HgCapital Trust plc
PRELIMINARY TRADING UPDATE FOR THE
YEAR ENDED 31 DECEMBER 2023
RESILIENT ESTIMATED NAV
PERFORMANCE IN A CHALLENGING MACRO ENVIRONMENT DRIVEN BY STRONG
TRADING IN THE UNDERLYING PORTFOLIO
London, 5 February 2024: HgCapital Trust plc ('HgT') today announces a preliminary
trading update for the 12 months ended 31 December 2023.
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 2023 include:
·
Estimated Net Asset Value ('NAV') per share of
498.6 pence (unaudited)
·
Total estimated NAV return per share, on a total
return basis, of 10.7%1
·
Total share price return of
26.2%1
·
Discount narrowed from 23% to 13%
·
Top 20 (77% of the portfolio) LTM revenue and
EBITDA growth of 25% and 28% respectively for the year ended 31
December 2023
·
Investments of £71 million and realisations of
£343 million
·
Year-end available liquid resources of £625
million (including a £350 million undrawn credit
facility)
·
Year-end outstanding commitments to Hg funds of
£1.0 billion
NAV
growth
HgT's unaudited estimated NAV as at
31 December 2023 was £2.3 billion, which represents an
estimated NAV per share of 498.6 pence, based on portfolio
company valuations at 31 December and reviewed by the HgT AVRC.
This growth was predominantly driven by strong trading performance
in the underlying portfolio.
Investments and realisations
·
HgT's share of deployment from new and follow-on
investments made during 2023 was £71 million, including GTreasury,
Nomadia, JTL, P&I and Howden
·
HgT's share of proceeds from exits and
refinancings during the period was £343 million,
including secondary sales from Hg Genesis 8 and Hg
Saturn 3, as well as the full exits of Transporeon and Commify.
Full and partial exits represented an average uplift of 25% to
their carrying values at 31 December 2022
Post- period balance sheet adjustments
Allowing for all transactions
announced and not completed at the end of 2023:
·
Available liquid resources of £735 million
(including a £350 million undrawn credit facility)
·
Outstanding commitments of £808 million
Hg REALISATION ACTIVITY
CONTINUES TO HIGHLIGHT THE FUNDAMENTAL STRENGTH OF THE UNDERLYING
PORTFOLIO
The sale of Argus announced in
January 2024 represented the fourth material realisation event
announced by Hg over the prior four weeks, resulting in c. $3.5
billion of proceeds that will be returned to Hg clients, including
c. £295 million to HgT, once these transactions close in
2024.
This realisation represents Hg's
13th liquidity event since the start of 2023 and the 29th liquidity
event completed over the last two years, the equivalent of more
than one per month and representing proceeds from nearly half of
the Hg portfolio over this period.
This realisation activity sets Hg apart in a
year when many other private equity firms struggled to generate
liquidity from their portfolios. Hg believes its realisation
activity in 2023 was a clear differentiator for HgT, highlighting
the fundamental strengths and attractiveness of the underlying
portfolio to both trade and financial buyers.
HgT
will report its full year audited results for 2023 on 11 March
2024.
- ends
-
For
further information please contact:
For further details:
HgCapital Trust
plc
Laura Dixon (Senior Investor
Relations Manager,
Hg) +44 (0)
78 2459 2894
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/