Molten Ventures Plc

Hello, I'm Ben Wilkinson, CFO of Moulton Ventures. Today, I'll provide an overview of the financial results as of the 31st of March, 2024. The results for this period demonstrate the flexibility of Moulton's innovative operating model. Going into the year, capital preservation remained our focus in response to a more challenged venture capital market during a period of high interest rates and subdued valuations. We recognized, as the year progressed, the investment opportunities this dislocated market was creating, particularly in the secondary transactions, and sought the support of our shareholders to raise additional capital to take advantage of these. Towards the end of the period, we have seen an improvement in the M&A market, as characterized by the recently announced processes with PERTBOX and ENDOMAG at valuations modestly above our holding value. Realizations are an important component of our evergreen model as capital comes back to the balance sheet and can be reinvested in select new investment opportunities. We expect to see a more normalized realization market in FY25 and have outlined our anticipation to deliver in the region of 100 million of capital back to the balance sheet. The first half of the financial year saw a reduction in the portfolio value, which was offset in the second half by a slight increase in the valuation of the existing portfolio and increases in the fair value following the acquisitions of Forward Partners and Seacamp Fund 3. The gross portfolio value at 31 March was £1.379bn, up slightly from £1.371bn in the prior year. This reflects our disciplined capital allocation approach, with 65 million invested this year, including 25 million for the forward partners acquisition. We received 39 million from exits and the portfolio saw an 18 million gross fair value reduction, reflecting 6 million of fair value increases, which were offset by a 24 million reduction in the foreign exchange. After adjustments for the accrued value of carry, The net portfolio value on the balance sheet is 1.29 billion. Our cash balance at the 31st of March was 57 million, up from 23 million in the prior year. This reflected the amounts invested and realised, plus the 55 million of net proceeds from our capital raise. Total available liquidity was 117 million, including an undrawn 60 million from our revolving credit facility. Taking into account 90 million of drawn term debt, these movements led to a net asset value at the year end of 1.25 billion. With increased confidence of realizations, we have outlined to investors our capital allocation policy. Firstly, this reaffirms our focus on maintaining adequate reserves to ensure coverage for 18 months of operating expenses. Following this, in recognition of the current share price reflecting a significant discount to the NAV, the company will allocate a minimum of 10% of realisation proceeds to a share buyback programme. Finally, the company will continue to balance the pipeline of new investment opportunities against the ability to drive returns to shareholders through share buybacks. Thank you for your time and continued support.