidiaries as an investment entity
The Group has a number of entities within its corporate structure and a judgement has been made regarding which should be consolidated in
accordance with IFRS 10, and which should not. The Group consolidates all entities where it has control, as defined by IFRS 10, over the
following:
• power over the investee to significantly direct the activities;
• exposure, or rights, to variable returns from its involvement with the investee; and
• the ability to use its power over the investee to affect the amount of the investor’s returns.
The Company does not consolidate qualifying investment entities it controls in accordance with IFRS 10 and instead recognises them as
investments held at fair value through profit or loss. An investment entity, as defined by IFRS 10, is an entity that:
• obtains funds from one or more investors for the purpose of providing those investor(s) with the investment management services;
• commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment
income, or both; and
• measures and evaluates the performance of substantially all of its investments on a fair value basis.
When judging whether an entity within the Group is an investment entity, the Group structure as a whole is considered. As a Group, the
investment entities listed in Note 4(b) have the characteristics of an investment entity. This is because the Group has:
• more than one investment;
• more than one investor;
• unrelated investors; and
• equity ownership interests.
See Note 4(b) for further details on the consolidation status of entities.
6. Movements on investments held at fair value through profit or loss.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Movement in unrealised (losses) on investments held at fair value through profit or loss (40.9) (305.3)
Movement in realised (losses)/gains on investments held at fair value through profit or loss (2.8) 22.8
Net foreign exchange (losses)/gains on investments held at fair value through profit or loss (23.9) 42.4
Total movements on investments held at fair value through profit or loss (67.6) (240.1)
The changes in (losses) on investment held at fair value through profit or loss is exclusive of the gain on bargain purchase relating to
the acquisition of Forward Partners. For more information, see Note 14 for the gain on bargain purchase.
7. Fee income
Revenue is derived solely within the UK, from continuing operations for all years. An analysis of the Group’s revenue is as follows:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Management fees 19.1 21.6
Performance fees 0.1 –
Promoter’s fees 0.3 0.9
Directors’ and other fees 0.3 0.2
Total fee income 19.8 22.7
8. General administrative expenses
Administrative expenses comprise:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Employee and employee related expenses (Note 9) 14.8 12.3
Legal and professional 3.6 3.7
Performance fees payable 0.1 –
Marketing expenses 0.6 0.6
Building costs and rates 0.5 0.5
Travel expenses 0.5 0.5
IT expenses 0.5 0.5
Listing fees – 0.1
Other administrative costs 0.6 0.6
Total administrative expenses 21.2 18.8
9. Employee and employee-related expenses
Employee benefit expenses (including Directors) comprise:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Wages and salaries 11.6 9.6
Defined contribution pension costs 1.0 0.9
Benefits (healthcare and life assurance) 0.3 0.3
Recruitment costs 0.2 0.2
Social security contributions and similar taxes 1.6 1.3
General employee and employee-related expenses 14.8 12.3
Share-based payment expense arising from Company share option scheme 4.8 4.4
Total employee benefit expenses 19.6 16.7
The monthly average number of persons (including Executive and Non-Executive Directors) employed by the Group during the year was:
Year ended Year ended
31 March 2024 31 March 2023
Number Number
Executive Directors 3 3
Non-Executive Directors 4 5
Investment 21 22
Infrastructure 27 28
Total 55 58
At 31 March 2024, there were five Non-Executive Directors (31 March 2023: four). See Nomination Committee report for further details of
changes in the year.
Infrastructure comprises finance, marketing, human resources, legal, IT, Environmental, Social and Governance (“ESG”), investor relations
and administration.
10. Auditor’s remuneration
The loss for the year has been arrived at after charging:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Fees paid to the Company’s auditor for the audit of the Company and Group consolidated financial statements 0.5 0.4
Fees payable to the Company’s auditors and associates for other services:
Audit of the financial statements of the subsidiaries and related undertakings 0.2 0.2
Audit-related assurance services 0.1 0.1
Non-audit services 0.4 –
Total fees payable to the Company’s auditors 1.2 0.7
Audit-related assurance services paid to the Company’s Auditors in the year were £39k related to CASS reporting to the FCA in respect of
certain subsidiaries (for the year ended 31 March 2023: £25k), £65k in respect of the review of the Group’s interim financial statements
(for the year ended 31 March 2023: £61k).
Non-audit services paid to the Company’s Auditors in the year were £430k in respect of reporting accountant services (for the year ended
31 March 2023: £Nil).
For the year ended 31 March 2024, the Group paid Grant Thornton £300k for the audit of Forward Partners Group Limited and its
subsidiaries.
11. Net finance expense
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Interest and expenses on loans and borrowings (11.0) (7.1)
Net foreign exchange loss (0.2) –
Finance expense (11.2) (7.1)
Interest income on cash and cash equivalents 0.6 –
Net foreign exchange gain – 1.7
Finance income 0.6 1.7
Net finance expense (10.6) (5.4)
12. Tax expense
The charge to tax, which arises in the Group and the corporate subsidiaries included within these financial statements, is:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Current tax expense
Current tax on profits for the year – –
Total current tax expense – –
Deferred tax (expense)/benefit
Adjustment for deferred tax of prior periods (1.6) –
Movement on deferred tax (note 25) 10.8 3.3
Total deferred tax benefit 9.2 3.3
Income tax benefit 9.2 3.3
The UK standard rate of corporation tax is 25% as at year-end (for the year ended 31 March 2023: 19%). The reasons for the difference
between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to loss for the year
before tax are as follows:
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Loss for the year before tax (49.8) (246.7)
Tax at the UK tax rate of 25% (31 March 2023: 19%) (12.5) (46.8)
Adjustment for deferred tax of prior periods (1.6) –
Losses on investments 16.9 45.6
Movement on deferred tax (note 25) 10.8 3.3
Other (4.4) 1.2
Income tax benefit 9.2 3.3
The standard rate of corporation tax will remain at 25% for the 2024/2025 tax year.
13. Loss per share and net asset value
The calculation of basic earnings per weighted average shares is based on the profit attributable to Shareholders and the weighted
average number of shares. When calculating the diluted earnings per share, the weighted average number of shares in issue is adjusted for
the effect of all dilutive share options and awards.
Basic loss per ordinary share
Loss after tax No. of shares Pence
per share
£m m
For the year ended 31 March 2024 (40.6) 189.0 (21)
For the year ended 31 March 2023 (243.4) 153.0 (159)
Diluted loss per ordinary share
(Loss)/profit after tax No. of shares1 Pence
per share
£m m
For the year ended 31 March 2024 (40.6) 189.4 (21)
For the year ended 31 March 2023 (243.4) 153.7 (158)
1 The basic number of shares is 189.0 million (FY23: 153.0 million). This has been adjusted to calculate the diluted number of shares by
accounting for options of 0.4 million in the year (FY23: 0.7 million) to get to the diluted number of shares of 189.4 million (FY23:
153.7 million).
Net asset value per share is based on the net asset attributable to Shareholders and the number of shares at the relevant reporting date.
When calculating the diluted earnings per share, the number of shares in issue at balance sheet date is adjusted for the effect of all
dilutive share options and awards.
Net asset value per ordinary share
Net assets No. of shares Pence
per share
£m m
As at 31 March 2024 1,250.7 189.0 662
At at 31 March 2023 1,194.1 153.0 780
Diluted net asset value per ordinary share
Net assets No. of shares1 Pence
per share
£m m
As at 31 March 2024 1,250.7 189.4 660
As at 31 March 2023 1,194.1 153.7 777
1 The basic number of shares is 189.0 million (FY23: 153.0 million). This has been adjusted to calculate the diluted weighted average
number of shares by accounting for options of 0.4 million in the year (FY23: 0.7 million) to get to the diluted weighted average number
of shares of 189.4 million (FY23: 153.7 million).
14. Business Combinations
On 14 March 2024, Molten Ventures plc acquired 100% of the issued shared capital of Forward Partners Group plc, an AIM listed venture
capital investing in early-stage technology businesses, in an all share acquisition completed via scheme of arrangement, in a ratio of
one new Molten Ventures plc ordinary share for every nine Forward Partners plc ordinary shares. The Group acquired Forward Partners Group
plc to gain access to a range of promising startups in high-growth sectors across AI, alternative asset and digital marketplaces.
The Group owned a 0.76% equity interest in Forward Partners Group plc through the Fund of Funds Programme before the business
combination, held at a fair value of £0.5m. The Group therefore recognised a loss of £0.04m on completion of the acquisition as a result
of remeasuring this equity interest at fair value on 14 March 2024. The resulting fair value loss of £0.04m is included in Movements on
investments held at fair value through profit and loss for the year ended 31 March 2024. The Group opted to use a ‘convenience’ date of
31 March 2024 for acquisition accounts, as per IFRS 3. This standard allows an entity to designate an acquisition date at the end (or the
beginning) of a month - the date in which it closes its book, rather than the actual acquisition date.
The total consideration for the acquisition of Forward Partners Group Limited (formerly, Forward Partners Group plc) was therefore
£37.5m. Acquisition-related costs for this transaction amounted to £2.8m which has been included in the Statement of Comprehensive Income
under exceptional costs. Forward Partners Group Limited has generated revenues of £0.3m and net loss of £7.5m of which £29k and net
profit of £0.2m, respectively, were generated from the date of acquisition to the year end date.
Under the scheme of arrangement Molten Ventures plc issued 14.8m new shares in exchange for the issued share capital of Forward Partners
Group Limited. This equates to consideration of £37.0m based on the closing Molten Ventures plc share price on 14 March 2024 of £2.504
pence per share.
The total consideration for the acquisition of Forward Partners was therefore £37.5m.
As Forward Partners Group Limited was trading at a discount to its Net Asset Value on acquisition, the acquisition resulted in a Gain on
bargain purchase of £38.6m, which is recognised in the Consolidated statement of comprehensive income.
Net assets of business acquired Fair Value
£m
Financial assets held at fair value through profit and loss 65.0
Trade and other receivables 0.1
Cash and cash equivalents 12.0
Trade and other payables (1.0)
Total identifiable net assets 76.1
Non-controlling interest –
Gain on bargain purchase (38.6)
Total consideration 37.5
The consideration was satisfied by:
Issue of shares 37.0
Repurchase of holding held in the group 0.5
Total consideration 37.5
Net cash inflow arising on acquisition
Cash and cash equivalents 12.0
15. Share-based payments
b/f Granted in the Lapsed in the Exercised in c/f Exercise Fair value per
Date of 1 April 2023 year year the year 31 Mar 2024 Vesting price granted
Grant period (pence) instrument
(No.) (No.) (No.) (No.) (No.) (pence)
28–Nov–16 499,320 – – – 499,320 3 years 355 64.1
11–Nov–17 120,000 – – – 120,000 3 years 530 89.3
3 Molten Ventures plc 2016 28–Nov–17 306,384 – – – 306,384 3 years 387 70.90
Company Share Option Scheme 30–Jul–18 650,750 – – – 650,750 3 years 492 152.9
(“CSOP”) 12–Feb–19 546,868 – – – 546,868 3 years 530 67.8
29–Jun–20 200,000 – – – 200,000 3 years 449 81.2
26–Jul–21 36,364 – – – 36,364 1 year 1 986.0
29–Jun–20 547,240 – (220,388) (57,521) 269,331 3 years 1 449.0
16–Jul–21 551,253 – (6,248) – 545,005 1 year 1 940.0
Molten Ventures plc 17-Jun-22 476,250 – (16,457) (2,622) 457,171 3 years 1 540.0
Long-Term Incentive Plan 17-Jun-22 543,609 – – – 543,609 5 years 1 540.0
(“LTIP”) 22–Jun–23 – 96,262 (846) – 95,416 2 years 1 241.0
22–Jun–23 – 113,453 – – 113,453 2 years 1 447.0
23–Jun–23 – 2,380,128 (35,349) – 2,344,779 3 years 1 274.0
Molten Ventures plc 17–Jun–22 211,110 – – – 211,110 2 1 540.0
Deferred Benefit Plan years
(“DBP”) 22–Jun–23 – 44,058 – – 44,058 2 1 241.0
years
Total 4,689,148 2,633,901 (279,288) (60,143) 6,983,618
* This is a vesting period of three years and a further two-year holding period.
