Shares in technology focused venture capital firm Molten Ventures (GROW), previously known as Draper Esprit, rose 4.9% to 918p following the announcement of better than expected first half results, and raising its 2022 growth guidance.
In its maiden first half results since floating on London’s main market in July, the company revealed profit after tax was £218 million, up from £54 million last year.
At the end of September, the portfolio value across all investments was £1.35 billion, up from £984 million at the end of March while the value of its tech investments had grown 27% to £366m.
RAISED GUIDANCE
The group has used the interim results as an opportunity to increase its full year fair value growth target from 15% to 35% for the period to March 2022. This is due to revenue increases, coupled with exits and a ‘healthy pipeline’ of new opportunities.
During the first half of 2022 the group invested £50 million in seven new additions to the portfolio. These included Cervest-the creator of the world’s first AI climate Intelligence platform, Allplants-a direct to consumer plant-based food business, and Fintech OS -a low-code global technology provider for banks and insurers.
Peel Hunt analyst James Lockyer who has a £10.41 target price said: ‘Post-period end it has deployed a further £37 million and realised cash proceeds of £26 million, giving it lots of room to continue investing in the second half of 2022.
‘It is now trading at a 1% discount to net asset value, versus the 8 % fair value growth it expects in the second half.’
