HgCapital Trust plc has released a preliminary trading update for the six months ended 30 June 2024, showcasing strong trading in the underlying portfolio that continues to drive growth. The company 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.
The highlights for H1 2024 include an 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%, and a total share price return of 12.7%. The discount narrowed from 13% to 7%. Additionally, there was LTM revenue and EBITDA growth of 20% and 25% for the top 20 companies (78% of the portfolio), investments of £310 million, realisations of £347 million, available liquid resources of £550 million, and outstanding commitments to Hg funds of £847 million.
The unaudited estimated net assets of £2.4 billion as at 30 June 2024 represent an estimated NAV per share of 524.0 pence, driven predominantly by strong trading performance in the underlying portfolio. Investment activity saw new and follow-on investments totaling £310 million, including Visma, IRIS, GGW, CUBE, CINC, and Induver. Post-period investment of £108 million from new investments in Focus Group and AuditBoard was also noted.
Realisation activity included proceeds from exits and refinancings during the period of £347 million, with 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.
The pro-forma balance sheet, allowing for all transactions announced as at the date of this trading update, showed pro-forma available liquid resources of £508 million and pro-forma outstanding commitments to Hg funds of £725 million.
Hg's transaction activity over 2024 continues to highlight the strength of Hg's disciplined investment and realisation strategy. Exit activity has continued within the portfolio, with 40 liquidity events achieved since the start of 2022, generating proceeds of over $16 billion. 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.
HgT will report its interim results to 30 June 2024 on 16 September 2024. For further information, contact details are provided in the announcement.