Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Molten Ventures market cap still well below NAV
Molten Ventures LON:GROW has a half year trading update out, which critically cites a portfolio valuation of £1.3bn against a market cap of around one third that level. Management note that of the funding rounds undertaken by portfolio companies in the last 12 months, 85% of these have been undertaken at flat or increased valuations, whilst more than 80% of the holdings also have a cash runway of at least 12 months. It’s a story that symptomatic of small caps across the board right now
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#2. Mortgage woes weigh on Redrow
Home builder Redrow LON:RDW has issued a trading statement ahead of its AGM, noting the value of private reservations is down 25% against the comparative. Their position in the market means that mortgage application failures lower down the house buying chains are stopping completions for their customers, 35% of whom are cash buyers. Build cost inflation may be slowing but expectations are that this will still come in around 7%, whilst revenues are now expected to come in at the lower end of previously stated ranges.
#3. Chemring numbers in line with expectations, US Sensors business pivots
Chemring LON:CHG has issued a full year trading update, noting that numbers are expected to be in line with management forecasts. The Group continues to experience significant increases in demand for energetic materials and devices, with its Norwegian-based subsidiary Chemring Nobel winning over £40m of orders in the final month of the year. The company has also conducted a review of its US Sensors business which has resulted in a series of impairment charges but ought to position the business well for focusing on future growth targets.
