REG - HydrogenOne Cap Gwth - Net Asset Value and portfolio update

Hydrogenone Capital GrowthAnnouncement

10/05/2023 07:00

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RNS Number : 8554Y  HydrogenOne Capital Growth PLC  10 May 2023

HydrogenOne Capital Growth plc ("HydrogenOne" or the "Company")

LEI: 213800PMTT98U879SF45

 

10th May 2023

Net Asset Value and portfolio update

HydrogenOne, the first London-listed fund investing in clean hydrogen for a
positive environmental impact, today announces its quarterly net asset value
and portfolio update for the period ended 31 March 2023.

Key highlights for the quarter

·      Positive industry outlook underpinned by macro tailwinds in the
hydrogen sector and supportive regulatory regimes in the USA and Europe. UK
Government selection of 20 green hydrogen projects as funding candidates
announced in the quarter;

·      Net Asset Value ("NAV") per share of the Company 100.00 pence, an
increase of 3.3% from 31 March 2022, and 2.8% from 31 December 2022;

·      Increased valuations in both private and listed hydrogen assets
compared to 31 December 2022; NAV includes 1.14p reduction for accrual of
carry;

·      Growth delivery from private portfolio companies, delivering an
aggregate £40m in total revenue in the 12 months to March 2023, an increase
of 107% compared to the 12 months to March 2022;

·      First investment in a clean hydrogen production project in
Germany; £2.5m commitment;

·      Investments in the quarter totalling £5.4m;

·      Cash and cash equivalents of £12.5m, and £3.8m of listed
hydrogen companies at the end of the quarter;

·      The Company hosted a Capital Markets Day, which included
presentations from the management teams of each of the private portfolio
companies.

Net asset value

At 31 March 2023, the unaudited NAV per share of the Company was 100.00 pence,
representing a quarterly increase of 2.8% from 31 December 2022, and an
increase of 3.3% from 31 March 2022. The Company had net assets of £128.8
million at that date.

 

The quarterly increase was driven primarily by valuation uplifts to the
Company's portfolio of private investments, positively contributing 4.45 pence
(4.6%) per share to the NAV movement.

 

NAV movements

 Opening NAV per share at 31 Dec 2022              97.31p
 Portfolio valuation uplifts including FX impacts  4.53p
 Company expenses                                  (0.70)p
 Accrual for Investment Adviser carry              (1.14)p
 Closing NAV per share at 31 March 2023            100.00p

 

 

 

Financial summary

                                             31 March 23  31 Dec 22  Change  31 March 22  Change
 NAV                                         £128.8m      £125.3m    2.8%    £104.0m      23.8%
 NAV per share                               100.00p      97.31p     2.8%    96.83p       3.3%
 Portfolio valuation                         £117.4m      £106.8m    10.0%   £69.9m       68.0%
 Portfolio fair value gain / (loss) on cost  £11.0m       £5.6m      95.2%   £0.7m        n/a
 Other net assets (incl cash)                £11.4m       £18.5m     -38.6%  £34.1m       -66.6%

 

Portfolio

·    At 31 March 2023, the Company has invested in ten private
investments, in the UK and Europe, representing 96.7% of its invested
portfolio by value. Additional investment in strategic, global hydrogen
equities represented 3.3% of the invested portfolio, in revenue generating
businesses.

 

·    The portfolio continues to perform in line with the expectations of
the Investment Adviser, HydrogenOne Capital LLP.

 

·    Eight of the Company's ten private investments, representing 93% of
its invested portfolio by value, are revenue-generating, producing equipment
and technology solutions for clean hydrogen production. The unaudited
aggregate revenue from these investments was c. £40m in the 12-month period
to 31 March 2023, an increase of 107% compared to the 12 months to March 2022,
on a pro-forma basis

 

·      The portfolio weighted average discount rate at 31 March 2023 was
13.0% (31 December 2022 12.9%; 31 March 2022 12.5%).

