HgCapital Trust: Q3 Results

16th November 2023 | Hg Capital Trust PLC (FTSE 250)

HgCapital Trust plc (‘HGT’), today announces its results for the three months ended 30 September 2023.

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

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 over Q3 2023 include:

  • Strong portfolio trading and value creation continues to drive growth, leading to a total return NAV increase of 4.8% to a NAV per share of £4.94 and net assets of £2.3 billion.
  • Continued strong 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 growth of 27% and 28% respectively.
  • Robust balance sheet with available liquid resources of £678 million (30% of NAV) and commitments to Hg funds of £1.0 billion (45% of NAV), to be invested over the next three to four years.
  • Hg continues to screen an attractive pipeline of investment opportunities. Further liquidity events are expected over the next six to twelve months.

Based on HGT’s share price at 30 September 2023 and assuming all historic dividends have been reinvested, an investment of £1,000 twenty years ago would now be worth £22,384, a total return of 2,138%[2]. An equivalent investment in the FTSE All-Share Index would be worth £4,127.

Post period events:

  • Further liquidity events for Commify, Azets and TeamSystem were announced during the quarter at uplifts of 32%, 16% and 68%, respectively, to carrying value. Post-period, the full exit of Silverfin was agreed at an uplift of 20% to carrying value.
  • These transactions are expected to close in the coming months and return estimated proceeds of £73.9 million to HGT.

The Company’s Q3 2023 Report and full presentation to accompany the results are available to view at: http://www.hgcapitaltrust.com/.

Request 1/1 with HG Management