Set out below are summaries of options granted under the plan
Year ended Year ended
31 March 2024 31 March 2023
As at 1 April 4,689,148 3,745,855
Granted during the year 2,633,901 1,234,306
Lapsed in the year (279,288) (274,107)
Exercised during the year (60,143) (16,906)
As at 31 March 6,983,618 4,689,148
Both the CSOP and LTIP are, as of 31 March 2024, partly administered by the Molten Ventures Employee Benefit Trust (“Trust”). The Trust
is consolidated in these consolidated financial statements. The Trust may purchase shares from the market and, from time to time, when
the options are exercised, the Trust transfers the appropriate number of shares to the employee or sells these as agent for the employee.
The proceeds received, net of any directly attributable transaction costs, are credited directly to equity. Shares held by the Trust at
the end of the reporting period are shown as own shares in the consolidated financial statements (see Note 27(i)). Of the 60,143 options
exercised during the year, none were satisfied with new ordinary shares issued by Molten Ventures plc (FY23: 16,906 options exercised
with no new ordinary shares issued). All outstanding options have been assessed to be reportable as equity-settled.
Share options granted during the period under the LTIP vest over the prescribed performance period to the extent that performance
conditions are met. The performance conditions relate to realisations, assets under management (calculated in line with the relevant deed
of grant), and Total Shareholder Return. These options are granted under the plan for no consideration and are granted at a nominal value
of one pence per share option.
The fair value of the LTIP shares is valued using the Black–Scholes model, which includes a Monte Carlo simulation model. A six-monthly
review takes place of non-market performance conditions and, as at 31 March 2024, the best estimate for expected vesting of unvested
share options is 52%.
In the year ended 31 March 2024, it was agreed that 0% (31 March 2023: 0%) of the Executive Team’s bonus for that financial year would be
deferred in shares of Molten Ventures plc. FY24 bonus amounts were paid in cash for an amount up to 100% (FY23: 100%) of each Director’s
salary, with the balance being paid in the form of a deferred share award over a number of shares calculated based on the Volume Weighted
Average Price per share for the five trading days immediately prior to the date of grant. The deferral period under the bonus scheme is
two years from the date of the award.
Vesting is not subject to any further performance conditions (other than continued employment at the date of vesting). The Black–Scholes
Option Pricing Model has been used for valuation purposes.
The share-based payment charge for the year is £4.8 million (year ended 31 March 2023: £4.4 million).
16. Intangible assets
Goodwill Customer contracts Total
As at 31 March 2024
£m £m £m
Cost
Cost carried forward as at 1 April 2023 10.4 1.1 11.5
Additions during the period – – –
Cost as at 31 March 2024 10.4 1.1 11.5
Accumulated amortisation
Amortisation carried forward as at 1 April 2023 – (1.0) (1.0)
Charge for the period – (0.1) (0.1)
Accumulated amortisation as at 31 March 2024 – (1.1) (1.1)
Net book value:
As at 31 March 2024 10.4 – 10.4
Goodwill Customer contracts Total
As at 31 March 2023
£m £m £m
Cost
Cost carried forward as at 1 April 2022 10.4 1.1 11.5
Additions during the period – – –
Cost as at 31 March 2022 10.4 1.1 11.5
Accumulated amortisation
Amortisation carried forward as at 1 April 2022 – (0.8) (0.8)
Charge for the period – (0.2) (0.2)
Accumulated amortisation as at 31 March 2023 – (1.0) (1.0)
Net book value:
As at 31 March 2023 10.4 0.1 10.5
The amortisation charge for the year is shown in the “depreciation and amortisation” line of the consolidated statement of comprehensive
income.
17. Financial assets held at fair value through profit or loss
The Group holds investments through investment vehicles it manages. The investments are carried at fair value through profit or loss. The
Group’s valuation policies are set out in Note 5(a) and Note 30. The table below sets out the movement in the balance sheet value of
investments from the start to the end of the year, showing investments made, cash receipts and fair value movements.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
As at 1 April 1,277.0 1,410.8
Investments made in the period1 65.3 138.2
Loans repaid from underlying investment vehicles (38.9) (48.1)
Carry external 1.9 2.1
Non-investment cash movements 15.8 14.1
Unrealised losses on the revaluation of investments2 (29.0) (240.1)
As at 31 March 1,292.1 1,277.0
1 Investments made in the period include the cost attributed for the share-for-share acquisition of Forward Partners amounting to £25.8m
2 Unrealised losses on the revaluation of investments are inclusive of the gain on bargain purchase attributable to the acquisition of
Forward Partners. For more information, see Note 14 for the gain on bargain purchase.
18. Significant holdings in undertakings other than subsidary undertakings
For further details of other related undertakings within the Group, see Note 4(b).
Please see below details of investments held by the Group’s investment companies, where the ownership percentage or partnership interest
exceeds 20%. These are held at fair value through the profit or loss in the statement of financial position.
Interest FD category* at
Name Address Principal activity Type of shareholding reporting date/partnership
interest
Churerstrasse 135, Ordinary shares
RavenPack Holding AG CH-8808 Pfäffikon, Trading company D
Switzerland Preference shares
Earlybird GmbH & Co. c/o Earlybird Venture Limited partnership pursuant to which
Beteiligungs-KG IV Capital, Maximilianstr. 14, the Group holds certain investments Partnership interest 26%
80539, München
Earlybird Special c/o Earlybird Venture Limited partnership pursuant to which
Opportunities LP Capital, Maximilianstr. 14, the Group holds certain investments Partnership interest 34%
80539, München
Earlybird DWES Fund VI c/o Earlybird Venture Limited partnership pursuant to which
GmbH & Co. KG Capital, Maximilianstr. 14, the Group holds certain investments Partnership interest 50%
80539, München
FintechOS Holding B.V Amstelplein 1, 1096 HA Trading company Ordinary shares D
Amsterdam, Netherlands Preference shares
Realeyes (Holdings) 5 New Street Square, London, Trading company Ordinary shares E
Limited EX4A 3TW, GB Preference shares
* Fully diluted interest categorised as follows: Cat A: 0–5%, Cat B: 6–10%, Cat C: 11–15%, Cat D: 16–25%, Cat E: >25%.
Details of the fair value of the Core companies are detailed as part of the Gross Portfolio Value table on page 26.
19. Property, plant and equipment
Right-of-use assets Leasehold improvements Computer equipment Total
Year ended 31 March 2024
£m £m £m £m
Cost
Cost carried forward as at 1 April 2023 1.6 0.8 0.2 2.6
Additions during the period – – – –
Disposals during the year – – – –
Cost as at 31 March 2024 1.6 0.8 0.2 2.6
Accumulated depreciation
Depreciation carried forward as at 1 April 2023 (1.3) (0.7) (0.2) (2.2)
Charge for the period (0.3) – – (0.3)
Disposals during the year – – – –
Accumulated depreciation as at 31 March 2024 (1.6) (0.7) (0.2) (2.5)
Net book value:
As at 31 March 2024 – 0.1 – 0.1
Right-of-use assets Leasehold improvements Computer equipment Total
As at 31 March 2023
£m £m £m £m
Cost
Cost carried forward as at 1 April 2022 1.6 0.8 0.2 2.6
Additions during the period – – – –
Disposals during the year – – – –
Cost as at 31 March 2023 1.6 0.8 0.2 2.6
Accumulated depreciation
Depreciation carried forward as at 1 April 2022 (1.0) (0.6) (0.1) (1.7)
Charge for the period (0.3) (0.1) (0.1) (0.5)
Disposals during the year – – – –
Accumulated depreciation as at 31 March 2023 (1.3) (0.7) (0.2) (2.2)
Net book value:
As at 31 March 2023 0.3 0.1 – 0.4
The depreciation charge for the year is shown in the “depreciation and amortisation” line of the consolidated statement of comprehensive
income.
20. Operating segments
The Group follows the accounting policy on operating segments laid out in Note 4(c).
21. Cash and cash equivalents
31 March 2024 31 March 2023
£m £m
Cash at bank and on hand 36.8 22.9
Cash equivalents 20.2 -
Total 57.0 22.9
Cash on hand earns interest at floating rates based on daily bank deposit rates. Cash equivalents represent monies held in a Sterling
Government Liquid Reserves Money Market Fund which can be redeemed daily.
22. Trade and other receivables
31 March 2024 31 March 2023
£m £m
Trade receivables 0.9 3.1
Other receivables and prepayments 0.7 1.9
Total 1.6 5.0
Expected credit losses for these receivables are expected to be immaterial.
The ageing of trade receivables at reporting date is as follows:
31 March 2024 31 March 2023
£m £m
Not past due 0.8 2.9
Past due 1–30 days – 0.1
Past due 31–60 days – –
More than 60 days 0.1 0.1
Total 0.9 3.1
Trade receivables are held at amortised cost. The maximum exposure to credit risk of the receivables at the reporting date is the fair
value of each class of receivable mentioned above, which is as shown above due to the short-term nature of the trade receivables. The
Group does not hold any collateral as security.
23. Trade and other payables
31 March 2024 31 March 2023
£m £m
Trade payables (0.3) (0.8)
Other taxation and social security (0.7) (0.2)
Other payables – (2.4)
Accruals and deferred income (8.1) (6.2)
Total (9.1) (9.6)
All trade and other payables are short term.
24. Financial liabilities
31 March 2024 31 March 2023
£m £m
Current liabilities
Leases – (0.3)
Loans and borrowings – –
Total current financial liabilities – (0.3)
Non-current liabilities
Leases – –
Loans and borrowings (89.4) (89.0)
Total non-current financial liabilities (89.4) (89.0)
Total (89.4) (89.3)
The below table shows the changes in liabilities from financing activities.
Borrowings Leases
£m £m
At 1 April 2022 (29.7) (0.7)
Capitalisation of costs 1.0 –
Amortisation of costs (0.3) –
Drawdowns (125.0) –
Repayment of debt 65.0 –
Other changes – Interest payments (presented as operating cash flows) – –
Payment of lease liabilities – 0.4
At 31 March 2023 (89.0) (0.3)
Capitalisation of costs – –
Amortisation of costs (0.4) –
Drawdowns (38.0) –
Repayment of debt 38.0 –
Other changes – Interest payments (presented as operating cash flows) – –
Payment of lease liabilities – 0.3
At 31 March 2024 (89.4) –
24(i). Loans and borrowings
On 6 September 2022, the Company entered into a facility agreement relating to a new debt facility (the “Debt Facility”) with J.P. Morgan
Chase Bank N.A., London Branch (“JPM”) and HSBC Bank Plc (“HSBC”), with a JPM affiliate acting as the appointed agent.
