Hg Capital Share Discussion Threads

[skyship] 07/4/2015 13:17

Even after the fall back to 1075pXD these are still overvalued on an 11% NAV discount.

A discount at that level is OK for a liquidating PE trust such as MTH (IMO a good buy @ 147p - see MTH thread for detail); but conventional peers can be bought at far better discounts and even with better portfolio performance records.

Two other PE trusts well worth considering:

# JP Morgan Private Equity – JPEL. This is now my largest holding thanks to continuing strength and a couple of top-ups lower down. In spite of its rise JPEL @ 93c offers a very attractive 23.8% NAV discount – much higher than the average of 18% for its peers. NB: Yes, JPEL is LSE listed but quoted in US$; so the currency has also added to past performance; and may continue to do so…

# BP Marsh – BPM. This is another small trust; and a bit of a specialist being solely in the Insurance broker sector – a Market sector doing very well and going through an active period of consolidation.

The major attraction here is the excessive NAV discount of 30%. That should close to something akin to the 18% sector average. That alone would raise the price 16% from the current offer price of 144p to 168p.

BPM's NAV is an historic 205p. The Finals in June should uprate that figure; and a rumoured portfolio sale may well confirm an increase before then.

[greenslug] 03/4/2015 20:08

Ah, that explains when the ex div date is then, I couldn't see it in the announcement. Thanks.

[skyship] 03/4/2015 07:39

Why the fall?

Firstly, IMO they had become rather over-valued - hitting 1150 for a miserly 8.5% NAV discount versus an average of 18% for their peers.

Secondly, no real fall yesterday. They had drifted on Wednesday from 1135 to 1120; then fell 37p to close at 1083p after going Ex the 32p dividend.

[jaws6] 17/12/2014 07:30

link of RNS today
hxxp://hgcapitaltrust.com/system/files/publications/Managers%20Update%20Dec%202014.pdf

[seekerofvalue] 16/12/2014 11:09

HGT is currently trading at £10.50p this after announcing the agreed acquisition of A-Plan Insurance ("A-Plan"),a leading UK insurance broker yesterday.


HgCapital, the Manager of HgCapital Trust plc, has agreed the acquisition of A-Plan Insurance ("A-Plan"),a leading UK insurance broker. The terms of the transaction were not disclosed 15/12/14.

[seekerofvalue] 03/11/2014 12:31

HGT is currently trading at £10.59p

Allocate Software plc Offer Update 3/11/14

[seekerofvalue] 14/10/2014 13:46

HGT is currently trading at £10.15p a two month low, this after announcing the
Recommended Cash Offer for Allocate Software plc.



This move by HGT is rather unexpected at the time when other Private equity investors are making divestments. HGT are clearly attracted to the Healthcare sector where the pursuit of efficiencies, could continue to drive revenues for Allocate for many years.

[jaws6] 19/9/2014 11:35

now good above 1060 plus divi.

[seekerofvalue] 09/9/2014 12:33

atholl91, that is a commendable and well rewarded long-term strategy.


HgCapital acquired E-conomic in mid-2013
e-conomic and CE Consulting create a new force in Spanish accounting software 8/09/14
hxxp://hgcapital.com/news/e-conomic-and-ce-consulting-create-new-force-spanish-accounting-software

[atholl91] 21/8/2014 09:07

Yes SOV have held since 2005.

[seekerofvalue] 21/8/2014 08:57

HGT is currently trading at £10.49p, recovering from its recent low of £10.05p on 8/08/14

Today HG Capital have reported a 5.8% increase of NAV to £12.20p
The Board have approved a special dividend of 19 pence per share to be paid on 26 September 2014, reflecting a one-off dividend receipt from Visma.


hxxp://www.hgcapitaltrust.com/news-media/press-releases/2014-interim-results

atholl91, welcome do you hold HGT as a core component in your portfolio?

[atholl91] 09/8/2014 16:24

Ian Armitage CEO of Hg Capital has holding of £16m in trust and one of the best PEQ people in the UK. Hg Should be a cornerstone of every PEQ portfolio.

[seekerofvalue] 11/7/2014 10:01

HgCapital Trust could offer low risk, steady growth and lower volatility going forward. After making a purchase yesterday I have started a new thread to track HGT's performance. HgCapital announced today an investment in Sequel Business Solutions which values the Sequel group at circa £100 million.

