HgCapital Trust PLC Annual Results for the year ended 31 December 2017 (6138G)

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RNS Number : 6138G

HgCapital Trust PLC

05 March 2018

HgCapital Trust plc

ANNUAL Results for the YEAR ended 31 DECEMBER 2017

London, 5 March 2018: HgCapital Trust plc ("the Company"), which provides investors with a listed vehicle to invest in unquoted businesses managed by Hg, today announces its annual results for the year ended 31 December 2017.

CONTINUED Strong NAV performance driven by double-digit revenue and profit growth AND EXITS ABOVE BOOK VALUE

SUMMARY performance

 
                    28 February     31 December     31 December       % Total 
                           2018            2017            2016     return(1) 
===============  ==============  ==============  ==============  ============ 
NAV per share          GBP19.25        GBP19.32        GBP16.50        +21.5% 
Share price            GBP17.20        GBP17.68        GBP15.41        +19.5% 
FTSE All-Share 
 Index                                                                 +13.1% 
===============================================================  ============ 
                                                                         2017 
                                                                     Movement 
Net Asset             GBP718.5m       GBP721.0m       GBP615.8m    +GBP105.2m 
 Value 
===============  ==============  ==============  ==============  ============ 
 

(1) Assuming reinvestment of all historic dividends

key Highlights FOR THE YEAR TO 31 december 2017

-- NAV per share of GBP19.32, a total return of 21.5%.

-- Share price total return of 19.5% to 31 December.

-- Strong revenue and EBITDA growth of 14% and 16% respectively across the top 20 buyout investments (83% of the portfolio) over the last twelve months.

-- Valuation multiple (EV/EBITDA) of 16.4x and debt to EBITDA ratio of 5.4x for the top 20 buyout investments.

-- GBP224 million of cash returned to the Company and GBP73 million invested on behalf of the Company (including GBP12 million as co-investment free of fees and carried interest).

-- Board's range of skills and experience enhanced by the appointment of Jim Strang (Managing Director of Hamilton Lane) and Guy Wakeley (CEO of Equiniti Group plc).

-- New commitments to invest up to GBP225 million in Hg Saturn and Hg Transition Capital over next 4-5 years, broadening the investment reach of the Company in its chosen sectors.

year to date to 28 FEBRUARY 2018

-- NAV per share of GBP19.25, primarily reflecting unrealised currency movements since year-end

-- Share price of GBP17.20.

-- Pro-forma liquid resources post completion of all announced transactions are GBP181 million (25% of NAV).

-- Pro-forma outstanding commitments, including the new commitments to Hg Transition Capital and Hg Saturn, of up to GBP667 million (93% of NAV). We expect these to be drawn down over the next four to five years.

Hg's Outlook

-- Strong trading from the businesses, combined with capital returns from exits above book value, continued to drive value for our investors

-- Following a strong year for realisations, Hg expects to see several further exits over the next six months

-- While the primary focus is currently on realisations, Hg continues to invest selectively, capitalising on situations where it has a unique angle and has developed many years' knowledge of the business, and typically building on a strong relationship with a founder or management team

-- Robust trading performance from the underlying businesses continues to underpin Hg's confidence in the quality of these investments

-- Hg's focus on operational improvement, coordinated by its dedicated Operations Innovation team, continues to drive the performance of the network of businesses, and deliver network benefits to these companies

-- This focus will continue to drive value for shareholders in HgCapital Trust plc

Roger Mountford, Chairman of the Company, commented:

"Following an excellent year for returns, the Company is well placed to realise a number of investments, while broadening our investment reach and taking advantage of new opportunities within the Manager's established area of expertise."

- Ends -

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

For further details:

 
 HgCapital Trust plc 
 Roger Mountford (Chairman,      +44 (0)7799 
  HgCapital Trust plc)            662601 
 Laura Dixon (Senior Investor    [phone] 
  Relations Manager, Hg)          7888 
 Maitland 
                                 [phone] 
 Vikki Kosmalska                  5151 
 

About HgCapital Trust plc

HgCapital Trust plc is an investment company whose shares are listed on the London Stock Exchange (HGT.L). The Company gives investors exposure, through a liquid vehicle, to a portfolio of high-growth unquoted companies, 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, 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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March 05, 2018 02:00 ET (07:00 GMT)