The Debt Facility comprises a £90.0 million term loan (“Term Loan”) and a revolving credit facility (“RCF”) of up to £60.0 million on
three and two-year availability periods respectively. Repayment dates for both may be extended by two 12-month periods subject to the
lenders’ willingness to extend and satisfaction of various conditions. The headline interest rate applied on both the Term Loan and RCF
includes a “margin” of 5.50% per annum plus SONIA. The Debt Facility is secured against various Group assets, including bank accounts and
LP interests, with a number of entities within the Group acceding as guarantors.
The Company’s ability to borrow under the Debt Facility and satisfy its financial and non-financial covenants is dependent on the value
of the investment portfolio (excluding third-party funds under management), with draw downs being subject to a maximum loan to value
ratio of 12.5% on each utilisation. The lenders may commission quarterly independent valuations of the investment portfolio.
On execution of the Debt Facility Agreement, the Group drew down £90.0 million of the Term Loan, with the RCF (£60.0 million, currently
undrawn) being available for two years to September 2024 subject to any extension. After expiry of the availability period, a cash sweep
on realisations will apply.
Both the RCF and Term Loan must be fully repaid by the third anniversary of the date of the Debt Facility Agreement, subject to any
extension.
The Debt Facility contains financial and non-financial covenants, which the Company and certain members of the Group must comply with
throughout the term of the Debt Facility:
• Maintain a value to cost ratio of investments of at least 10% (1.10:1.00).
• Total financial indebtedness not to exceed 20% (12.5% on each utilisation) of the value of investments in the portfolio with
adjustments for concentration limits (see below) together with the value of all amounts held in specified bank accounts subject to the
security package.
• Total aggregate financial indebtedness of the Company and certain members of the Group is not to exceed 35% (25% on each utilisation)
of the value of secured investments in the portfolio with adjustments for concentration limits calculated by reference to specified
assets and bank accounts subject to the security package.
• The Company, and certain members of its Group, must maintain a minimum number of investments subject to concentration limits connected
to sector, geography, joint or collective value, and/or listed status.
Failure to satisfy financial covenants may limit the Company’s ability to borrow and/or also trigger events of default, which in some
instances could trigger a cash sweep on realisations and/or require the Company to cure those breaches by repaying the Debt Facility
(either partially or in full).
The Company seeks to maintain a conservative level of gearing and will limit its borrowings to a maximum of 25 percent of Net Asset
Value.
31 Mar 2024 31 Mar 2023
£m £m
Bank loan senior facility amount 150.0 150.0
Interest rate SONIA + 5.5% SONIA + 5.5%
Drawn at balance sheet date (90.0) (90.0)
Arrangement fees 0.6 1.0
Loan liability balance (89.4) (89.0)
Undrawn facilities at balance sheet date 60.0 60.0
25. Deferred tax
Deferred tax is calculated in full on temporary differences under the balance sheet liability method using the tax rate expected to apply
when the temporary differences reverse. See breakdown below:
31 March 2024 31 March 2023
£m £m
Arising on share-based payments (1.6) (1.0)
Arising on co-invest and carried interest (0.2) (0.3)
Arising on the investment portfolio (9.8) (20.9)
Other timing differences (0.1) (0.3)
Deferred tax liability (11.7) (22.5)
As at 31 March 2024, the Group had tax losses carried forward of £2.9m (2023: £12.6m).
26. Share capital and share premium
Ordinary share capital
Year ended 31 March 2024 – Allotted and fully paid Number Pence £m
As at 1 April 152,999,853 1 1.5
Issue of share capital during the year for cash1 21,261,548 1 0.2
Share-for-share exchange2 14,785,049 1 0.2
As at 31 March 189,046,450 1 1.9
1 In December 2023, the Company raised equity by issuing 21,261,548 new ordinary shares at 1 pence.
2 In March 2024, the Company exchanged 14,785,049 new ordinary shares as part of the Forward Partners Group Limited acquisition.
Year ended 31 March 2023 – Allotted and fully paid Number Pence £m
As at 1 April 152,999,853 1 1.5
Issue of share capital during the year for cash¹ – – –
As at 31 March 152,999,853 1 1.5
Share premium
31 March 2024 31 March 2023
Allotted and fully paid
£m £m
As at 1 April 615.9 615.9
Premium arising on the issue of ordinary shares 57.1 –
Equity issuance costs (1.8) –
As at 31 March 671.2 615.9
27. Own shares and other reserves
i. Own shares reserve
Own shares are shares held in Molten Ventures plc that are held by Molten Ventures Employee Benefit Trust (“Trust”) for the purpose of
awarding shares under the Molten Ventures plc 2016 Company Share Options Plan, Long-Term Incentive Plan and Deferred Bonus Plan. Shares
issued to employees are recognised on a weighted average cost basis. The Trust holds 0.58% of the issued share capital at 31 March 2024
(31 March 2023: 0.72%).
31 Mar 2024 31 Mar 2023
No. of shares No. of shares
£m £m
m m
As at 1 April (1.1) (8.9) (0.9) (8.2)
Acquisition of shares by the Trust – – (0.2) (0.6)
Disposal or transfer of shares by the Trust* – 0.1 – (0.1)
As at 31 March (1.1) (8.8) (1.1) (8.9)
* Disposals or transfers of shares by the Trust also include shares transferred to employees net of exercise price with no resulting
cash movements. Cash receipts in respect of sale of shares in the year ended 31 March 2024 were £Nil (year ended 31 March 2023: £Nil).
ii. Other reserves
The following table shows a breakdown of the “other reserves” line in the consolidated statement of financial position and the movements
in those reserves during the period. A description of the nature and purpose of each reserve is provided below the table.
Merger relief Share-based payments reserve resulting from Share-based payments reserve
reserve Company share option scheme resulting from acquisition of Total other reserves
Year ending 31 March 2024 subsidiary
£m £m £m
£m
As at 1 April 13.1 9.4 10.8 33.3
Share-based payments – 4.5 – 4.5
Share-for-share exchange 36.9 – – 36.9
As at 31 March 50.0 13.9 10.8 74.7
Merger relief Share-based payments reserve resulting from Company Share-based payments reserve Total other
reserve share option scheme resulting from acquisition of reserves
Year ending 31 March 2023 subsidiary
£m £m £m
£m
As at 1 April 13.1 5.0 10.8 28.9
Share-based payments – 4.4 – 4.4
Share-based payments – – – – –
exercised during the year
As at 31 March 13.1 9.4 10.8 33.3
Merger relief reserve
In accordance with the Companies Act 2006, a Merger Relief Reserve of £13.1 million (net of the cost of share capital issued of £80k) was
created on the issue of 4,392,332 ordinary shares for 300 pence each in Molten Ventures plc as consideration for the acquisition of 100%
of the capital interests in Esprit Capital Partners LLP on 15 June 2016.
A Merger Relief Reserve of £36.9 million was created on the issue of 14,785,049 ordinary Shares of 250 pence each in Molten Venture plc
as consideration for the acquisition of 100% of the capital interest in Forward Partners Group plc on 14 March 2024.
Share-based payment reserve
Where the Group engages in equity-settled share-based payment transactions, the fair value at the date of grant is recognised as an
expense over the vesting period of the options. The corresponding credit is recognised in the share-based payment reserve. Please see
Note 15 for further details on how the fair value at the date of grant is recognised.
28. Adjustments to reconcile operating (loss) to net cash outflow in operating activities
Year ended Year ended
Notes 31 March 2024 31 March 2023
£m £m
Adjustments to reconcile operating (loss) to net cash outflow in operating activities:
Revaluation of investments held at fair value through profit and loss 6 67.6 240.1
Gain on Bargain purchase Goodwill 14 (38.6) –
Depreciation and amortisation 16, 19 0.4 0.7
Share-based payments – resulting from Company share option scheme 15 4.8 4.4
Finance income 11 (0.6) (1.7)
Finance expense 11 11.0 7.1
Decrease in deferred tax 25 (10.8) (5.2)
Decrease/(increase) in trade and other receivables and other working capital movements 22 3.4 (1.0)
Decrease in trade and other payables 23 (0.5) (2.7)
Adjustments to reconcile operating (loss) to net cash outflow in operating activities 36.7 241.7
Please see Note 24 for the changes in liabilities from financing activities.
29. Retirement benefits
The Molten Ventures Group makes contributions to personal pension schemes set up to benefit its employees. The Group has no interest in
the assets of these schemes and there are no liabilities arising from them beyond the agreed monthly contribution for each employee or
member that is included in employment costs in the profit and loss account as appropriate.
30. Fair value measurements
i. Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised
and measured at fair value in the financial statements. This section should be read with reference to Note 5(a) and Note 17. As explained
in Note 5(a), valuation of unquoted equity investments at fair value through profit or loss is a critical accounting estimate and actuals
may differ from estimates. The Group has considered the impact of ESG and climate-related risks on its portfolio, and consider these to
be currently immaterial to the value of our portfolio for FY24, owing to the nature of the underlying investments (FY23: immaterial) and
taking into consideration the climate risk impact channels and their financial impact across the portfolio companies, however this will
be monitored each year to assess any changes. The Group recognised a number of climate-related opportunities within the portfolio via our
Climate Tech thesis. The inputs to our valuations are described in the sensitivities analysis table below, and because these are more
short-term in nature (e.g. forecast revenue for the current year applied to current market multiples, and recent transactions), we do not
currently see any material impacts on these inputs from the longer term risks described in our TCFD report and, therefore, values as at
31 March 2024. We also recognise that, although the risks are not currently material, they could become material in the medium to
long-term without mitigating actions, which are described within the TCFD section of the Strategic Report. For further discussion of our
climate-related risks and opportunities, please see our TCFD and Principal Risks section of the Strategic Report.
The Group classifies financial instruments measured at fair value through profit or loss (“FVTPL”) according to the following fair value
hierarchy prescribed under the accounting standards:
• Level 1: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date (31 March 2024; and 31 March 2023 for comparatives);
• Level 2: inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
• Level 3: inputs are unobservable inputs for the asset or liability.
All financial instruments measured at FVTPL in FY23 and FY24 are financial assets relating to holdings in investment entities that hold
high-growth technology companies either directly or through Fund of Funds. The Group invests in special purpose vehicles and limited
partnerships, which are considered to be investment companies that invest mostly in equities for the benefit of the Group. As set out in
Note 4(b), these are held at their respective net asset values and, as such, are noted to be all Level 3 for FY23 and FY24. For details
of the reconciliation of those amounts please refer to Note 17. The additional disclosures below are made on a look-through basis and are
based on the Gross Portfolio Value (“GPV”). In order to arrive at the Net Portfolio Value (“NPV”), which is the value recognised as
investments held at FVTPL in the statement of financial position, the GPV is subject to deductions for the fair value of carry
liabilities and adjustments for Irish deferred tax. UK deferred tax is recognised in the consolidated statement of financial position as
a liability to align the recognition of deferred tax to the location in which it will likely become payable on realisation of the assets.
