SHAREHOLDERINFORMATION

Shareprice
Theshare pricefor MoltenVent ure VCTplc(“Company”or“VCT ”)canbefo undonvarious financial websiteswiththe
TIDM/EPICcode“MVCT”.AlinktothesharepriceisalsoavailableontheVCT’swebsite(www.moltenventures.com)
andontheAdministrationManager,DowningLLP’s,website(www.downing.co.uk).

Latest
shareprice(14July2022): 58.0ppershare

Financialcalendar
18August2022 AnnualGeneralMeeting
26August2022 Paymentofspecialdividedandfinaldividend
December2022 AnnouncementofHalfYearlyresults

Dividends
DividendswillbepaidbytheCompany’sregistrar,TheCityPartnership,onbehalfoftheCompany.Shareholderswhowishtohave
dividendspaiddirectlyintotheirbankaccount,ratherthanbychequetotheirregisteredaddress,canupdatetheirinstructionsat
theMoltenVenturesVCTplcInvestorHub:
molten‐ventures‐vct.cityhub.uk.com

ADividendMandateFormisalsoavailablefromthissitethatcanbecompletedandemailedtoregistrars@city.uk.comorsentto
TheCityPartnership(UK)Limited,TheMendingRoom,ParkValleyMills,MelthamRoad,HuddersfieldHD47BH.Ifyouhaveany
queries,TheCityPartnershipcanbecontactedbyusingtheemailaddressaboveoron01484240910

TheCompanyhasrecentlyintroducedaDividendReinvestmentSchemetoallowShareholderstoreinvesttheirdividendsinnew
sharesandobtainincometaxreliefonthatnewinvestment.Shareholderscanopt‐intotheDividendReinvestmentSchemethrough
theMoltenVenturesVCTplcInvestorHubusingthedetailsshownabove.

Sellingshares
TheCompany’ssharesarelistedontheLondonStockExchangeandcanbeboughtorsoldlikeanyotherlistedshares
usingastockbroker.

TheCompanygenerallybuysbacksharesseveraltimeseachyear.AnyShareholderconsideringsellingsomeorallof
theirshareholdingshouldensurethatthey
arefullyawareofanytaxconsequences,especiallyiftheypurchasedshares
withinthelastfiveyears.Ifyouareinanydoubt,pleasecontactyourfinancialadviser.

Sharescamwarning
WeareawarethatasignificantnumberofShareholdersofVCTscontinuetoreceiveunsolicitedtelephonecallsfrom
acompany purportingtobe acting onbehalf of a clientwho is lookingtoacquire their VCTshares at an attractive
price.Webelievethesecallstobepartofa“BoilerRoomScam”.Shareholdersarewarnedtobeverysuspiciousif
theyreceiveanysimilartypeoftelephonecall.

FurtherinformationcanbefoundontheAdministrationManager’swebsite.Ifyouhaveanyconcerns,pleasecontact
theAdministrationManager,Downing,on02074167780.

Notificationofchangeofaddress
CommunicationswithShareholdersaremailedtotheregisteredaddressheldontheshareregister.Intheeventofa
changeofaddressorotheramendment,thisshouldbenotifiedtotheCompany’sregistrar,TheCityPartnership,under
thesignatureoftheregisteredholder.

Otherinformation
forShareholders
Up‐to‐dateCompanyinformation(includingfinancialstatements,sharepriceanddividendhistory)maybeobtained
from theVCT’s websiteatwww.moltenventures.comand the Administration Manager’s(DowningLLP), website at
www.downing.co.uk.

IfyouhaveanyqueriesregardingyourshareholdinginMoltenVenturesVCTplc,pleasecontacttheRegistrar
using
thedetailsabove.

CONTENTS

Page

CompanyInformation1

FinancialSummary2

InvestmentObjectivesandDirectors3

Chairman’sStatement4

InvestmentManager’sReport7

ReviewofInvestments9

StrategicReport16

ReportoftheDirectors22

Directors’RemunerationReport25

CorporateGovernanceStatement28

IndependentAuditor’sReport  32

IncomeStatement
38

StatementofChangesinEquity39

BalanceSheet40

StatementofCashFlows41

NotestotheAccounts42

NoticeofAnnualGeneralMeeting57


1
COMPANYINFORMATION

Directors
DavidBrock(Chairman)
HughAldous(SeniorIndependentDirector)
NicholasLewis
RichardMarsh
allof
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD


Companynumber
03424984


Website
www.moltenventures.com


CompanySecretaryandRegisteredOffice
GrantWhitehouse
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
Tel:02074167780


InvestmentManager
ElderstreetInvestmentsLimited
MoltenVenturesGroup
20GarrickStreet
London
WC2E9BT
Tel:02078315088


AdministrationManager
DowningLLP
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
Tel:02074167780
www.downing.co.uk
Auditor
BDOLLP
55BakerStreet,
London,
W1U7EU


VCTStatusAdvisers
PhilipHare&AssociatesLLP
HamiltonHouse,
1TempleAvenue,
London,
EC4Y0HA


Registrar
TheCityPartnership
TheMendingRooms
Park
ValleyMills
MelthamRoad
HuddersfieldHD47BH
Tel:01484240910
registrars@city.uk.com


Bankers
RoyalBankofScotlandplc
119/121VictoriaStreet
LondonSW1E6RA

BankofScotlandplc
33OldBroadStreet
LondonBX21LB


Corporatebrokerandsharebuybackscontact
PanmureGordon&Co
OneNewChange
London
EC4M9AF
TelNo:02078862500
www.panmure.com

2
FINANCIALSUMMARY
 31Mar2022
Pence
 31Mar2021
Pence

 
Netassetvaluepershare(“NAV”)*^ 60.6 50.0
Cumulativedividendspaidsincelaunch* 110.5 107.5
TotalReturn(NAVpluscumulativedividendspaidpershare)*^ 171.1 157.5

 
*KeyPerformanceIndicator  
^AlternativePerformanceMeasure(seepage16)
 

 
Dividendsinrespectoffinancialyearended31March2022
Interimdividendpaidpershare 1.5 1.0
Finalandspecialdividendpershare(payableon26August2022) 3.1 1.5
 4.6 2.5
AfulldividendhistoryfortheCompanycanbefoundatwww.downing.co.uk.

Performancesummaryforinvestors(per£1.00invested)



Initialincome
taxrelief
availableon
investment
Equivalent
dividends
received
sinceissue
Equivalent
NAVat
31Mar
2021
Gain/(loss)
(ignoring
income
taxrelief)
Gain
(afterinitial
incometax
relief)
Gain
(afterinitialand
ESB*incometax
relief)
Shareissuedate % Pence Pence % % %
ElderstreetMillenniumVCT
plc(1996) 20 91.6 23.1 14.7 43.4 51.0
Feb‐Aug1998 20 110.5 60.6 71.1 113.8 134.0
Mar‐Jun2005(CShareissue) 40 75.2 40.5 15.7 92.8 110.8
Apr2006 40 117.6 87.9 105.5 242.5 281.5
Apr2008 30 80.4 65.8 46.3 109.0 N/A
Jun2008 30 77.1 66.3 43.4 104.9 N/A
Apr2009 30 90.4 81.1 71.4 144.9 N/A
May2009 30 89.0 81.1 70.1 143.0 N/A
Apr‐May2010 30 80.2 75.3 55.6 122.2 N/A
Mar2011 30 74.6 74.7 49.3 113.3 N/A
Apr‐May2011 30 77.6 77.7 55.2 121.7 N/A
Apr‐May2012 30 79.9 85.7
65.6 136.5 N/A
Nov2012 30 85.2 98.2 83.4 162.0 N/A
Apr2013 30 77.8 89.7 67.5 139.3 N/A
Dec2014 30 43.3 88.9 32.2 88.8 N/A
Mar‐Apr2015 30 41.0 84.1 25.1 78.8 N/A
Apr2016 30 27.5 85.4 12.8 61.2 N/A
Apr2017 30 22.9 95.7 18.6 69.4
 N/A
May2017 30 22.8 95.4 18.3 68.9 N/A
Aug2017 30 21.0 97.8 18.9 69.8 N/A
Oct2017 30 19.0 100.3 19.3 70.5 N/A
Nov2017 30 19.0 100.1 19.1 70.1 N/A
Apr2018 30 19.0 100.3 19.3 70.5 N/A
May2018 30 18.8 99.2 18.0 68.6 N/A
April
2019 30 14.9 106.2 21.2 73.1 N/A
May2019 30 14.6 103.8 18.3 69.0 N/A
Apr2020 30 13.5 148.5 61.9 131.3 N/A
Aug2020 30 12.1 132.8 44.8 106.9 N/A
Sept2020 30 12.1 132.8 44.9 107.0 N/A
Apr2021 30 5.4 109.9 15.3 64.7 N/A
Jan2022 30‐99.9
 (1.0) 41.4 N/A

*In November 2012, the Company offered an Enhanced Share Buyback (“ESB”) which allowed Shareholders who had
alreadyheldtheirsharesformorethanfiveyearstoselltheirsharesandreinvesttheproceeds,receivingadditionalincome
taxreliefattherateof30%onthenewissue.OffersfromApril
2008onwardswerenoteligiblefortheESBinNovember
2012.

Inthetableabove,initialincometaxreliefhasbeendeductedfromcostforthepurposeofcalculatinggainsafterincome
taxrelief.InrespectofESBtheinitialincometaxreliefhasbeentreatedasadditionalincome.



3
Original‘C’Shareholders
Shareholdersinvestingunderthe‘C’ShareOfferwereissued0.6691OrdinarySharesforeveryone‘C’Shareheld.Dividends
of30.0pper‘C’Sharewerepaidpriortothemerger,equivalentto44.8pperOrdinaryShare.

ElderstreetMillenniumShareholders
In2007,ElderstreetMillenniumVentureCapitalTrustplc(“EMVCT”)mergedwiththeCompany.ShareholdersinEMVCT
wereissued0.381OrdinarySharesinMolten VenturesVCTplcfor everyoneshareheld.Dividendsof61.5pperEMVCT
sharewerepaidpriortothemerger,equivalentto161.5pperOrdinary
ShareinMoltenVenturesVCTplc.

INVESTMENTOBJECTIVES

TheCompany’sprincipalinvestmentobjectivesareto:

 providegoodlong‐termtax‐freereturnstoShareholdersthroughacombinationofdividendsandcapitalgrowth;
 investinadiversifiedportfolioofsmallerunquotedcompanieswithaparticularfocusonthetechnologysector;
 targetannualdividendsof5%of
netassetvaluepershare(subjecttoliquidityandregulatoryfactors);and
 maintainitsVCTstatus.

ThedetailedInvestmentPolicyadoptedtoachievetheinvestmentobjectivesissetoutintheStrategicReportonpages18
and19.


DIRECTORS

David Brock (Chairman) is an experienced company Chairman in both private and public companiesand aformermain
boarddirectorofMFIFurnitureGroupPlc.HeiscurrentlyChairmanofHargreaveHaleAIMVCTplcandECSGlobalGroup
Limited.

HughAldousischairmanofDowningStrategicMicro‐CapInvestment
Trustplc.HewasadirectorofInnospecInc(NASDAQ)
from2005to2020andPolarCapitalHoldingsplcfrom2007to2018.Hehaschairedventurecapitalbackedcompanies
since2000includingtwoofthiscompany’smoresuccessfulinvestments.HewasapartnerinGrantThorntonUKLLP,a
DTI
CompanyInspectorandaMemberoftheCompetitionCommission.

NicholasLewisisapartnerofDowningLLP,abusinesshefoundedasDowningCorporateFinanceLimitedin1986.Downing
LLPhasinexcessof£1billionoffundsundermanagementunderabroadrangeofinvestmentmandates.Priorto
founding
DowninghewaswithNatWestVenturesLimitedandwaswithApaxPartners&CoLimitedbeforethat.

RichardMarshisaSeniorPartneratMoltenVentureplc.Hehasworkedinstart‐upsandventurecapitalsince1997andis
anexperiencedentrepreneuraswellasaventurecapitalist.
HefoundedandbuiltDatanomic,aCambridge‐basedsoftware
companywhichwasapioneerofDataQualitysoftwareandwasacquiredbyOracle.Asaninvestor,Richardhasworked
across software, hardware, mobile and cleantech sectors. Richard is an Engineering graduate of Cambridge University
wherehe alsoreceived his PhD.Richard
holdsanMBAfromIMDBusinessSchool, Lausanne,wherehe wasaSainsbury
ManagementFellow.


AlltheDirectorsarenon‐executiveand,withtheexceptionofRichardMarsh,areindependentoftheInvestmentManager.

4
CHAIRMAN’SSTATEMENT

Introduction
Theyearto31March2022hasseengoodprogressmade
by the Company’s portfolio and in the deployment of
new funds. In particular, a significant number of
technology investments have seen uplifts in value,
drivingastrongincreaseinoverallnetassetvalue.Most
of those uplifts are as
 a result of further rounds of
investmentbyprofessionalfundinvestors.

After the year end, and the sale of Lyalvale Express
Limited (see next page), the value in the Company’s
portfoliorestsprincipallyinadvancedtechnology.Agood
dealof  thisis leadingedge andforwhich the Company
has
providedfundingattheearlyandpre‐profitsstages.
Examples include new thinking in core banking
technology, devices for oncology surgery, digital
applicationstohelpmentalhealth,long‐strandsynthetic
DNA,foodcropoptimisationthroughcontinuousoptical
analysis, single atom graphene, data collection that
encodes climate volatility, satellite infrared monitoring
and adapting the power of quantum computing to
commercial. VCT funding makes an important
contribution to the early stages of such breakthroughs
andits portfolio companies invest heavily in innovation
andR&D.

ChangeofCompanyname
Aswasnotedinmystatementwiththehalfyearlyreport,
theCompany changed
itsname fromDraperEsprit VCT
plc to Molten Ventures VCT plc in February 2022. This
change was to bring the Company in line with a
rebranding of the Draper Esprit Group, of which the
Company’smanagerisnowamember,whichtookplace
inNovember2021.TheCompanystockmarket
tickeror
TIDMwasupdatedto“MVCT”.

Netassetvalueandresults
Asat31March2022,theCompany’sNetAssetValueper
share(“NAV”)stoodat60.6p,representinganincreaseof
13.6p(27.2%)overtheyearafteraddingbackdividends
paid.

A summary of the total return for Shareholders
 who
invested in the Company’s various other fundraisings is
includedonpage2ofthisreport.

The profit on ordinary activities after taxation for the
yearwas£18.4million(2021:£8.5million),comprisinga
revenuelossof£537,000(2021:£546,000)andacapital
profitof£18.9million(2021:£9.1million).

Venturecapitalinvestments
Portfolioallocation
The split of the investment portfolio between Molten
Venturesgrowth technology investments and the older
legacyinvestmentsisnowasfollows:

 Portfoliosplitasat31March2022

Growth
T
echnology
Legacy Cash Total
 £’000 £’000 £’000 £’000
Cost 35,346 13,153 31,095 79,594
Gains 18,918 9,391‐28,309
Valuation 54,264 22,544 31,095 107,903

Percentageof
portfolio
50.3% 20.9% 28.8% 100.0%

Thenewergrowthtechnologyinvestmentsare nowthe
largest part of the portfolio and this proportion will
continue to grow as further funds are raised and
invested, and as there are furtherrealisationsfrom the
legacyportfolio.

Portfolioactivity
Molten Ventures provided the Company with a steady
flow of investment
 opportunities during the year. The
Companymadeninenewinvestmentsandfourfollow‐on
investmentstotalling£12.5million.

Therewasoneinvestmentdisposalduringtheyear,being
thatofIXLPremFina,producingproceedsof£660,000.

Furtherdetailsontheinvestmentactivitycanbefoundin
theInvestmentManager’sreporton
pages7and8.

Investmentvaluations
Attheyearend,theCompanyheldaportfolioof35active
investmentsvaluedat£76.8million.

TheBoardhasreviewedtheinvestmentvaluationsatthe
yearend,resultinginanumberofmovements.

The biggest movement was that of Thought Machine
Group
 Limited, a cloud native banking platform, where
thevaluationwasincreasedby£7.3million,drivenbya
major new funding round which valued the business at
approximately£2.3billion.


Form3(previouslyBackOfficeTechnology)andIESOalso
supportedmajor uplifts in valuation of £3.1 million and
£3.4millionrespectively,alsoasaresultofnewfunding
rounds.



5
CHAIRMAN’SSTATEMENT(continued)

Venturecapitalinvestments(continued)
Investmentvaluations(continued)
Anothermajorincreasewasinthevaluationofthelegacy
investment in Lyalvale Express, the shotgun cartridge
manufacturer.Lyalvalewassoldsoonaftertheyearend
atasuminlinewiththeupliftof£4.6million.

Onthenegativeside,theCompanyholdstwosignificant
AIM
‐quotedinvestments,bothofwhichsufferedafallin
valueovertheyear,totalling£3.2million.

Overall, the unrealised valuation movements on the
portfoliowereanetgainof£20.2millionfortheyear.

Further commentary on the portfolio, together with a
schedule of additions, disposals and details of
the ten
largestinvestmentscanbefoundwithintheInvestment
Manager’sReportandReviewofInvestmentsonpages7
to15.

Dividends
TheBoard is proposingtopaya standardfinaldividend
of1.5ppershare.Additionally,inviewofthedisposalof
the investment in Lyalvale Express Limited which,
as
mentioned above, was disposed of after the year end,
theBoard isalsoproposing to payaspecial dividendof
1.6p per share, bringing the total dividend to 3.1p per
share.Thisdividendwillbepaid,subjecttoShareholder
approval, on 26 August 2022 to Shareholders on the
registerat
22July2022.

Thiswill bring thetotaldividendspaid in respectof the
year,plusthespecialdividend,to4.6ppershare.

Shareholders are reminded that the Company has
recently introduced a Dividend Reinvestment Scheme
(“DRIS”), which allows Shareholders to reinvest their
dividendsinnewsharesandobtain
incometaxreliefon
thatnewinvestment.Furtherdetailscanbefoundonthe
ShareholderInformationpageatthefrontofthisreport.

Fundraising
The Company launched another successful offer for
subscription in November 2021 which reached capacity
andclosedinJanuary2022havingraised£29.7million.A
significant proportion of
 the shares were allotted after
theyearend,inApril2022.

EarlierintheyeartheCompanycompletedanotheroffer
forsubscriptionwhichlaunchedinFebruary2021.£19.9
million was raised, with all the shares being allotted in
April2021.

The Company expects to undertake another offer for
subscription
laterthisyear.

ShareBuybacks
The Company has a policy of purchasing its own shares
that become available in the market at a discount of
approximately5%tothelatestpublishedNAV,subjectto
regulatoryandliquidityconstraints.

AnyShareholderswhoareconsideringsellingtheirshares
willneedtouse
astockbroker.SuchShareholdersshould
ask their stockbroker to register their interest in selling
theirshareswithPanmureGordon&Co.

During the year, the Company purchased a total of
2,692,473sharesatanaveragepriceof52.8ppershare.
Resolution13willbeproposedattheAGM,torenew
the
authorityfortheCompanytopurchaseitsownshares.

Directorate
AsannouncedintheHalfYearlyReport,MichaelJackson,
thefounderofElderstreetInvestmentsLimited,decided
toretirefromtheBoardanddidnotstandforre‐election
at the last AGM in August. We thank Michael for his
considerable contribution as investment manager and
director of the Company during the 23 years that he
servedontheBoard,andforfacilitatingthemigrationof
the management of the Company to Molten Ventures
plc. My colleagues and I wish him every happiness and
successinhisfutureventures.


To coincide with Michael’s retirement from the board,
RichardMarsh,aseniorpartneratMoltenVenturesplc,
the parent company of the Investment Manager, was
appointedasanon‐executivedirectortotheCompany.

The directors are continuingto review the composition
of the board and, now that the management

arrangements have fully transitioned to the Molten
Ventures Group, are expected to make some further
changes in due course to ensure that the Company is
well‐equippedforthisnextphaseofitslife.

AnnualGeneralMeeting(“AGM”)
TheAGMwilltakeplaceat20GarrickStreet,WC2E9BT
on
18August2022at11:00a.m.

FiveitemsofspecialbusinessareproposedattheAGM:
 oneinrespect of theauthoritytobuy backshares
asnotedabove;
 threeinrespectoftheauthoritytoallotshares;and
 one in respect of the cancellation of the
 share
premium account and the capital redemption
reserve.


6
CHAIRMAN’SSTATEMENT(continued)
AnnualGeneralMeeting(“AGM”)(Continued)
TheauthoritytoallotsharesprovidestheBoardwiththe
opportunity to issue shares under the new Dividend
ReinvestmentSchemeandconsiderraisingfurtherfunds
without having to necessarily incur the expense of
seekingseparateapprovalviaashareholdercircular.Any
further fundraising decisions will take account of the
levelofuninvestedfundsandtherateofinvestment.
Cancellation of the share premium account and capital
redemptionreserveisaprocessregularlyundertakenby
VCTs, which provides the Company with flexibility in
utilising reserves for share buyback and dividends in
future.
VentureCapitalTrustScheme
Shareholders may be aware that the current VCT
legalisationincludesa“sunset”clause,broughtinaspart
of the EU State Aid rules, that could bring an end to
upfront VCT tax relief in 2025, if the scheme is not
renewedbeforethatdate.
Your board is aware that Molten Ventures is taking an
activeroleinliaisingwithmembersofHMTreasuryand
HM Revenue and Customs to demonstrate how VCT
fundshavebeen employed by the Companytosupport
young businesses which require capital to deliver their
potentialandthatthisisavaluablesourceoffundingfor
newenterprises.TheBoardwillencouragethemanager
tocontinuetoworktothisendtoensurethatthecrucial
supportthattheVCTSchemeprovidesinaddressingthe
FinanceGapfor youngBritish businesses is made clear.
We hope to get some positive confirmation of the
Government’sfuturesupportfortheVCTSchemeindue
course.
Outlook
Theyearto 31 March 2022 has started to demonstrate
the potential of the technology portfolio that  Molten
VentureshasbeenbuildingfortheCompanyoverthelast
fewyears.Withfuturefundsraised,andalsorealisation
proceeds from the legacy portfolio, we expect to add
significantlytotheportfoliooverthecomingyears.
While the portfolio generally coped well and emerged
strongly from the coronavirus pandemic, our young
portfolio companies now face the new challenges of
rapidly escalating inflation, fears of recession and
potentialimpactsfromtheconflictinUkraine.Thereisno
significantexposuretoRussiawithintheportfoliosono
directimpactfromsanctions.Interestraterisesandthe
fears of recession have now hit stock markets heavily.
The extent to which this will affect business valuations
within the young technology sector remains unclear at
thestage.
Despite these macro‐economic concerns, the Board
believes that the Company’s portfolio of technology
sector investments is well placed to deliver further
attractive returns for investors in the medium to long
term.
DavidBrock
Chairman
15July2022

7
INVESTMENTMANAGER’SREPORT

Duringtheyear,theDraperEspritVCTplcwasrebranded
toMoltenVenturesVCTplcwithanewEPICcode‘ticker’
MVCT.L and other members of the Molten Ventures
group were renamed Molten Ventures plc and Molten
EIS,collectivelycalledthe‘Moltenfunds’.

