REG - HgCapital Trust PLC - 3rd Quarter Results

HgCapital TrustAnnouncement

07/11/2024 07:00

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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 Europe(1).

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
EBITDA(2) 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/
(http://www.hgcapitaltrust.com/)

 

 

For further details:

HgCapital Trust plc

 George Crowe         +44 (0)20 8152 5880
 Laura Dixon          +44 (0)20 8078 9139

 Cadarn Capital (PR)
 Lucy Clark           +44 (0) 7984 184461
 David Harris         +44 (0) 7368 883211

 

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
(http://www.hgcapitaltrust.com) and www.hgcapital.com
(http://www.hgcapital.com)

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