For details of the GPV and its reconciliation to the investment balance in the financial statements, please refer to the extract of the
Gross Portfolio Value table below:
Fair Value of Investments Non-investment Movement in Movement in Fair Value Fair Value of
31-Mar-23 Investments Realisations cash movement Foreign Fair Value movement Investments
Investments Exchange 31-Mar-24 31-Mar-24
£m £m £m £m £m
£m £m £m
Gross Portfolio 1,370.8 65.3 (38.9) – (23.9) 5.6 (18.3) 1,378.9
Value
Carry External (94.0) – 1.9 – – 5.0 5.0 (87.1)
Portfolio Deferred – – – – – – – –
tax
Trading carry & 0.3 – – – – – – 0.3
co-invest
Non-investment cash – – – 15.8 – (15.8) (15.8) –
movement
Net Portfolio Value 1,277.1 65.3 (37.0) 15.8 (23.9) (5.2) (29.1) 1,292.1
Fair Value of Investments Non-investment Movement in Movement in Fair Value Fair Value of
31-Mar-22 Investments Realisations cash movement Foreign Fair Value movement Investments
Investments Exchange 31-Mar-23 31-Mar-23
£m £m £m £m £m
£m £m £m
Gross Portfolio 1,531.5 138.2 (48.1) – 42.4 (293.3) (250.9) 1,370.7
Value
Carry external (121.5) – 2.1 – – 25.4 25.4 (94.0)
Portfolio deferred 0.5 – – – – (0.5) (0.5) –
tax
Trading carry and 0.3 – – – – – – 0.3
co-invest
Non-investment cash – – – 14.1 – (14.1) (14.1) –
movement
Net Portfolio Value 1,410.8 138.2 (46.0) 14.1 42.4 (282.5) (240.1) 1,277.0
Carry external – this relates to accrued carry that is due to former and current employees or managers external to the Group. These
values are calculated based on the reported fair value, applying the provisions of the limited partnership agreements to determine the
value that would be payable by the Group’s investment entities to external managers and the carried interest partnerships.
Portfolio deferred tax – this relates to tax accrued against gains in the portfolio to reflect those portfolio companies where tax is
expected to be payable on exits. This relates to Irish deferred tax only. UK deferred tax is recognised in the consolidated statement of
financial position as a liability to align the recognition of deferred tax to the location in which it will likely become payable on
realisation of the assets. These values are calculated based on unrealised fair value of investments at reporting date at the applicable
tax rate.
Trading carry and co-invest – this relates to accrued carry that is due to the Group.
Non-investment cash movements – this relates to cash movements relating to management fees and other non-investment cash movements to the
subsidiaries held at FVTPL.
During the year ending 31 March 2024, Level 1 investments were realised. In the year ending 31 March 2023, there were transfers out of
Level 3 and into Level 1 following the listing of two investments, one was held directly and one of which is held via our partnership
with Earlybird – see below for the breakdown of investments by fair value hierarchy and Note 30 (iii) on the following page for
movements. The Group’s policy is to recognise transfers into and out of fair value hierarchy levels as at the end of the reporting
period.
Fair value measurements Level 1 Level 2 Level 3 Total
At 31 March 2024 £m £m £m £m
Financial assets at fair value through profit or loss
Quoted investments – – – –
Unquoted investments being made up of: – – 1,378.9 1,378.9
Unquoted investments – enterprise technology – – 567.4 567.4
Unquoted investments – consumer technology – – 147.5 147.5
Unquoted investments – hardware and deeptech – – 317.3 317.3
Unquoted investments – digital health and wellness – – 71.8 71.8
Unquoted investments – other* – – 274.9 274.9
Total financial assets – – 1,378.9 1,378.9
Fair value measurements Level 1 Level 2 Level 3 Total
At 31 March 2023 £m £m £m £m
Financial assets at fair value through profit or loss
Quoted investments 11.9 – – 11.9
Unquoted investments being made up of: – – 1,357.7 1,357.7
Unquoted investments – enterprise technology – – 587.9 587.9
Unquoted investments – consumer technology – – 144.7 144.7
Unquoted investments – hardware and deeptech – – 357.3 357.3
Unquoted investments – digital health and wellness – – 75.7 75.7
Unquoted investments – other* – – 192.1 192.1
Total financial assets 11.9 – 1,357.7 1,369.6
* ”other” includes Fund of Funds investments and Earlybird investments where we do not perform a look-through valuation. This differs
from the analysis in the Strategic Report in order to align to valuation methodologies. Within the Strategic Report, additional Earlybird
companies are included within the sector analysis.
ii. Valuation techniques used to determine fair values
The fair value of unlisted securities is established with reference to the IPEV Guidelines. In line with the IPEV Guidelines, the Group
may base valuations on earnings or revenues where applicable, market comparables, calibrated price of recent investment in the investee
companies, or on net asset values of underlying funds (“NAV of underlying funds”). An assessment will be made at each measurement date as
to the most appropriate valuation methodology, including that for investee companies owned by third-party funds that Molten Ventures plc
invests in and which are valued on a look-through basis.
Financial instruments, measured at fair value, categorised as Level 3 can be split into three main valuation techniques:
• Calibrated price of recent investment;
• Revenue-multiple; and
• NAV of underlying fund.
Each portfolio company will be subject to individual assessment.
For a valuation based on calibrated price of recent investment, the recent round enterprise value is calibrated against the equivalent
value at year-end using a revenue-multiple valuation methodology as well as in relation to technical/product milestones since the round
and the company’s trading performance relative to the expectations of the round.
For a valuation based on a revenue-multiple, the main assumption is the multiple. The multiple is derived from comparable listed
companies or relevant market transaction multiples. Companies in the same industry, geography, and, where possible, with a similar
business model and profile are selected and then adjusted for factors including liquidity risk, growth potential and relative
performance.
Where the Group invests in Fund of Fund investments, the value of the portfolio will be reported by the fund to the Group. The Group will
ensure that the valuations comply with the Group policy and that they are adjusted with any cash and known valuation movements where
reporting periods do not align.
See also Note 5(a) where valuation policies are discussed in more detail.
iii. Fair value measurements using significant unobservable inputs (Level 3)
The table below presents the changes in Level 3 items for the years ending 31 March 2023 and 31 March 2024.
Level 3 valuations £m
Opening balance at 1 April 2022 1,467.6
Investments 138.2
Losses (225.4)
Realisations (21.6)
Unadjusted closing balance at 31 March 2023 1,358.8
Transfer to Level 1 –
Closing balance at 31 March 2023 1,358.8
Investments 65.4
Losses (16.6)
Realisations (28.7)
Unadjusted closing balance at 31 March 2024 1,378.9
Transfer to Level 1 –
Closing balance at 31 March 2024 1,378.9
iv. Valuation inputs and relationships for fair value
The following table summarises the quantitative information about the significant unobservable inputs used in Level 3 fair value
measurements:
Valuation Fair value Sensitivity on Fair value impact Fair value impact
technique Sector Significant input* at significant input of sensitivities of sensitivities
31 Mar 2024 (£m) +10% (£m) -10%
Calibrated round enterprise value –
Pre
328.2 289.8 363.4
All and post year-end round enterprise
(FY23: (FY23: 573.8) (FY23: 731.5)
values have been calibrated with 668.0)
appropriate premiums and discounts
taken to reflect movements in
publicly 121.3 112.2 131.8
Enterprise tech
listed peer multiples, future (FY23: (FY23: 242.7) (FY23: 293.6)
revenue 279.2) 10% sensitivity
applied
projections and timing risk.
Premiums to the premium and
Calibrated 5.7
price of recent and discounts were applied to discount to last 5.1 6.0
investment Consumer tech (FY23: round
75% (2023: 65%) of the fair value 34.1) (FY23: 25.9) (FY23: 38.5)
of price.
investments measured at calibrated
146.6
Hardware & price of recent investment. The 121.9 168.2
Deeptech range of (FY23:
313.0) (FY23: 265.9) (FY23: 355.9)
premiums applied is 24% to 137%
(2023: nil%). The range of
discounts taken is between 2%-79%
(2023: 6%-79%). The weighted 54.6
Digital health average discount taken is 21% 50.6 57.4
& wellness (2023: 35%). Less discounts have (FY23:
been applied in the current year, 41.7) (FY23: 39.3) (FY23: 43.5)
reflecting calibration to the
market.
Revenue-multiples are applied to 10% sensitivity 807.6 667.9
the revenue of our portfolio 737.1 applied to the
companies to determine their revenue–multiple (FY23: 505.1) (FY23: 417.5)
All enterprise value. (FY23: 10% sensitivity 807.6
462.2) applied to the
Implied revenue-multiple – the revenue of the (FY23: 505.1)
portfolio we have is diversified portfolio company
across sectors and geographies and 10% sensitivity 450.4 376.6
the companies which have valuations 415.8 applied to the
based on revenue-multiples have a revenue–multiple (FY23: 308.6) (FY23: 253.2)
Enterprise tech range of multiples of between (FY23: 10% sensitivity 450.4 376.6
1.2x-14.7x (2023: 1.0x-13.4x) and a 281.9) applied to the
weighted average multiple of 6.6x revenue of the (FY23: 308.6) (FY23: 253.2)
(2023: 8.4x). portfolio company
10% sensitivity 157.0 128.8
Revenue – we select forward 141.9 applied to the
Market revenues from our portfolio revenue–multiple (FY23: 121.4 (FY23: 100.0)
comparables Consumer tech companies mostly with reference to (FY23: 10% sensitivity 157.0 128.8
financial updates in their board 110.6) applied to the
packs, adjusted where required in revenue of the (FY23: 121.4) (FY23: 100.0)
the event we do not have portfolio company
forward-looking information. Our 10% sensitivity 179.4 148.6
core portfolio makes up 62% (2023: 162.2 applied to the
Hardware & 62%) of the GPV and revenue growth revenue–multiple (FY23: 38.1) (FY23: 33.2)
Deeptech in the core portfolio for 2024 is (FY23: 10% sensitivity 179.4 148.6
52% (2023: 68%). 35.7) applied to the
revenue of the (FY23: 38.1) (FY23: 33.2)
The multiple range has remained portfolio company
consistent with the prior financial 10% sensitivity 20.8 13.9
year March 2023 but there has been 17.2 applied to the
Digital health an increase to the weighted average revenue–multiple (FY23: 37.0) (FY23: 31.1)
& wellness multiple reflecting the more (FY23: 10% sensitivity 20.8 13.9
significant weighting of larger 34.0) applied to the
assets. revenue of the (FY23: 37.0) (FY23: 31.1)
portfolio company
313.5 344.9 282.2
All
(FY23: (FY23: 250.3) (FY23: 204.8)
227.5)
30.3 33.4 27.3
Enterprise tech
NAV of funds, adjusted where (FY23: (FY23: 29.5) (FY23: 24.1)
required – net asset values of 26.8)
underlying funds reported by the – – –
NAV of Consumer tech manager. These are reviewed for 10% sensitivity
underlying fund compliance with our policies and (FY23: –) applied to the (FY23: –) (FY23: –)
Hardware & are calibrated for any cash and 8.5 adjusted NAV of funds 9.3 7.6
Deeptech known valuation movements where
reporting periods do not align. (FY23: 8.6) (FY23: 9.5) (FY23: 7.8)
Digital health – – –
& wellness
(FY23: –) (FY23: –) (FY23: –)
274.7 302.2 247.3
Other
(FY23: (FY23: 211.3) (FY23: 172.9)
192.1)
* There were no significant inter-relationships between unobservable inputs that materially affect fair values.
v. Valuations processes
The Audit, Risk and Valuations Committee is responsible for ensuring that the financial performance of the Group is properly reported on
and monitored. In addition to continuous portfolio monitoring through the Board positions held in portfolio companies and the Investment
Committee, a bi-annual strategy day is held every six months to discuss the investment performance and valuations of the portfolio
companies. The Investment Team leads discussions focused on business performances and key developments, exit strategy and time lines,
revenue and EBITDA progression, funding rounds and latest capitalisation table, and valuation metrics of listed peers. Valuations are
prepared every six months by the Finance Team during each reporting period, with direct involvement and oversight from the CFO. Challenge
and approvals of valuations are led by the Audit, Risk and Valuations Committee every six months, in line with the Group’s half-yearly
reporting periods.
