REG - HgCapital Trust PLC - Preliminary Trading Update

HgCapital TrustAnnouncement

03/02/2025 07:00

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RNS Number : 5368V  HgCapital Trust PLC  03 February 2025

HgCapital Trust plc

PRELIMINARY TRADING UPDATE FOR THE YEAR ENDED 31 DECEMBER 2024

 

 

 

ESTIMATED NAV PERFORMANCE DRIVEN BY RESILIENT TRADING IN THE UNDERLYING
PORTFOLIO

 

London, 3 February 2025: HgCapital Trust plc ('HgT') today announces a
preliminary trading update for the year ended 31 December 2024.

 

HgT provides investors with a listed vehicle to invest in unquoted businesses
managed by Hg, Europe's largest investor in software & services companies.

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 businesses where value can be created through strategic and
operational change.

Highlights for 2024 include:

·      Estimated Net Asset Value ('NAV') per share of 544.1 pence
(unaudited)

·      Estimated NAV return per share, on a total return basis, of
10.1%(1)

·      Total share price return of 25.7%(1)

·      Re-rating of the shares from 13% discount to 2% premium(2)

·      LTM revenue and EBITDA growth of 19% and 22% for the top 20
companies (76% of the portfolio) to 30 November 2024

·      Investments of £601 million and gross realisations of £505
million

·      Year-end available liquid resources of £342 million (including a
£375 million credit facility, of which £98m was drawn as at 31 December
2024)

·      Year-end outstanding commitments to Hg funds of £734 million
which are expected to be called over the next 2-3 years

NAV growth

HgT's unaudited estimated net assets of £2.5 billion as at 31 December 2024,
represent an estimated NAV per share of 544.1 pence, based on portfolio
company valuations at 31 December and reviewed by the HgT Audit, Valuation and
Risk Committee. This growth was driven predominantly by strong trading
performance in the underlying portfolio.

Investment activity

·      HgT's share of deployment from new and follow-on investments made
during 2024 was £601 million, including Visma, AuditBoard, IRIS, GGW, Ivalua,
Ncontracts, Septeo, Howden, Focus Group, Access, Azets, CINC Systems, CTAIMA
& e-coordina, Empyrean, team.blue, Cube Global and Induver

·      Post-period investment of £32 million from the new investment in
Citation, which is expected to complete in Q1 2025

 

Realisation activity

·      Gross proceeds from exits and refinancings during the period
of £505 million. This includes proceeds from IRIS, GGW, Visma, Argus,
team.blue, Septeo, TeamSystem, Dext, Azets, MeinAuto and F24

·      Estimated gross proceeds of £45 million to be received from the
post-period realisation of Citation

·      Full and partial realisations in 2024 were at an average uplift
of 15% to their carrying value

Pro-forma balance sheet

Allowing for all transactions announced as at the date of this trading update:

·      Pro-forma available liquid resources of £441 million (including
a £375 million credit facility of which £49 million remains drawn at the
time of this announcement)

·      Pro-forma outstanding commitments to Hg funds of £643 million
which are expected to be called over the next 2-3 years

 

TRANSACTION ACTIVITY OVER 2024 CONTINUES TO HIGHLIGHT THE STRENGTH OF Hg's
DISCIPLINED INVESTMENT AND REALISATION STRATEGY

2024 saw a return to a more balanced environment for investment and
realisation activity. Investment activity increased compared to the prior
year, with a total of 14 new investments across the Hg platform, consistent
with the long-run average. Investment activity continues to focus on companies
within the end market, mission-critical software and services 'clusters' which
Hg has tracked for many years.

Over 2024, Hg realised over $7 billion of proceeds from 20 liquidity events,
as it continued to focus on cash back to clients, including HgT. Hg has
achieved 43 liquidity events since the start of 2022, the equivalent of more
than one per month, generating proceeds of over $17.5 billion over this
period.

This record of realisations achieved stands out as the industry continues to
find generating liquidity challenging, highlighting the fundamental strengths
and attractiveness of the underlying portfolio companies to both trade and
financial buyers.

HgT will report its full year audited results for 2024 on 10 March 2025.

(1) Total return assumes that all historical dividends have been re-invested.

(2) Based on the closing share price and the last published pro-forma NAV
available as at 31/12/2024

 

 

- ends -

 

For further information please contact:

 

Hg

Tom Eckersley
 
                                 +44 (0)208
148 5401

 

HgCapital Trust

Laura Dixon and George Crowe
 
 
 +44 (0)208 396 0930

 

Cadarn

Lucy Clark

lucy@cadarncapital.com (mailto:lucy@cadarncapital.com)
 
 
                                                +44
(0)7984 184 461

 

Cadarn

David Harris

david@cadarncapital.com (mailto:david@cadarncapital.com)
 
 
                                                +44
(0)7368 883 211

 

 

Notes:

1.     Please be advised that this announcement may contain inside
information as stipulated under the Market Abuse Regulation (EU) No. 596/2014
as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019.

2.     This announcement may include "forward-looking statements". These
forward-looking statements are statements regarding the Company's objectives,
intentions, beliefs or current expectations with respect to, amongst other
things, the Company's financial position, business strategy, results of
operations, liquidity, prospects and growth. Forward-looking statements are
subject to risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future.  Accordingly, the
Company's actual future financial results, operational performance and
achievements may differ materially from those expressed in, or implied by, the
statements. Given these uncertainties, prospective investors are cautioned not
to place any undue reliance on such forward-looking statements, which speak
only as at the date of this announcement. The Company expressly disclaims any
obligation or undertaking to update or revise any forward-looking statements
contained herein to reflect actual results or any change in the Company's
expectations with regard to them or any change in events, conditions or
circumstances on which any such statements are based unless required to do so
by the Financial Services and Markets Act 2000, the Listing Rules or
Prospectus Regulation Rules of the Financial Conduct Authority or other
applicable laws, regulations or rules.

3.     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.

 

( )About HgCapital Trust plc

HgCapital Trust plc is an investment company whose shares are listed on the
London Stock Exchange (HGT.L). HgT 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.

Further information on HgT including a short introduction video is available
here: https://www.hgcapitaltrust.com/ (https://www.hgcapitaltrust.com/)

 

 

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