HgCapital Trust PLC Interim Results - Six Months Ended 30 June 2017 (2890Q)

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RNS Number : 2890Q

HgCapital Trust PLC

11 September 2017

HgCapital Trust plc

INTERIM Results for the SIX months ended 30 JUNE 2017

London, 11 September 2017: HgCapital Trust plc ("the Company"), which provides investors with a listed vehicle to invest in all private equity deals managed by HgCapital, today announces its interim results for the six months ended 30 June 2017.

CONTINUED STRONG NAV PERFORMANCE DRIVEN BY DOUBLE-DIGIT REVENUE AND PROFIT GROWTH AND EXITS ABOVE BOOK VALUE

SUMMARY performance

 
                    31 August      30 June     31 December       % Total 
                         2017         2017            2016     return(1) 
---------------  ------------  -----------  --------------  ------------ 
Share price          GBP17.00     GBP16.90        GBP15.41        +13.1% 
NAV per 
 share               GBP18.61     GBP17.97        GBP16.50        +12.1% 
FTSE All-Share 
 Index                                                             +5.5% 
----------------------------------------------------------  ------------ 
                                                               June 2017 
                                                                Movement 
Net Asset           GBP694.5m    GBP670.9m       GBP615.8m     +GBP55.1m 
 Value 
---------------  ------------  -----------  --------------  ------------ 
 

(1) Assuming reinvestment of all historic dividends

key Highlights FOR THE SIX MONTHS TO 30 JUNE 2017

-- NAV per share of GBP17.97, a total return of 12%.

-- Share price of GBP16.90, a total return of 13%.

-- Interim dividend of 16 pence per share, payable in October.

-- Strong revenue and EBITDA growth of 11% and 19% respectively across the top 20 buyout investments (82% of the portfolio) over the last twelve months.

-- EV to EBITDA valuation multiple of 16.0x and debt to EBITDA ratio of 5.0x for the top 20 buyout investments.

-- GBP134 million of cash returned to the Company and GBP40 million invested on behalf of the Company (including GBP11.5 million of co-investment).

year-to-date to 31 august 2017

-- NAV per share of GBP18.61, year-to-date return of 16%, the increase reflecting the exit of Sequel at a significant uplift to book value and positive foreign exchange movements.

-- Share price has risen to GBP17.00, year-to-date total return of 14% vs. a FTSE All-Share total return of 8%.

-- Five exits agreed since June completed or due to complete in the second half of 2017.

-- An estimated further GBP78 million has been returned to the Company since 30 June 2017.

-- Pro-forma liquid resources and outstanding commitments post completion of all announced transactions are GBP182 million (26% of NAV) and GBP464 million (67% of NAV) respectively.

Manager's Outlook

-- We believe that we are in a seller's market and will concentrate our efforts on returning further value from the portfolio over the next twelve months for good prices, and at uplifts to their book value.

-- The medium to long-term pipeline of new investment opportunities continues to build in our 'sweet spot' where we believe we can still make good investments in this market with a cautious and disciplined strategy.

-- We believe we have a very strong portfolio of highly cash generative businesses with good visibility on future earnings which can continue to grow value for shareholders and remain in demand from both trade and financial buyers.

Roger Mountford, Chairman of the Company, commented:

"Most businesses in our portfolio continue to achieve high rates of growth in both revenues and profits. This provides strong evidence of the potential for continuing, consistent growth in value for the benefit of shareholders."

- Ends -

The Company's 2017 Interim Report and Accounts and a video from the Manager to accompany the results are available to view at: http://www.hgcapitaltrust.com/.

For further details:

 
 HgCapital 
                               [phone] 
 Laura Dixon (HgCapital)        7888 
 Roger Mountford (Chairman, 
  HgCapital Trust plc) 
                               [phone] 
  Maitland                      601 
                               [phone] 
 Tom Eckersley                  5151 
 

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The Company gives investors exposure, through a liquid vehicle, to a portfolio of high-growth private companies, managed by HgCapital, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors.

For further details, see www.hgcapitaltrust.com and www.hgcapital.com

This information is provided by RNS

The company news service from the London Stock Exchange

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September 11, 2017 02:00 ET (06:00 GMT)