The co‐investment arrangements amongst the Molten
fundscontinuestobepositivefrombothaninvestment
andafundraisingperspective.Wereferinternallytothe
VCT having two elements of its portfolio; a new
technology portfolio invested alongside other Molten
funds and a legacy portfolio assembled before the
Moltenarrangement.

AttheyearendtheCompanyrecorded
a13.6pincrease
intheTotalReturn(netassetvalueincludingcumulative
dividends), from 157.5p to 171.1p. The NAV per share
roseby13.6pto60.6pafterpayingdividendsof3.0pin
theyear.
Thetechnologyportfolioalsorecordeditsfirst‘unicorn’,
(a company with a valuation over $1 billion), with

ThoughtMachinereceivingover$200m(£168million)of
funding from new investors, Temasek, the global
investment company headquartered in Singapore, with
participationfromIntesaSanpaoloandMorganStanley.
TheroundvaluedThoughtMachineat$2.7billion(£2.3
billion).

During the year, the team completed twelve new
investmentstotalling£12.5million.Thiscomprisedeight
new investments totalling £9.2 million alongside four
follow‐oninvestmentstotalling£3.3million,andtheVCT
receivedaholdingfornocostinCauldronEntertainment,
a spin out company from Thought Machine. There was
one exit, IXL Premfina, which returned £660k or 0.87x
cost.

Posttheyearend,wearedelightedtoreportthesaleof
Lyalvale
Express Limited from the legacy portfolio. This
investment returned £8.67 million, a 4.58x multiple on
cost,andanoverallIRRof15.9%(calculatedusinggains
and income received during the holding period). As a
result of this successful exit, the board has approved a
specialdividend of 1.6pto shareholders on
the register
asof22July2022.

At the year end, Molten technology companies
represented70.6%oftheportfolioandlegacycompanies
29.4%.On an adjusted basis, following theLyalvale exit
mentioned above, the legacy portfolio represents only
23.4%, of which 20.1% is held in two significant
investments.
Within the
 Molten portfolio, nine new investments,
alongside the Molten funds, were made into the
followingcompanies:

ImpulseInnovationsLimited

2,079,418
NextgenerationAIsoftware showingcausality

GardinLimited

1,482,353
Foodcropoptimisingtechnology

ParagrafLimited

1,333,329
Highpurity2Dgraphenemanufacturer

CervestLimited

1,312,230
AIpoweredclimateintelligencesoftwareplatform

AllplantsLimited

1,145,451
Plantbasedfoodmanufacturerandecommerce
retailer

GlobalSatelliteVu
Limited

977,367
Satellitebasedthermalemissionsmonitoring

FocalPointPositioningLimited

599,996
NextlevelGNSSpositioningsystemssoftware

GuybrushLimited(Agora)

269,524
Socialmediadrivenbeautyapp

CauldronEntertainmentLimited*

‐
Immersiveweb3gamesstudio


9,199,668
*Cauldronwasazerocostholdingasaspin‐outfromportfoliocompany,Thought
Machine

TheseinvestmentswereallmadealongsideMoltenfunds
andoftenincluded other corporateand venturecapital
investors. This corroborates the strategy of investing
alongside a strong syndicate of investors and enables
Molten Ventures VCT to invest its funds into the ‘scale
up’fundinggapthatwashighlightedintheGovernment’s
Patient Capital Review (2017). In all of these new
investments,withtheexceptionofCauldron,amember
oftheMoltenVenturesgroupisarepresentativeonthe
portfolio company board. At the year end, the total
Moltenfundstechnologyportfolioconsistedof28active
companies.

Within the year, four of
the technology portfolio
companies have attracted sizeable follow‐on
investments at attractive valuations gains. Thought
Machine,mentionedpreviously,raisedafurther$200m.

IESO,thedigitalmentalhealthcompany,raisedafurther
$53million led bythe USinvestment firmMorningside,
withfurthernewinvestmentfromSonyInnovationFund
andexisting
shareholdersIPGroup,MoltenVenturesand
Ananda Impact Ventures, to take its DTx solutions
through regulatory approvals and to market in the UK
andUS.



8
INVESTMENTMANAGER’SREPORT(continued)

Hadean Supercomputing, building distributed, spatial
andscalablecomputing,raisedafurther£15millionfrom
existing investors, including the VCT, to accelerate
growth. In 2022, Hadean secured contracts with
GamesCoinandBAESystems.

PrimaryBid, a regulated capital markets technology
platform connecting public companies to their
communitiesduringfundraisings,raisedafurther
$190m
inaroundledbySoftBank,viaitsVisionFund2.

Onthedownside,provisionshavebeenmadeforasmall
number of private companies and the two meaningful
AIM companies in the legacy portfolio. These have
suffered from the general public market downturn.
However,theseprovisionsandAIM
valuationreductions
are relatively small at under 6% of the year end NAV
againstgainsof24.3%.

Intherecentsuccessfulfund‐raisingoffer,which closed
onthe8th April 2022, the VCT allotted £29.7 million of
OrdinarySharesandtheprocessofinvestingthesefunds
isunderway.
With Environmental,
Social and Governance (“ESG”)
becoming an ever increasing focus, we remind our
Shareholdersthattheparentcompanyoftheinvestment
manager,MoltenVenturesplc,hascontinuedtoprogress
itsESGroadmap,including:
 being awarded the Diversity VC Standard Level 1
certification;
 becoming a signatory of the Investing  in Women

Code;
 establishing an ESG Committee of the Board (in
additiontotheESGWorkingGroup);
 completing its first year of Task Force on Climate‐
RelatedFinancialDisclosures(“TCFD”)reporting;
 approvalofitsBoardDiversityandInclusionPolicy,
 InvestmentTeamESGtraining;and
 engagingwiththe
portfoliocompanies ontheirown
ESGactivities.

Theparentcompany’sESGpolicyisavailabletoviewon
the Molten Ventures plc website via the link below:
https://investors.moltenventures.com/sustainability.
Duringthe year,theVCTalso invested intotwo climate
relatedcompanies,GlobalSatelliteVuandCervest.

Post the year end, the manager was invited to join the
VCT Association (VCTA) which represents 13 of the
largestVCTfundmanagersandmakesupover90%ofthe
£6.6 billion VCT
industry. Recently theVCTA has
submitteditsresponsetotheTreasurySelectCommittee
inquiry into the UK’s Venture Capital industry, which
addressestheeffectivenessoftaxincentives,theability
of firms to source financing to scale up, regulatory
efficiency, and how the industry can support the UK
economypost‐Covid.

Insummary,ithasbeenagoodyearfortheVCTwiththe
technologyportfolioshowingsomestronggrowthanda
profitablerealisation from the legacy portfolio post the
yearend.Lookingforward,despitethegeopoliticalriskin
Europe, slowing economic growth and increasing
expectations of a prolonged period of higher
 inflation,
themanagerremainsconfidentthatoverthemediumto
longer term technology assets have the ability to show
increasing asset values through rapid growth, their
potential for market leadership in new and valuable
markets, and valuation of intellectual property.It
continues to be our priority to support our existing
portfolio and to make new investments in businesses
thatcaninnovateandgrowdespitethemacro‐economic
headwinds.


ElderstreetInvestmentsLimited 
PartoftheMoltenVenturesGroup
15July2022


9
REVIEWOFINVESTMENTS

Portfolioofinvestments
The following investments were held at 31 March 2022. All companies are registered in England  and Wales, with the
exceptionofFulcrumUtilityServicesLimited,whichisregisteredintheCaymanIslands.



Cost

Valuation
Valuation
Movementinyear
%ofportfolio
byvalue
 £’000 £’000
£’000 
Tenlargestventurecapitalinvestments(byvalue)   
ThoughtMachineGroupLimited
1
 2,400 9,729 7,329 9.0%
AccessIntelligenceplc* 2,586 8,384 (2,404) 7.8%
EndomagneticsLimited
1
 2,147 6,322 1,679 5.9%
IESODigitalHealthLimited
1
 3,567 6,142 3,525 5.7%
LyalvaleExpressLimited 1,915 5,979 4,551 5.5%
FordsPackagingTopcoLimited 2,433 5,867 (1,011) 5.4%
Form3UKLimited
(formerlyBackOfficeTechnologyLtd)
1
 1,420 5,464 3,054 5.0%
PrimaryBidLimited
1
 950 2,767 1,817 2.6%
FreetradeLimited
1
 600 2,134 (233) 2.0%
RavelinTechnologyLimited
1
 1,133 2,117 984 2.0%
 19,151 54,905 19,291 50.9%
Otherventurecapitalinvestments
ImpulseInnovationsLimited
1
 2,079 2,079‐1.9%
HadeanSupercomputingLimited
1
 1,775 1,958 183 1.8%
EvonetixLimited
1
 1,485 1,882‐1.8%
RiverlaneLimited
1
 901 1,765 864 1.6%
FocalPointPositioningLimited
1
 600 1,496 895 1.4%
GardinLimited
1
 1,482 1,482‐1.4%
ParagrafLimited
1
 1,333 1,333‐1.2%
CervestLimited
1
 1,312 1,312‐1.2%
MacranetLimited 1,187 1,187 778 1.1%
AllplantsLimited
1
 1,146 1,146‐1.1%
RoomexLimited
1
 1,081 1,080 (93) 1.0%
CrowdcubeLimited
1
 400 1,027 278 1.0%
GlobalSatelliteVuLimited
1
 977 977‐0.9%
UnitedAuthorsPublishingLimited
1
 542 542 (277) 0.5%
Cashfacplc 260 525‐0.5%
SweeprTechnologiesLimited
1
 515 508 (18) 0.5%
Servocaplc 333 360 240 0.3%
StreetTeamSoftwareLimited
1
 2,819 326 6 0.3%
GuybrushLimited
1
 270 270‐0.3%
ApperioLimited
1
 500 250‐0.2%
FulcrumUtilityServicesLimited* 386 241 (820) 0.2%
RealEyesHoldingLimited
1
 430 109 (154) 0.1%
LifesizeInc
(formerlyLightBlueOpticsLimited)
1
 483 42‐0.0%
ResolvingLimited
1
 799 5 (794) 0.0%
PushDrLimited
1
 1,873 1 (158) 0.0%
LocationSciencesGroupplc* 860‐ ‐ ‐
UvencoUKplc 1,326‐ ‐ ‐
TheKellanGroupplc 657‐ ‐ ‐
TheNationalSolicitorsNetworkLimited 501‐ ‐ ‐
AppUxLimited 326‐ ‐ ‐
TheQSSGroupLimited 268‐ ‐ ‐
RBSport&LeisureHoldingsplc 188‐ ‐ ‐
InfoserveGroupplc 128‐ ‐ ‐
SiftLimited 125‐ ‐ ‐
CauldronEntertainmentLimited‐‐‐‐
 29,347
 21,903 930 20.3%
Totalventurecapitalinvestments 48,498 76,808 20,221 71.2%
Cashatbankandinhand  31,09528.8%
Totalinvestments107,903100.0%


10
REVIEWOFINVESTMENTS(continued)


* QuotedonAIM

Allventurecapitalinvestmentsareunquotedunlessotherwisestated.

1
These companies have also received investment from other funds managed by the Molten Ventures Group (Molten
VenturesPlcandMoltenVenturesEIS)asat31March2022.


Investmentmovementsfortheyearended31March2022

ADDITIONS
Venturecapitalinvestments £'000
ImpulseInnovationsLimited 2,079
IESODigitalHealthLimited 1,667
GardinLimited 1,482
HadeanSupercomputingLimited 1,375
ParagrafLimited 1,333
CervestLimited 1,312
AllplantsLimited 1,146
GlobalSatelliteVuLimited 977
FocalPointPositioningLimited 600
GuybrushLimited 270
MacranetLimited 150
UnitedAuthorsPublishingLimited 100

CauldronEntertainmentLimited ‐
 12,491


DISPOSALS
 
Cost
Valueat
1April2021* Proceeds
(Loss)/profit
vscost
Realised
gain
 £’000 £’000 £’000 £’000 £’000

VentureCapitalInvestments  
AngloInfoLimited 3,527‐‐(3,527)‐
Baldwin&FrancisLimited 1,534‐‐(1,534)‐
IXLPremFinaLimited 756 660 660 (96)‐

RetentionProceeds   
PodPointHoldingsLimited‐‐12 12 12

 5,817 660 672 (5,145) 12

*Adjustedforpurchasesintheyearwhereapplicable

11
REVIEWOFINVESTMENTS(continued)

Furtherdetailsofthetenlargestinvestmentsareasfollows:
ThoughtMachineGroup
Limited
thoughtmachine.net

Costat31/03/22: £2,400,000 Valuationat31/03/22: £9,729,000
Costat31/03/21: £2,400,000 Valuationat31/03/21: £2,400,000
Investmentcomprises: 
B1Preferenceshares: £2,400,000 Valuationmethod:
C
alibrationtoprice
ofrecentinvestment

 
Auditedaccounts: 31/12/20 31/12/19 Dividendincome: £Nil
Turnover: £28.0m £14.4m 
Lossbeforetax: (£28.5m) (£26.1m) Proportionofcapitalheld: 0.7%
Netassets: £49.1m £8.7m Dilutedequity: 0.6%

Thought Machine Group Limited is as a software company which has developed a
platform that builds cloud native technology to revolutionise core banking
The best
banks in the world trust and use Thought Machine technology. The company has
amassedaglobalclientlist,rangingfromTier1multinationals,tosmallerregionalbanks
andfintechcompaniesaroundtheworld.Manyofthesekeybanksarealsoourinvestors,
including JPMorgan Chase, Lloyds Banking Group, ING,
 Standard Chartered, SEB, and
IntesaSanpaolo.
  
 
AccessIntelligenceplc
www.accessintelligence.com



Costat31/03/22: £2,586,000 Valuationat31/03/22: £8,384,000
Costat31/03/21: £2,586,000 Valuationat31/03/21: £10,788,000
Investmentcomprises: 
Equityshares: £2,586,000 Valuationmethod: Bidprice
Equityshareoptions: £Nil

Auditedaccounts:
 30/11/21 30/11/20 Dividendincome: £Nil
Turnover: £33.3m £19.1m 
Lossbeforetax: (£9.6m) (£5.7m) Proportionofcapitalheld: 5.5%
Netassets: £61.0m £9.1m Dilutedequity: 6.0%
 
AccessIntelligenceisaleadingvendorofsoftwareforpublicrelations,publicaffairsand
stakeholder communication professionals seeking to identify, understand and engage
with the right influencers. Access Intelligence is AIM‐listed
 SaaS provider and its
technologyisusedby6,000 organisationseveryday,fromglobalblue‐chipenterprises
andcommunicationsagenciestopublicsectororganisationsandnot‐for‐profits.

 
EndomagneticsLimited
www.endomag.com

Costat31/03/22: £2,147,000 Valuationat31/03/22: £6,322,000
Costat31/03/21: £2,147,000 Valuationat31/03/21: £4,644,000
Investmentcomprises:
Preferenceshares: £2,147,000 Valuationmethod: Earningsmultiple

Auditedaccounts: 31/12/20 31/12/19 Dividendincome: £Nil
Turnover: Informationnotpublished 
Profitbeforetax: Informationnotpublished Proportionofcapitalheld: 3.7%

Netassets: £19.8m £6.0m Dilutedequity: 3.3%

Endomagwasfoundedin2007as aspin‐outfromthe UniversityCollege London(UCL)
and the University of Houston. With  the aim of bringing cancer care to everyone,
everywhere, Endomagisdevelopingaclinicalplatformthatusessafemagneticfieldsto
power diagnostic and therapeutic devices. The company is currently selling products
across Europe, the Middle East, Africa and Australasia and is seeking marketing
authorisationinothercountriestodeliveritstechnologytoglobalmarkets.Over160,000
womenhavereceived
abetterstandardofbreastsurgerythankstoleadingphysiciansat
morethan600hospitalswhoroutinelyuseEndomagtechnologies.

12
REVIEWOFINVESTMENTS(continued)
IESODigitalHealthLimited
www.iesohealth.com


Costat31/03/22: £3,567,000 Valuationat31/03/22: £6,142,000
Costat31/03/21: £1,900,000 Valuationat31/03/21: £950,000
Investmentcomprises:
APreferenceshares: £1,900,000 Valuationmethod:
C
alibrationtoprice
BPreferenceshares: £1,667,000 ofrecentinvestment

Auditedaccounts: 31/12/20 31/12/19 Dividendincome: £Nil
Turnover: £9.5m £7.4m 
Lossbeforetax: (£6.5m) (£9.9m) Proportionofcapitalheld: 4.8%
Netliabilities: (£5.5m) (£225,000) Dilutedequity: 3.8%

IESODigitalHealthLimitedistheUK’slargestproviderofonlinementalhealthcare.
The
service,“ieso”,isavailablethroughtheNHSaspartofImprovingAccesstoPsychological
Therapies(IAPT),andhastransformedmentalhealthdeliveryintheUKbymakinghigh
quality,evidence‐based CognitiveBehaviouralTherapy (CBT)available to more than9
millionpeople.
  
 
LyalvaleExpressLimited
www.lyalvaleexpress.com


Costat31/03/22: £1,915,000 Valuationat31/03/22: £5,979,000
Costat31/03/21: £1,915,000 Valuationat31/03/21: £1,428,000
Investmentcomprises: 
Equityshares: £1,915,000 Valuationmethod:Calibrationtoprice

ofrecentinvestment
(exittransaction)
 
Accounts: 27/03/21 28/03/20 Dividendincome: £47,000
Turnover: Informationnotpublished 
Profitbeforetax: Informationnotpublished Proportionofcapitalheld: 44.2%
Netassets: £10.1m £10.0m Dilutedequity: 44.2%

Lyalvaleistheleading producerofshotgunammunition in theUK.Ithas developed a
rangeof
 more than 30 different models of cartridge, suitable for bothgame and clay
shooting.LyalvalewassoldsoonaftertheyearendtoanItalianbuyer,producingatotal
returnof£8.67m,a4.58xmultipleoncost,andanoverallIRRof15.9%(calculatedusing
gainsandincomereceivedduring
theholdingperiod).

 
FordsPackagingTopco
Limited
www.fordsps.com

Costat31/03/22: £2,433,000 Valuationat31/03/22: £5,867,000
Costat31/03/21: £2,433,000 Valuationat31/03/21: £6,878,000
Investmentcomprises: 
Equityshares: £2,425,000 Valuationmethod: Earningsmultiple
8%loannote: £8,000

Auditedaccounts: 31/12/20 30/06/19 Dividendincome: £249,000
Turnover: £10.4m £9.3m Loannoteincome: £1,000
Profitbeforetax: £1.4m £1.3m Proportionofcapitalheld: 48.7%
Netassets £5.5m £4.2m Dilutedequity: 46.4%

BasedinBedford,Fordsisaleadingsupplierofcappingpressesandalsomanufactures
RotarySealers.Itiswidely
knownforitsexpertiseinsealingandclosuretechnologyfor
food and drink applications where high standards of hygiene are required. The
companyhasworldwideexpertiseindevelopingintegratedpackagingsolutionswhich
incorporatethedesign,productionandcaplesssealingoffoilclosuresontocontainers.


13
REVIEWOFINVESTMENTS(continued)

Form3UKLimited(formerly
BackOfficeTechnology
Limited)
www.form3.tech


Costat31/03/22: £1,420,000 Valuationat31/03/22: £5,464,000
Costat31/03/21: £1,420,000 Valuationat31/03/21: £2,409,000
Investmentcomprises: 
EquityB1shares: £700,000 Valuationmethod: Calibrationtoprice
EquityB3shares: £720,000

ofrecentinvestment

Auditedaccounts: 31/03/21 31/03/20 Dividendincome: £Nil
Turnover: £9.3m £3.9m 
Lossbeforetax: (£7.2m) (£4.6m) Proportionofcapitalheld: 1.9%
Netassets: £27.6m £9.5m Dilutedequity: 1.5%

Form3 UK Limited is a complete end to end ‘Payments As A Service’ technology
provider. Their real‐time payment platform helps banks, fintechs, financial
institutions, e‐commerce gateways and card providers process a wide range of
payments quickly, simply and cost effectively. Form3 clients gain access to FX
paymentsin 12 4currenciesacross163countries

  
PrimaryBidLimited
Primarybid.com


Costat31/03/22: £950,000 Valuationat31/03/22: £2,767,000
Costat31/03/21: £950,000 Valuationat31/03/21: £950,000
Investmentcomprises:
EquityB1shares: £950,000 Valuationmethod:Calibrationtoprice
ofrecentinvestment

Auditedaccounts: 31/03/21 31/03/20 Dividendincome: £Nil 
Turnover: Informationnotpublished 
Profitbeforetax: Informationnot
published Proportionofcapitalheld: 0.9%
Netassets: £24.5m £4.5m Dilutedequity: 0.7%

PrimaryBid is a regulated capital markets technology platform connecting public
companies to their communities during fundraisings. PrimaryBid today interoperates
withsome60channelstoenableinvestments,whichincludebrokeragesandappsthat
peopleusetomakeinvestments
today.

 
FreetradeLimited
freetrade.io



Costat31/03/22: £600,000 Valuationat31/03/22: £2,134,000
Costat31/03/21: £600,000 Valuationat31/03/21: £2,367,000
Investmentcomprises:
Equityshares: £600,000 Valuationmethod: Earningsmultiple


Auditedaccounts: 30/09/21 30/09/20 Dividendincome: £Nil
Turnover: £12.8m £1.7m 
Lossbeforetax: (£18.3m) (£9.5m) Proportionofcapitalheld: 1.0%
Net
assets: £29.3m £10.6m Dilutedequity: 0.8%

FreetradeLimitedisafinancialtechnologycompanythatoffersasharedealingservice.
Freetrade is used by over 1 million customers. Freetrade has a simple, transparent
freemiumpricingmodelwherecustomerscanpayforthepremiumfeaturestheywant.


14
REVIEWOFINVESTMENTS(continued)

RavelinTechnologyLimited
www.ravelin.com






Costat31/03/22: £1,133,000 Valuationat31/03/22: £2,117,000
Costat31/03/21: £1,133,000 Valuationat31/03/21: £1,133,000
Investmentcomprises:
C1Equityshares: £1,133,000 Valuationmethod: Earningsmultiple


Auditedaccounts: 31/12/20 31/12/19 Dividendincome: £Nil
Turnover: Informationnotpublished 
Profitbeforetax: Informationnotpublished
 Proportionofcapitalheld: 1.4%
Netassets: £18.5m £4.0m Dilutedequity: 1.2%

RavelinTechnologyLimitedprovidessophisticatedtechnologyanddedicatedsupportto
help prevent evolving fraud threats. Ravelin services clients in 185 countries and
producesover4billionfraudscoresperyear.

Notesonthetopteninvestmentdisclosures
Exceptwheredisclosed,theproportionofequityheldbyeachinvestmentalsorepresentsthelevelofvotingrightsheldby
theCompanyinrespectoftheinvestment.

Loannotesdisclosedintheabovetablesarevaluedatcurrentexpectedredemptionvalue,whichis
normallyatpar.