Portfolio developments

·    Cranfield Aerospace Solutions Ltd, a UK hydrogen flight innovator
(6.8% of NAV). After the end of the quarter, Cranfield announced a Heads of
Terms with Britten-Norman, to merge and to create the world's first fully
integrated, zero-emissions aircraft, for entry into service in 2026. The
proposed combination would accelerate and de-risk the commercialisation of
Cranfield's hydrogen flight technology.

 

·    Elcogen Plc, a solid oxide fuel cell and electrolyser manufacturer in
Estonia and Finland: (16.1% of NAV). Elcogen signed a memorandum of
understanding covering green hydrogen with Korea Shipbuilding and Offshore
Engineering, a member of Hyundai Heavy Industries Group, one of the world's
largest shipbuilders, and the Germany based Fraunhofer Institute for Ceramic
Technologies and Systems.

 

·    HH2E is a green hydrogen project developer with a focus on industrial
customers in Germany: (3.7% of NAV). HH2E announced its second major green
hydrogen production project in Germany, a 100MW facility at Thierbach. A final
investment decision is expected in the second half of 2023. HH2E agreed to
purchase of 120MW of alkaline electrolyzer equipment from NEL ASA. The total
value of the contract is approximately EUR 34 million, and the equipment will
be used in multiple HH2E green hydrogen projects in Germany.

 

·    NanoSUN Limited, a UK-based developer of hydrogen distribution and
mobile refuelling equipment: (10.5% of NAV).  NanoSUN continued deliveries of
new Pioneer Mobile Refuelling Stations to customers, including two units to
Octopus Hydrogen in the UK and one unit to Westfalen in Germany. NanoSUN
commenced collaboration and contract manufacturing with TIS Manufacturing, in
Aberdeen, UK, for NanoSUN's Pioneer Hydrogen Refuelling Stations.

 

·    Strohm Holding B.V., a Netherlands-based hydrogen pipeline company:
(12.0% of NAV). Strohm delivered a major milestone by completing its plant
expansion in the Netherlands. The new facility can produce some 140km of
thermocomposite plastic ("TCP") pipeline per year, a three times increase on
previous levels. Strohm was awarded its second contract for TCP pipeline for
deployment in Guyana. This is the largest contract ever secured by Strohm.

 

·    Sunfire GmbH, the leading German industrial electrolyser producer:
(18.9% of NAV). Sunfire launched a new serial production facility in Solingen,
Germany with investment of E30m at the facility. Further expansion is underway
at Solingen, taking Sunfire's total capacity to 500MW of alkaline electrolysis
by the end of 2023. Sunfire announced a strategic partnership with Vitesco
Technologies, who will combine Sunfire electrolysis cells into the stacks,
that form the main element of electrolyzers.

Investment activity

·    The Company invested in three portfolio companies, and a green
hydrogen project, at Thierbach in Germany (the "Thierbach Project"), totalling
£5.4m in the quarter.

 

·    The Company will invest £2.5 million (EUR 2.8 million) in
development activities at the Thierbach Project alongside other institutional
investors and HH2E, of which the Company invested £0.8m in Q1 2023. Thierbach
should reach Final Investment Decision in the second half of 2023, subject to
technical and commercial studies, and funding. Should the Thierbach Project
take FID, and the Company elects to not participate, then its £2.5m
investment in the project will be returned with interest.

 

·    The Company has invested £1.5m in Cranfield Aerospace Solutions Ltd
in April 2023, which could increase to up to £5m in a potential £10m funding
round from existing investors alongside Safran Corporate Ventures and the
Strategic Development Fund , on the completion of the merger of Cranfield and
Britten-Norman.

 

·    The Company had cash and cash equivalents of £12.5m, and £3.8m of
listed hydrogen companies at the end of the quarter, and remains well funded
for its day-to-day activities.

