(Alliance News) - Molten Ventures VCT PLC on Friday said net asset value per share declined in the first half of its financial year, but it argued it has a well-diversified portfolio that has high growth potential.
The London-based venture capital trust said NAV per share on September 30 was 52.80 pence, down 13% from 60.6p on March 31 and from 61.00p a year earlier. The six-month decline was 7.8% after adding the dividend paid back in, the VCT noted.
Shares in Molten Ventures VCT were quoted at 54.00p in London on Friday, having last traded at 55.00p on Friday last week.
Pretax return on ordinary activities in the six months that ended September 30 was a loss of GBP8.9 million, swinging from a profit of GBP17.1 million a year earlier. This was predominantly due to an unrealised investment loss of GBP6.9 million, swinging from a gain of GBP17.6 million.
"Perhaps unsurprisingly, the company has experienced a modest fall in its NAV per share over the period, as more testing market conditions have taken hold and public market comparables, where these are used as inputs to valuations, are almost universally down in the period," said Chair David Brock.
Brock said the board remains confident that Molten Ventures continues to hold a well-diversified portfolio in emerging technologies, claiming they have the potential to deliver positive returns to investors.
"While valuations of the world's largest quoted technology businesses have fallen heavily in recent months, the transformative, venture-capital-backed, high-growth potential technology businesses in which your company invests operate in a different environment in terms of funding and corporate activity. Fundamental drivers for innovation, for new technologies and the re-invention or creation of new markets, remain strong," Brock added.
Molten Ventures announced an interim dividend of 1.00p for the half-year period, opting to move its usual payment date from January to April to provide the board some additional flexibility. It did not declare an interim dividend a year earlier.
It added it expects to announce a final dividend for its financial 2023 in due course.
By Greg Rosenvinge, Alliance News reporter
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Molten Ventures (MVCT)