“Information not published” arises from the fact that the company files small company accounts and does not make
turnoverandprofitbeforetaxfigurespubliclyavailable.

15
REVIEWOFINVESTMENTS(continued)

Analysisofinvestmentsbycommercialsector
Thesplitoftheventurecapitalinvestmentportfoliobycommercialsector(byvalueat31March2022)isasfollows:
Analysisofinvestmentsbynatureofinstrument
The following chart summarises the Company’s
investmentportfoliobythenatureofinstrumentheld(by
valueat31
March2022):



VCTQualifyingandnon‐qualifyinginvestments
The Company’s assets have been employed in
accordance with the VCT requirements set out in the
Investment Policy. The allocation of investments
currentlyincludedintheHMRCVCTQualificationtestis
shownbelow:

Splitofinvestmentsbyvalue
(accordingto
VCTregulations)

Actual
VCT
Requirement

VCTQualifyinginvestments 95.5% >80%
Non‐qualifyinginvestments
(includingcashatbank) 4.5% <20%
Total 100.0% 100%

Theabovetableexcludesfundsraisedundertherecent
OffersforSubscription,whicharenotyetincludedinthe
VCTQualificationtest.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Growth
Technology
Legacy
Equity
shares
70.7%
Loan
stock
0.5%
Cashat
bank
28.8%

16
STRATEGICREPORT

The Directors present the Strategic Report for the year
ended 31 March 2022. The Board has prepared this
report in accordance with the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations
2013.

Principalobjectivesandstrategy
TheCompanyisaVentureCapitalTrustwhoseprincipal
investmentobjectivesareoutlined
onpage3.

AsaVentureCapitalTrust,Investorsarerequiredtohold
theirsharesforaminimumperiodoffiveyearsinorder
toretaintheirincometaxrelief.

Businessreviewanddevelopments
As at 31 March 2022 the investment portfolio had
increasedinvalueby£32.1million(31
March2021:£18.7
million)includingadditionsof£12.5million(2021:£11.4
million).Realisedgainsoninvestmentdisposals totalled
£12,000fortheyear(2021:£38,000).

Total running costs for the year including expenses
charged to capital, exceeded revenue income by £1.8
million(2021:£1.2million).There was no performance
feein
2022(2021:nil).Theannualisedongoingcharges
ratiohasremainedat2.4%(2020:2.4%).

Thetotalgainfortheyearwas£18.4million(2021:£8.5
million). Net assets as at 31 March 2022 were £107.6
million (2021: £55.4 million). Dividends paid during the
yeartotalled£4.4million(2021:£2.7million).

ThecashbalancesheldbytheVCTincreasedfrom£10.7
million as at 31 March 2021 to £31.1 million as at 31
March 2022. This was due to the February 2021 Offer
which raised £19.9 million, the November 2021 Offer
whichraised£21.5millionintheyearandVCTQualifying
investmentsmadeduringtheyear.TheNovember2021
Offerraisedafurther£8.1millionforwhichshareswere
allotted in April 2022, increasing the Company’s net
assetsto£116.5million.

The Company’s business and developments during the
yearare reviewedfurtherinthe Chairman’sStatement,
the Investment Manager’s Report and
the Review of
Investments.

Keyperformanceindicators
AteachBoardmeeting,theDirectorsconsideranumber
ofperformancemeasurestoassesstheCompany’slevel
ofsuccessinmeetingitsInvestmentPolicy(asshownon
pages18and19).TheBoardbelievestheCompany’skey
performanceindicatorsareNetAssetValue(NAV),
Total
Return(NAVpluscumulativedividendspaidtodate)and
dividendspershare(seepage2).Theperformanceofthe
VCT, measured by historic Share Price Total Return, is
shownbythegraphonpage27.ItistheBoard’stargetto
payadividendof5%perannumper
OrdinaryShare.
Thenetassetvaluepershareandtotalreturnisdefined
as an Alternative Performance Measure and the Board
considers these to be the primary measure of
shareholdervalue.

The Chairma n’s Statement and Investment Manager’s
Report include further commentary on the Company’s
activitiesandfutureprospects.

Principalrisks
anduncertainties
The Board has carried out a robust assessment of the
emerging and principal risks facing the Company,
includingthosethatwouldthreatenits businessmodel,
future performance, solvency and liquidity. The Board
hasensuredthattherearepoliciesinplaceformanaging
eachoftheserisks.Theprincipal
financialrisksfacedby
the Company, which include interest rate, investment
price, credit and liquidity risks, are summarised within
note15ofthefinancialstatements.Note15alsoincludes
an analysis of the sensitivity of the valuation of the
portfoliotochangesinkeyvaluationinputs.

Other principal risks faced
by the Company have been
assessed by the Board and grouped into the key
categoriesoutlinedbelow:
 Underperformance;
 Regulatory;
 Operational;and
 Economic,politicalandotherexternalfactors.

Underperformance
TheCompanyholdsinvestmentsinunquotedandquoted
UK businesses, with a focus on the technology sector.
Poor investment
 decisions or a lack of effective
monitoringandmanagementofinvestmentscouldresult
inareductionintheNAVoftheCompany.Inaddition,as
the Company may not be in control of the timing of its
exits,owingtoitsminorityshareholdingintheportfolio
companies, there is a
risk that sales prices are not
maximised.

TheMoltenVenturesGrouphassignificantexperiencein
investing in unquoted UK companies and engage
reputableandexperiencedadvisersateachstageofthe
investment process. Furthermore, the Board regularly
reviewstheperformanceoftheportfolio.

The Molten Ventures Group either has a
 portfolio
companyboard seat or observer status or confers with
co‐investment partners for all its material investments.
TheInvestmentManagertherebymonitorsperformance
andprospectsclosely.


17
STRATEGICREPORT(continued)

Principalrisksanduncertainties(continued)
Regulatory
The Company, as a fully listed Company on the London
StockExchangewithapremiumlistingandasaVenture
Capital Trust, operates in a complex regulatory
environmentandthereforefacesrelatedrisks.Abreach
of the VCT Regulations could result in the loss
of VCT
status and consequent loss of tax reliefs currently
availabletoShareholdersandtheCompanybeingsubject
to capital gains tax. Serious breaches of other
regulations, such as the Listing Rules of the Financial
ConductAuthorityandtheCompaniesAct,couldleadto
suspensionfromtheStockExchangeanddamage
tothe
Company’sreputation.

The Board receives quarterly reports from the
Investment and Administration Managers, which
monitor the compliance of these risks, and places
reliance on them to give updates in the intervening
periods.Thesepolicies have remained unchanged since
the beginning of the financial year.Philip Hare &
Associates
LLPprovides regular independent reviews of
the Company’s VCT status, as well as advice on VCT
complianceissuesasandwhentheyarise.

Inordertofurthermitigatethisrisk,theBoardmonitors
regulatory and legislative developments. The Company
alsohasastrongcompliancecultureandsystemsinplace
to
 ensure that the Company complies with all of its
regulatoryrequirements.

FurthercommentaryonVCTStatusisprovidedonpages
19and20.

Operational
The Company relies on the Investment Manager,
AdministrationManagerandotherthirdpartiestofulfil
many of its operational requirements and duties. A
provision of
inferior services by one or more of these
partiescouldleadtoinadequatesystemsandcontrolsor
inefficient management of the Company, its assets and
itsreportingrequirements.

The Company, the Investment Manager and the
Administration Manager engage experienced and
reputableserviceproviders,theperformanceofwhichis
reviewed on
an annual basis by the Board. In addition,
the Audit Committee reviews the Internal Control and
CorporateGovernanceManualonanannualbasis.

Economic,politicalandotherexternalfactors
Fluctuations in the stock market due to economic
recessionormonetarypolicycouldaffectthevaluations
of quoted investee companies, even
if such companies
areperformingtoplan.TheimpactofthisontheNAVof
the Company is mitigated by the portfolio largely
consistingofinvestmentsinunquotedcompanies.

Wider political and economic events, sentiment and
interest rates also have the potential to impact the
performanceandvaluationsofthe
unquotedcompanies
intheportfolioasaresultofadeteriorationinbusiness
andconsumerconfidence.Thisismitigatedbyholdinga
diversifiedportfolio of investments acrossawide range
oftechnologysubsectors.

The emerging risks faced by the Company are outlined
below:

Inflation
The company’s investments could be impacted

negativelyasaresultofincreasinginflation,particularly
wagesandothercosts.

The Investment Manager’s close relationship with the
investee companies allows it to ensure that the
businesses properly assess the potential impact of
increasing costs, particularly wages, and the extent to
whichthesemayormaynotbeable
tobepassedonto
the end customer. The Board and the Investment
Managerconsiderthenetimpacttobeatamanageable
levelandshallcontinuetomonitordevelopmentsclosely
acrossallinvesteecompanies.

Geopoliticalrisks
The Ukraine conflict and the impact of new sanctions
placed on Russian businesses
 and individuals may have
someimpactonthereturnsoftheCompany.

TheInvestment Manager’shands on approachwith the
investeecompaniesensuresthattheyarewellplacedto
assess the exposure of the business to the Ukraine
conflict and associated developments. The Board
considers exposure to be low and
 any direct impact on
the Company’s performance is not expected to be
significant. The Board along with the Investment
Managershallcontinuetoreviewtheevolvingsituation
aspartofitsongoingactivities.

Climatechange
The effects of climate change or those of changing
legislation as the world looks to
 transition towards net
zeroemissionsmayimpactthereturnsgeneratedbythe
portfoliocompanies.

WhilsttheCompanyitself,asaVentureCapitalTrust,has
negligible exposures to climate change risk, the
InvestmentManagerworkswiththeinvesteecompanies
to ensure that climate change risk and transition risk is
appropriately addressed.
 The Board together with the
InvestmentManagerbelievetheriskswithinthecurrent
portfolio to be manageable and gives consideration to
this in reviewing new investment decisions and will
continuetoassessdevelopmentsinlegislationandtheir
potentialimpactonportfoliocompanies.

18
STRATEGICREPORT(continued)

Principalrisksanduncertainties(continued)
Climatechange(continued)

Developments in accounting and disclosure regulations
impactingtheCompanyaremonitoredbytheInvestment
Manager and Administration Manager to ensure full
compliance.

CoronavirusPandemic
The impact of the coronavirus pandemic on global
markets was first observed in March 2020. Since then,
therehavebeenanumberofchallengesforbusinessesin

theUKandaroundtheworld,asgovernmentssoughtto
containrisinginfectionnumbers.

TheBoardrecognisesthatthe resultingrestrictionsand
subsequentmajordevelopmentshavehadanimpacton
valuations–somenegativesomepositive.

As a result of the Investment Manager’s close
involvement with all investee companies,
the Manager
has been able to provide support, where possible,
throughout the pandemic. The Board and Investment
Managerwill continueto monitor developments as the
worldstartstoreturntomorenormalconditions.

Viabilitystatement
InaccordancewithCorporateGovernancebestpractice,
the Directorshaveassessed the emergingandprincipal
risks facing the Companyovera longer period than the
12 months required by the ‘Going Concern’ provision.
TheBoard hasconductedthisreviewfora periodofsix
years from the balance sheet date, this being the time
horizon after which all investors will have passed their
five‐yearholding
period.

The six‐year review considers the principal risks facing
the Company, which are summarised within note 15 as
well as the Company’s cash flows, dividend cover and
VCT monitoring compliance over the period. This
includestheimpactofthecoronaviruspandemicandany
other risks which may adversely impact
 its business
model,futureperformance,solvencyorliquidity.Thesix‐
yearreviewmakesassumptionsthatthecapitalrecycling
likelyto occur,expenses,dividends and share buybacks
willremainattheirnormallevels.

TheDirectorsbelievethattheCompanyiswellplacedto
manage its business risks successfully. Based on the

results the Board believes that, taking into accountthe
Company’scurrentpositionandsubjecttotheemerging
and principal risks faced by the business, the Company
will be able to continue in operation and meet its
liabilitiesastheyfalldueforaperiodofatleastsixyears
from
thebalancesheetdate.
BusinessModel
The Company operates as a Venture Capital Trust to
ensurethatitsShareholderscanbenefitfromtaxreliefs
available.

ThebusinessoftheCompanyistoactasaninvestment
company, investing in a portfolio which meets the
conditions set within its Investment Policy,
as shown
belowandonthenextpage.

ShareBuybacks
The Company operates a policy of buying in shares at a
discount of approximately 5% to the latest published
NAV,subjecttoregulatoryandliquidityconstraints.

During the year the Company purchased a total of
2,692,473Sharesatanaverage
priceof52.8ppershare.
TheseSharesweresubsequentlycancelled.

Resolution13willbeproposedattheforthcomingAGM,
torenewtheauthorityfortheCompanytopurchaseits
ownShares.

Share buybacks are subject to regulatory and liquidity
constraints.

InvestmentPolicy
TheCompany’scurrentInvestmentPolicyisas
follows:

TheCompanycurrentlyholdsaportfoliowhichismixed
by sector, with new investment activity focused on the
technologysector.

The Company will continue to invest in a diversified
portfolioofcompanies,predominantlyinthetechnology
sector, with a particular emphasis on unquoted
companies which will usually have
the following
characteristics:

1. Companies which meet the VCT criteria with the
abilitytogrow,whichareseekinggrowthcapital;
2. Astrong,balancedandwell‐motivatedmanagement
team;
3. Investments where theManager can typically be an
activeinvestorandhaveaboardorobserverposition;
4. Companieswith
productsorserviceswhichhavethe
potentialtosustainacompetitiveadvantage;and
5. Companieswithreasonableprospectsofachievinga
tradesaleorstockmarketflotation
.

19
STRATEGICREPORT(continued)

InvestmentPolicy(continued)
Future VCT Qualifying Investments will usually be
syndicatedalongsideother MoltenVenturesfundswith
afocusonthefollowingtechnologysectors:
1. Consumer Technology: companies with exceptional
growth opportunities in international markets that
are underpinned by new consumer facing products,
innovative business models and proven execution
capabilities;
2.
Enterprise Technology: companies developing the
software infrastructure, applications and services
that drive productivity improvements, convenience
andcostreductionforenterprises;
3. Hardware and Deep Technology: companies
developing different technologies that underpin
advances in computing, consumer electronics and
otherindustries;and
4. Digital Health and Wellness: companies leveraging
digitalandother
technologiestocreatenewproducts
andservicesforthehealthandwellnessmarket.

RiskDiversification
The Company’s portfolio will bediversified by investing
in a portfolio of VCT qualifying investments covering a
number of technology sectors. The maximum that the
Companywillholdinasingleinvestment(byvalueat
the
timeofinvestment)is15%offundsinvested.

Non‐QualifyingInvestments
The Company will invest such funds not utilised in VCT
Qualifying Investments in cash and other near cash
assets,aspermittedunderVCTregulations.

VentureCapitalTrustregulations
The Company will be managed with the intention of
maintaining
itsVCTstatusbysatisfyinganumberoftests
setoutinPart6oftheIncomeTaxAct2007.Compliance
with the applicable VCT Regulations is disclosed on the
nextpage.

Borrowings
ItisnottheCompany’sintentiontohaveanylong‐term
borrowings.However,theCompanydoeshave
theability
to borrow not more than 10% of the aggregate of the
nominal capital of the Company (being issued and paid
up) plus the amounts standing to the credit of the
consolidatedreservesoftheCompany.

At31 March2022themaximum amountof  borrowings
allowed, without the previous
 sanction at a General
Meeting, stood at £10.8 million. There are no plans to
utilisethisabilityatthecurrenttime.

VCTStatus
In continuing to maintain its VCT status the Company
complieswithanumberofregulations,assetoutinPart
6oftheIncomeTaxAct2007.


TheCompanyhasretainedPhilipHare&Associates LLP
to advise it on compliance with VCT requirements,
reportingdirectlytotheBoard.PhilipHare&Associates
LLP works closely with the Investment Manager and
Boardof the Company,undertakingreviews of the VCT
compliance status of new investment opportunities,
providing
regularcomplianceupdatesontheCompany’s
existingportfolioofinvestmentsandprovidingadviceon
VCTcomplianceissuesasandwhentheyarise

CompliancewiththemainVCTregulationsasat31March
2022, and for the year then ended, is summarised as
follows:

1. 80% of its investments is
held in
qualifyingcompanies;
95.5%
2. At least 70% of the Company’s
qualifyinginvestments(byvalue)are
heldin“eligibleshares”(fundsraised
before5April2011areexcluded);
99.0%

3. Atleast10%ofeachinvestmentina
qualifying company is held in
“eligibleshares”;
Complied

4. No investment
 constitutes more
than15%oftheCompany’sportfolio
(byvalueatthetimeofinvestment);
Complied
5. The Company’s income for each
financial year is derived wholly or
mainlyfromsharesandsecurities;
100.0%
6. The Company distributes sufficient
revenuedividendstoensurethatnot
more than 15% of the
income from
sharesandsecuritiesinanyoneyear
isretained;
Complied
7. Prior to 5 April 2012, the maximum
unit size of £1 million in each VCT
qualifyinginvestment(pertaxyear).
Post 5 April 2012 the maximum
investmentbyaVCTinanycompany
is £5 million (£10 million
 for a
‘knowledge‐intensive’ company) in
the twelve months ending on the
dateoftheVCT’sinvestment;and
Complied
8. Atleast30%ofnewfundsraisedare
investedinqualifyingholdingswithin
12 months of the end of the
accounting period in which those
fundsareraised.
Complied


20
STRATEGICREPORT(continued)

VCTStatus(continued)
ThemostrecentchangestotheVCTRegulationssought
to strengthen the availability of capital for innovative
growthbusinessesintheUK.TheBoardisconfidentthat,
withitsManageraspartoftheMoltenVenturesGroup,
the Company is well placed to comfortably meet the
criteria.

Statementons172
Undersection172oftheCompaniesAct2006,theBoard
hasadutytopromotethesuccessoftheCompany,and
whenmakingdecisionsforthelongterm,haveregardto
arangeofmattersincluding:

 the likely consequences of any decision in the long
term;
 theinterestoftheCompany’semployees;
 the need to foster the Company’s business
relationshipswithsuppliers,customersandothers;
 the impact of the Company’s operations on the
environmentandcommunity;
 the desirability of the Company maintaining a
reputation for high standards of business conduct;
and
 the
 need to act fairly between Members of the
Company.

However,theCompanyhasnoemployees(otherthanits
Directors)andnocustomersinthetraditionalsense.Itis
normal practice for Venture Capital Trusts to delegate
authority for day‐to‐day management and
administration of the Company to third parties.
 The
Boardwill thenengagewiththethirdpartiesin setting,
approvingandoverseeingtheexecutionofthebusiness
strategy and related policies. In accordance with the
Company’snatureasaVentureCapitalTrust,theBoard’s
principal concern has been, and continues to be, the
interestoftheCompany’sShareholders
takenasawhole
as well as continuing to monitor portfolio management
inlightoftheCompany’sobjectives.

In addition to this, the Board has a responsible
governance culture and has due regard for broader
matterssofarastheyapplyincludingtheexpectationsof
its regulators. Specifically, the Board
engages with the
Investment Manager at every Board meeting where it
willreviewthefinancialandoperationalperformance,as
wellaslegalandregulatorycompliance.The Boardalso
reviewsits relationships with other service providers at
leastannuallyaswellasother areas over the course of
the financial year including
 the Company’s key risks;
stakeholder‐related matters; diversity and inclusivity;
environmentalmatters;andcorporateresponsibilityand
governance.

The Investment Manager regularly engages with
Shareholders, by producing half yearly reports and
reportingbacktotheBoard.TheBoardalsoencourageall
ShareholderstoattendtheAGMandwelcomesanyother
communications
 from Shareholders. Its main
stakeholdersthereforecompriseoftheShareholders,the
Investment Manager, other service providers and
investeecompanies.

The principal decisions made or approved by the
Directors during the year include dividend declarations
andthelaunchofanewofferforsubscription.Intaking
these decisions, the Directors considered
 their duties
under section 172 of the Act. Principal decisions have
beendefinedasthosethathaveamaterialimpacttothe
Company and its key stakeholders. The results of the
AGMandGMshowedthat the Director’sviewswere in
line with the Shareholders, as both the approval of
the
finaldividendandthe authoritytoallotsharesreceived
99%oftheShareholder’svotes.TheBoardinvolved the
InvestmentManagerclosely in discussions ondividends
andfundraisingandhadtheirsupport.

Climate‐relatedmatters
TheFCAreportingrequirementsconsistentwiththeTask
Force on Climate‐related Financial Disclosures (“TCFD”)
do not currently apply to the Company.The Board and
Investment Manager acknowledges the
recommendations which will be reviewed over future
periods.

Environmental,socialandhumanrightspolicy
The Company seeks to conduct its affairs responsibly.
Where appropriate, the Board and the Managers take
environmental, social and human rights factors
into
consideration when making investment decisions. As
noted in the Investment Manager’s report the
Investment Manager has developed an environmental,
social and governance policy which is applied when
providingservicestotheCompany.

Globalgreenhousegasemissions
The Company has no greenhouse emissions to report
from its operations, nor does
it have responsibility for
any other emissions producing sources under the
Companies Act 2006 (Strategic Report and Director’s
Reports)Regulations2013.


21
STRATEGICREPORT(continued)

Directorsandseniormanagement
The Company does not have any employees, including
senior management, other than the Board of the four
male non‐executive directors. There are no female
directors.TheCompany’spolicyregardingdiversityisset
out in full in the Corporate Governance Statement on
page29.

Whilstthe
Boardhasdelegatedthedaytodayoperation
of the Company to its advisers, details of which are
containedwithintheReportoftheDirectors,theyretain
the responsibility of planning, directing and controlling
theactivitiesoftheCompany.
FutureProspects
The Company’s future prospects are set out in the
Chairman’s
 Statement and Investment Manager’s
Report.

ByorderoftheBoard



GrantWhitehouse
CompanySecretary
MoltenVenturesVCTplc
Companynumber:03424984
Registeredoffice:
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
15July2022


22
REPORTOFTHEDIRECTORS

The Directors present the Annual Report and Financial
StatementsoftheCompanyfortheyearended31March
2022.

Sharecapital
DuringtheyeartheCompanyissuedatotalof36,146,095
Ordinary Shares of 5p each (“Ordinary Shares”) at an
average price of 55.1p per share, under the offer that
launched in February 2021. The gross proceeds of the
Offer were £19.9 million,  with issue costs in respect of
theOfferamountingto£839,000.

Afurther33,405,003OrdinaryShareswereissuedatan
average price of 64.4p per share, under the offer that
launchedinNovember2021.Thegross proceeds
ofthe
Offer were £21.5 million,  with issue costs in respect of
theOfferamountingto£1.1million.

During the year, the Company purchased 2,692,473
Ordinary Shares for cancellation for an aggregate
consideration of £1.4 million, equating to an average
priceof52.8ppershare.Thepurchaseswereundertaken
at
an average discount of 4.3% to the most recently
publishedNAV,asatthedateofpurchase.Theseshares
weresubsequentlycancelled.

ThetotalnumberofOrdinarySharesinissueat31March
2022was177,597,183.

Between the balance sheet date and the date of this
report, 12,665,155 Ordinary Shares
 were issued at an
average price of 64.3p per Ordinary Share raising £8.1
million. At the date of this report the total number of
OrdinarySharesinissuewas190,262,338.Thereareno
othershareclassesinissue.