New HGT thread


Friday, 11 July 2014
HgCapital announces investment in Sequel Business Solutions
hxxp://www.sequel.com/news/hgcapital-announces-investment-in-sequel-business-solutions

[seekerofvalue] 11/7/2014 09:45

INVESTMENT OBJECTIVE

HgCapital Trust plc, which was established in 1989, is an investment trust listed on the London Stock Exchange (ticker: HGT.L). The Trust’s objective is to provide shareholders with long-term capital appreciation in excess of the FTSE All-Share Total Return Index by investing in unquoted companies. The Trust provides investors with exposure to a diversified portfolio of private equity investments primarily in the UK and Continental Europe.

HGT has a historical share price performance of 7.2% per annum.
16.0% p.a. 10-year compound annual growth rate of the share price vs. 8.8% p.a. from the FTSE All-Share Index, both calculated on a total return basis to 31 December 2013.
hxxp://hgcapitaltrust.com/investor-information/share-price-performance

The HGT share price has under-performed over the past over the 3 years.
Therefore with the Private Equity market currently having a renaissance HGT could improve their recent below par share price performance.
A Continuation vote in 2015 should also encourage the HGT board to seek realisations on certain long standing investments.

KEY FINANCIALS
hxxp://hgcapitaltrust.com/about-us/key-financials

NET ASSET VALUE
NAV per share 1159.5p on 31st May 2014
hxxp://hgcapitaltrust.com/investor-information/net-asset-value

CURRENT INVESTMENTS
hxxp://hgcapital.com/our-portfolio/investments

Top 20 buyout investments as at 31 May 2014:
hxxp://hgcapitaltrust.com/investment-portfolio/mid-market-buyouts

INVESTMENT CASE STUDUES
hxxp://hgcapital.com/our-portfolio/case-studies

PUBLICATIONS
hxxp://hgcapitaltrust.com/investor-information/publications

SUBSTANTIAL SHAREHOLDERS
hxxp://hgcapitaltrust.com/investor-information/substantial-shareholders

Price paid on 10th JULY 2014 £10.40p Yield 2.28%
Discount to NAV of £11.595p is 10%


Friday, 11 July 2014
HgCapital announces investment in Sequel Business Solutions
hxxp://www.sequel.com/news/hgcapital-announces-investment-in-sequel-business-solutions

Thursday, 21 August 2014
HGCapital have reported a 5.8% increase of NAV to £12.20p
The Board have approved a special dividend of 19 pence per share to be paid on 26 September 2014, reflecting a one-off dividend receipt from Visma.
hxxp://www.hgcapitaltrust.com/news-media/press-releases/2014-interim-results

Tuesday, 14 October 2014
HGCapital announces the Recommended Cash Offer for Allocate Software plc.


Monday 15 December 2014
HgCapital, the Manager of HgCapital Trust plc, has agreed the acquisition of A-Plan Insurance ("A-Plan"),a leading UK insurance broker. The terms of the transaction were not disclosed



FLAG COUNTER

[jaws6] 28/4/2014 11:01

Proposed final dividend for the year of 29.0 pence per ordinary share (2012: 23.0 pence) to be paid on 16 May 2014, subject to shareholder approval.
Hi Mark
Any idea what was XD date please ?
I saw xd mark now, result is on 13/5/14

[marben100] 28/4/2014 10:22

Hi jaws,

...but shares now trading xd, so NAV for trades today = 1174p.

Cheers,

Mark
Twitter @marben100

[jaws6] 28/4/2014 07:09

Todays RNS put nav at 1208 p

[marben100] 07/4/2014 16:31

TDay,

What that means is that investors buying today should get a double whammy in the fullness of time: a) Significant gains in NAV should be acheived when the current portfolio of businesses is realised; b) NAV increases should lead to a narrowing of the discount gap, i.e. an exra boost to the share price Performance hasn't been great the last few years, against a backdrop of a tough UK & European economy. I'm expecting better in the years to come, though my HGT holding is smaller having also trimmed higher up. If the discount gets wide enough I'd look to add some of those back.

Cheers,

Mark
Twitter @marben100

[david77] 07/4/2014 10:55

Director and his wife spent over £20,000 on shares. That's a vote of confidence.

[tday] 03/4/2014 15:52

The Chairman reportedly said in his last statement about ...."the foundation for attractive long term returns." Looking at the share price performance over the last 7 years, his remark doesn't fill me with confidence.

[damanko] 16/10/2013 18:26

Chaps: After 8/9 years as a holder, having bought at 5 pounds something, I sold at 12 pounds something. And of course reinvested the money/profit.

Good luck to all holders.

Regards,

damanko

[woracle] 16/10/2013 17:27

Discount will return to 10 to 15% before there is any real buying.