HgCapital Trust PLC 3rd Quarter Results

RNS Number : 2652L

HgCapital Trust PLC

07 November 2024

 

HgCapital Trust plc

Results FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2024

 

CONTINUED DOUBLE-DIGIT trading growth

delivered FROM a RESILIENT PORTFOLIO OF software and serviceS businesses

 

London, 7 November 2024:  HgCapital Trust plc ('HgT'), today announces its results for the three months ended 30 September 2024.  

 

HgT provides investors with a listed vehicle to invest in a portfolio of unquoted businesses managed by Hg, which in aggregate represents one of the largest and fastest growing technology firms in Europe¹.

The objective of HgT is to provide shareholders with consistent long‑term returns in excess of the FTSE All‑Share Index by investing predominantly in unquoted companies where value can be created through strategic and operational change.

Highlights include:

 

¡ The share price showed a positive development in the quarter, appreciating by 6.6% while the discount narrowed from 7% to 1%. The share price has appreciated 20.1% overall year to date.

 

¡ Trading performance across the portfolio continues to be strong and in-line with that seen in recent quarters, contributing 5% to NAV growth in the quarter, however in aggregate HgT's NAV declined by 0.9% over the period. This decline was substantively driven by adverse FX movements. As a result, at the quarter end HgT's NAV per share stood at £5.21 with net assets of £2.4 billion.

 

¡ Continued long-term performance driven by robust trading with the top 20 investments (76% of the portfolio by value) seeing last 12 months sales and EBITDA² growth of 20% and 24% respectively, with EBITDA margins of 34%.

 

¡ Robust balance sheet with available liquid resources (comprising all announced transactions and the dividend paid in October) of £420 million (18% of NAV), including a bank facility of £375 million of which £312 million is currently undrawn, and commitments to Hg funds of £720 million (30% of NAV), to be invested over the next three to four years.

 

¡ Investments completed in Q3 deploying £213 million, including £66m of co-investment (free of management fees and carried interest). Co-investments now represent 10% of portfolio value, increasing from 5% at the start of the year.

 

¡ Hg continues to screen an attractive pipeline of investment opportunities and further liquidity events are expected over the next six to twelve months.
 

Based on HgT's share price at 30 September 2024 and assuming all historic dividends have been reinvested, an investment of £1,000 twenty years ago would now be worth £22,406, a total return of 2,141%. An equivalent investment in the FTSE All-Share Index would be worth £4,044.

¹ By Enterprise Value, Source: Hg, Factset

2 Excluding two investments from the Top 20 valued on a basis other than earnings

Note: All references to total return allow for all historic dividends being reinvested

​Please note: Past performance is not a reliable indicator of future results. The value of shares and the income from them can go down as well as up as a result of market and currency fluctuations. You may not get back the amount you invest.

 

- Ends -

 

The Company's Q3 2024 Report and full presentation to accompany the results are available to view at:  http://www.hgcapitaltrust.com/

 

 

For further details:

HgCapital Trust plc

George Crowe	[phone]
Laura Dixon	[phone]
Cadarn Capital (PR)
Lucy Clark	[phone]
David Harris	[phone]

 

About HgCapital Trust plc

 

HgCapital Trust plc, whose shares are listed on the London Stock Exchange (ticker: HGT.L), gives investors exposure through a liquid vehicle to a portfolio of high-growth private companies in the software and services sector. The selection of new investments and creation of value in these businesses are managed by Hg, 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, please see www.hgcapitaltrust.com.

 

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

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