Resultsanddividends



£’000
Pence
pershare

Profitonordinary
activities
aftertaxfortheyearended

18,405

12.0

Dividendspaidintheyear
17September2021 2,183 1.5
28January2022 2,175 1.5
 4,358 3.0

Your Company will pay a combined final and special
dividendof3.1pperOrdinaryShareon26August2022,
toShareholdersonthe registerat22July 2022,subject
toShareholderapprovalattheAGM.

Directors
The Directors of the Company during the year were as
follows:

DavidBrock(Chairman)
HughAldous
NicholasLewis
MichaelJackson(resigned11August2021)
RichardMarsh(appointed11August2021)

In accordance with corporate governance best practice
allDirectorsretireateachAGM,withthosewishingtodo
so putting themselves forward for re‐election.
Accordingly, at the forthcoming AGM all
Directors will
retire and, offer themselves for re‐election. The Board
recommends that Shareholders take into consideration
each Director’s considerable experience in VCTs and
otherareas,asshownintheirrespectivebiographieson
page3,togetherwiththeperformanceofthe Company
overtheyears,inordertosupporttheresolutions
tore‐
appointtheDirectors.

EachoftheDirectorshasenteredintoanagreementfor
serviceswhichisterminableonthreemonths’noticeby
eitherside.EachDirectorisrequiredtodevotesuchtime
to the affairs of the Company as the Board reasonably
requiresand their powersarebound
bythe Company’s
ArticlesofAssociation.AppointmentsofnewDirectorsto
theBoardareconsideredbyallexistingDirectorsasand
whenrequired.

The Company provides Directors’ and Officers’ liability
insurance, giving appropriate cover for legal action
brought against its Directors. The Company has also
agreed to indemnify Directors in
 circumstances where
they are not considered to be culpable. The indemnity,
whichis aqualifyingthird‐partyindemnityprovisionfor
thepurposeoftheCompaniesAct,isforthebenefitofall
oftheCompany’sDirectors.

Investmentmanagementfees
Elderstreet Investments Limited is the Investment
ManagerfortheCompanyand
receivesafeeof2.0%of
net assets plus future fundraising per annum. The
agreement, originally entered into on 30 January 1998
andreplacedbyanewagreementon9February2021,is
terminable by one year’s prior written notice by either
sideaftertheinitialperiodofthreeyears.

The Board is satisfied with the performance of the
Company and with Elderstreet Investments Limited’s
strategy, approach and procedures in providing
investment management services to the Company. The
Directors have therefore concluded that the continuing
appointment of Elderstreet Investments Limited as
Investment Manager remains in the best interest of
Shareholders.


23
REPORTOFTHEDIRECTORS(continued)

Performanceincentivefees
No performance incentive fees are payable to the
InvestmentManagerinrespectoftheyearunderreview
as the relevant conditions have not been met. A
performance fee shall be payable to the Investment
Managerequalto20%ofanyrealisedgainsmadeonthe
disposalofan
investmentprovidedtwohurdlesaremet:

(a) an IRR hurdle requiring the achievement of at least
7%IRRinrespectofinvestmentsmadewithinafive‐
year pool, the first such period starting on 1 April
2021;and

(b) aNAVpershare hurdlerequiringtheNAVpershare
attheendoftheyearinwhichthegainismadetobe
higherthantheNAVpershareatthecommencement
ofthefive‐yearpoolperiodinwhichtheinvestment
was made (after adding back dividends paid
 in the
period).

Theperformanceincentivefeewillalsohaveacatch‐up
ifthehurdlesarenotmet.

Annualrunningcostscap
TheCompany’sannualrunningcosts(whichexcludeany
performancefeespayable)arecappedat3.5%ofthenet
assets. Any excess will be paid by the Manager. The
annualisedexpense
ratiofortheyear,basedonweighted
net assets during the year ended 31 March 2022, was
2.4%(2021:2.4%).

Administrationmanagementfees
Downing LLP provides administration services to the
Company for an annual fee calculated as £65,000 per
annumplus0.1%offuturefundsraisedsinceApril2021.
The
agreementisterminablebyoneyear’spriorwritten
notice by either side. During the year fees for
administrationservicesamountedto£90,000.

Substantialinterests
As at 31 March 2022, and the date of this report, the
Company was not aware of any beneficial interests
exceeding three per cent of the
issued Ordinary Share
capital.

Auditor
A resolution to reappoint BDO LLP as the Company’s
AuditorwillbeproposedattheforthcomingAGM.

AnnualGeneralMeeting
This years’ Annual General Meeting will be held at 20
Garrick St, London WC2E 9BT on 18 August 2022 at 11
am.TheAGMNotice
isattheendofthisdocument.
Directors’responsibilitiesstatement
TheDirectorsareresponsibleforpreparingtheReportof
the Directors, the Strategic Report, the Directors’
Remuneration Report and the financial statements in
accordancewithapplicablelawandregulations.Theyare
also responsible for ensuring that the Annual Report
includes
informationrequiredbytheListingRulesofthe
FinancialConductAuthority.

CompanylawrequirestheDirectorstopreparefinancial
statements for each financial year. Under that law, the
Directors have elected to prepare the financial
statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and
applicable law),
includingFinancialReportingStandard102,thefinancial
reportingstandardapplicableintheUKandRepublicof
Ireland(FRS102).

Undercompanylawthe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
CompanyandoftheprofitorlossoftheCompanyforthat
period.

Inpreparingthesefinancialstatements,theDirectorsare
requiredto:

 select suitable accounting policies and then apply
themconsistently;
 makejudgementsandaccountingestimatesthatare
reasonableandprudent;
 state whether applicable UK
 Accounting Standards
have been followed, subject to any material
departures disclosed and explained in the financial
statements;
 prepare the financial statements on the going
concern basis unless it is inappropriate to presume
thattheCompanywillcontinueinbusiness;and
 prepare a director’s report, a strategic report and
director’s remuneration report which comply with
therequirementsoftheCompaniesAct2006.

The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s transactions and disclose with
reasonableaccuracyatanytimethefinancialpositionof
the Company and enable them to
ensure that the
financial statements comply with the Companies Act
2006. They are also responsible for safeguarding the
assetsoftheCompanyandhence fortakingreasonable
stepsforthepreventionanddetectionoffraudandother
irregularities.

Eachof the Directorsconsidersthat theAnnual Report,
taken as a
whole, is fair, balanced and understandable
andprovidestheinformationnecessaryforShareholders
to assess the Company’s position, business model and
strategy.

24
REPORTOFTHEDIRECTORS(continued)

Directors’responsibilitiesstatement(continued)
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website. Legislation in the
United Kingdom governing the preparation and
dissemination of the financial statements and other
information included in annual reports may differ from
legislationinother
jurisdictions.

Directors’ statement pursuant to the Disclosure and
TransparencyRules
Each of the Directors, whose names and functions are
listed on page 3, confirms that to the best of their
knowledge:
 thefinancial statements,whichhave been prepared
in accordance with United Kingdom Generally
Accepted Accounting Practice, give a
 true and fair
view of the assets, liabilities, financial position and
profitorlossoftheCompany;and
 the management report, comprising the Chairman’s
Statement, the Strategic Report, the Investment
Manager’sReport,theReviewofInvestmentsandthe
ReportoftheDirectors,includesafairreviewofthe
development
and performance of the business and
the position of the Company, together with the
principalrisksanduncertaintiesthatitfaces.

Electronicpublication
The financial statements are published on
www.moltenventures.com (maintained by the
Investment Manager) and on www.downing.co.uk
(maintainedbytheAdministrationManager).Legislation
in the United Kingdom governing the
preparation and
disseminationofthefinancialstatementsmaydifferfrom
legislationinotherjurisdictions.

CorporateGovernance
TheCompany’scompliancewithanddeparturesfromthe
AICCode of Corporate Governance (www.theaic.co.uk),
aredisclosedonpage31.
StreamlinedEnergyandCarbonReporting(‘SECR’)
As the company has no employees and primarily
conducts
 its business at the London offices of the
Investment Manager, Elderstreet Investments Limited,
andAdministrationManager,DowningLLP,thecompany
is not directly responsible for the consumption of
electricity and gas in the UK, nor is the company
responsible for greenhouse gas emissions related to
transportintheUK.

As
thecompanydidnotconsumemorethan40,000kWh
of energy during the year ended 31 March 2022, it has
nothing to report under the Companies (Directors’
Report) and Limited Liability Partnerships (Energy and
CarbonReport)Regulation2018.

StatementastodisclosureofinformationtoAuditor
The Directors in office
at the date of this report have
confirmed, as far as they are aware, that there is no
relevant audit information of which the Auditor is
unaware.EachoftheDirectorshasconfirmedthatthey
havetakenallthestepsthattheyoughttohavetakenas
Directors in order to
 make themselves aware of any
relevant audit information and to establish that it has
beencommunicatedtotheAuditor.

Othermatters
Information in respect of financial instruments,
greenhouse emissions and future developments which
were previously disclosed within the Report of the
DirectorshavebeendisclosedwithintheStrategicReport
on
pages16to21.

ByorderoftheBoard


GrantWhitehouse
CompanySecretary
MoltenVenturesVCTplc
Companynumber:03424984
Registeredoffice:
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
15July2021

25
DIRECTORS’REMUNERATIONREPORT

AnnualstatementfromtheChairmanofthe
RemunerationCommittee:HughAldous
The Remuneration Committee comprises David Brock,
NicholasLewis,HughAldousandRichardMarsh.

The Committee has reviewed the current fee structure
which has been in place since 1 April 2019 and agreed
that the remuneration levels should remain unchanged
fortheforthcomingyear.

Remunerationpolicyreport
BelowistheCompany’sremunerationpolicywhichwas
lastput toa Shareholders vote atthe 2020 AGMandis
effectiveforthreeyears.

The Company’s policy on Directors’ remuneration is to
seek to remunerate Board members at a level
appropriate for the time commitment required and
degree of responsibility involved for a Venture Capital
Trustofthissize.Thisincludesthedeterminationofthe
remuneration for new Directors, which is set by the
Remuneration
Committee.

Non‐executive Directors are not entitled to any
performance related pay or incentive and therefore
Directors’ remuneration will not increase with
performance.

Directors’remunerationiscalculatedinaccordancewith
theCompany’sArticlesofAssociationasfollows:

 The Directors shall be entitled to be repaid all
reasonable travelling, hotel and other expenses
incurred by them respectively in or about the
performanceoftheirdutiesasDirectors,includingany
expensesincurred inattendingmeetings of theBoard
orofCommitteesoftheBoardorgeneralmeetingsand
ifin
theopinionoftheDirectorsitisdesirablethatany
of their number should make any special journeys or
performanyspecialservicesonbehalfoftheCompany
oritsbusiness,suchDirectororDirectorsmaybepaid
reasonable additional remuneration and expenses as
theDirectorsmayfromtimeto
timedetermine.

 The Directors shall be paid out of the funds of the
Companybywayoffeesfortheirservicesanaggregate
sum not exceeding £1,000,000 per annum. The
Directors shall also receive by way of additional fees
such further sums (if any) as the Company in general
meetingmayfromtime
totimedetermine.

 Such fees and additional fees shall  be divided among
the Directors in such proportion and manner as they
maydetermineandindefaultofdeterminationequally.

A remuneration payment or payment for loss of office
canonlybemadetoacurrentorformerdirectorthatis
within the scope of the approved policy (subject to the
Articles), unless approved by a separate Shareholder
resolution.
ADirectorisnotrequiredtoholdsharesintheCompany.
Any
dealingsintheCompany’ssharesarenotifiedtothe
Chairmanbeforehandforapproval.

The Board receives feedback from Shareholders from
time to time via directcorrespondence,telephonecalls
and at the AGM. The Remuneration Committee takes
accountofanycommentsinrespectoftheremuneration
policywhenitundertakesits
regularreviewofthepolicy.

Agreementforservices
Each of the Directors has signed an agreement for
services with the Company which specifies a notice
period of three months. Each Director is required to
devote such time to the affairs of the Company as the
Boardreasonablyrequires.

Annualreportonremuneration(audited)
The Directors’
remuneration and share interests
disclosure below are required to be audited under the
requirementsofsection497.Theauditopinionthereon
iscontainedwithintheAuditor’sReportonpages32to
37.

Thedirectors’remunerationconsists offixedsalaryand
feesandfortheyearunderreviewwasasfollows:
 Yearto
31Mar
2022
%change
ingross
fees
4
Yearto
31Mar
2021
%change
ingross
fees
5

Yearto
31Mar
2020
 £’000£’000£’000
DavidBrock 30.0‐30.0‐30.0
HughAldous 26.5‐26.5‐26.5
NicholasLewis 24.0‐24.0‐24.0
MichaelJackson
1
8.7 (64%) 24.0‐24.0
RichardMarsh
2
 nil‐n/a‐n/a
BarryDean
3
n/a (100%) 11.5 (52%) 24.0
 89.2116.0128.5
1
Resigned11August2021
2
Appointed11August2021
3
Resigned22September2020
4
Betweentheyearsending31March2021and31March2022
5
Betweentheyearsending31March2020and31March2021

No variable remuneration, benefits, pension
contributions or life assurance contributions were paid
by the Company to, or on behalf of, any Director. The
Companydoesnothaveanyshareoptionsinplace.

Statementofimplementationofremunerationpolicy
inthecurrentfinancialyear
 Annualfeesfrom
1April2022
 £’000
DavidBrock 35.0
HughAldous 31.5
NicholasLewis 29.0
RichardMarsh‐
 95.5



26
DIRECTORS’REMUNERATIONREPORT(continued) 

Statementofimplementationofremunerationpolicy
inthecurrentfinancialyear(continued)
The committee has reviewed remuneration levels and
consider these to be comparable to other similar VCTs
andappropriateforthetimecommitmentrequiredand
degreeofresponsibilityinvolvedinbeinganon‐executive
directoroftheCompany.The committee
also considers
theoverallcosttobereasonableandnotesthatthetotal
isasignificantreductiontopreviousyears.

StatementofvotingattheAGM
Shareholders’ views in respect of Directors’
remunerationarecommunicatedattheCompany’sAGM
andaretakenintoaccountinformulatingtheDirectors’
remunerationpolicy.
AtthelastAGMon11August2021
the votes in respect of the resolution to approve the
Directors’RemunerationReportwereasfollows:‐
Infavour 
93.22%
Against 
6.78%
Withheld85,020votes

At the 2020 AGM, where the remuneration policy was
last put to a Shareholder vote, 95.02% voted for the
resolutionand4.98%voted against, showing significant
Shareholdersupport.

Directorsshareinterests(audited)
The beneficial interests of the Directors in the issued
OrdinarySharesintheCompanyateachperiodend
and
thedateofthisreportwereasfollows:
 31Mar
2022
31Mar
2021
15July
2022
DavidBrock 288,712 174,333 288,712
HughAldous 75,970 49,827 75,970
NicholasLewis 48,498 48,498 48,498
RichardMarsh 705,584‐705,584

Relativeimportanceofspendonpay
Thedifferencesinactualspendbetween31March2022
and31March2021onremunerationforalldirectors,in
comparison to distributions (dividends and share
buybacks)andother significant spending,are set outin
thetabulargraphbelow:

Performancegraph
The graph on the
following page charts the total
cumulative Shareholder return of the Company
(assuming all dividends are re‐invested) (“NAV Total
Return”)andTotalReturnoftheCompany’sSharePrice
(“Share Price Total Return”) over the past ten years,
comparedtoFTSEAIMAllShareIndex,eachofwhichhas
beenrebasedto
100penceasat31March2012.

The Board believes that NAV Total Return provides
Shareholders with a fairer reflection of the Company’s
long‐termvaluethantheCompany’sshareprice,dueto
thelong‐termnatureofaninvestmentinVentureCapital
Trustshares.TheFTSEAIMAllShareIndex(“FTSEIndex”)
isnotabenchmarkfor
theCompanyanditscomponents
include a much broader range of quoted investments
than the Com pany is able to invest in. As a result, the
Company’s performance is not expected to be closely
correlated to the FTSE Index. However, of the publicly
available indexes that can be used by the
Company
withoutincurringdisproportionatecosts,theFTSEIndex
is considered to be the most appropriate broad equity
marketindextouseforthischart.

ByorderoftheBoard



HughAldous
ChairmanoftheRemunerationCommittee
MoltenVenturesVCTplc
Companynumber:03424984
Registeredoffice:
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
15July2022


5,780
89
1,721
‐
2,909
116
921
‐
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Dividends
andshare
buybacks
Directors'
pay
Investment
management
fees
Performance
incentive
fees
£'000
31March2022
31March2021

27
DIRECTORS’REMUNERATIONREPORT(continued) 


28
CORPORATEGOVERNANCESTATEMENT

The Board has considered the principles and provisions
oftheAIC Codeof CorporateGovernance(“AIC Code”).
TheAICCodeaddressesallprinciplesandprovisionsset
out in the UK Corporate Governance Code, as well as
setting out additional provisions on issues that are of
specificrelevancetoinvestmentcompanies.

TheBoardconsidersthatreportingagainsttheprinciples
and provisions of the AIC Code, which incorporates the
UK Corporate Governance Code, will provide better
informationtoShareholders.

TheBoard
The Company has a Board comprising of four
non‐executive Directors. The Chairman is David Brock
and the Senior Independent Director
is Hugh Aldous.
BiographicaldetailsofallBoardmembers(includingthe
significantcommitmentsoftheChairman)areshownon
page3.

The Board considers the independence of each of the
Directors on an ongoing basis. Whilst three of the
Directors has served on the Board for longer than nine
years,
each Director, with the exception of Richard
Marsh,isconsideredtobeindependentoftheCompany
inaccordancewiththeprovisionsandrecommendations
set out in the AIC Code. The majority of the Board is
thereforeconsidered independent of the Company and
theInvestmentManager.

InaccordancewithCompanyPolicy
andintheinterestof
goodCorporateGovernance,allDirectorswillretireatthe
forthcoming AGM and will, being eligible, offer
themselvesforre‐election.

FullBoardmeetingstakeplace quarterly and the Board
meets or communicates more regularly to address
specific issues. The Board has a formal schedule of
matters specifically reserved for its decision which
includes but is not limited to; considering
recommendations from the Investment Manager,
makingdecisions concerningthe acquisition or disposal
ofinvestmentsoutsideof thescopeofthediscretionary
management agreement and annually reviewing the
termsofengagementofallthird‐partyadvisers(including
the
InvestmentManagerandAdministrationManager).

As the Company has a small Board of non‐executive
Directors,allDirectorssitontheNominationCommittee
(chaired by David Brock) and the Remuneration
Committee (chaired by Hugh Aldous).
The Audit
CommitteecomprisesHughAldous(Chairman)andDavid
Brock.
AformalManagementEngagementCommitteeis
notnecessaryasthemajorityoftheBoardisindependent
oftheInvestmentManager.

Committee meetings are held in conjunction with the
Board meetings. All Committees have defined terms of
referenceandduties.
The Board has also established procedures whereby
Directors wishing to do
so in the furtherance of their
dutiesmay takeindependentprofessionaladviceatthe
Company’sexpense.

AllDirectorshaveaccesstotheadviceandservicesofthe
CompanySecretary.TheCompanySecretaryprovidesthe
BoardwithfullinformationontheCompany’sassetsand
liabilities and other relevant information requested by
theChairman,inadvanceofeachBoardmeeting.

Sharecapital
TheBoardhasauthoritytomakemarketpurchasesofthe
Company’sownShares.Thisauthorityforupto14.9%of
the Company’s issued share capital was granted at the
last AGM. A resolution will be put to Shareholders to
renew
thisauthorityattheforthcomingAGM.TheBoard
willalsoseekauthorityattheforthcomingAGMtoissue
new Shares up to an aggregate nominal amount of £4
million.

ThecapitalstructureoftheCompanyisdisclosedinnote
12.

AsdisclosedintheReportoftheDirectors,therewere
no
ShareholderswithasubstantialinterestintheCompany
attheyear‐endoratthedateofthisreport.

FormalBoardandCommitteemeetings
ThefollowingtablesetsouttheDirectors’attendanceat
theBoardandCommitteemeetingsheldduringtheyear.

Board
Meetings
attended
(5held)
Audit
Committee
Meetings
attended
(2held)
Nomination
Committee
meetings
attended
(1held)
DavidBrock 5/5 2/2 1/1
HughAldous 5/5 2/2 1/1
MichaelJackson
1
 3/3 n/a n/a
NicholasLewis 5/5 n/a 1/1
RichardMarsh
2
 3/3 n/a n/a

1
Resigned11August2021
2
Appointed11August2021

There were no Remuneration Committee meetings
duringtheyear.

AuditCommittee
TheCompanyhasanAuditCommitteecomprisingHugh
Aldous(Chairman)andDavidBrock.ThisCommitteehas
defined terms of reference and duties and normally
meetstwiceyearly.

DavidBrockwasconsideredindependenton
appointmentasChairmanoftheCompany
andis
thereforealsoamemberoftheAuditCommittee.


29
CORPORATEGOVERNANCESTATEMENT(continued)

AuditCommittee(continued)
The Audit Committee is responsible for reviewing the
Half‐Yearly and Annual Reports before they are
presentedtotheBoard,thetermsofappointmentofthe
Auditor together with their remuneration and a full
review of the effectiveness of the Company’s internal
controlandriskmanagementsystems.

In particularthe Committee reviews, challenges(where
appropriate)andagreesthebasis forthecarryingvalue
of the unquoted investments, as prepared by the
Investment Manager for presentation within the Half‐
YearlyandAnnualReports.

The Committee also takes into careful consideration
comments on matters regarding valuation, revenue
recognition and
financial statement disclosures arising
fromtheAuditor’sReporttotheAuditCommittee.

As part of its annual review procedures the Committee
has obtained sufficient assurance by reviewing audit
feedback documentation, holding discussions with the
EngagementPartnerandundertakingitsownevaluation.

The Audit Committee met twice during the year. The

Committee reviewed the internal financial controls and
concludedthattheyremainedappropriate.

Internalauditandcontrol
TheCommitteehasconsideredtheneedforaninternal
audit function and concluded that this would not be
appropriateforacompanyofthissizeandstructure.The
Committee seeks to satisfy i tself that
 there is a proper
systemandallocationoftheresponsibilitiesfortheday‐
to‐day monitoring of financial controls by receiving
representationsandinformationeitheruponrequestor
voluntarilyfromtheManager.Thisiscoveredmorefully
underRiskManagementandInternalControl.

Whistleblowingprocedures
As the Company has no
 staff other than the Directors,
there are no procedures in place in respect of
whistleblowing. The Audit Committee understands that
the Investment and Administration Manager have
whistleblowingproceduresinplace.

Externalauditor
The Committee reviews and agrees the audit strategy
paper,presentedbytheAuditorinadvanceoftheaudit,

whichsetsoutthekeyriskareastobecoveredduringthe
auditandconfirmstheirstatusofindependence.