31. Financial instruments risk
Financial risk management
Financial risks are usually grouped by risk type: market, liquidity and credit risk. These risks are discussed in turn below.
Market risk – Foreign currency
A significant portion of the Group’s investments and cash deposits are denominated in a currency other than Sterling. The principal
currency exposure risk is to changes in the exchange rate between GBP and USD/EUR. Presented below is an analysis of the theoretical
impact of 10% volatility in the exchange rate on Shareholder equity.
Theoretical impact of a change in the exchange rate of +/-10% between GBP and USD/EUR would be as follows:
31 March 2024 31 March 2023
Foreign currency exposures – Investments
£m £m
Investments – exposures in EUR 650.8 672.3
10% decrease in GBP 723.1 747.0
10% increase in GBP 591.6 611.2
Investments – exposures in USD 275.7 303.1
10% decrease in GBP 306.3 336.7
10% increase in GBP 250.6 275.5
Certain cash deposits held by the Group are denominated in Euros and US Dollars. The theoretical impact of a change in the exchange rate
of +/-10% between GBP and USD/EUR would be as follows:
31 March 2024 31 March 2023
Foreign currency exposures – Cash
£m £m
Cash denominated in EUR 4.5 0.5
10% decrease in EUR: GBP 4.1 0.5
10% increase in EUR: GBP 5.0 0.6
Cash denominated in USD 6.3 0.9
10% decrease in USD: GBP 5.7 0.8
10% increase in USD: GBP 7.0 1.0
The combined theoretical impact on Shareholders’ equity of the changes to revenues, investments and cash and cash equivalents of a change
in the exchange rate of +/- 10% between GBP and USD/EUR would be as follows:
31 March 2024 31 March 2023
Foreign currency exposures – Equity
£m £m
Shareholders’ Equity 1,247.5 1,194.1
10% decrease in EUR: GBP/USD: GBP 1,134.1 1,085.6
10% increase in EUR: GBP/USD: GBP 1,386.1 1,326.8
Market risk – Price risk
Market price risk arises from the uncertainty about the future prices of financial instruments held in accordance with the Group’s
investment objectives.
It represents the potential loss that the Group might suffer through holding market positions in the face of market movements. As stated
in Note 5(a) and Note 30, valuation of unquoted equity investments at fair value through profit or loss is a critical accounting estimate
and actuals may differ from estimates.
The Group is exposed to equity price risk in respect of equity rights and investments held by the Group and classified on the balance
sheet as financial assets at fair value through profit or loss (Note 30). These equity rights are held mostly in unquoted high-growth
technology companies and are valued by reference to revenue or earnings multiples of quoted comparable companies (taken as at the
year-end date), last round price (calibrated against market comparables), or NAV of underlying fund, and also in certain quoted
high-growth technology companies – as discussed more fully in Note 5(a). These valuations are subject to market movements.
The Group seeks to manage this risk by routinely monitoring the performance of these investments, employing stringent investment
appraisal processes.
Theoretical impact of a fluctuation in equity prices of +/-10% would be as follows:
Valuation methodology
Quoted equity £m Revenue-multiple £m NAV of underlying fund £m Calibrated price of
recent investment £m
-10% +10% -10% +10% -10% +10% -10% +10%
As at 31 March 2024 – – (63.6) 68.9 (31.1) 31.1 (32.3) 31.6
As at 31 March 2023 (1.2) 1.2 (43.6) 41.7 (22.8) 22.8 (54.4) 53.6
Given the impact on both private and public markets from current market volatility, which could impact the valuation of our unquoted and
quoted equity investments, we further flexed by 20% in order to analyse the impact on our portfolio of larger market movements.
Theoretical impact of a fluctuation of +/- 20% would have the following impact:
Valuation methodology
Quoted equity £m Revenue-multiple £m NAV of underlying fund £m Calibrated price of
recent investment £m
-20% +20% -20% +20% -20% +20% -20% +20%
As at 31 March 2024 – – (129.8) 132.0 (62.1) 62.1 (63.8) 63.6
As at 31 March 2023 (2.4) 2.4 (86.9) 82.5 (45.5) 45.5 (109.2) 106.8
Liquidity risk
Cash and cash equivalents comprise of cash and short-term bank deposits with an original maturity of three months or less held in readily
accessible bank accounts. There is no restricted cash as at 31 March 2024 (restricted cash as at 31 March 2023 included £2.3 million of
collateral for interest payments on the revolving credit facility (see Note 24 (i)). The carrying amount of these assets is approximately
equal to their fair value. Responsibility for liquidity risk management rests with the Board of Molten Ventures plc, which has
established a framework for the management of the Group’s funding and liquidity management requirements. The Group manages liquidity risk
by maintaining adequate reserves and by continuously monitoring forecast and actual cash flows. The utilisation of the debt facility and
requirement for utilisation requests is monitored as part of this process, the debt facility is not linked to the liquidity of the Group
and further drawdowns on the debt facility have been considered within the Going Concern assessment. For the contractual maturities of
the Group’s liabilities see tables below.
Contractual maturities of liabilities at 31 March 2024 (£m) Less than 6–12 months Between Between Total contractual Carrying amount
6 months 1–2 years 2–5 years cash flows
Trade and other payables (9.0) (0.1) – – (9.1) (9.1)
Fees on facility – – – – 0.6 0.6
Facility (5.0) (5.0) (95.0) – (105.0) (90.0)
Provisions – (0.3) – – (0.3) (0.3)
Current lease liabilities – – – – – –
Non-current lease liabilities – – – – – –
Total shown in the statement of financial position (14.0) (5.4) (95.0) – (113.8) (98.8)
Contractual maturities of liabilities at 31 March 2023 (£m) Less than 6–12 months Between Between Total contractual Carrying amount
6 months 1–2 years 2–5 years cash flows
Trade and other payables (9.1) (0.5) – – (9.6) (9.6)
Fees on facility – – – – 1.0 1.0
Facility (4.4) (4.4) (8.8) (116.5) (134.1) (90.0)
Provisions – (0.3) – – (0.3) (0.3)
Current lease liabilities (0.3) – – – (0.3) (0.3)
Non-current lease liabilities – – – – – –
Total shown in the (13.8) (5.2) (8.8) (116.5) (143.3) (99.2)
statement of financial position
Lease liabilities fall due over the term of the lease. The debt facility has a term of three years – for further details, see Note 24(i).
All other Group payable balances at balance sheet date and prior periods fall due for payment within one year.
As part of our Fund of Funds, Earlybird, Irish Co-Invest and Molten SP I LP strategy, we make commitments to funds to be drawn down over
the life of the fund. Projected drawdowns due by the Company are monitored as part of the monitoring process above.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss. The Group is
exposed to this risk for various financial instruments, for example by granting receivables to customers and placing deposits. As part of
the Group’s investments, the Group invests in debt instruments such as bridging loans and convertible loan notes (included within the
investments held at FVTPL). This is not included below as the risk is considered as part of the fair value measurement. The Group’s trade
receivables are amounts due from the investment funds under management, or underlying portfolio companies. The Group’s maximum exposure
to credit risk is limited to the carrying amount of trade receivables, cash and cash equivalents, and restricted cash at each period-end
is summarised below:
31 March 2024 31 March 2023
Classes of financial assets impacted by credit risk, carrying amounts
£m £m
Trade and other receivables 1.6 5.0
Cash and cash equivalents 57.0 22.9
Total 58.6 27.9
The Directors consider that expected credit losses relating to the above financial assets are immaterial for each of the reporting dates
under review as they are of good credit quality. In respect of trade and other receivables, the Group is not exposed to significant risk
as the principal customers are the investment funds managed by the Group, and in these the Group has control of the banking as part of
its management responsibilities. Investments in unlisted securities are held within limited partnerships for which Esprit Capital
Partners LLP acts as manager, and, consequently, the Group has responsibility itself for collecting and distributing cash associated with
these investments. The credit risk of amounts held on deposit is limited by the use of reputable banks with high-quality external credit
ratings and, as such, is considered negligible. The Group has an agreed list of authorised counterparties. Authorised counterparties and
counterparty credit limits are established within the parameters of the Group Treasury Policy to ensure that the Group deals with
creditworthy counterparties and that counterparty concentration risk is addressed. Any changes to the list of authorised counterparties
are proposed by the CFO after carrying out appropriate credit worthiness checks and any other appropriate information, and the changes
require approval from the Board. Cash at 31 March 2024 is held with the following institutions (and their respective Moody’s credit
rating): (1) Barclays Bank plc (Baa2); (2) HSBC UK Limited (Aa3); and at 31 March 2023, also (3) Investec Bank plc (Baa1). Cash
equivalents at 31 March 2024 comprise of a holding in Goldman Sachs Sterling Government Liquid Reserves Fund (Moody’s credit rating
AAA-mf).
Capital management
The Group’s objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for Shareholders and benefits for
other stakeholders; and
• maintain an optimal capital structure.
The Group is funded through equity and debt at the balance sheet date. During the period, the Group had £90 million term loan which has
been fully drawn and an undrawn £60m revolving credit facility, please refer to Note 24(i) for further details regarding the loan.
In order to maintain or adjust the capital structure, the Group may make distributions to Shareholders, return capital to Shareholders,
issue new shares or sell assets between related parties or otherwise to manage cash.
Interest rate risk
The Group’s interest rate risk arises from borrowings on the £150.0 million Debt Facility with JPM and HSBC, which was entered into in
September 2022, at which point £90.0 million term loan was drawn down (31 March 2023: £90.0 million drawn). The Group’s borrowings are
denominated in GBP and are carried at amortised cost.
£38 million was drawn from the revolving credit facility 30 November 2023 and fully repaid on 21 December 2023. Interest was charged at a
rate of SONIA plus 5.50%
The term loan balance remains outstanding at the period-end. The interest charged on future drawdowns will fluctuate with the movements
on SONIA.
32. Related party transactions
The Group has various related parties stemming from relationships with Limited Partnerships managed by the Group, its investment
portfolio, its advisory arrangements/Directors’ fees (Board seats) and its key management personnel.
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of
the Group, and are considered to be the Directors of the Company listed on pages 70 and 71 of the Annual Report.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Wages and salaries 2.4 2.1
Defined contribution pension costs 0.2 0.2
Social security contributions and similar taxes 0.3 0.3
Carried interest paid 0.6 1.2
Total 3.5 3.8
The details of individual Directors’ remuneration and pension benefits, as set out in the tables contained in the Directors’ Remuneration
Report on page 90 of the Annual Report, form part of these consolidated financial statements.
During the year, employees of Molten Ventures plc, including key management personnel were granted and exercised share options – see Note
15 for further details.
Transactions with other related parties
In addition to key management personnel, the Company has related parties in respect of its subsidiaries and other related entities.
