HgCapital Trust plc
PRELIMINARY TRADING UPDATE FOR THE
SIX-MONTH PERIOD ENDED 30 june 2024
STRONG TRADING IN THE
UNDERLYING PORTFOLIO CONTINUES TO DRIVE GROWTH
London, 29 July 2024: HgCapital Trust plc ('HgT') today announces a preliminary
trading update for the six months ended 30 June 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 H1 2024 include:
·
Estimated Net Asset Value ('NAV') per share of
524.0 pence (unaudited)
·
Estimated NAV return per share, on a total return
basis, of 5.6%1
·
Total share price return of
12.7%1
·
Discount narrowed from 13% to 7%
· LTM revenue and
EBITDA growth of 20% and 25% for the top 20 companies (78% of the
portfolio)
·
Investments of £310 million and realisations of
£347 million
·
Available liquid resources of £550 million
(including a £375 million undrawn credit facility as at 30 June
2024)
·
Outstanding commitments to Hg funds of £847
million
1 Total
return assumes that all historical dividends have been
re-invested.
NAV
growth
HgT's unaudited estimated net assets
of £2.4 billion as at 30 June 2024, represent an estimated NAV per
share of 524.0 pence, based on portfolio company valuations at
30 June 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
· New and follow-on
investments made during the first half of 2024 totalled £310
million, including Visma, IRIS, GGW, CUBE, CINC and
Induver.
·
Post-period investment of £108 million from new
investments in Focus Group and AuditBoard which were signed but had
not completed as at 30 June 2024.
Realisation activity
·
Proceeds from exits and refinancings during the
period of £347 million. This includes proceeds from Visma, IRIS and
GGW which had been signed during 2023 and closed during the first
half of 2024, and the full realisation of Argus which was signed
and closed during the period.
· Estimated proceeds of £71 million to be received from the
post-period realisations of F24, TeamSystem and
team.blue
·
Full and partial realisations signed in 2024 were
at an average uplift of 13% 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 £508
million (including a £375 million credit facility of which £67
million has been drawn post 30 June 2024)
·
Pro-forma outstanding commitments to Hg funds of
£725 million
Hg TRANSACTION ACTIVITY OVER
2024 CONTINUES TO HIGHLIGHT THE STRENGTH OF Hg's DISCIPLINED
INVESTMENT AND REALISATION STRATEGY
As reported in the full year
results, exit activity has continued within the portfolio,
including most recently the full realisations of F24 and TeamSystem
and the partial realisation of team.blue.
Including these realisations, Hg has
achieved 40 liquidity events since the start of 2022, the
equivalent of more than one per month, generating proceeds of over
$16 billion over this period.
This record of realisations achieved stands out
as the industry continues to find generating liquidity events
challenging, highlighting the fundamental strengths and
attractiveness of the underlying portfolio to both trade and
financial buyers.
Investment activity increased during 2024, with
a continued focus on companies within the end market,
mission-critical software and services 'clusters' which Hg has
tracked for many years. In addition to the investments that
completed in the first half of the year, in July 2024, Hg completed
the investment in AuditBoard. The previously announced investment
in Focus Group is also expected to close in the coming
months.
HgT
will report its interim results to 30 June 2024 on 16 September
2024.
- ends
-
For
further information please contact:
For further details:
HgCapital Trust
plc
George
Crowe
+44 (020) 7089 7983
Laura Dixon
+44 (020) 7089 7983
Brunswick
Sofie
Brewis
+44 (0)20 7404 5959
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/