TheCommittee confirmsthat the mostsignificant audit
areas,inrespectofthefinancialstatementsfortheyear
under review, is the carrying value of unquoted
investments. The internal controls in
 place to mitigate
these risks are set out in the Risk Management and
InternalControlsectiononthefollowingpage.
After taking into consideration comments from the
Investment Manager and the Administration Manager
regarding the effectiveness of the audit process,
immediately before the conclusion of the annual audit
the Committee will
 recommend to the Board that the
Auditoreitherbere‐appointedorremoved.

Under the Competition and Markets Authority
regulations,thereisarequirementthatanaudittender
process be carried out every ten years and mandatory
rotation at  least every twenty years. The audit of the
financialstatementsfor
theyearended31March2022is
thefifteenthyearundertakenbyBDO.Themandatoryre‐
tenderingruleswereappliedduring2017andresultedin
theBoardtakingthedecisiontoreappointBDO.

Following assurances received from the Managers at
completion of the audit for the year ended 31 March
2022,
and takingdiscussions held withthe Engagement
Partner at BDO LLP into consideration, the Committee
has recommended they be re‐appointed at the
forthcomingAGM.

Non‐auditservices
Any non‐audit services provided by the Auditor are
reviewedandapprovedbytheCommitteepriortobeing
undertaken (such services being
 undertaken by a
separatedepartmenttotheAuditor),toensurethatthe
Auditor’sobjectivityandindependencearesafeguarded.
In addition, the Auditor confirms their independent
statusonanannualbasis.

TheAuditormayperformad‐hocworkattherequestof
theBoard.TheBoardwillagreethemaximumexpected

fee before such work being undertaken, to ensure that
auditorobjectivityandindependenceissafeguarded.The
Auditor has not provided any non‐audit services in
respectoftheyearended31March2022.Thefeespaid
totheAuditorfortheyeararedisclosedinNote4ofthe
financial
statements.

NominationCommittee
TheNominationCommittee’sprimaryfunctionistomake
recommendationstotheBoardonallnewappointments
and to advise generally on issues relating to the Board
compositionandbalance.

Diversitypolicy
WhenconsideringanewappointmenttotheBoard,the
Committee’sresponsibilityistoensurethatShareholders
are safeguarded by appointing the most appropriate
person for the position, (irrespective of gender, race,
age)givingdueregardtopastandpresentexperiencein
thesectorsinwhichtheCompanyinvests.TheCompany
therefore does not have a specific diversity policy in
place.


30
CORPORATEGOVERNANCESTATEMENT(continued)

RemunerationCommittee
The Committee meets as and when required to review
the levels of Directors’ remuneration. Details of the
specific levels of remuneration to each Director are set
out in the Directors’ Remuneration Report on page 25,
andthisissubjecttoShareholderapproval.

Anti‐briberypolicy
The Company operates an
 anti‐bribery policy to ensure
thatitmeetsitsresponsibilitiesarisingfromtheBribery
Act 2010. This policy can be found on the website
maintained by the Administration Manager at
www.downing.co.uk.

Directortenurepolicy
GiventhesizeoftheCompanyandthecomplexityofthe
VCT regulations, the Board does
 not impose a limit in
respect of the tenure of the Company’s non‐executive
Directors. However, in accordance with Corporate
Governance best practice, the policy of the Company
requires that all Directors be subject to annual re‐
election.

RelationswithShareholders
ShareholdershavetheopportunitytomeettheBoardat

the AGM. The Board is also happy to respond to any
writtenqueriesmadebyShareholdersduringthecourse
oftheyear.

In addition to the formal business of the AGM,
representatives of the Investment Manager and the
Board are available to answer any questions a
Shareholdermayhave.

Separateresolutions are proposed at theAGM on each
substantially separate issue. The Company’s Registrar
collates proxy votes and the results (together with the
proxy forms) are forwarded to the Company Secretary
immediatelyprior to theAGM. In order to comply with
the AIC Code, proxy votes are announced at the
 AGM
following each vote on a show of hands, except in the
event of a poll being called. Shareholders have the
opportunitytovote on the resolutions proposed at the
AGMusingtheproxyformorelectronicallyonline.

The terms of reference of the Committees and the
conditions of appointment
 of non‐executive Directors
areavailabletoShareholdersuponrequest.

Financialreporting
The Directors’ responsibilities statement for preparing
theaccountsissetoutintheReportoftheDirectorson
pages23and24 anda statementby the Auditorabout
their reporting responsibilities is set out in the
Independent
Auditor’sReportonpage36.
Riskmanagementandinternalcontrol
The Board has adopted a Corporate Governance and
Internal Control Manual (“Manual”) for which they are
responsible,whichhasbeencompiledinordertocomply
with the AIC Code. The Manual is designed to provide
reasonablebutnotabsoluteassurance
againstmaterial
misstatementor loss, whichitachieves by detailingthe
perceivedrisksandcontrolstomitigatethem.TheBoard
reviews the perceived risks, in line with relevant
guidance,onanannualbasisandimplementsadditional
controlsasappropriate.

TheBoardreviewstheCompany’sRiskRegisterandthat
of the
Administration Manager on an annual basis. The
main aspects of internal control in relation to financial
reportingbytheBoardwereasfollows:

 Review of quarterly reports from the Investment
Manager on the portfolio of investments held,
includingadditionsanddisposals;
 Quarterly reviews by the Board of the
Company’s
investments (including a detailed review of
unquotedinvestmentvaluations),otherassetsand
liabilitiesandrevenueandexpenditure;
 Quarterly reviews of the compliance with the
Venture Capital Trust regulations, including a
reviewofthetwice‐yearlyreportsfromPhilipHare
&AssociatesLLP;
 A separate review of the Annual
 Report and Half‐
Yearly report by the Audit Committee, prior to
Boardapproval;and
 A review by the Board of all financial information
priortopublication.

TheBoardisresponsibleforensuringthatproceduresto
be followed by the Directors, the Investment Manager
andtheAdministrationManagerarein
place.Following
the conclusions of the Audit Committee, the Board
reviews the effectiveness of the Corporate Governance
Manual on an annual basis to ensure that the controls
remainrelevantandwereeffectivethroughouttheyear.

Although the Board is ultimately responsible for
safeguardingthe assetsofthe Company,the Board
has
delegated, through written agreements, the day‐to‐day
operation of the Company (including the Financial
ReportingProcess)tothefollowingadvisers:

Investment
Management
ElderstreetInvestmentsLimited
(PartoftheMoltenVentures
Group)
 
Administration
Management
DowningLLP



31
CORPORATEGOVERNANCESTATEMENT(continued)

Goingconcern
The Company’s business activities, together with the
factors likely to affect its future development,
performanceandpositionaresetoutintheChairman’s
Statement on pages 4 to 6, the Investment Manager’s
Reportonpages7to8andtheStrategicReportonpages
16and21.Thefinancial
positionoftheCompany,itscash
flows, liquidity position and borrowing facilities are
shownintheBalanceSheetonpage40,theStatementof
CashFlowsonpage41andtheStrategicReportonpage
19. In addition, note 15 to the financial statements
includes the Company’s objectives, policies and
processes for managing its capital, its financial risk
management objectives, details of its financial
instrumentsanditsexposurestocredit riskandliquidity
risk.

The Company has sufficient financial resources at the
yearendandholdsadiversifiedportfolioofinvestments.
As a consequence, the Directors believe that the
Company
is well placed to manage its business risks
successfully,despitetheuncertaineconomicoutlook.

TheCompanyhaslittledirectexposuretotheconflictin
Ukraine and the impact of new sanctions placed on
Russian business and individuals. The Investment
Manager works closely with all investee companies to
ensurethatthey
arewellplacedtoassesstheexposure
of the business to the Ukraine conflict and associated
developments.Asaresult,directimpactofthesanctions
on the Company’s performance is not expected to be
significant.

Increasing inflation, particularly on wages and other
costs has developed into an emerging risk during
the
period. The Investment Manager’s close relationship
withtheinvesteecompaniesallowsittoensurethatthe
businesses properly assess the potential impact of
increasing costs, particularly wages, and the extent to
whichthesemayormaynotbeabletobepassedonto
theendcustomer.TheBoardbelieves
that,currently,the
netimpactisatamanageablelevelanddoesnothavea
significantimpactonthegoingconcernoftheCompany.

Afterreviewingthecompany’sforecastsandprojections,
the Directors have a reasonable expectation that the
major cash outflows of the Company (notably new
investments, share buybacks
 and dividends) are within
theCompany’scontrol.Therefore,theBoardisconfident
that the current situation will not threaten the going
concernstatus.
The Board is satisfied that the Company has adequate
resources to continue in business for at least twelve
months from the date of approval of these financial
statements. For this reason, they believe that the
Companycontinuestobeagoingconcernand thatit is
appropriatetoapplythegoingconcernbasisinpreparing
thefinancialstatements.

Compliancestatement
Paragraph9.8.6oftheListingRulesrequirestheBoardto
report on compliance with the provisions of 
the UK
CorporateGovernanceCodethroughoutthe accounting
period.FollowingdiscussionswiththeAIConanupdate
to the AIC Code, the Financial Reporting Council (FRC)
confirmed that member companies who report against
theAICCodewillbemeetingtheirobligationsinrelation
to the 2018 UK Corporate Governance Code and

paragraph9.8.6oftheListingRules.

With the exception of the item outlined below, the
Companyhascomplied,throughouttheaccountingyear
ended 31 March 2022, with the Principles set out in
Sections5to9oftheAICCodeofCorporateGovernance:

a) The Company has no major
Shareholders, so
Shareholdersarenotgiventheopportunitytomeet
the Chairmanat a specific meetingotherthan the
AnnualGeneralMeeting.(5.2.3)

b) A formal and rigorous performance evaluation of
theBoard,itsCommittees,theindividualDirectors
and the Chairman has not been undertaken.
Specificperformanceissues are dealt
withas they
arise.(6.2.14,7.2.26)

c) DuetothesizeoftheBoardand thenatureof the
Company’s business, the Board considers it
appropriate for the entire Board, including the
chair, to fulfil the role of the nomination and the
remunerationcommittee.(7.2.22,9.2.37)

Byorderofthe
Board


GrantWhitehouse
CompanySecretary
MoltenVenturesVCTplc
Companynumber:03424984
Registeredoffice:
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD
15July2022


32
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC

Opiniononthefinancialstatements
Inouropinionthefinancialstatements:
 giveatrueandfairviewofthestateoftheCompany’saffairsasat31March2022andofitsprofitfortheyear
thenended;
 havebeenproperlypreparedinaccordancewithUnitedKingdomGenerally
AcceptedAccountingPractice;
 havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006.

WehaveauditedthefinancialstatementsofMoltenVenturesVCTplc(the‘Company’)fortheyearended31March2022
whichcomprisetheIncomeStatement, theStatementof Changesin Equity,the BalanceSheet,
theCashflow Statement
and notes to the financial statements, including a summary of significant accounting policies. The financial reporting
frameworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards,including
FinancialReporting Standard 102 TheFinancialReporting Standardapplicable in theUK  and Republic
ofIreland(United
KingdomGenerallyAcceptedAccountingPractice).

Basisforopinion
WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(ISAs(UK))andapplicablelaw.Our
responsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiesfortheauditofthefinancial
statementssection ofour
report.We believe that the audit evidence we haveobtained is sufficient and appropriate to
provideabasisforouropinion.Ourauditopinionisconsistentwiththeadditionalreporttotheauditcommittee.

Independence
Followingtherecommendationoftheauditcommittee,wewereappointedbytheBoardofDirectors
toauditthefinancial
statements for the year ended 31 December 2007 and subsequent financial periods. The period of total uninterrupted
engagementincludingretendersandreappointmentsis15years,coveringtheyearsended31December2007to31March
2022.WeremainindependentoftheCompanyinaccordancewiththeethical
requirementsthatarerelevanttoouraudit
ofthefinancialstatementsintheUK,includingtheFRC’sEthicalStandardasappliedtolistedpublicinterestentities,and
wehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Thenon ‐auditservicesprohibited
bythatstandardwerenotprovided
totheCompany.

Conclusionsrelatingtogoingconcern
Inauditingthefinancialstatements,wehaveconcludedthattheDirectors’useofthegoingconcernbasisofaccountingin
thepreparationofthefinancialstatementsisappropriate.OurevaluationoftheDirectors’assessmentoftheCompany’s
abilitytocontinuetoadopt
thegoingconcernbasisofaccountingincluded:
 ObtainingtheVCTcompliancereportsduringtheyearandasatyearendandreviewingtheircalculationstocheck
thattheCompanywasmeetingitsrequirementstoretainVCTstatus;
 Reviewing the forecasted cash flows that support the Directors’ assessment of going
 concern and challenging
management’s assumptions and judgements made in the forecasts, assessing them for reasonableness. In
particularweconsideredtheavailablecashresourcesrelativetotheforecastexpenditureandabilitytomeetVCT
qualificationcriteria;and
 Evaluating the appropriateness of management’smethod of assessing the going concern in light
of worst case
assumptionsandthepresentuncertaintiesduetotheCovid‐19pandemic.

Basedontheworkwehaveperformed,wehavenotidentifiedanymaterialuncertaintiesrelatingtoeventsorconditions
that,individuallyorcollectively,maycastsignificantdoubtontheCompany’sabilitytocontinueasagoing
concernfora
periodofatleasttwelvemonthsfromwhenthefinancialstatementsareauthorisedforissue.

InrelationtotheCompany’sreportingonhowithasappliedtheUKCorporateGovernanceCode,wehavenothingmaterial
toaddordrawattentiontoinrelationtotheDirectors’statement
inthefinancialstatementsaboutwhethertheDirectors
considereditappropriatetoadoptthegoingconcernbasisofaccounting.

Ourresponsibilities and theresponsibilitiesof theDirectors with respectto going concernare described inthe relevant
sectionsofthisreport.

Overview
  2022 2021
Keyauditmatters ValuationofUnquotedInvestments Yes Yes
Materiality £2,100,000(2021:£890,000)basedon2%ofnetassets(2020:2%offixedassetinvestments)


33
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC(continued)

Anoverviewofthescopeofouraudit
OurauditwasscopedbyobtaininganunderstandingoftheCompanyanditsenvironment,includingtheCompany’ssystem
ofinternalcontrol,andassessingtherisksofmaterialmisstatementinthefinancialstatements.Wealsoaddressedtherisk
ofmanagementoverrideofinternal
controls,includingassessingwhethertherewasevidenceofbiasbytheDirectorsthat
mayhaverepresentedariskofmaterialmisstatement.

Keyauditmatters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of  the
financialstatementsofthecurrentperiod
andincludethemostsignificantassessedrisksofmaterialmisstatement(whether
ornot due tofraud)that weidentified,including thosewhichhadthegreatesteffecton: the overall auditstrategy,the
allocationofresourcesintheaudit,anddirectingtheeffortsoftheengagementteam.Thesematterswereaddressed
in
thecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovide
aseparateopiniononthesematters.

Keyauditmatter Howthescopeofourauditaddressedthekeyauditmatter
Valuationof
unquoted
investments

Refertonote
1and9ofthe
financial
statements

Theunquoted
investmentsconsistof
equityinvestments.We
considerthevaluationof
unquotedinvestments
tobethemost
significantauditareaas
thereisahighlevelof
estimationuncertainty
involvedindetermining
theunquoted
investment
valuations.

Thereisaninherentrisk
ofmanagementoverride
arisingfromthe
unquotedinvestment
valuationsbeing
preparedbythe
InvestmentManager,
whoisremunerated
basedonthevalueof
thenetassetsofthe
fund,asshowninnote3.

Oursampleforthetestingofunquotedinvestmentswasstratified
according
toriskconsidering,interalia,thevalueofindividualinvestments,thenature
oftheinvestment,theextentofthefairvaluemovementandthesubjectivity
ofthevaluationtechnique.

ForallInvestmentsinoursamplewe:
Challengedwhetherthevaluationmethodologywasthemostappropriatein
thecircumstancesunder
theInternationalPrivateEquityandVentureCapital
Valuation(“IPEV”)Guidelinesandtheapplicableaccountingstandards.We
havecheckedthatthevaluationmethodologyremainsapplicablegiventhe
impactoftheRussia/UkrainecrisisandCovid‐19,andrecalculatedthevalue
attributabletotheCompany,havingregardtotheapplicationofenterprise
value
acrossthecapitalstructuresoftheinvesteecompanies.

For investments sampled that were valued using less subjective valuation
techniques(costandpriceofrecentinvestmentreviewedforchangesinfair
value)we:
• Verified the cost or price of recent investment to supporting
documentation;
• Considered whether the investment was an
arm’s length
transaction through reviewing the parties involved in the
transaction and checking whether or not they were already
investorsoftheinvesteeCompany;
• Considered whether there were any indications that the cost or
price of recent investment was no longer representative of fair
value considering, inter alia, the current
performance of the
investeecompanyandthe milestones andassumptions set outin
theinvestmentproposal;and
• Consideredwhetherthepriceofrecentinvestmentissupportedby
alternativevaluationtechniques.
Forinvestmentssampledthatwerevaluedusingmoresubjective
techniques(earningsmultiples,revenuemultiplesanddiscountedcashflow
forecasts)we:
• Challengedandcorroboratedtheinputstothevaluationwith
referencetomanagementinformationofinvesteecompanies,
marketdataandourownunderstandingandassessedtheimpact
oftheestimationuncertaintyconcerningtheseassumptionsand
thedisclosureoftheseuncertaintiesinthefinancialstatements;
• Reviewed the historical financial statements and any
 recent
managementinformation available to support assumptions about
maintainable revenues, earnings or cash flows used in the
valuations;


34
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC(continued)
Anoverviewofthescopeofouraudit(continued)
  • Consideredtherevenueorearningsmultiplesappliedandthe
discountsappliedbyreferencetoobservablelistedcompany
marketdata;and
• Challengedtheconsistencyandappropriatenessofadjustments
madetosuchmarketdatainestablishingtherevenue,cashflow
or
earningsmultipleappliedinarrivingatthevaluationsadopted
byconsideringtheindividualperformanceofinvesteecompanies
againstplanandrelativetothepeergroup,themarketand
sectorinwhichtheinvesteecompanyoperatesandotherfactors
asappropriate.

Whereappropriate,weperformedasensitivityanalysisbydevelopingour
own point estimate where we considered that alternative input
assumptionscouldreasonably have been appliedand weconsidered the
overall impact of such sensitivities on the portfolio of investments in
determining whether the valuations as a whole are reasonable and free
frombias.

Keyobservations:
Basedontheproceduresperformed
weconsidertheinvestment
valuationstobeappropriateconsideringthelevelofestimation
uncertainty.

Ourapplicationofmateriality
We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of
misstatements.Weconsidermaterialitytobethemagnitudebywhichmisstatements,includingomissions,couldinfluence
theeconomicdecisionsofreasonableusersthataretakenonthebasis
ofthefinancialstatements.

Inordertoreducetoanappropriatelylowleveltheprobabilitythatanymisstatementsexceedmateriality,weusealower
materialitylevel,performancemateriality,todeterminetheextentoftestingneeded.Importantly,misstatementsbelow
these levels will not necessarily be evaluated as immaterial as we also
take account of the nature of identified
misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial
statementsasawhole.

Basedonourprofessionaljudgement,wedeterminedmaterialityforthefinancialstatementsasawholeandperformance
materialityasfollows:
 CompanyFinancialStatements
 2022 2021
Materiality £2,100,000 £890,000
Basisfordeterminingmateriality 2%ofnetassets 2%offixedassetinvestments
Rationale for the benchmark
applied
The primary focus of Investment
companiesofthisnatureislongandshort
termcapitalappreciation.Thereforethe
users of the financial statements are
primarilyfocusedonthenetassetvalue,
hence we consider this to be the most
appropriate basis for our materiality
calculations.

We have updated our materiality basis
duringtheyearasinourjudgement,the
users of the financial statements are
interested in the net asset position as
comparedtogrossassets.
In setting materiality, we have had
regard to the nature and composition
oftheinvestmentportfolio.Giventhat
the VCT’s
 portfolio is comprised of
quoted and unquoted investments
which would typically have a wider
spread of reasonable alternative
possiblevaluations, we have applied a
percentageof1.75%ofnetassets.

35
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC(continued)

Ourapplicationofmateriality(continued)
Performancemateriality £1,570,000 £670,000
Basisfordetermining
performancemateriality
75%ofmateriality
The level of performance materiality
appliedwassetafterhavingconsidereda
numberoffactorsincludingtheexpected
total value of known  and likely
misstatements.
75%ofmateriality
The level of performance materiality
appliedwassetafterhavingconsidered
a number of factors
 including the
expected total value of known and
likelymisstatements.

Lowertestingthreshold
WedeterminedthatforRevenuereturnbeforetax,amisstatementoflessthanmaterialityforthefinancialstatementsas
a whole, could influence users of the financial statements as it is a measure of the Company’s performance of income
generated from its investments after expenses. As a
result, we determined a lower testing threshold for those items
impactingrevenuereturnof£212,000(2021:£134,000)basedon10%(2021:10%)ofgrossexpenditure.

Reportingthreshold
WeagreedwiththeAuditCommitteethatwewouldreporttothemallindividualauditdifferencesinexcessof£108,000
(2021: £17,000). We
also agreed to report differences below this threshold that, in our view, warranted reporting on
qualitativegrounds.

Otherinformation
Thedirectorsareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedinthe
Annual Report other than the financial statements and our auditor’s report thereon. Our opinion
on the financial
statementsdoesnotcovertheotherinformationand,excepttotheextentotherwiseexplicitlystatedinourreport,wedo
notexpressanyformofassuranceconclusionthereon.Ourresponsibilityistoreadtheotherinformationand,indoingso,
considerwhethertheotherinformationismateriallyinconsistent
withthefinancialstatementsorourknowledgeobtained
inthecourseoftheaudit,orotherwiseappearstobemateriallymisstated.Ifweidentifysuchmaterialinconsistenciesor
apparentmaterialmisstatements,wearerequiredtodeterminewhetherthisgivesrisetoamaterialmisstatementinthe
financial statements themselves. If,
based on the work we have performed, we conclude that there is a material
misstatementofthisotherinformation,wearerequiredtoreportthatfact.

Wehavenothingtoreportinthisregard.
Corporategovernancestatement
TheListingRulesrequireustoreviewtheDirectors’statementinrelationtogoingconcern,longer‐termviabilityandthat
partoftheCorporateGovernanceStatementrelatingtotheCompany’scompliancewiththeprovisionsoftheUKCorporate
GovernanceCodespecifiedforourreview.

Basedonthe
workundertakenaspartofouraudit,wehaveconcludedthateachofthefollowingelementsoftheCorporate
GovernanceStatementismateriallyconsistentwiththefinancialstatementsorourknowledgeobtainedduringtheaudit.

Goingconcern
andlonger‐term
viability

 TheDirectors'statementwithregardstotheappropriateness
ofadoptingthegoingconcern
basisofaccountingandanymaterialuncertaintiesidentified;and
 TheDirectors’explanationastoitsassessmentoftheCompany’sprospects,theperiodthis
assessmentcoversandwhytheperiodisappropriate.