On 30 March 2022, Molten Ventures plc entered into an agreement with Softcat plc to provide Molten Ventures plc with fractional CIO
services. Karen Slatford was both the Chair of Softcat plc’s Board and was Chair of Molten Ventures plc’s Board at the time of entering
the agreement until 17 January 2023. During the year fees of £Nil have been recognised in relation to the services (31 March 2023:
£0.1k), and £Nil remains outstanding at 31 March 2024 (31 March 2023: £Nil).
Management fees
Fees are received by the Group in respect of the EIS and VCT funds as well as unconsolidated structured entities managed by Esprit
Capital Partners LLP, which is consolidated into the Group. The EIS funds are managed by Encore Ventures LLP under an Investment
Management Agreement; Encore Ventures LLP is a consolidated subsidiary of the Group. Molten Ventures VCT plc is managed under an
Investment Management Agreement by Elderstreet Investments Limited, which is a consolidated subsidiary of the Group. Management fees are
received by the Group in respect of these contracts. See Note 4(b) for further information on consolidation.
Year ended Year ended
Management fees recognised in the statement of comprehensive income resulting from related party transactions 31 March 2024 31 March 2023
£m £m
Management fees from unconsolidated structured entities 14.3 16.8
Management fees from EIS and VCT funds 5.6 5.9
Directors’ fees
Administration fees for the provision of Director services are received where this has been agreed with the portfolio companies. These
amounts are immaterial. At times, expenses incurred relating to Director services can be recharged to portfolio companies – these are
also immaterial. Molten Ventures does not exercise control or management through any of these Non-Executive positions.
Carry payments
Carry was paid to 15 beneficiaries in the year, of which the below was to related parties. Carry payments have been made in respect of
Esprit Capital III LP and Esprit Capital IV LP to key management personnel in FY23 and FY24. Please see the Directors’ Remuneration
Report for further details.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Carry payments 0.6 1.2
Performance fees
Performance fees have not been paid during the year by the EIS and VCT funds to Encore Ventures LLP. At 31 March 2024, £0.1 was unpaid
(31 March 2023: £Nil).
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Performance fees 0.1 –
Unconsolidated structured entities
The Group has exposure to a number of unconsolidated structured entities as a result of its venture capital investment activities.
The Group ultimately invests all funds via a number of limited partnerships and some via Molten Ventures plc’s wholly owned subsidiaries,
Molten Ventures (Ireland) Limited and Molten Venture Holdings Limited. These are controlled by the Group and not consolidated, but they
are held as investments at fair value through profit or loss on the consolidated statement of financial position in line with IFRS 10
(see Note 4(b) for further details and for the list of these investment companies and limited partnerships). The material assets and
liabilities within these investment companies are the investments, which are held at FVTPL in the consolidated accounts. Please see
further details in the table below.
The Group has a beneficial interest to these assets since the acquisition and as such holds them as investments at fair value through
profit and loss.
31 March 2024 31 March 2023
Name of undertaking Registered office Activity Holding Country
£m £m
Limited Partnership pursuant to
Esprit Investments 20 Garrick Street, London, which the Group and Molten 89% England 10.6 14.2
(1)(B) LP WC2E 9BT Ventures FoF I LP hold Fund of
Fund investments
Limited Partnership pursuant to
Esprit Investments (2) 20 Garrick Street, London, which the Group and Molten 89% England 51.3 47.5
(B) LP WC2E 9BT Ventures FoF I LP hold Fund of
Fund investments
Limited Partnership pursuant to
Esprit Investments (2) 20 Garrick Street, London, which
(B) (i) LP WC2E 9BT 100% England – –
the Group makes certain
investments (dormant)
Molten Ventures 32 Molesworth Street, Dublin Investment entity 100% Ireland 951.4 1,041.7
(Ireland) Limited 2, Ireland
20 Garrick Street, London, Limited Partnership pursuant to
Esprit Capital III LP WC2E 9BT which the Group makes certain 100% England 32.8 33.6
investments
20 Garrick Street, London, Limited Partnership pursuant to
Esprit Capital IV LP WC2E 9BT which the Group makes certain 100% England 8.9 15.5
investments
c/o Maples Corporate Services Limited Partnership pursuant to
DFJ Europe X LP Limited at PO Box 309, Ugland which the Group makes certain 100% Cayman Islands 3.2 5.8
House, Grand Cayman, investments
KY1-1104, Cayman Islands
Limited Partnership pursuant to
Esprit Investments (1) 20 Garrick Street, London, which
LP WC2E 9BT 100% England 147.3 169.9
the Group makes certain
investments
Limited Partnership pursuant to
Esprit Investments (2) 20 Garrick Street, London, which
LP WC2E 9BT 100% England 761.8 822.2
the Group makes certain
investments
Molten Ventures 20 Garrick Street, London, Intermediate Company and
Holdings Limited WC2E 9BT Qualifying Asset Holding Company 100% England 85 51.9
(“QAHC”)
Molten Ventures 20 Garrick Street, London, Limited Partnership pursuant to
Investments LP WC2E 9BT which the Group makes certain 100% England 29.8 2.5
investments
Molten Ventures FoF I 20 Garrick Street, London, Limited partnership under the
LP WC2E 9BT Group’s management which makes 50% England 14.5 12.4
Fund of Fund investments
Molten Ventures 20 Garrick Street, London, Limited Partnership under the
Investments (Ireland) WC2E 9BT Group's management which makes 56% England 3.5 -
LP Irish domiciled investments
Esprit Investments (2) 20 Garrick Street, London, Limited Partnership pursuant to
(B) (ii) LP WC2E 9BT which the Group makes certain 100% England 160.5 153.2
investments
20 Garrick Street, London, Limited Partnership pursuant to
Forward Partners 1 L.P. WC2E 9BT which the Group makes certain 100% England 11.4 -
investments
Forward Partners III 20 Garrick Street, London, Limited Partnership pursuant to
L.P. WC2E 9BT which the Group makes certain 100% England 46.8 -
investments
Forward Partners II 20 Garrick Street, London, Limited Partnership pursuant to
L.P. WC2E 9BT which the Group makes certain 100% England 6.8 -
investments
Molten Ventures (Ireland) Limited invests via the following limited partnerships: Esprit Investments (1) LP, Esprit Investments (2) LP,
Esprit Capital IV LP (which also holds investments via DFJ Europe X LP) and Esprit Capital III LP.
Molten Ventures Holdings Limited invests in or via the following limited partnerships: Molten Ventures Investments LP, Molten Ventures
FoF I LP, Esprit Investments (2)(B)(ii) LP, and Molten Ventures Investments (Ireland) I LP.
The investments balance in the consolidated statement of financial position also includes investments held by consolidated entities.
The Group also co-invests or historically co-invested with a number of limited partnerships (see Note 4(b) for further details). The
exposure to these entities is immaterial.
Vested but unrealised carried interest of £0.6 million is recognised by the Group via Encore I Founder LP (14.5% aggregate carry LP
interest) and Esprit Capital III Carried Interest LP (2.2% aggregate carry LP interest).
33. Capital commitments
The Group makes commitments to Fund of Funds (including funds invested in as part of our partnership with Earlybird) as part of its
investment activity, which will be drawn down as required by the funds over their investment period. Contractual commitments for the
following amounts have been made as at 31 March 2024 but are not recognised as a liability on the consolidated statement of financial
position:
31 March 2024 31 March 2023
£m £m
Undrawn capital commitments 84.1 87.9
Total capital commitments 316.5 316.0
Total fair value to the Group of these seed funds (including Earlybird) is £312.3 million of total investments (31 March 2023: £349.8
million).
34. Ultimate controlling party
The Directors of Molten Ventures plc do not consider there to be a single ultimate controlling party of the Group.
35. Alternative Performance Measures (“APM”)
The Group has included the APMs listed below in this report as they highlight key value drivers for the Group and, as such, have been
deemed by the Group’s management to provide useful additional information to readers of this report. These measures are not defined by
IFRS and should be considered in addition to IFRS measures.
Gross Portfolio Value (“GPV”)
The GPV is the gross fair value of the Group’s investment holdings before deductions for the fair value of carry liabilities and any
deferred tax.
The GPV is subject to deductions for the fair value of carry liabilities and deferred tax to generate the net investment value, which is
reflected on the consolidated statement of financial position as financial assets held at FVTPL. Please see Note 30(i) for a
reconciliation to the net investment balance.
This table also shows the Gross to Net movement, which is 94% in the current year calculated as the net investment value (£1,292.1
million) divided by the GPV (£1,378.9 million). The table reflects a Gross fair value movement of (£18.3 million), on an opening balance
of £1,370.8 million, which is a (1)% percentage change on the 31 March 2022 GPV. This is described in the report as the Gross fair value
decrease/increase.
Net Portfolio Value (“NPV”)
The NPV is the net fair value of the Group’s investment holdings after deductions for the fair value of carry liabilities and any
deferred tax from the GPV.
The NPV is the value of the Group’s financial assets classified at “fair value through profit or loss” on the statement of financial
position.
NAV per share
The NAV per share is the Group’s net assets attributable to Shareholders divided by the number of shares at the relevant reporting date.
See the calculation in Note 13. Please see further details relating to the calculation of the Net Portfolio Value in Note 30 (i).
Net fair value movement
This is the fair value movement as calculated by dividing the fair value movement, excluding foreign exchange movements, by the opening
Gross Portfolio Value at the relevant period.
Gross fair value movement
This is the fair value movement as calculated by dividing the fair value movement, including foreign exchange movements, by the opening
Gross Portfolio Value at the relevant period.
Platform AuM
The latest available fair value of investments held at FVTPL and cash managed by the Group, including funds managed by Elderstreet
Investments Limited, Encore Ventures LLP, and Esprit Capital Partners LLP. This includes a deduction for Molten Ventures plc operating
costs budget for the year. We also refer to the EIS and VCT fund AUM separately within the report.
Operating costs as a % of year end NAV
This is the operating costs, net of fee income and exceptional items divided by year-end NAV.
36. Exceptional items
Exceptional costs primarily consists of costs relating to the acquisition of Forward Partners Group Limited and equity raise which
amounted to £3.6m for the year ended 31 March 2024 (year ended 31 March 2023: £Nil).
The majority of these costs include fees relating to brokers, legal advisory, listing and reporting accountant.
37. Subsequent events
On 30 April 2024, Hologic, Inc, a NASDAQ listed entity, signed definitive agreement to acquire Endomag. The acquisition, which is subject
to completion conditions and regulatory approval as well as working capital and other customary closing adjustments, values Endomag at
approximately $310 million, which is at a slight uplift to NAV.
There are no further post balance sheet events requiring comment.
