Announcement of Interim Resul

RNS Number : 6544R

HG Capital Trust PLC

26 August 2010

 



HgCapital Trust plc

Interim Results for the six months ended 30 June 2010

London, 26 August 2010: HgCapital Trust plc ("the Company"), the Private Equity Investment Trust managed by HgCapital (or the "Manager"), the European sector-focused private equity investor, announces interim results for the six months ended 30 June 2010.

The full Interim Results and a webcast analysing the report are available at http://www.hgcapitaltrust.com/ 

Financial highlights

·      NAV per share increase of 2.9% to 938.6 pence resulting from improved trading performance in the portfolio

·      £72 million cash deployed, investing in businesses that have continued to grow through the recession

·      £63.4 million in liquid resources (c. 22% of net assets) at 30 June 2010 available to deploy

·      Total return (share price plus dividend) over the period was -2.6% compared with -6.1% for the FTSE All-Share Total Return Index

·      Consistent returns: share price growth (total return) over ten-year period of +13.2% per annum against +1.6% per annum for the FTSE All-Share Total Return Index for the same period

·      Successfully completed £50 million capital raising in April 2010 to provide funding for new investment opportunities

·      Ten year investment return of 3.5x for every £1 invested

Operational Highlights

·      The Company realised proceeds during the period of £10.7 million. These proceeds arose principally from the sale of Hoseasons and a refinancing of Elite.

·      Invested £72.3 million including five new buyouts:

       - StepStone Solutions, the Talent Management division of StepStone ASA

       - Frösunda, the leading Swedish provider of specialist disability care

       - JLA, the UK's largest commercial laundry equipment supplier

       - Manx Telecom, the Isle of Man's largest telecommunications and internet provider

       - SimonsVoss Technologies AG, the leading provider of digital radio based locking and access control systems

Events since 30 June 2010

·      NAV at 31 July 2010 was £292.9 million, 941.7 pence per share.

·      Agreed to invest a further £41.1 million, principally in two new buyouts:

     - Teufel Speakers, a designer and online retailer of loudspeaker systems in Germany

     - TeamSystem, a leading software and services business based in Pesaro, Italy

·      £22.4 million in liquid resources (c. 8% of net assets) following the completion of these transactions.

Economic Outlook

·      Activity in European private equity gained momentum during the first half of 2010, with the number of deals completed exceeding the 300 barrier for the first time since mid-2008. Two factors drove this expansion; first, buyers began to see value; and second, debt providers' appetite gradually revived, albeit lending less and at twice the margins charged over the past 20 years.

·      The Manager expects its rate of investment to decline in the second half of the year as it concentrates on digesting the new acquisitions.

·      Prospects for the portfolio, assuming a slow recovery in economic activity, are sound. In aggregate, the top 20 investments have increased revenues by 6% and EBITDA by 17% over the past 12 months to June 2010.

Roger Mountford, the Chairman, commented:

"The Company entered 2010 well positioned to make new investments in good market conditions for buyers and completed a series of attractive investments across all of the Manager's specialist sectors. With two further investments agreed since June, a quieter period of investment is now anticipated in the second half of the year. The priority now is to absorb the latest investments alongside our existing investment portfolio and ensure they have clear and achievable strategies for growth in sales and profitability.

"Following the announcement in February of our intention to raise further funds by way of a share issue, we are pleased to have completed the process in April, raising £50 million and bringing a range of new shareholders onto our register. This issue has increased the resources for the Company to deploy in future years and will further enhance the market in our shares.

"The Board remain convinced that an allocation to listed private equity is appropriate for many long term investors and intend to continue to report with increased clarity and transparency so that investors may share our confidence."

- Ends -

For further details:

HgCapital	Ian Armitage	[phone]
Maitland	Neil Bennett	[phone]
	Rowan Brown	[phone]

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The Company is a client of HgCapital, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by HgCapital, an experienced and well resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. The Company has won the Investment Week Private Equity Investment Trust of the Year in 2005, 2006, 2007, 2008 and 2009.  For further details, please see www.hgcapitaltrust.com

About HgCapital

HgCapital is a sector focused private equity investor in the European mid-market. We focus on investments with an enterprise value in the range of £50-£500 million. Our business model combines sector specialisation with dedicated, pro-active support to our portfolio companies as well as the corresponding management expertise across all phases of the investment process.  HgCapital manages over £3 billion for some of the world's leading institutional and private investors.  For further details, please see www.hgcapital.com

 

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