HgCapital Trust PLC Interim Results (4836J)

TIDMHGT

RNS Number : 4836J

HgCapital Trust PLC

12 September 2016

HgCapital Trust plc

INTERIM Results for the SIX months ended 30 JUNE 2016

London, 12 September 2016: HgCapital Trust plc ("the Trust"), 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 2016.

CONTINUED Strong NAV performance driven by double-digit revenue and profit growth

SUMMARY performance

 
                    31 August      30 June     31 December       % Total 
                         2016         2016            2015     return(1) 
===============  ============  ===========  ==============  ============ 
NAV per 
 share               GBP15.63     GBP15.48        GBP14.20        +12.1% 
Share price          GBP12.83     GBP11.95        GBP11.15        +10.8% 
FTSE All-Share 
 Index                                                             +4.3% 
==========================================================  ============ 
                                                               June 2016 
                                                                Movement 
Net Asset           GBP583.6m    GBP577.6m       GBP530.0m     +GBP47.6m 
 Value 
===============  ============  ===========  ==============  ============ 
 

(1) Assuming reinvestment of all historic dividends

key Highlights FOR THE SIX MONTHS TO 30 JUNE 2016

   --      NAV per share of GBP15.48, a total return of 12%. 
   --      Share price of GBP11.95, a total return of 11%. 

-- Strong revenue and EBITDA growth of 12% and 22% respectively across the top 20 buyout investments over the last twelve months.

-- EV to EBITDA valuation multiple of 14.1x and debt to EBITDA ratio of 4.5x for the top 20 buyout investments.

-- GBP71 million of cash returned to the Trust and GBP73 million invested on behalf of the Trust (including GBP8.0 million of co-investment).

year to date to 31 august 2016

-- NAV per share of GBP15.63, the increase reflects uplifts to book value on exits and further currency gains.

-- Share price has risen to GBP12.83, year-to-date total return of 19% vs. a FTSE All-Share total return of 11%.

   --      Four exits completed post the EU referendum, three sold to US trade buyers. 

-- An estimated further GBP26 million has been returned to the Trust, and GBP6 million invested on behalf of the Trust post 30 June 2016.

-- Pro-forma liquid resources and outstanding commitments post completion of all announced transactions are GBP40 million (7% of NAV) and GBP92 million (16% of NAV) respectively.

Manager's Outlook

-- Over and above the general economic and political uncertainty we are all facing over the coming months, we do not expect there to be any specific negative consequences associated with the EU referendum vote on the performance of the portfolio.

   --      The two key areas of focus for us over the next 12 months are to: 

- continue to return cash to our clients through a combination of sales to both trade and financial buyers and some further refinancings; and

- continue to work with our existing portfolio to drive value by supporting management to deliver their business plans and improve the operations of their businesses.

-- Over the last few years we believe we have assembled the strongest portfolio of businesses we have ever had and we are confident that we will continue to grow equity value in these companies over the next 12 months.

Roger Mountford, Chairman of the Trust, commented:

"The quality of the Trust's portfolio, and the high rates of growth in sales and profits being achieved, provide evidence of the potential for continuing, consistent growth in value for the benefit of shareholders.

The HgCapital 7 fund is now more than 70% drawn and the Board and the Manager have therefore been in dialogue to discuss the commitment that the Board will make on behalf of the Trust to continue to invest alongside HgCapital's institutional clients in its next vintage of mid-market buyouts. The Board has indicated to the Manager an appetite to commit some GBP350 million to its HgCapital 8 fund when fundraising begins."

- Ends -

The Trust's 2016 Interim Report and a video from the Manager to accompany the results are available to view at: http://www.hgcapitaltrust.com/.

For further details:

 
 HgCapital 
                                            [phone] 
 Stephen Bough      (CFO, HgCapital)         7888 
 Roger Mountford 
                    (Chairman, HgCapital    [phone] 
  Maitland           Trust plc)              01 
                                            [phone] 
                                             5151 
 Tom Eckersley                               [phone] 
  Jamie Dunkley                              5151 
 

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The Trust 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 12, 2016 02:00 ET (06:00 GMT)