Company statement of financial position
As at 31 March 2024
Year ended Year ended
Notes 31 March 2024 31 March 2023
£m £m
Non-current assets
Financial assets held at fair value through profit or loss 6 1,288.5 1,271.5
Investments in subsidiary undertakings 7 13.4 13.6
Property, plant and equipment 4 0.1 0.4
Total non-current assets 1,302.0 1,285.5
Current assets
Trade and other receivables 9 10.7 13.1
Cash and cash equivalents 8 41.5 20.5
Total current assets 52.2 33.6
Current liabilities
Trade and other payables 11 (17.1) (19.1)
Lease liabilities – (0.3)
Total current liabilities (17.1) (19.4)
Non-current liabilities
Deferred tax 16 (11.5) (22.2)
Provisions (0.3) (0.3)
Loans and borrowings 10 (89.4) (89.0)
Total non-current liabilities (101.2) (111.5)
Net assets 1,235.9 1,188.2
Equity
Share capital 12 1.9 1.5
Share premium account 12 708.1 615.9
Other reserves 13 37.8 33.3
Retained earnings 488.1 537.5
Equity attributable to owners of Molten Ventures plc 1,235.9 1,188.2
The Directors have taken advantage of the exemption available under Section 408 of the Companies Act 2006 and have not presented a
statement of comprehensive income for the Company. The Company’s loss for the year ended 31 March 2024 was £49.4m (31 March 2023: loss of
£224.0 million).
The Company financial statements should be read in conjunction with the accompanying notes. The Company financial statements on pages 153
to 160 of the Annual Report were authorised for issue by the Board of Directors on 11 June 2024 and were signed on its behalf.
Ben Wilkinson
Chief Financial Officer
Molten Ventures plc registered number 09799594
Company statement of changes in equity
For the year ended 31 March 2024
Year ended 31 March 2024 Share Share Other Total
premium Retained earnings
£m Note capital reserves equity
Brought forward as at 1 April 2023 1.5 615.9 33.3 537.5 1,188.2
Comprehensive income/(expense) for the year
Loss for the year – – – (49.4) (49.4)
Total comprehensive income/(expense) for the year – – – (49.4) (49.4)
Contributions by and distributions to the owners:
Contribution of equity, net of transaction costs and tax 12 0.4 - 36.9 – 37.3
Share premium 12 – 55.3 – – 55.3
Options granted and awards exercised 14 – – 4.5 – 4.5
Total contributions by and distributions to the owners 0.4 55.3 41.4 – 97.1
Balance as at 31 March 2024 1.9 671.2 74.7 488.1 1,235.9
Year ended 31 March 2023 Share Share Other Total
premium Retained earnings
£m Note capital reserves equity
Brought forward as at 1 April 2022 1.5 615.9 28.9 761.5 1,407.8
Comprehensive income/(expense) for the year
Loss for the year – – – (224.0) (224.0)
Total comprehensive income/(expense) for the year – – – (224.0) (224.0)
Contributions by and distributions to the owners:
Issue of share capital 12 – – – – –
Share premium 12 – – – – –
Options granted and awards exercised 14 – – 4.4 – 4.4
Total contributions by and distributions to the owners – – 4.4 – 4.4
Balance as at 31 March 2023 1.5 615.9 33.3 537.5 1,188.2
The consolidated financial statements should be read in conjunction with the accompanying notes.
Notes to the company financial statements
1. Basis of preparation
The financial reporting framework that has been applied in the preparation of the Company’s financial statements is Financial Reporting
Standard 101, ‘Reduced Disclosure Framework’ (FRS 101). The financial statements have been prepared under the historical cost
convention, as modified by the revaluation of certain financial assets and financial liabilities measured at fair value through profit or
loss, and in accordance with the Companies Act 2006. The Company has taken advantage of disclosure exemptions available under FRS 101 as
explained below. The financial statements are prepared on a going concern basis.
A summary of the more important Company accounting policies, which have been consistently applied except where noted, is set out in the
relevant notes below.
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance
with FRS 101:
paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment (details of the number and weighted average exercise prices of
share options, and how the fair value of goods or services received was determined);
IAS 7 Statement of Cash Flows;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into and between two or
more members of a group;
IAS 1 Presentation of Financial Statements and the following paragraphs of IAS 1: 10(d) (statement of cash flows), 16
(statement of compliance with all IFRS), 111 (cash flow statement information), and 134-136 (capital management disclosures).
No new Standards have been adopted in the current financial year ending 31 March 2024 or in the prior financial year ending 31 March
2023.
2. Critical accounting estimates and judgements
The Directors have made judgements and estimates with respect to those items that have made the most significant effect on the carrying
amounts of the assets and liabilities in the financial statements. The Directors have concluded that the critical judgements and
estimates in the Company financial statements are consistent with those applied in the consolidated financial statements, further details
of which can be found in Note 5 of the consolidated financial statements.
3. Investments in subsidiary undertakings
Investments in subsidiaries are held at cost less any provision for impairment with the exception of unconsolidated investment entity
subsidiaries that are held at fair value.
4. Property, plant and equipment
Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is recognised to
write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method, on the
following basis:
Leasehold improvements – over the term of the lease
Fixtures and equipment – 33% p.a. straight line
Computer equipment – 33% p.a. straight line
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting year, with the effect of
any changes in estimate accounted for on a prospective basis
Right-of-use assets Leasehold improvements Computer equipment Total
31 March 2024
£m £m £m £m
Cost
Cost carried forward as at 1 April 2023 1.6 0.8 0.2 2.6
Additions during the year – – – –
Disposals during the year – – – –
Cost as at 31 March 2024 1.6 0.8 0.2 2.6
Accumulated depreciation
Depreciation carried forward as at 1 April 2023 (1.4) (0.7) (0.1) (2.2)
Charge for the year (0.2) – (0.1) (0.3)
Disposals during the year – – – –
Accumulated depreciation as at 31 March 2024 (1.6) (0.7) (0.2) (2.5)
Net book value
As at 31 March 2024 – 0.1 – 0.1
As at 31 March 2023 0.2 0.1 0.1 0.4
Right-of-use assets Leasehold improvements Computer equipment Total
As at 31 March 2023
£m £m £m £m
Cost
Cost carried forward as at 1 April 2022 1.6 0.8 0.2 2.6
Additions during the year – – – –
Disposals during the year – – – –
Cost as at 31 March 2023 1.6 0.8 0.2 2.6
Accumulated depreciation
Depreciation carried forward as at 1 April 2022 (1.0) (0.6) (0.1) (1.7)
Charge for the year (0.4) (0.1) – (0.5)
Disposals during the year – – – –
Accumulated depreciation as at 31 March 2023 (1.4) (0.7) (0.1) (2.2)
Net book value
As at 31 March 2023 0.2 0.1 0.1 0.4
As at 31 March 2022 0.6 0.2 0.1 0.9
No “fixtures and equipment” are held by the Company.
5. Results for the parent company
The Auditors’ remuneration for audit services and other services is disclosed in Note 10 to the consolidated financial statements.
6. Financial assets held at fair value through profit or loss
31 March 2024 31 March 2023
Name of undertaking Registered office Activity Holding Country
£m £m
Esprit Investments (1) (B) 20 Garrick Street, Limited Partnership pursuant to which
LP London, WC2E 9BT the Group and Molten Ventures FoF I LP 100% England 10.6 14.2
hold Fund of Fund investments
Esprit Investments (2) (B) 20 Garrick Street, Limited Partnership pursuant to which
LP London, WC2E 9BT the Group and Molten Ventures FoF I LP 100% England 53.1 47.5
hold Fund of Fund investments
Molten Ventures (Ireland) 32 Molesworth Street, Investment entity 100% Ireland 951.5 1,041.70
Limited Dublin 2, Ireland
Molten Ventures Holdings 20 Garrick Street, London Intermediate Company and Qualifying 100% England 85 51.9
Limited WC2E 9BT Asset Holding Company (“QAHC”)
Esprit Investments 2(B)(i) 20 Garrick Street, London Limited Partnership pursuant to which 100% England – –
LP WC2E 9BT the Group makes certain investments
Esprit Investments 20 Garrick Street, London Limited Partnership pursuant to which 100% England 123.3 116.2
2(B)(ii) WC2E 9BT the Group makes certain investments
Forward Partners 1 L.P. 20 Garrick Street, Limited Partnership pursuant to which 100% England 11.4 –
London, WC2E 9BT the Group makes certain investments
Forward Partners III L.P. 20 Garrick Street, Limited Partnership pursuant to which 100% England 46.8 –
London, WC2E 9BT the Group makes certain investments
Forward Partners II L.P. 20 Garrick Street, Limited Partnership pursuant to which 100% England 6.8 –
London, WC2E 9BT the Group makes certain investments
Totals 1,288.5 1,271.5
31 March 2024 31 March 2023
£m £m
As at 1 April 1,271.5 1,379.7
Investments made in the year1 65.3 138.2
Loans made/repaid from underlying investment vehicles1 (38.9) (48.1)
Changes on gains on investments held at fair value through profit or loss (9.4) (198.3)
Totals 1,288.5 1,271.5
1 Investments and loans made in the year are amounts the Company has invested in underlying investment vehicles. This is not the
equivalent to the total amount invested in portfolio companies, as existing cash balances from the investment vehicles are reinvested.
See Note 4(b) in the consolidated financial statements for the accounting policies in respect of investments held at fair value through
profit or loss.
7. Investments in consolidated subsidiary undertakings, associates and Employee Benefit Trust
On 15 June 2016, the Company acquired the entire capital interests of Esprit Capital Partners LLP for £13.2 million, which was satisfied
in shares and is held at cost on the Company’s balance sheet within investments in subsidiary undertakings as at 31 March 2024 (2023:
£13.2 million).
On 26 November 2016, the Company acquired 30.77% of the capital interests in Elderstreet Holdings Limited, the holding company of
Elderstreet Investments Limited (manager of Molten Ventures VCT plc) for £0.26 million which was held at cost on the Company’s balance
sheet at 31 March 2020 within investments in associates. On 9 February 2021, Molten Ventures plc acquired the remaining 69.23% of the
issued share capital in Elderstreet Holdings Limited. Elderstreet Holdings Limited was held as an Investment in Associate on the
consolidated statement of financial position as at 31 March 2020. Total consideration for the remaining issued share capital not
previously held was cash consideration of £0.79 million (with an amount withheld for tax on share options). This transaction is accounted
for under IFRS 3 as a business combination achieved in stages (or “step acquisition”) as this transaction resulted in Molten Ventures plc
obtaining control over Elderstreet Holdings Limited and Elderstreet Investments Limited (as its 100% owned subsidiary). At 31 March 2024,
the total investment in subsidiary undertaking is £1.05 million made up of initial ownership and the cash consideration (31 March 2023:
£1.05 million).
On 27 November 2020, Molten Ventures Employee Benefit Trust (the “Trust”) was set up to operate as part of the employee share option
schemes. The Trust is funded via a loan from Molten Ventures plc, which is included in trade and other receivables on the company
statement of financial position.
On 14 March 2024, Molten Ventures plc acquired 100% of the issued capital of Forward Partners plc in an all share acquisition scheme of
arrangement, in a ratio of one new Molten Ventures plc ordinary share for every nine Forward Partners plc ordinary shares. In accordance
with IFRS 3, step acquisition accounting was applied as the Company held a 0.76% equity interest in Forward Partners plc before
acquisition, at a fair value of £0.5m. The Company therefore recognised a loss of £0.04m on completion of the acquisition as a result of
remeasuring this equity interest at fair value on 14 March 2024. Molten Ventures plc issued 14.8m new shares in exchange for the issued
share capital of Forward Partners plc. This equates to consideration of £37.0m based on the closing Molten Ventures plc share price on
14 March 2024 of £2.504 pence per share.
8. Cash and cash equivalents
31 March 2024 31 March 2023
£m £m
Cash at bank and on hand 21.3 20.5
Cash equivalents 20.2 –
Total 41.5 20.5
Cash on hand earns interest at floating rates based on daily bank deposit rates. Cash equivalents represent monies held in a Sterling
Government Liquid Reserves Money Market Fund which can be redeemed daily.
