REG - HgCapital Trust PLC - Preliminary Trading Update

HgCapital TrustAnnouncement

29/07/2024 07:00

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RNS Number : 1098Y  HgCapital Trust PLC  29 July 2024

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/ (https://www.hgcapitaltrust.com/)

 

 

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