HgCapital Trust: Half Year Results

HgCapital Trust reported a softer first half as falling valuations across the technology sector outweighed continued operational growth in its portfolio. Net asset value per share fell 4.9% to 530.7p in the six months to June, while the trust’s share price total return declined 24.9%.Underlying businesses remained resilient, however, with last-twelve-month revenue and EBITDA rising 16% and 19% respectively, while the average portfolio valuation multiple contracted from 25.2 times to 22.9 times EBITDA. HgT invested £146m during the period and generated £134mn from disposals, with completed exits averaging a 31 per cent uplift to carrying values. The trust maintained its interim dividend at 2p a share, while Hg said it intended to increase its strategic stake in the vehicle to more than 15 per cent, signalling continued confidence in the portfolio despite the broader pressure on private-market technology valuations.