9. Trade and other receivables
31 March 2024 31 March 2023
£m £m
Trade receivables 0.3 0.8
Other receivables and prepayments 0.9 1.9
Loans made to Group companies 9.5 9.5
Intercompany debtors – 0.9
Total 10.7 13.1
10. Loans and borrowings
Molten Ventures have an agree £150.0 million net asset value facility with J.P. Morgan Chase Bank N.A. (“JPM”) and HSBC (the “Debt
Facility”). The Debt Facility comprises a £90.0 million term loan and a revolving credit facility (“RCF”) of up to £60.0 million on
three- and two- year tenors respectively, both with one-year extensions up to five years and is secured against various assets and LP
interests in the Group. The Debt Facility interest rate is SONIA plus a margin of 5.5% per annum.
11. Trade and other payables
31 March 2024 31 March 2023
£m £m
Trade payables (0.2) (0.4)
Other taxation and social security (0.2) (0.2)
Intragroup creditors (9.2) (11.2)
Other payables (0.2) (2.4)
Accruals and deferred income (7.3) (4.9)
Total (17.1) (19.1)
All trade and other payables amounts are short term. The net carrying value of all financial liabilities is considered a reasonable
approximation of fair value.
12. Share capital and share premium
31 March 2024 – Allotted and fully paid Number Pence £m
At the beginning of the year 152,999,853 1 1.5
Issue of share capital during the year for cash1 21,261,548 1 0.2
Share-for-share exchange2 14,785,049 1 0.2
At the end of the year 189,046,450 1 1.9
1 In December 2023, the Company raised equity by issuing 21,261,548 new ordinary shares at 1 pence.
2 In February 2024, the Company exchanged 14,785,049 ordinary shares as part of the Forward Partners Group Limited acquisition.
31 March 2023 - Allotted and fully paid Number Pence £’m
At the beginning of the year 152,999,853 1 1.5
Issue of share capital during the year1 – – –
At the end of the year 152,999,853 1 1.5
Movements in share premium in the statement of changes in equity are shown net of directly attributable costs relating to the share
issuance. Movements in share capital and share premium are explained in Note 26 of the consolidated financial statements.
13. Other reserves
Movements in other reserves are explained in Note 27 of the consolidated financial statements.
14. Share-based payments
The Company operates a share option scheme that is explained in Note 15 of the consolidated financial statements. The Company operates
the share option scheme within the Group, therefore, the details provided in Note 15 are also applicable to the Company.
15. Employee information
Employee benefit expenses (including Directors) comprise
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Wages and salaries 10.8 8.3
Defined contribution pension costs 1.0 0.8
Benefits (healthcare and life assurance) 0.3 0.3
Recruitment costs 0.2 0.2
Social security contributions and similar taxes 1.4 1.2
General employee and employee related expenses 13.7 10.8
Share-based payment expense arising from Company share option scheme 4.8 4.4
Total employee benefit expenses 18.5 15.2
The monthly average number of persons (including Executive and Non-Executive Directors) employed by the Company during the year was:
Year ended Year ended
31 March 2024 31 March 2023
Number Number
Executive Directors 3 3
Non-Executive Directors 4 5
Investment 22 22
Infrastructure 24 26
Total 53 56
Infrastructure comprises finance, marketing, human resources, legal, IT, ESG, investor relations and administration.
At 31 March 2024, there were five Non-Executive Directors (31 March 2023: five). See Nomination Committee report for further details of
changes in the year.
16. Deferred tax
Deferred tax is calculated in full on temporary differences under the balance sheet liability method using the tax rate expected to apply
when the temporary differences reverse. See breakdown below:
31 March 2024 31 March 2023
£m £m
Arising on the investment portfolio (9.8) (20.9)
Arising on share-based payments (1.6) (1.0)
Other timing differences (0.1) (0.3)
Deferred tax liability (11.5) (22.2)
At the end of the period (11.5) (22.2)
17. Subsidiary undertakings
The Company has a number of subsidiary undertakings. For a breakdown of the subsidiaries and related undertakings of the Group, of which
Molten Ventures plc is the ultimate parent entity, see Note 4(b) and Note 18 of the consolidated financial statements. See below the list
of direct subsidiaries of Molten Ventures plc.
Name of subsidiary undertaking Activity Holding Registered office
Esprit Capital Partners LLP AIFM to the Company and Esprit Funds 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Molten Ventures (Nominee) Limited1 Nominee company 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Elderstreet Holdings Limited2 Intermediate holding company 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Molten Ventures (Ireland) Limited Investment entity 100% 32 Molesworth Street,
Dublin 2, Ireland
Esprit Investments (1) (B) LP Limited Partnership pursuant to which the Company and Molten 100% 20 Garrick Street, London
Ventures FoF I LP hold Fund of Fund investments WC2E 9BT United Kingdom
Esprit Investments (2) (B) LP3 Limited Partnership pursuant to which the Company and Molten 100% 20 Garrick Street, London
Ventures FoF I LP hold Fund of Fund investments WC2E 9BT United Kingdom
Grow Trustees Limited Trustee of the Group’s employment benefit trust 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Molten Ventures Advisors Ltd Investment Advisor to the Growth Fund 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Molten Ventures Holdings Limited Intermediate Company and Qualifying Asset Holding Company (“QAHC”) 100% 20 Garrick Street, London
WC2E 9BT United Kingdom
Esprit Investments (2)(B)(i) LP Limited Partnership pursuant to which the Group makes certain 100% 20 Garrick Street, London
investments WC2E 9BT United Kingdom
Esprit Investments (2)(B)(ii) LP Limited Partnership pursuant to which the Group makes certain 100% 20 Garrick Street, London
investments WC2E 9BT United Kingdom
20 Garrick Street, London
Forward Partners Group Limited Limited Partner to the Forward Funds 100%
WC2E 9BT United Kingdom
1 Molten Ventures (Nominee) Limited is held at cost £Nil (2023: £Nil) on the Company’s balance sheet.
2 The remaining interest in Elderstreet Holdings Limited, holding company of Elderstreet Investments Limited, was purchased by Molten
Ventures plc on 9 February 2021.
For further details, see Note 18 of the FY21 consolidated financial statements.
3 A minority holding in Esprit Investments (1) (B) LP & Esprit Investments (2) (B) LP was sold within the financial year ended 31 March
2023 to internal and external parties.
The investments are held through the investment companies as set out in Note 30 in the consolidated financial statements at their
respective net asset values, and as such, are all noted to be Level 3 for FY24 and FY23. The difference between investments disclosed in
Note 30 of the consolidated financial statements and the Company investments relate to interests in unvested carried interest held by
subsidiaries of Molten Ventures plc, which are included in the consolidated financial statements at FVTPL but are not included in the
Company financial statements. Unvested carried interest is carried interest, which is yet to vest, but would be due on realisation of
assets based on measurement date fair values of investments. See table below for a reconciliation to the investment figure in Note 30 of
the consolidated financial statements and the investments figure on the Company statement of financial position.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Molten Ventures plc investments held at fair value through profit or loss 1,288.5 1,271.5
Fair value of investments held in other Group entities* 3.6 5.5
Total 1,292.1 1,277.0
1 *Refers to the fair value of investments not held by Molten Ventures plc but included within the Consolidated Statement of Financial
Position.
The Company holds investments at FVTPL. Refer to Note 30 for the Group’s policies with respect to fair value measurements and Note 2 of
the Company financial statements.
18. Financial instruments risk
In the normal course of business, the Company uses certain financial instruments including cash, trade and other receivables and
investments. The Company is exposed to a number of risks through the performance of its normal operations. Refer to Note 31 of the
consolidated financial statements.
19. Related party transactions
Key management personnel compensation
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of
the Company, and are considered to be the Directors of the Company listed on pages 70 to 71 of the Annual Report.
Year ended Year ended
31 March 2024 31 March 2023
£m £m
Wages and salaries 2.4 2.1
Defined contribution pension costs 0.2 0.2
Social security contributions and similar taxes 0.3 0.3
Carried interest paid 0.6 1.2
Total 3.5 3.8
The details of individual Directors’ remuneration and pension benefits, as set out in the tables contained in the Directors’ Remuneration
Report on page 90 of the Annual Report, form part of these financial statements.
Other related party transactions
Please refer to Note 32 in the consolidated financial statements for further details on related party transactions. In addition to the
transactions referenced in Note 32, the below transactions eliminate on consolidation but are relevant for the Company:
As at 31 March 2024, Molten Ventures plc has a receivable relating to an intercompany loan with Grow Trustees Limited relating to the
purchase of own shares for the benefit of the Molten Ventures Employee Benefit Trust of £9.5 million (31 March 2023: £9.5 million).
During the year, £1.8 million (year ended 31 March 2023: £2.0 million) was invoiced from Molten Ventures plc to Encore Ventures LLP for
overheads, including use of office space at 20 Garrick Street, staff, and fixed assets. At year-end a balance , Molten Ventures plc owed
£0.1 million (31 March 2023: due £0.2 million). Encore Ventures LLP is a subsidiary of Molten Ventures plc and has a management contract
with the EIS funds.
During the year, the Company invoiced Elderstreet Investments Limited, previously an associate and now a subsidiary, £0.4 million (year
to 31 March 2023: £0.4 million), with a balance outstanding at year-end of £Nil (31 March 2023: £Nil) for overheads, including use of
office space at 20 Garrick Street, staff, and fixed assets.
During the year, the Company transferred certain fund of fund investments totalling £nil (31 March 2023: £26.2m) from Esprit Investments
1(B) LP and Esprit Investments 2(B) LP to a newly formed entity, Molten Ventures FoF I LP as part of a strategy for the syndication of
Fund of Funds.
20. Subsequent events
Please refer to Note 37 of the consolidated financial statements.
Annual Report and Accounts
The Company’s Annual Report and Accounts for the year ended 31 March 2024, in both PDF and structured electronic formats, will also be
available to download from the Company’s website at https://investors.moltenventures.com/investor-relations/plc/reports
The Company has also submitted its Annual Report and Accounts to the UK National Storage Mechanism (available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism) and Euronext Dublin (available for inspection at
https://direct.euronext.com/#/oamfiling).
This announcement constitutes the material required by DTR 6.3.5 to be communicated in unedited full text through a Regulatory
Information Service.
Status of announcement
2023 Financial Information: The figures and financial information for 2023 are extracted from the published Annual Report and Accounts
for the year ended 31 March 2023 and do not constitute the statutory accounts for that year. The 2023 Annual Report and Accounts have
been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not
contain a statement under either section 498(2) or section 498(3) of the Companies Act 2006.
2024 Financial Information: The figures and financial information for 2024 are extracted from the Annual Report and Accounts for the year
ended 31 March 2024 and do not constitute the statutory accounts for the year. The 2024 Annual Report and Accounts include the Report of
the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or section 498(3) of the
Companies Act 2006. The 2024 Annual Report and Accounts will be delivered to the Registrar of Companies in due course.
Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any
other website) is incorporated into, or forms part of, this announcement.
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Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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ISIN: GB00BY7QYJ50
Category Code: FR
TIDM: GROW; GRW
LEI Code: 213800IPCR3SAYJWSW10
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 327305
EQS News ID: 1922961
End of Announcement EQS News Service
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