 

Further details on the Company's private investments, including the new
investments referenced above, can be found on its website at
https://hydrogenonecapitalgrowthplc.com/portfolio/private-investments
(https://hydrogenonecapitalgrowthplc.com/portfolio/private-investments) .

ESG

·    The Company is classified as an Article 9 Fund under the SFDR and EU
Taxonomy Regulation.

 

·    The Company is a signatory of the United Nations-supported Principles
for Responsible Investment.

 

·    The first reporting in accordance with the SFDR Article 9
requirements and the International Sustainability Standards Board framework
was published with the FY2022 Annual Report, released in April 2023.

Factsheet and investor webinar

The 31 March 2023 factsheet is now available on the Company's website:
https://hydrogenonecapitalgrowthplc.com/investors/factsheets/.

The Company's Investment Adviser, HydrogenOne Capital LLP, will be hosting a
30-minute live webinar presentation for investors and analysts on Q1 2023
Factsheet and NAV update commencing at 9am GMT today.

 

In order to register for the webinar, please follow the link:
https://www.investormeetcompany.com/hydrogenone-capital-growth-plc/register-investor
(https://www.investormeetcompany.com/hydrogenone-capital-growth-plc/register-investor)
.

 

The presentation will also be available on the Company's website at
https://hydrogenonecapitalgrowthplc.com/investors/documents-and-publications/
(https://hydrogenonecapitalgrowthplc.com/investors/documents-and-publications/)
.

 

 

Notes

 

This announcement is not an offer for sale or subscription or solicitation to
purchase shares in any jurisdiction. This announcement contains inside
information.

 

For further information, please visit www.hydrogenonecapitalgrowthplc.com
(http://www.hydrogenonecapitalgrowthplc.com) or contact:

 

 HydrogenOne Capital LLP - Investment Adviser  +44 20 3830 8231
 Dr. JJ Traynor/Richard Hulf

 Barclays Bank PLC - Corporate Broker          +44 20 7623 2323

 Dion Di Miceli                                BarclaysInvestmentCompanies@barclays.com

 Stuart Muress

 FTI Consulting - Media Enquiries

 Matthew O'Keeffe                              +44 20 3727 1725

 Cally Billimore                               hygen@fticonsulting.com

 

About HydrogenOne:

 

HydrogenOne is the first London-listed hydrogen fund investing in clean
hydrogen for a positive environmental impact. The Company was launched in 2021
with an investment objective to deliver an attractive level of capital growth
by investing in a diversified portfolio of hydrogen and complementary hydrogen
focussed assets. INEOS Energy is a strategic investor in HydrogenOne. The
Company is listed on the London Stock Exchange's main market (ticker code:
HGEN). The Company is an Article 9 climate impact fund with an ESG policy
integrated in investment decisions and asset monitoring.

IMPORTANT NOTICE

This announcement does not constitute an offer to sell, or the solicitation of
an offer to acquire or subscribe for, shares in the Company in any
jurisdiction. The distribution of this announcement outside the UK may be
restricted by law. No action has been taken by the Company that would permit
possession of this announcement in any jurisdiction outside the UK where
action for that purpose is required. Persons outside the UK who come into
possession of this announcement should inform themselves about the
distribution of this announcement in their particular jurisdiction.

This announcement contains (or may contain) certain forward-looking statements
with respect to certain of the Company's plans and/or the plans of one or more
of its investee companies or projects and their respective current goals and
expectations relating to their respective future financial condition and
performance and which involve a number of risks and uncertainties. The Company
cautions readers that no forward- looking statement is a guarantee of future
performance and that actual results could differ materially from those
contained in the forward- looking statements.

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014, as it forms part of UK domestic law ("MAR"). Upon
publication of this announcement, the inside information is now considered to
be in the public domain for the purposes of MAR. The person responsible for
arranging the release of this announcement on behalf of the Company is
HydrogenOne Capital LLP.

 

 

 

 

 

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