OtherCode
provisions


 Directors'statementisfair,balancedandunderstandable;
 Board’s confirmation that it has carried out a robust assessment of the emerging and
principalrisks;
 The section of the annual report that describes the review of effectiveness of risk
managementandinternalcontrolsystems;and

Thesectiondescribingtheworkoftheauditcommittee


36
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC(continued)

OtherCompaniesAct2006reporting
Basedontheresponsibilitiesdescribedbelowandourworkperformedduringthecourseoftheaudit,wearerequiredby
theCompaniesAct2006andISAs(UK)toreportoncertainopinionsandmattersasdescribedbelow.

Strategicreport
andDirectors’
report

Inour
opinion,basedontheworkundertakeninthecourseoftheaudit:
 theinformationgivenintheStrategicreportandtheDirectors’reportforthefinancialyear
forwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements;
and
 the Strategic report and the Directors’ report
have been prepared in accordance with
applicablelegalrequirements.
InthelightoftheknowledgeandunderstandingoftheCompanyanditsenvironmentobtainedin
thecourseoftheaudit,wehavenotidentifiedmaterialmisstatementsinthestrategicreportorthe
Directors’report.
Directors’
remuneration
Inouropinion,thepartoftheDirectors’remunerationreporttobeauditedhasbeenproperly
preparedinaccordancewiththeCompaniesAct2006.
Matterson
whichweare
requiredto
reportby
exception

WehavenothingtoreportinrespectofthefollowingmattersinrelationtowhichtheCompaniesAct
2006requiresustoreporttoyouif,inouropinion:

 adequateaccountingrecordshavenot beenkept,or returnsadequate
forour audithave
notbeenreceivedfrombranchesnotvisitedbyus;or
 thefinancialstatementsandthepartoftheDirectors’remunerationreporttobeaudited
arenotinagreementwiththeaccountingrecordsandreturns;or
 certaindisclosuresofDirectors’remunerationspecifiedbylaware
notmade;or
 wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

ResponsibilitiesofDirectors
AsexplainedmorefullyintheDirectors’responsibilitiesstatement,theDirectorsareresponsibleforthepreparationofthe
financialstatementsandforbeingsatisfiedthattheygiveatrueandfairview,andforsuchinternalcontrolastheDirectors
determineisnecessarytoenablethepreparation
offinancialstatementsthatarefreefrommaterialmisstatement,whether
duetofraudorerror.

Inpreparingthefinancial statements, the Directors areresponsiblefor assessing theCompany’s abilitytocontinueasa
goingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisof
accounting
unlesstheDirectorseitherintendtoliquidatetheCompanyortoceaseoperations,orhavenorealisticalternativebutto
doso.

Auditor’sresponsibilitiesfortheauditofthefinancialstatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrom
material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assuranceisahigh level of assurance, but is not a guarantee that an audit conductedin accordancewith ISAs (UK)will
always detect a material misstatement when it exists. Misstatements can
 arise from fraud or error and are considered
materialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofusers
takenonthebasisofthesefinancialstatements.

Extenttowhichtheauditwascapableofdetectingirregularities,includingfraud
Irregularities,includingfraud,
areinstancesofnon‐compliancewithlawsandregulations.Wedesignproceduresinlinewith
ourresponsibilities,outlinedabove,todetectmaterialmisstatementsinrespectofirregularities,includingfraud.Theextent
towhichourproceduresarecapableofdetectingirregularities,includingfraudisdetailedbelow:


37
INDEPENDENTAUDITOR’SREPORTTOTHEMEMBERSOFMOLTENVENTURESVCTPLC(continued)

Auditor’sresponsibilitiesfortheauditofthefinancialstatements(continued)
WegainedanunderstandingofthelegalandregulatoryframeworkapplicabletotheCompanyandtheindustryinwhichit
operates,andconsideredtheriskofactsbytheCompanywhichwerecontrarytoapplicablelawsandregulations,including
fraud.
 These included but were not limited to compliance with Companies Act2006,the FCA listing and DTR rules, the
principles of the UK Corporate Governance Code, industry practice represented by the Statement of Recommended
Practice: Financial Statements of Investment Trust Companies and Venture Capital Trusts (“the SORP”) and updated in
February2018withconsequentialamendmentsandtheapplicablefinancialreportingframework.Wealsoconsideredthe
Company’squalificationasaVCTunderUKtaxlegislation.

Ourproceduresincluded:
 obtaininganunderstandingofthecontrolenvironmentinmonitoringcompliancewithlawsandregulations;
 agreementofthefinancialstatementdisclosuresto
underlyingsupportingdocumentation;
 enquiriesofmanagementandthosechargedwithgovernancerelatingtotheirknowledgeofanynon‐compliance
withlawsandregulations;
 obtainingtheVCTcompliancereportspreparedbymanagement’sexpertduringtheyearandasatyearendand
reviewingtheircalculationstocheckthattheCompany
wasmeetingitsrequirementstoretainVCTstatus;and
 reviewingminutesofboardmeetingsandlegalcorrespondenceandinvoicesthroughouttheperiodforinstancesof
non‐compliancewithlawsandregulationsandfraud.

Weassessedthesusceptibilityofthefinancialstatementtomaterialmisstatementincludingfraudandconsideredthe

fraudriskareastobethevaluationofunquotedinvestmentsandmanagementoverrideofcontrols.

Ourtestsincluded,butwerenotlimitedto:
 theproceduressetoutintheKeyauditmatterssectionabove;
 obtainingindependentevidencetosupporttheownershipofasampleofinvestments;
 enquiries
ofmanagement,thosechargedwithgovernancerelatingtotheirknowledgeofanyfraud,whether
suspectedoralleged;
 recalculatinginvestmentmanagementfeesintotal;
 obtainingindependentconfirmationofbankbalances;and
 testingjournalswhichmetadefinedriskcriteriabyagreeingtosupportingdocumentationandevaluating
whetherthere
wasevidenceofbiasbytheInvestmentManagerandDirectorsthatrepresentedariskofmaterial
misstatementduetofraud.

Wealsocommunicatedrelevantidentifiedlawsandregulationsandpotentialfraudriskstoallengagementteam
membersandremainedalerttoanyindicationsoffraudornon‐compliancewithlaws
andregulationsthroughoutthe
audit.

Ourauditproceduresweredesignedtorespondtorisksofmaterialmisstatementinthefinancialstatements,recognising
thattheriskofnotdetectingamaterialmisstatementduetofraudishigherthantheriskofnotdetectingoneresulting
fromerror,asfraudmayinvolve
deliberateconcealmentby,forexample,forgery,misrepresentationsorthroughcollusion.
Thereareinherentlimitationsintheauditproceduresperformedandthefurtherremovednon‐compliancewithlawsand
regulationsisfromtheeventsandtransactionsreflectedinthefinancialstatements,thelesslikelywearetobecomeaware
ofit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities.Thisdescriptionformspartofourauditor’sreport.

Useofourreport
ThisreportismadesolelytotheCompany’smembers,asabody,inaccordancewithChapter3ofPart16ofthe
Companies
Act2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany’smembersthosemattersweare
requiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedo
notacceptorassumeresponsibilityto
anyoneotherthan theCompanyandtheCompany’smembersasabody,forour
auditwork,forthisreport,orfortheopinionswehaveformed.

PeterSmith(SeniorStatutoryAuditor)
ForandonbehalfofBDOLLP,StatutoryAuditor
London,UnitedKingdom            15July2022

BDOLLPisa
limitedliabilitypartnershipregisteredinEnglandandWales(withregisterednumberOC305127).

38
INCOMESTATEMENT
fortheyearended31March2022

  Yearended31March2022 Yearended31March2021
 
 Revenue Capital Total Revenue Capital Total
Note £’000 £’000 £’000 £’000 £’000 £’000
      
Income 2 300‐300 104‐104
Gainsoninvestments 9 ‐ 20,233 20,233 ‐ 9,770 9,770
    
  300 20,233 20,533 104 9,770 9,874
    
Investmentmanagementfees 3 (430) (1,291) (1,721) (230) (691) (921)
Otherexpenses 4 (407)‐(407) (420)‐(420)
    
Return/(loss)onordinaryactivities
beforetax
 
(537)

18,942

18,405

(546)

9,079

8,533
Taxonreturn/(loss) 6 ‐ ‐ ‐  ‐ ‐ ‐
Return/(loss)attributabletoequity
shareholders,beingtotal
comprehensiveincomefortheperiod


8


(537)


18,942


18,405


(546)


9,079


8,533
    
Basicanddilutedreturn/(loss)
pershare 8 (0.4)

12.4

12.0 (0.5)

8.4

7.9

AllRevenueandCapitalitemsintheabovestatementderivefromcontinuingoperations.Nooperationswereacquiredor
discontinued during the year. The total column within the Income Statement represents the Statement of Total
Comprehensive
Income of the Company prepared in accordance with Financial Reporting Standards (“FRS 102”). The
supplementary revenue and capital return columns are prepared in accordance with the Statement of Recommended
PracticeissuedinOctober2019bytheAssociationofInvestmentCompanies(“SORP”).




























Theaccompanyingnotesformanintegralpartofthesefinancialstatements.


39
STATEMENTOFCHANGESINEQUITY
fortheyearended31March2022

Share
capital
Capital
Redemption
reserve
Share
Premium
account
Merger
reserve
Special
reserve
Capital
reserve‐
unrealised
Capital
reserve‐
realised
Revenue
reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Fortheyearended31March2021
    
At1April2020 3,997 633 6,388 1,828 18,713 4,417 776 (9)
36,743
Totalcomprehensiveincome ‐ ‐ ‐ ‐ ‐ 9,732 (653) (546) 8,533
Transferbetweenreserves*‐ ‐‐‐(2,565) 10 2,555‐‐
Transactionswithowners 
Issueofnewshares 1,566‐11,933‐‐ ‐‐‐13,499
Shareissuecosts 12 ‐ ‐ ‐ ‐ (455)‐‐‐(455)
Purchaseofownshares 12 (26) 26‐‐(230)‐‐‐(230)
Dividendspaid 7 ‐ ‐ ‐ ‐ ‐ ‐ (2,678)‐(2,678)
At31March2021  5,537
 659 18,321 1,828 15,463 14,159‐(555) 55,412
Fortheyearended31March2022
    
At1April2021   
Totalcomprehensiveincome‐ ‐‐‐‐20,221 (1,279) (537) 18,405
Transferbetweenreserves*‐ ‐‐(1,155) (6,838) 840 7,153‐‐
Transactionswithowners 
Issueofnewshares  3,478‐37,952‐‐ ‐‐‐41,430
Shareissuecosts 12 ‐ ‐ ‐ ‐ (1,900)‐‐‐(1,900)
Purchaseofownshares 12 (135) 135‐‐(1,422)‐‐‐(1,422)
Dividendspaid 7 ‐ ‐ ‐ ‐ ‐ ‐ (4,358)‐(4,358)
At
31March2022  8,880 794 56,273 673 5,303 35,220 1,516 (1,092) 107,567
*Atransferof£840,000(2021:£10,000),representingimpairmentlossesduringtheyear,aswellascumulativeunrealisedgainsoninvestmentswhichwere
disposedofduringtheyearhasbeenmadefromtheCapitalreserve‐unrealisedtotheCapitalReserve–realised.Atransferof£2,480,000(2021:£704,000),
representingrealisedlosses
oninvestmentdisposalspluscapitalexpensesintheyear,hasbeenmadefromCapitalReserve–realisedtotheSpecialreserve.
Atransferof£4,358,000(2021:£1,861,000)fromSpecialReservetoCapitalreserve‐realisedhasbeenmadetoreplenishthereserve.Atransferof£1,155,000
(2021:nil)fromMergerReserve
toCapitalreserve‐realisedhasbeenmadefollowingthedisposalofaninvestmentwhichwasheldpre‐merger.


























Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

40
BALANCESHEET
at31March2022



31Mar
2022 
31Mar
2021
Note £’000 £’000 £’000 £’000
Fixedassets    
Investments 9  76,808  44,756
  
Currentassets
Debtors 10 2078
Cashatbankandinhand  31,09510,659
  31,11510,737
  
Creditors:amountsfallingduewithinoneyear 11 (356)(81)
  
Netcurrentassets 30,759  10,656

Netassets 107,567  55,412
 
Capitalandreserves 
Calledupsharecapital 12  8,880   5,537
Capitalredemptionreserve 13  794   659
Sharepremiumaccount 13  56,273   18,321
Mergerreserve 13  673   1,828
Specialreserve 13  5,303   15,463
Capitalreserve
–
unrealised 13  35,220   14,159
Capitalreserve
–
realised 13  1,516  ‐
Revenuereserve 13  (1,092)   (555)
 
Totalequityshareholders’funds 14  107,567   55,412

 
Basicanddilutednetassetvaluepershare 14  60.6p  50.0p

Thefinancialstatementsonpages38to56wereapprovedandauthorisedforissuebytheBoardofDirectorson15July
2022andweresignedonitsbehalfby:





DavidBrock
Chairman
Companynumber:03424984













Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

41
STATEMENTOFCASHFLOWS
fortheyearended31March2022

 
Note
31Mar
2022
 31Mar
2021
£’000 £’000
Cashflowfromoperatingactivities  
Profitonordinaryactivitiesbeforetaxation18,405 8,533
Gainsoninvestments(20,233) (9,770)
Decrease/(increase)indebtors11 (16)
Increase/(decrease)increditors216 (15)
 


Netcashoutflowfromoperatingactivities  (1,601) (1,268)




Cashflowfrominvestingactivities 


Purchaseofinvestments(12,491) (9,011)
Proceedsfromdisposalofinvestments672 2,520
 


Netcashoutflowfrominvestingactivities  (11,819) (6,491)
 


Cashflowfromfinancingactivities 


Equitydividendspaid 7 (4,358) (2,772)
Proceedsfromshareissue41,42913,499
Shareissuecosts 12 (1,853) (501)
Purchaseofownshares 12 (1,362) (230)
 


Netcashinflowfromfinancingactivities  33,856 9,996
 


Netincreaseincash  20,436 2,237
Cashandcashequivalentsatstartofyear10,659 8,422
Cashandcashequivalentsatendofyear31,09510,659
 


Cashandcashequivalentscomprise 


Cashatbankandinhand31,09510,659
 


Totalcashandcashequivalents  31,09510,659






















Theaccompanyingnotesformanintegralpartofthesefinancialstatements.

42
NOTESTOTHEACCOUNTS
fortheyearended31March2022

1. Accountingpolicies
Generalinformation
MoltenVenturesVCTplc(“theCompany”)isaventurecapitaltrustestablishedunderthelegislationintroducedinthe
FinanceAct1995andisdomiciledintheUnitedKingdomandincorporatedinEnglandandWales.TheCompanyisa
premiumlistedentityontheLondonStockExchange.


Basisofaccounting
TheCompany hasprepareditsfinancialstatements in accordance withthe FinancialReporting Standard102(“FRS
102”) and in accordance with the Statement of RecommendedPractice “Financial Statements of Investment Trust
CompaniesandVentureCapitalTrusts”issuedinApril2021(“SORP”)andwiththeCompaniesAct2006.


Goingconcern
AfterreviewingtheCompany’sforecastsandprojections,theDirectorshaveareasonableexpectationthatthemajor
cashoutflowsoftheCompany(mostnotablyinvestments,sharebuybacksanddividends)arewithintheCompany’s
controland therefore the Companyhassufficientcash tomeet its expenses and liabilities when they
falldue.The
impact of COVID‐19 has been considered, more detail on these considerations can be found within the Corporate
Governancereport.Assuch,theBoardconfirmsthattheCompanyhasadequateresourcestocontinuesinoperational
existence for at least 12 months from the date of approval of
the financial statements. The Company therefore
continuestoadoptthegoingconcernbasisinpreparingitsfinancialstatementsasnotedfurtherwithintheCorporate
Governancereportonpage31.

PresentationofIncomeStatement
Inorderto betterreflect the activities ofaventure capitaltrust, andinaccordancewith the
SORP, supplementary
informationwhichanalysestheIncomeStatementbetweenitemsofarevenueandcapitalnaturehasbeenpresented
alongsidetheIncomeStatement.ThenetrevenueisthemeasuretheDirectorsbelieveappropriateinassessingthe
Company'scompliancewithcertainrequirementssetoutinPart6oftheIncomeTaxAct
2007.

Investments
Investmentsaredesignatedas“fairvaluethroughprofitorloss”assets,uponacquisition,duetoinvestmentsbeing
managedandperformanceevaluatedonafairvaluebasis.Afinancialassetisdesignatedwithinthiscategoryifitis
both acquired and managed, with a view to selling after a
 period of time, in accordance with the Company’s
documentedInvestmentPolicy.

ListedfixedincomeinvestmentsandinvestmentsquotedonAIMandtheMainMarketaremeasuredusingbidprices
inaccordancewiththeInternationalPrivateEquityandVentureCapitalValuationGuidelines(“IPEV”).

Forunquotedinstruments,fairvalueisestablished
usingtheIPEV.Thevaluationmethodologiesforunquotedentities
usedbytheIPEVtoascertainthefairvalueofaninvestmentareasfollows:

 Multiples;
 Industryvaluationbenchmarks;
 Discountedcashflowsorearnings(ofunderlyingbusiness);
 Discountedcashflows(fromtheinvestment);
 Netassets;and
 Calibratingtothepriceofarecentinvestment.

Themethodologyappliedtakesaccountofthenature,factsandcircumstancesoftheindividualinvestment
anduses
reasonable data, market inputs, assumptions and estimates in order to ascertain fair value as explained in the
investmentaccountingpolicyaboveandaddressedfurtherinnote9.

Whereaninvesteecompanyhasgoneintoreceivership,liquidation,oradministration(wherethereislittlelikelihood
ofrecovery),thelosson
theinvestment,althoughnotphysicallydisposedof,istreatedasbeingrealised.Permanent
impairments in the value of investments are deemed to be realised losses and  held within the Capital Reserve –
Realised.

GainsandlossesarisingfromchangesinfairvalueareincludedintheIncomeStatementforthe
periodasacapital
itemandtransactioncostsonacquisitionordisposaloftheinvestmentexpensed.


43
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

1. Accountingpolicies(continued)
Investments(continued)
ItisnottheCompany’spolicytoexercisesignificantinfluenceoverinvesteecompanies.Therefore,theresultsofthese
companies are not incorporated in the Income Statement, except to the extent of any income accrued. This is in
accordancewiththeSORPandFRS102sections
14and15thatdonotrequireportfolioinvestmentstobeaccounted
forusingtheequitymethodofaccounting.

Calibrationto priceofrecentinvestment requiresalevelofjudgmenttobeappliedinassessing andreviewingany
additionalinformationavailablesincethelastinvestmentdate.TheBoardandAdviser
considerarangeoffactorsin
order to determine if there is any  indication of decline in value or evidence of increase in value since the recent
investmentdate.Ifnosuchindicationsarenotedthepriceoftherecentinvestmentwillbeusedasthefairvaluefor
the
investment.

Examplesofsignalswhichcouldindicateamovementinvalueare:‐
Changes in results against budget or in expectations of achievement of technical milestones patents/testing/
regulatoryapprovals)
Significantchangesinthemarketoftheproductsorintheeconomicenvironmentinwhichitoperates
Significantchangesintheperformance
ofcomparablecompanies
Internalmatterssuchasfraud,litigationormanagementstructure.

InrespectofdisclosuresrequiredbytheSORPforthe10largestinvestmentsheldbytheCompany,themostrecent
publicly available accounts information, either as filed at Companies House, or announced to the London Stock
Exchange,isdisclosed.
Inthecaseofunlistedinvestments,thismaybeabbreviatedinformationonly.

Judgementinapplyingaccountingpoliciesandkeysourcesofestimationuncertainty
Thekeyestimatesinthefinancialstatementsisthedeterminationofthefairvalueoftheunquotedinvestmentsby
theDirectorsasitimpactsthevaluationof
theunquotedinvestmentsatthebalancesheetdate.

OftheCompany’sassetsmeasuredatfairvalue,itispossibletodeterminetheirfairvalueswithinareasonablerange
of estimates. The fair value of an investment upon acquisition is deemed to be cost. Thereafter, investments are
measuredatfairvalue
inaccordancewithFRS102sections11and12,togetherwiththeIPEV.

Apricesensitivityanalysisoftheunquotedinvestmentsisprovidedinnote15,underInvestmentpricerisk.

Income
Dividend income from investments is recognised when the Shareholders’ rights to receive payment have been
established,normallythe
ex‐dividenddate.

Interestincomeisaccruedon atimelybasis,byreferencetotheprincipaloutstandingandattheeffectiveinterest
rate applicable and only where there is reasonable certainty of collection. Where previously accrued income is
consideredunrecoverableacorrespondingbaddebtexpenseisrecognised.

Expenses
All expenses
 are accountedfor on an accruals basis. In respect of the analysis between revenue and capital items
presentedwithintheIncomeStatement,allexpenseshavebeenpresentedasrevenueitemsexceptasfollows:

 Expenseswhichareincidentaltotheacquisitionofaninvestmentaredeductedasacapitalitem.

 Expenses whichareincidentaltothedisposalof  aninvestmentare deductedfromthe disposalproceedsofthe
investment.
 Expensesaresplitandpresentedpartlyascapitalitemswhereaconnectionwiththemaintenanceorenhancement
of the value of the investments held can be demonstrated. The Company
has adopted the policy of allocating
investmentmanager’sfees,75%tocapitaland25%torevenueaspermittedbytheSORP.Theallocationisinline
withtheBoard’sexpectationoflongtermreturnsfromtheCompany’sinvestmentsintheform ofcapitalgains
andincomerespectively.
 Performanceincentivefees
arisingaretreatedasacapitalitem.


44
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

1. Accountingpolicies(continued)
Taxation
ThetaxeffectsondifferentitemsintheIncomeStatementareallocatedbetweencapitalandrevenueonthesame
basisastheparticularitemtowhichtheyrelateusingtheCompany’seffectiverateoftaxfortheaccountingperiod.

DuetotheCompany’sstatusas
aVentureCapitalTrustandthecontinuedintentiontomeettheconditionsrequired
tocomplywithPart6oftheIncomeTaxAct2007,noprovisionfortaxationisrequiredinrespectofanyrealisedor
unrealisedappreciationoftheCompany’sinvestmentswhicharise.

Deferred taxation is not discounted and
 is provided in full on timing differencesthat result in an obligation at the
balancesheetdatetopaymoretax,orarighttopaylesstax,atafuturedate,atratesexpectedtoapplywhenthey
crystallise based on current tax rates and law. Timing differences arise
from the inclusion of items of income and
expenditureintaxationcomputationsinperiodsdifferentfromthoseinwhichtheyareincludedintheaccounts.

Adeferredtaxassetisonlyrecognisedtotheextentthatitisprobabletherewillbetaxableprofitsinthefutureagainst
whichthe
assetcanbeoffset.

Otherdebtorsandothercreditors
Otherdebtors(includingaccruedincome)andothercreditorsareincludedwithintheaccountsatamortisedcost.

Cashandcashequivalents
Cashandcashequivalentsincludecashinhandanddepositsheldatcallwithbankswithanoriginalmaturityofthree

monthsorless.
Dividends
Dividendspayablearerecognisedasdistributionsinthefinancialstatementswhen the company’sliabilitytomake
paymenthasbeenestablished,typicallyoncedeclaredbytheBoardorapprovedbyShareholdersattheAGM.

