REG - HydrogenOne Cap Gwth - Portfolio Update

Hydrogenone Capital GrowthAnnouncement

29/03/2023 07:00

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RNS Number : 5391U  HydrogenOne Capital Growth PLC  29 March 2023

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

LEI: 213800PMTT98U879SF45

29 March 2023

Portfolio update

The Directors of HydrogenOne, the first London-listed fund investing in clean
hydrogen for a positive environmental impact, continue to monitor wider market
events as they relate to the Company, including current share price volatility
in the market price of its shares. The Board is not aware of company-specific
factors that have led to the recent decline in the share price.

 

On 8 February 2023 the Company announced its quarterly NAV and portfolio
update for the period ended 31 December 2022. The Company is planning to
publish its audited results for the year ended 31 December 2022 on 4 April
2023.

The quarterly NAV and portfolio update for the quarter ended 31 March 2023 is
expected to be announced during May 2023 as planned.

Portfolio valuations

The Company applies a consistent approach to portfolio valuation, centred on
discounted cash flows using the International Private Equity and Venture
Capital Valuation Guidelines.

 

·    The valuation of Company's entire private portfolio is reviewed and
approved by the Board on a quarterly basis, and reviewed by the Company's
auditor annually.

 

·    The private portfolio is valued using either the DCF method, or a
combination of the DCF method and the price of recent investment. The DCF
valuations are also benchmarked against listed peer group valuations in the
Company's valuation process.

 

·    The Company's discount rates are calculated using market parameters
for each investment domicile. The portfolio average discount rate for December
2022 was 12.9%, compared to 12.5% in 2021.

 

The Company's portfolio continues to perform in line with the expectations of
the Company's Investment Adviser, HydrogenOne Capital LLP

 

·    Seven of the Company's private investments, representing 89% 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. £33 million in the 12-month period
to 31 December 2022, an increase of 110% from 2021 on a pro-forma basis.

 

·    The Company's unaudited NAV per share at 31 December 2022 was 97.3
pence, an increase of 1.6% from 31 December 2021, and 0.8% from 30 September
2022.

 

·    The resulting private valuation has an implied forward revenue
multiple of 6X (2024E), which is some 40% lower than listed hydrogen sector
multiples.

 

·    The Company, and its private investments, do not have any exposure to
Silicon Valley Bank.

 

 

 

 

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

 

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

 Barclays Bank PLC - Corporate Broker           +44 20 7623 2323

 Dion Di Miceli                                 BarclaysInvestmentCompanies@barclays.com

                                              (mailto:BarclaysInvestmentCompanies@barclays.com)
 Stuart Muress

 FTI Consulting - Media Enquiries

 Matthew O'Keeffe                               +44 20 3727 1725

 Cally Billimore                                hygen@fticonsulting.com (mailto: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.

 

 

 

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