Issuecosts
Issuecostsinrelationtothesharesissuedaredeductedfrom
thespecialreserve.

Reportablesegments
TheCompanyhasonereportablesegmentasthesoleactivityoftheCompanyistooperateasaVCTandallofthe
Company’sresourcesareallocatedtothisactivity.

2. Income

 Yearto
31Mar
2022 
Yearto
31Mar
2021
Incomefrominvestments £’000 £’000
Loannoteinterest 1 1
Dividendincome 299 74
 300 75
Otherincome  
Depositinterest ‐  29
 300 104


45
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

3. Investmentmanagementfees

 Yearto
31Mar
2022
 Yearto
31Mar
2021
 £’000 £’000
Investmentmanagementfees 1,721 921
 1,721 921

A performance fee shall be payable to the Investment Manager equal to 20% of any realised gains made on the
disposalofaninvestmentprovidedtwohurdlesaremet:
(a) anIRRhurdlerequiringtheachievementofatleast7%IRRinrespectofinvestmentsmadewithinafive‐yearpool,

thefirstsuchperiodstartingon1April2021;and
(b) aNAVpersharehurdlerequiringtheNAVpershareattheendoftheyearinwhichthegainismadetobehigher
thantheNAVpershareatthecommencementofthefive‐yearpoolperiod
inwhichtheinvestmentwasmade(after
addingbackdividendspaidintheperiod).
Theperformanceincentivefeewillalsohaveacatch‐upifthehurdlesarenotmet.Asthetestwasnotmetforthe
yearended31March2022,noperformancefeeswerepayableatthebalancesheet
date(2021:£nil).

4. Otherexpenses
 Yearto
31Mar2022
Yearto
31Mar2021
 £’000 £’000
Administrationservices 90 65
Directors’remuneration 93 121
Socialsecuritycosts 1 4
Auditor’sremunerationforstatutoryaudit 53 36
Corporationtaxservices 2 2
Trailcommission 37 38
Otherrunning
costs 131 154
 407 420

Theannual runningcostsof theCompanyare subject toacapat 3.5%oftheCompany’sweighted netassetvalue
duringtheyear.TheManager’sfeesarerestrictedasappropriateshouldthiscapbebreached.£5,000(2021:£nil)of
theAuditor’sremunerationisattributabletotheprioryear.

5.
Directors’remuneration

DetailsofremunerationoftheDirectors(excludingemployers’NI)canbefoundintheDirectors’RemunerationReport
onpage25.

TheCompanyhadnoemployeesotherthantheDirectorsduringtheyearandaccordinglytheDirectorsareconsidered
tobetheKeyManagementPersonneloftheCompany.Nootheremolumentsorpensioncontributionswerepaidby
theCompanyto,oronbehalfof,anyDirectors.



46
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

6. Taxationonordinaryactivities
 Yearto
31Mar2022
 Yearto
31Mar2021
 £’000 £’000
(a) Taxchargefortheyear
  
Currentyear  
UKcorporationtaxat19.0%(2020:19.0%)‐‐
Chargedtocapitalexpenses‐‐
 ‐  ‐
(b) Factorsaffectingtaxchargefortheyear  
  
Gainonordinaryactivitiesbeforetax 18,405 8,533
  
Taxchargecalculatedongain/(loss)onordinaryactivitiesbeforetaxatthe
applicablerateof19.0%(2020:19.0%)

3,497

1,621
Gainsoninvestments (3,844) (1,856)
UKdividendincome (57) (14)
Expensesdisallowedfortaxationpurposes‐‐
Deferredtaxnotrecognised 404 249
Taxcharge ‐  ‐

(c) Excess management fees, which are available to be carried forward and set off against future taxable income,
amountedto£10.8millionasat31March2022(2021:£8.7million).Theassociateddeferredtaxassetatarateof17%
of £1.8 million (2021: £1.5 million) has not been recognised
due to the fact that it is unlikely that the excess
managementfeeswillbesetoffagainsttaxableprofitsintheforeseeablefuture.

DuetotheCompany’sstatusasaVentureCapitalTrustandtheintentiontocontinuemeetingtheconditionsrequired
toobtainapprovalintheforeseeablefuture,
theCompanyhasnotprovidedfordeferredtaxonanycapitalgainsand
lossesarisingontherevaluationordisposalofinvestments.

7. Dividends

 Yearended31March2022 Yearended31March2021
  
 Revenue Capital TotalRevenue Capital Total
 £’000 £’000 £’000 £’000 £’000 £’000
Dividendspaidinyear  
2022Interim 1.5p‐2,175 2,175  ‐ ‐ ‐
2021Final 1.5p‐2,183 2,183  ‐ ‐ ‐
2021Interim 1.0p‐‐‐‐1,107 1,107
2020Final 1.5p‐‐‐‐1,571 1,571
‐
4,358 4,358 ‐ 2,678 2,678

Forthcomingdividends    
2022Special 1.6p‐3,044 3,044   
2022Final 1.5p‐2,854 2,854  ‐ ‐ ‐
2021Final 1.5p‐‐‐‐2,198 2,198
‐5,898 5,898 ‐ 2,198 2,198



47
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

8. Basicanddilutedreturnpershare
 Yearto
31Mar
2022
Yearto
31Mar
2021
Basicanddilutedreturnpershare 12.4p 7.9p
  
Returnpersharebasedon:  
Netrevenuelossforthefinancialyear(£’000) (537) (546)
Netcapitalgainsforthefinancialyear(£’000)
18,942 9,079
Totalreturnforthefinancialyear(£’000) 18,405 8,533
 
Weightedaveragenumberofsharesinissue 152,969,728 108,677,601

AstheCompanyhasnotissuedanyconvertiblesecuritiesorshareoptions,thereisnodilutiveeffecton returnper
share.Thereturnpersharedisclosed,therefore,representsbothbasicanddilutedreturnpershare.

9. Investments
 Quoted
investments
Unquoted
investments Total
 £’000 £’000 £’000
 
Openingcostat
1April2021 5,814 36,010 41,824
Impairmentlossesat1April2021 (2,824) (7,851) (10,675)
Unrealisedgainsat1April2021 8,860 4,747 13,607
Openingfairvalueat1April2021 11,850 32,906 44,756
 
Movementsintheyear 
Purchasedatcost‐12,491 12,491
Disposalproceeds‐(672) (672)
Realisedgainsintheincomestatement‐12 12
Unrealisedgainsintheincomestatement (3,224) 23,445 20,221
Closingfairvalueat31March2022 8,626 68,182 76,808
 
Retainedinvestmentsat31March2022 
Closingcostat31March2022 5,814 42,684 48,498
Impairmentlossesat31March2022 (2,824) (4,678) (7,502)
Unrealisedgainsat31March2022 5,636 30,176 35,812
Closingfairvalueat31March2022 8,626 68,182 76,808

Costs of acquisition of investments acquired during the year were nil (2021: nil) and transaction costs incurred in
respectofinvestmentdisposalsduringtheyearwerenil(2021:nil).Ascheduledisclosingtheadditionsanddisposals
duringtheyearisshownonpage10.


48
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

9. Investments(continued)
TheCompanyhascategoriseditsfinancialinstrumentsusingthefairvaluehierarchyasfollows:

Level1 Reflectsfinancialinstrumentsquotedinanactive market(fixedinterestinvestments,andinvestmentsin
sharesquotedoneithertheMainorAIMMarkets);
Level2 Reflectsfinancialinstrumentsthathaveprices
thatareobservableeitherdirectlyorindirectly;and
Level3 Reflectsfinancialinstrumentsthatusevaluationtechniquesthatarenotbasedonobservablemarketdata
(unquotedequityinvestmentsandloannoteinvestments).

 31March2022 31March2021
 Level1 Level2 Level3 TotalLevel1 Level2
Level3 Total
 £’000 £’000 £’000 £’000£’000 £’000 £’000 £’000
      
AIMquotedshares 7,723 903‐8,62610,609 1,241‐11,850
Loannotes‐‐508 508  ‐ ‐ 508 508
Unquotedshares‐‐67,674 67,674  ‐ ‐ 32,398 32,398
 7,723 903 68,182 76,80810,609 1,241 32,906 44,756

ReconciliationoffairvalueforLevel3financialinstrumentsheldattheyearend:



Unquoted
shares
Loan
notes

Total
  £’000 £’000 £’000

Balanceat1April202132,398 508 32,906
 
Movementsintheincomestatement: 
Unrealisedgainsintheincomestatement23,445‐23,445
Realisedgainsintheincomestatement12‐12
23,457‐23,457

Purchasedatcost12,491‐12,491
Disposalproceeds(672)‐(672)

Balanceat31March202267,674 508 68,182

Level3unquotedsharesandloannotesarevaluedinaccordancewiththeIPEVasfollows:‐
  2022
Valuationmethodology£’000
Calibratingtothepriceofarecentinvestment40,781
Multiple27,401
  68,182

Changing one or more of the inputs to reasonable possible alternative valuation assumptions could result in a
significant change in the fair value of the Level 3 investments. There is an element of judgement in the choice of
assumptionsforunquotedinvestmentsanditispossiblethat,ifdifferentassumptionswere
used,differentvaluations
couldhavebeenattributedtosomeoftheCompany’sinvestments.

TheBoardandtheInvestmentManagerbelievethatthevaluationsasat31March2022reflectthemostappropriate
assumptionsatthatdate,givingdueregardtoallinformationavailablefromeachinvesteecompany.Valuationsare
subject
tofluctuationsinmarketconditionsandthesensitivityoftheCompanytosuchchangesisshownwithinnote
15.

49
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

9. Investments(continued)
Significantinterests
DetailsofshareholdingsinthosecompanieswheretheCompany’sholding,asat31March2022,representsgreater
than20%ofthenominalvalueofanyclassoftheallottedsharesintheportfoliocompany,aredisclosedbelow.Allof
thecompaniesnamedareincorporatedinEngland
andWales.Thepercentageholdingineachclassdoesnotreflect
thepercentagevotingrightsintheCompanyasawhole.

Company
Registered
office
Classof
shares
Number
held
Proportion
ofclassheld
Proportionof
TotalVoting
Rights

Dateof
Accounts

NetAsset
Value

Profit/
Loss
FordsPackagingTopcoLimited
MK427SH Ordinary 77,706 42.2% 37.5% 31/12/20 £5.5m £1.4m
 Ordinary‘A’ 23,394 100.0% 11.2%
LyalvaleExpressLimited
WS138XA Ordinary‘A’ 95,210 100.0% 44.2% 27/03/21 £10.1m *
UnitedAuthorsPublishing
Limited
W1J8AJ A
Preference
1,642,430 22.0% 7.6% 31/03/21 (£1.6m) *
MacranetLimited
GU147JF Ordinary‘A’ 421,104 41.6% 18.4% 31/12/21 £0.3m *
A
ppUxLimited EC2A4NE Preference 120,397 21.7% 7.1% 30/09/21 £0.7m *
T
heNationalSolicitorsNetwork
Limited
SW64QP Ordinary 194,709 24.7% 1.0% 31/12/20 (£1.4m) £12,750
T
heQSSGroupLimited DE11UQ Ordinary 125,329 44.4% 44.4% 31/12/20 (£2.6m) (£0.2m)
*Informationnotpublished

10. Debtors
 31Mar
2022
 31Mar
2021
 £’000 £’000
Otherdebtors ‐  46
Prepaymentsandaccruedincome 20 32
 20 78


11. Creditors:amountsfallingduewithinoneyear
 31Mar
2022
31Mar
2021
 £’000 £’000
Othercreditors 287‐
Othertaxesandsocialsecurity 9 11
Accrualsanddeferredincome 60 70
 356 81



50
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

12. Sharecapital
 31Mar
2022
31Mar
2021
 £’000 £’000
Issued,allotted,calledupandfullypaid:
177,597,183(2020:110,738,558)OrdinarySharesof5peach 8,880 5,537

DuringtheyeartheCompanyissuedatotalof36,146,095OrdinarySharesof5peach(“OrdinaryShares”)atanaverage
priceof55.1ppershare,undertheofferthatlaunchedinFebruary2021.ThegrossproceedsoftheOfferwere£19.9
million,withissuecostsinrespectoftheOfferamounting
to£839,000.

Afurther33,405,003OrdinaryShareswereissuedatanaveragepriceof64.4ppershare,undertheofferthatlaunched
in November 2021. The gross proceeds of the Offer were £21.5 million, with issue costs in respect of the Offer
amountingto£1.1million.

Duringtheyear,theCompanypurchased2,692,473sharesforcancellation  foranaggregateconsiderationof£1.42
millionatanaveragepriceof52.8ppershare(approximatelyequaltoa5%discounttothemostrecentlypublished
NAVatthetimeofpurchase)andrepresenting2.4%oftheissuedsharecapitalin
issueat1April2021.

Managementofcapital
The Company defines capital as Shareholders funds, and is managed in accordance with its Investment Policy, as
shownintheStrategicReportonpage18,inpursuitofitsprincipalinvestmentobjectivesasstatedonpage3.The
Companyhastheauthority
tobuybacksharesasdescribedintheStrategicReportonpage18.TheCompanydoesnot
haveanyexternallyimposedcapitalrequirements.

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern, so that it can continue to provide an adequate
 return to Shareholders by allocating its capital to assets
commensuratelywiththelevelofrisk.

Byitsnature,atleast80%oftheCompany’scapital,(asmeasuredunderthetaxlegislation)is,mustbe,andremain
invested in the relatively high‐risk asset class of small UK companies, within three
years of that capital being
subscribed. The Company accordingly has limited scope to manage its capital structure in the light of changes in
economic conditions and the risk characteristics of the underlying assets. Subject to this overall constraint upon
changingthecapitalstructure,theCompanymayadjusttheamountofdividends
paidtoShareholders,returncapital
toShareholders,issuenewshares,orsellassetsifsorequiredtomaintainalevelofliquiditytoremainagoingconcern.

Although,astheInvestmentPolicyimplies,theBoardwouldconsiderlevelsofgearing,therearenocurrentplansto
doso.Itregards
thenetassetsoftheCompanyastheCompany’scapital,asthelevelsofliabilitiesaresmallandthe
managementofthemisnotdirectlyrelatedtomanagingthereturntoShareholders.Therehasbeennochangeinthis
approachfromthepreviousyear.

Fundraising
AspartoftheNovember
2021offer12,665,155OrdinaryShareswereissuedinApril2022atanaveragepriceof64.3p
perOrdinaryShareraising£8.1million.AtthedateofthisreportthetotalnumberofOrdinarySharesin issuewas
190,262,338.



51
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

13. Reserves
Distributablereservesarecalculatedasfollows:
 31Mar
2022
 31Mar
2021
 £’000 £’000
   
Specialreserve 5,053 15,463
Capitalreserve
–
realised 1,516 ‐
Revenuereserve (1,092) (555)
Mergerreserve
–
distributableelement‐423
CapitalReserve
–
unrealised:excludingunrealisedunquotedgains 1,316 2,244
 6,793 17,575

Capitalredemptionreserve
This reserve accounts for amounts by which the issued share capital is diminished through the repurchase and
cancellationoftheCompany’sownshares.

Sharepremiumaccount
Thisreserveaccountsforthedifferencebetweenthepricepaidforsharesandthenominalvalueoftheshares,less
transfers
totheotherdistributablereserves.

Mergerreserve
ThisreserveaccountsforthepremiumarisingontheissueofthesharestoacquireElderstreetMillenniumVCTplcin
2007.

Specialreserve
The Special reserve is available to the Company to enable the purchase of its own shares in the market without

affectingitsabilitytopaycapitaldistributions,andalsoallowstheCompanytowritebackrealisedcapitallossesarising
ondisposalsandimpairments.ShareissuecostsarealsochargedtotheSpecialreserve.

Capitalreserve–unrealised
Increasesanddecreasesinthevaluationofinvestmentsheldattheyear‐end
againstcostareincludedinthisreserve.

Capitalreserve–realised
Thefollowingaredisclosedinthisreserve:
•gainsandlossescomparedtocostontherealisationofinvestments;
•expenses,togetherwiththerelatedtaxationeffect,chargedinaccordancewiththeaccountingpolicies;and
•dividendspaidto
equityholders.

Revenuereserve
ThisreserveaccountsformovementsfromtherevenuecolumnoftheIncomeStatement,thepaymentofdividends
andothernon‐capitalrealisedmovements.

14. Basicanddilutednetassetvaluepershare

 31March202231March2021
Numberinissueasat31
March Netassetvalue Netassetvalue

2022

2021
 Pence
pershare

£’000
 Pence
pershare

£’000

OrdinaryShares 177,597,183 110,738,558  60.6 107,567 50.0 55,412

Asthe Company has not issued any convertible securities or shareoptions, there is no dilutiveeffectonnetasset
value
pershare.Thenetassetvalue persharedisclosedthereforerepresentsbothbasicanddilutednetassetvalue
pershare.


52
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022


15. Financialinstruments
TheCompany’sfinancialinstrumentscompriseinvestmentsheldatfairvaluethroughprofitandloss,beingequityand
loanstockinvestmentsinquotedcompaniesandunquotedcompanies;loansandreceivables,beingcashdepositsand
short‐term debtors; and financial liabilities, being creditors arising from its operations. The main purpose
 of these
financialinstrumentsis togeneratecashflow,revenueand capitalappreciationfortheCompany’soperations.The
Companyhasnogearingorotherfinancialliabilitiesapartfromshort‐termcreditorsanddoesnotuseanyderivatives.

Thefairvalueofinvestmentsisdeterminedusingthedetailedaccountingpolicyas
showninnote1.Thecomposition
oftheinvestmentsissetoutinnote9.Loansandreceivablesandotherfinancialliabilities,assetoutintheBalance
Sheet,arestatedatamortisedcost,whichtheDirectorsconsiderisequivalenttofairvalue.

TheCompany’sinvestmentactivitiesexposetheCompany
toanumberofrisksassociatedwithfinancialinstruments
andthesectorsinwhichtheCompanyinvests.TheprincipalfinancialrisksarisingfromtheCompany’soperationsare:

 Marketrisks;
 Creditrisk;and
 Liquidityrisk.

TheBoardregularlyreviewstheserisksandthepoliciesinplacefor
managingthem.Therehavebeennosignificant
changestothenatureoftherisksthattheCompanyisexposedtoovertheyearandtherehavealsobeennosignificant
changestothepoliciesformanagingthoserisksduringtheyear.

The risk management policies used by the Company in
respect of the principal financial risks and a review of the
financialinstrumentsheldattheyear‐endareprovidedonthenextpage.

Marketrisks
AsaVCT,theCompanyisexposedtoinvestmentrisksintheformofpotentiallossesthatmayariseontheinvestments
itholds
inaccordancewithitsInvestmentPolicy.Themanagementoftheseinvestmentrisksisafundamentalpartof
investment activities undertaken by the Investment Manager and overseen by the Board. The Manager monitors
investments through regular contact with management of investee companies, regular review of  management
accounts and other financial information and
 attendance at investee company board meetings. This enables the
Manager to manage the investment risk in respect of individual investments. Investment risk is also mitigated by
holdingadiversifiedportfoliospreadacrossvariousbusinesssectorsandassetclasses.

ThekeyinvestmentriskstowhichtheCompanyisexposedare:
 Investmentpricerisk;and
 Interestraterisk.

TheCompanyhasundertakensensitivityanalysisonitsfinancialinstruments,splitintotherelevantcomponentparts,
taking into consideration the economic climate at the time of review in order to ascertain the appropriate risk
allocation.

Investmentpricerisk
Investmentpriceriskarisesfromuncertaintyaboutthefuturepricesandvaluations
offinancialinstrumentsheldin
accordancewiththeCompany’sinvestmentobjectives.ItrepresentsthepotentiallossthattheCompanymightsuffer
throughinvestmentpricemovementsinrespect ofquotedinvestments, andchangesinthefairvalue ofunquoted
investmentsthatitholds.

53
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

15. Financialinstruments(continued)
Marketrisks(continued)
Investmentpricerisk(continued)
Quotedinvestments
TheCompany’ssensitivitytofluctuationsinthesharepricesofitsquotedequityinvestmentsissummarisedbelow.In
lightofthecurrentvolatilemarketconditionsarisingfromthecoronaviruspandemic,theBoardhasconsideredthe
reasonablypossiblemarket
movementsthatshouldbeillustratedwithsensitivityanalysis.Apositive20%movement
and negative 50% movement (2020: positive 20% and negative 50% movement) in the share price in each of the
quotedinvestmentsheldbytheCompanywhichisconsideredtobeareasonablemaximummovementinayearwould
haveaneffectasfollows:

 Yearended31March2022
Sensitivity  +20%movement  
‐
50%movement
         




Risk
exposure
Impacton
netassets/
return 
Impact
onNAV
pershare
Impacton
netassets/
return 
Impacton
NAVper
share
   £’000  £’000  Pence  £’000  Pence
  
Quotedinvestments8,626 1,725 1.0 (4,312) (2.4)

 Year
Ended31March2021
Sensitivity  +20%movement  
‐
50%movement
         



Risk
exposure
Impacton
netassets/
return 
Impact
onNAV
pershare
Impacton
netassets/
return 
Impacton
NAVper
share
   £’000  £’000  Pence  £’000  Pence
  
Quotedinvestments11,850 2,370 2.1 (5,925) (5.4)

Unquotedinvestments
TheCompanyisexposedtoinvestmentpriceriskinrespectofunquotedcompanies.Thesearevaluedbyreferenceto
revenueorearningsmultiplesofcomparablecompaniesorsectorsorcalibrationtopriceofrecentinvestment.These
valuationsaresubject tomarket movements.The loannotesinthe investeecompanies wouldnot
be immediately
impactedduetothe nature of thesecurity held, the relatively low residual termandno significant changesin risk
premium.TheCompanyseekstomanagethisriskbyroutinelymonitoringtheperformanceoftheseinvestments.

TheBoardhasconsideredthecurrentvolatilemarketconditionsarisingfromthe
coronaviruspandemicin determining
the reasonably possible market movements that should be illustrated within sensitivity analysis. Accordingly, the
impactofapositive20%andnegative20%movement(2020:positive20%andnegative50%movement)intheprice
oftheseinvestmentsisconsideredtobeareasonablemaximumlevelina
yearandwouldhaveaneffectasshown
below:

 Yearended31March2022
Sensitivity  +20%movement ‐50%movement
       


Risk
exposure
Impactonnet
assets/return 
ImpactonNAV
pershare
Impactonnet
assets/return

I
mpactonNAV
pershare
Unquotedinvestments  £’000  £’000  Pence  £’000

Pence
      


Multiples27,4015,480 3.1 (14,357)

(8.1)
Calibration to price of
recentinvestment
 40,7818,156 4.6 (20,390)

(11.5)
68,18213,636 7.7 (34,747)

(19.6)


54
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

15. Financialinstruments(continued)
Marketrisks(continued)
Investmentpricerisk(continued)
 YearEnded31March2021
Sensitivity  +20%movement ‐50%movement
       

Unquotedinvestments
Risk
exposure
Impactonnet
assets/return 
ImpactonNAV
pershare
Impactonnet
assets/return 
I
mpactonNAV
pershare
  £’000  £’000  Pence  £’000  Pence
       
Multiples11,114 2,223 2.0 (2,223) (2.0)
Calibration to price of
recentinvestment
 21,284 4,257 3.9 (4,257) (3.9)
32,398 6,480 5.9 (6,480) (5.9)

Ineachcase,theimpactofsuchchangesonthereturnfortheyearwouldbethesameasthatonnetassetsandNAV
pershare. 

Interestraterisk
TheCompanyacceptsexposuretointerestrateriskonfloating‐ratefinancialassetsthroughtheeffectofchangesin
prevailing
interestrates.TheCompanyreceivesinterestonitscashdepositsatarateagreedwithitsbankersandon
liquidityfundsatratesbasedontheunderlyinginvestments.Investmentsinloannotesandfixedinterestinvestments
attractinterestpredominatelyatfixedrates.Asummaryoftheinterestrateprofileof
theCompany’sinvestmentsis
shownbelow.

Interestrateriskprofileoffinancialassetsandfinancialliabilities
Therearethreelevelsofinterestwhichareattributabletothefinancialinstrumentsasfollows:

 “Fixedrate”assetsrepresentinvestmentswithpredeterminedyieldtargetsandcomprisefixedinterestandloan
noteinvestments.

“Floatingrate”assetspredominantlybearinterestatrateslinkedtoBankofEnglandbaserateandcomprisecash
atbankandCashTrustinvestments.
 “Nointerestrate”assetsdonotattractinterestandcompriseequityinvestments,loansandreceivables(excluding
cashatbank)andotherfinancialliabilities.

  

Average
 
Averageperiod
 31Mar
2022
 31Mar
2021
 interestrate  untilmaturity  £’000  £’000

Fixedrate 8.0% 4,293days 508 508
Floatingrate 0.1%   31,095 10,659
Nointerestrate   1day* 75,964 44,245
107,567 55,412
*Inrespectofnon‐interest‐bearingstockonly

The Company monitors the level of income received from fixed, floating and non‐interest rate assets and, if
appropriate,maymakeadjustmentstotheallocationbetweenthecategories,inparticular,shouldthisberequiredto
ensurecompliancewiththeVCTregulations.

TheBankofEnglandbaseratehasbeen0.1%perannumsinceMarch2020.
Anypotentialchangeinthebaserate,at
thecurrentlevel,wouldhaveanimmaterialimpactonthenetassetsandTotalReturnoftheCompany.

Creditrisk
CreditriskistheriskthatacounterpartytoafinancialinstrumentisunabletodischargeacommitmenttotheCompany
made
underthat instrument. The Company is exposed to credit risk through its holdings of loan notes in investee
companies,investmentsinfixedincomesecurities,cashdepositsanddebtors.


55
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

15. Financialinstruments(continued)
Creditrisk(continued)
TheCompany’sfinancialassetsthatareexposedtocreditriskaresummarisedasfollows:

 31Mar
2022
 31Mar
2021
 £’000 £’000
Fairvaluethroughprofitorlossassets
Investmentsinloannotes 508 508
  
Loansandreceivables  
Cash
andcashequivalents 31,095 10,659
 31,603 11,167

TheManagermanagescreditriskinrespectofloannoteswithasimilarapproachasdescribedunderinterestraterisk
onthepreviouspage.Inaddition,thecreditriskispartiallymitigatedbyregisteringfloatingchargesovertheassets
ofcertaininvesteecompanies.Thestrengthofthissecurityineach
caseisdependentonthenatureoftheinvestee
company’sbusinessanditsidentifiableassets.Thelevelofsecurityisakeymeansofmanagingcreditrisk.Similarly,
themanagementofcreditriskassociatedinterest,dividendsandotherreceivablesiscoveredwithintheinvestment
managementprocedures.

Cashismainlyheld
atBankofScotlandplc,withabalancealsomaintainedatRoyalBankofScotlandplc,bothofwhich
are A‐rated financial institutions. Consequently, the Directors consider that the risk profile associated with cash
depositsislow.

Therehavebeennochangesinfairvalueduringtheyearthat
canbedirectlyattributabletochangesincreditrisk.

As at 31 March 2022, there were no loan notes where, although the principal remains within term, the investee
companyisnotfullyservicingtheinterestobligationsundertheloannoteandisinarrears.(31March2021:£nil)

Asat
31March2022therewerenoloanstockbalanceswherebytheprincipalamounthadpasseditsmaturitydate
(31March2021:£nil).

Liquidityrisk
LiquidityriskistheriskthattheCompanyencountersdifficultiesinmeetingobligationsassociatedwithitsfinancial
liabilities.Liquidityriskmayalsoarisefromeitherthe
inabilitytosellfinancialinstrumentswhenrequiredattheirfair
valuesorfromtheinabilitytogeneratecashinflowsasrequired.TheCompanynormallyhasarelativelylowlevelof
creditors(31March 2022: £351,000, 31March 2021:£81,000) andhasnoborrowings.TheCompanyalwaysholds
sufficientlevelsof
fundsascashandreadilyrealisableinvestmentsinordertomeetexpensesandothercashoutflows
astheyarise.Forthesereasons,theBoardbelievesthattheCompany’sexposuretoliquidityriskisminimal.

TheCompany’sliquidityriskismanagedbytheInvestmentManager,inlinewithguidanceagreedwith
theBoardand
isreviewedbytheBoardatregularintervals.

Thecarryingvalueofloannoteinvestmentsheldatfairvaluethroughtheprofitandlossaccountat31March2022,
asanalysedbyexpectedmaturitydate,isasfollows:

Asat31March2022 Notlater Between Between
 BetweenPassed
 than1 1and2 2and3 3and5 Over5 maturity
 year years years years years date Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
 
Fullyperformingloannotes‐‐‐‐508‐508
Pastdueloanstock ‐ ‐ ‐ ‐ ‐ ‐ ‐
‐‐‐‐508‐508


56
NOTESTOTHEACCOUNTS(continued)
fortheyearended31March2022

15. Financialinstruments(continued)

Asat31March2021 Notlater Between Between BetweenPassed
 than1 1and2 2and3 3and5 Over5 maturity
 year years years years years date Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000
 
Fullyperformingloannotes‐‐‐‐508
‐508
Pastdueloanstock ‐ ‐ ‐ ‐ ‐ ‐ ‐
‐‐‐‐508‐508

Financialliabilities
TheCompanyhasnofinancialliabilitiesotherthanthecreditorsdisclosedwithinthebalancesheet(2021:none).

Currencyexposure
Asat31March2022,theCompanyhadnoforeigninvestments(2021:none).

Borrowingfacilities
TheCompanyhasnocommittedborrowingfacilitiesasat31March2022(2021:
none).

16. Contingencies,guaranteesandfinancialcommitments
TheCompanyhadnocommitments,contingenciesorguaranteesattheBalanceSheetdate.

17. Relatedpartytransactions
NicholasLewisisapartnerofDowningLLP,whichprovidesadministrationservicestotheCompany.Duringtheyear,
£90,000(2020:£65,000)wasduetoDowningLLPin
respectoftheseservices.Asat31March2022,£5,000(2021:£nil)
wasoutstandingandpayable.

Richard Marsh is an employee of Molten Ventures plc, the parent company of Elderstreet Investments Limited.
Elderstreet Investments Limited provided investment management services to the Company. During the year,
£1.7million (2021: £921,000) was
due in respect of these services. No performance incentive fees were due to
ElderstreetInvestmentsLimitedinrespectoftheyearunderreview(2021:£nil).Asat31March2022,£198,000(2021:
£nil)wasoutstandingandpayable.

DetailsofremunerationoftheDirectorsandtheirshareinterestscanbefound
intheDirectors’RemunerationReport
onpages25to26.

18. Controllingparty
IntheopinionoftheDirectorsthereisnoimmediateorultimatecontrollingparty.

19. Eventsaftertheendofthereportingperiod
Sincetheyear end, the Company allotted12,665,155 OrdinaryShares of 5p each at
an average price of 64.3p per
OrdinaryShareunderthetermsoftheOfferforSubscriptiondatedNovember2021.Theaggregateconsiderationfor
theshareswas£8.1million.


57
NOTICEOFTHEANNUALGENERALMEETING
ofMoltenVenturesVCTplc

NOTICEISHEREBYGIVENthattheAnnualGeneralMeetingofMoltenVenturesVCTplcwillbeheldat11:00a.m.on18
August2022at20GarrickStreet,LondonWC2E9BT.Shareholdersareencouragedtovotebyproxy(detailsgiveninthe
notes)forthetransactionofthefollowingbusiness:

AsOrdinary Business,toconsiderand,if thought fit, passthe following resolutions which will beproposed as Ordinary
Resolutions:

1. ToreceiveandadopttheReportoftheDirectors’andAccountsoftheCompanyfortheyearended31March2022,
togetherwiththeReportoftheAuditorthereon.


2. ToapprovetheDirectors’RemunerationReportinrespectoftheyearended31March2022.

3. Toapprovethepaymentofatotalfinaldividendof3.1pperordinaryshare.

4. To re‐appoint BDO LLP as Auditor of the Company, to hold office until the conclusion of
 the next Annual General
Meeting,atwhichaccountsoftheCompanyarepresented.

5. ToauthorisetheDirectorstodeterminetheAuditor’sremuneration.

6. Tore‐electasDirector,HughAldous,whoretiresand,beingeligible,offershimselfforre‐election.

7. Tore‐electasDirector,DavidBrock,
whoretiresand,beingeligible,offershimselfforre‐election.

8. Tore‐electasDirector,NicholasLewis,whoretiresand,beingeligible,offershimselfforre‐election.

9. Tore‐electasDirector,RichardMarsh,whoretiresand,beingeligible,offershimselfforre‐election.

AsSpecialBusiness,
toconsiderand,ifthoughtfit,passthefollowingresolutions:

OrdinaryResolution
10. That,theDirectorsbeandareherebygenerallyandunconditionallyauthorisedinaccordancewithSection551ofthe
CompaniesAct2006(“theAct”)toexerciseallthepowersoftheCompanytoallotsharesortogrant
rightstosubscribe
forortoconvertanysecurityintosharesintheCompanyuptoanaggregatenominalamountof£3,000,000(being
approximately 34% of the current issued share capital)during the period commencing on the passing of this
resolution and expiring at the conclusion of the Company’s next
Annual General Meeting, or on the expiry of 15
monthsfollowingthepassingoftheresolution,whicheveristhelater(unlesspreviouslyrevoked,variedorextended
bytheCompanyinageneralmeeting),butsothatthisauthorityshallallowtheCompanytomakebeforetheexpiry
ofthisauthorityoffers
oragreementswhichwouldormightrequiresharestobeallottedorrightstobegrantedto
subscribeforortoconvertanysecurityintosharesintheCompanyaftersuchexpiryandallpreviousauthoritiesgiven
bytheDirectorsinaccordancewithSection551oftheActbeand
areherebyrevoked,providedthatsuchrevocation
shallnothaveretrospectiveeffect.

11. That,inadditiontoexistingauthorities,theDirectorsoftheCompanybeandherebyaregenerallyandunconditionally
authorisedin accordancewith Section551of the Acttoexercise all the powers of theCompanytoallot
andissue
shares in the capital of the Company up to a nominal value of £1,000,000 pursuant to any dividend reinvestment
schemeoperatedbytheCompanyfromtimetotimeand theauthorityconferredbythisresolutionshallcontinuein
forceforfiveyearsfollowingthepassingoftheresolutionor
untilsuchearliertimeasitisvariedorrevokedbythe
Companyinageneralmeeting.



58
NOTICEOFTHEANNUALGENERALMEETING
ofMoltenVenturesVCTplc(continued)

SpecialResolutions
12. That, conditional upon the passing of Resolutions 10 and 11 set out in this Notice, in substitution for any existing
powerunderSection570oftheAct,butwithoutprejudicetotheexerciseofanysuchpowerpriortothedatehereof,
theDirectorsbeandare
herebyempowered,duringtheperiodcommencingonthepassingofthisspecialresolution
andexpiringattheconclusionoftheCompany’snextAnnualGeneralMeeting,orontheexpiryof15monthsfollowing
thepassingoftheresolution,whicheveristhelater(unlesspreviouslyrevoked,variedorextendedbytheCompany

inageneralmeeting),pursuanttoSection570oftheAct,toallotequitysecurities(asdefinedinSection560(1)ofthe
Act)forcashpursuanttotheauthoritygiveninaccordancewithSection551oftheAct,pursuanttoResolution10and
11,asifSection561ofthe
ActdidnotapplytoanysuchallotmentbutsothatthisauthorityshallallowtheCompany
tomakeoffers or agreements before the expiry and theDirectorsmayallot equity securities in pursuance of such
offersoragreementsasifthepowersconferredherebyhadnotsoexpired.

13. That,theCompanybeandisherebygenerallyandunconditionallyauthorisedtomakemarketpurchases(withinthe
meaningofSection693(4)oftheCompaniesAct2006)ofOrdinarySharesof5peachinthecapitaloftheCompany
(“OrdinaryShares”)providedthat:

(i) the maximum number of Ordinary Shares
hereby authorised to be purchased shall not exceed 26,461,980
OrdinaryShares,representingapproximately14.9%ofthepresentissuedcapitaloftheCompany;

(ii) theminimumpricewhichmaybepaidforanOrdinaryShareis5p,exclusiveofallexpenses;

(iii) themaximumpricewhichmaybepaidforan
OrdinaryShareisanamount,exclusiveofallexpenses,equalto
105%oftheaverageofthemiddlemarketquotationsoftheOrdinarySharesasderivedfromtheDailyOfficial
ListoftheLondonStockExchange,foreachofthefivebusinessdaysimmediatelyprecedingthedayonwhich
the
OrdinaryShareiscontractedtobepurchased;and

(iv) the Companymay validly makeacontractto purchaseOrdinary Sharesunder theauthorityherebyconferred
prior to the expiry of such authority which will or may be executed wholly or partly after the expiry of such
authority,andmayvalidly
makeapurchaseofOrdinarySharesinpursuanceofanysuchcontract;

andthispower,unlesspreviouslyvaried,revokedorrenewed,shallcometoanendattheconclusionoftheAnnual
GeneralMeetingoftheCompanynextfollowingthepassingofthisresolutionor,ifearlier,ontheexpiry
of15months
fromthepassingofthisresolution.

14. Thatthesharepremiumaccountandthecapitalredemptionreserveeachbecancelled.


ByorderoftheBoard


GrantWhitehouse
CompanySecretary
MoltenVenturesVCTplc
Companynumber:03424984
Registeredoffice:
6
th
Floor,St.MagnusHouse
3LowerThamesStreet
LondonEC3R6HD

15July2022

Note: Information regarding the Annual General Meeting, including the information required by section 311A of the
CompaniesAct2006(the“Act”),isavailablefromwww.downing.co.uk.


59
NOTICEOFTHEANNUALGENERALMEETING
ofMoltenVenturesVCTplc(continued)

Notes
(a) AnymemberoftheCompanyentitledtoattendandvoteattheAnnualGeneralMeetingisalsoentitled toappointoneormoreproxiestoattend,
speakandvoteinsteadofthatmember.AmembermayappointmorethanoneproxyinrelationtotheAnnualGeneralMeetingprovidedthat
each
proxyisappointedtoexercisetherightsattachedtoadifferentshareorsharesheldbythatmember.Aproxymaydemand,orjoinindemanding,
apoll.AproxyneednotbeamemberoftheCompanybutmustattendtheAnnualGeneralMeetinginordertorepresent
hisappointer.Amember
entitledtoattendandvoteattheAnnualGeneralMeetingmayappointtheChairmanoranotherpersonashisproxyalthoughtheChairmanwill
notspeakforthemember.Amemberwhowisheshisproxytospeakforhimshouldappointhisownchoiceofproxy(not
theChairman)andgive
instructionsdirectlytothatperson.IfyouarenotamemberoftheCompanybutyouhavebeennominatedbyamemberoftheCompanytoenjoy
informationrights,youdonothavearighttoappointanyproxiesundertheproceduressetoutinthese
Notes.PleasereadNote(j)below.Under
section319AoftheCA2006,theCompanymustansweranyquestionamemberasksrelatingtothebusinessbeingdealtwithattheAnnualGeneral
Meetingunless:
 answeringthequestionwouldinterfereundulywiththepreparationfortheAnnualGeneralMeetingorinvolve
thedisclosureofconfidential
information;
 theanswer hasalreadybeen givenonawebsiteintheformofananswertoaquestion;or
 itisundesirableintheinterestsoftheCompanyorthegoodorderoftheAnnualGeneralMeetingthatthequestionbeanswered.
(b) Tobevalid,aFormofProxyandthepowerofattorneyorotherwrittenauthority,ifany,underwhichitissignedoranofficeornotariallycertified
copy or a copy certified in accordance with the Powers of Attorney Act 1971 of such power and written authority, must be
 delivered to the
Company’sRegistrar,TheCityPartnership(UK)Limitednotlessthan48hours(excludingweekendsandpublicholidays)beforethetimeappointed
forholdingtheAnnual GeneralMeetingoradjournedmeetingatwhichthepersonnamedintheFormofProxyproposestovote.Inthecaseof
a
polltakenmorethan48hours(excludingweekendsandpublicholidays)afteritisdemanded,thedocument(s)mustbedeliver edasaforesaidnot
lessthan24 hours(excludingweekendsandpublicholidays)beforethetimeappointedfortakingthepoll,orwherethepollistakennotmorethan
48
hours(excludingweekendsandpublicholidays)afteritwasdemanded,bedeliveredatthemeetingatwhichthedemandismade.
(c) InordertorevokeaproxyinstructionamemberwillneedtoinformtheCompanybysendingasignedhardcopynoticeclearlystatingtheintention
torevoke
theproxyappointmenttotheCompany’sRegistrar,TheCityPartnership(UK)Limited.Inthecaseofamemberwhichisacompan y,the
revocationnoticemustbeexecutedunderitscommonsealorsignedonitsbehalfbyanofficerofthecompanyoranattorneyforthecompany.
Anypower
ofattorneyoranyotherauthorityunderwhichtherevocationnoticeissigned(oradulycertifiedcopyofsuchpowerorauthority)must
beincludedwiththerevocationnotice.TherevocationnoticemustbereceivedbytheCompany’sRegistrarbeforetheAnnualGeneralMeetingor
theholdingofa
pollsubsequentlythereto.Ifamemberattemptstorevokehisorherpro xyappointmentbuttherevocationisreceivedafterthe
timespecifiedthen,subjecttoNote(d)directlybelow,theproxyappointmentwillremainvalid.
(d) CompletionandreturnofaFormofProxywill notprecludeamemberof
theCompanyfromattendingandvotinginperson.Ifamemberappoints
aproxyandthatmemberattendstheAnnualGeneralMeetinginperson,theproxyappointmentwillautomaticallybeterminated.
(e) Copies oftheDirectors’LettersofAppointmentandtheRegisterofDirectors’interestsintheOrdinarySharesof
theCompany,willbeavailablefor
inspectionattheregisteredofficeoftheCompanyduringusualbusinesshoursonanyweekday(excludingweekendsandpublicholidays)fromthe
dateofthisnotice,untiltheendoftheAnnualGeneralMeetingforatleast15minutespriortoandduringthemeeting.

(f) PursuanttoRegulation41oftheUncertificatedSecuritiesRegulations2001,theCompanyhasspecifiedthatonlythoseholdersoftheCompany’s
sharesregisteredontheRegisterofMembersoftheCompanyasat 11:00a.m.on16August2022or,intheeventthattheAnnualGeneralMeeting
is
adjourned,ontheRegisterofMembers48hoursbeforethetimeofanyadjournedmeeting,shallbeentitledtoattendandvoteatthesaidAnnual
GeneralMeetinginrespectofsuchsharesregisteredintheirnameattherelevanttime.ChangestoentriesontheRegisterofMembersafter11:00

a.m.on16August2022or,intheeventthattheAnnualGeneralMeetingisadjourned,ontheRegisterofMemberslessthan48hoursbeforethe
timeofanyadjournedmeeting,shallbedisregardedindeterminingtherightofanypersontoattendandvoteattheAnnualGeneral
Meeting.
(g) A personal reply‐paidformofproxyisenclosedwiththisdocument.Tobevalid,theenclosedformofproxyforthemeeting,together with the
powerofattorneyorotherauthority,ifany,underwhichitissignedoranotariallycertifiedorofficecopythereof,mustbe
depositedattheoffices
oftheCompany’sRegistrar,TheCityPartnership(UK)Limited,Suite2ParkValleyHouse,ParkValleyMills,MelthamRoad,HuddersfieldHD47BH,
soastobereceivednolaterthan10:30a.m.on16August2022or48hoursbeforethetimeappointedforanyadjourned
meetingor,inthecase
ofapolltakensubsequenttothedateofthemeetingoradjournedmeeting,soastobereceivednolaterthan24hoursbeforethetimeappointed
fortakingthepoll.
(h) Pleasenotethatyoucanvoteyourshareselectronicallyathttps://proxy‐moltenventures.cpip.io
(i)
Asat9:00a.m.on15July2022,theCompany’sissuedsharecapitalcomprised190,262,338OrdinarySharesandthetotalnumberofvotingrights
intheCompanywas190,262,338.Thewebsitereferredtoabovewillincludeinformationonthenumberofsharesandvotingrights.
(j) Ifyouarea
personwhohasbeennominatedundersection146oftheCA2006toenjoyinformationrights(“NominatedPerson”):
 You mayhavearightunderanagreementbetweenyouandthememberoftheCompanywhohasnominatedyoutohaveinformationrights
(“RelevantMember”)tobeappointedortohavesomeone
elseappointedasaproxyfortheAnnualGeneralMeeting;
 If you either do not have such a right orif you have such a right but do not wish to exercise it, you may have a right under an agreement
betweenyouandtheRelevantMembertogive
instructionstotheRelevantMemberastotheexerciseofvotingrights;
 YourmainpointofcontactintermsofyourinvestmentintheCompanyremainstheRelevantMember(or,perhapsyourcustodianorbroker)
andyoushouldcontinuetocontactthem(andnottheCompany)regardinganychangesor
queriesrelatingtoyourpersonaldetailsandyour
interestintheCompany(includinganyadministrativematters).TheonlyexceptiontothisiswheretheCompanyexpresslyrequestsaresponse
fromyou.
(k) Aco rporationwhichisamembercanappointoneormorecorporaterepresentativeswhomayexercise ,onits
behalf,allitspowersasamember
providedthatnomorethanonecorporaterepresentativeexercisespowersoverthesameshare.
(l) Avotewithheldisnotavoteinlaw,whichmeansthatthevotewillnotbecountedinthecalculationofvotesfororagainsttheresolution.If
no
votingindicationisgiven,theproxywillvoteorabstainfromvotingathisorherdiscretion.Theproxywillvote(orabstainfromvoting)asheorshe
thinksfitinrelationtoanyothermatterwhichisputbeforetheAnnualGeneralMeeting.
(m) Exceptasprovided
above,memberswhohavegeneralqueriesabouttheAnnualGeneralMeetingshouldwritetotheChairmanattheregistered
officesetoutabove.

InsideBa
ckCover


