Annual Results for the year ended 31 December 2017

RNS Number : 6138G

HgCapital Trust PLC

05 March 2018

 

HgCapital Trust plc

ANNUAL Results for the YEAR ended 31 DECEMBER 2017

London, 5 March 2018:  HgCapital Trust plc ("the Company"), which provides investors with a listed vehicle to invest in unquoted businesses managed by Hg, today announces its annual results for the year ended 31 December 2017.

CONTINUED Strong NAV performance driven by double-digit revenue and profit growth AND EXITS ABOVE BOOK VALUE

SUMMARY performance

	28 February 2018	31 December 2017	31 December 2016	% Total return1
NAV per share	£19.25	£19.32	£16.50	+21.5%
Share price	£17.20	£17.68	£15.41	+19.5%
FTSE All-Share Index				+13.1%
			2017 Movement
Net Asset Value	£718.5m	£721.0m	£615.8m	+£105.2m

¹ Assuming reinvestment of all historic dividends

key Highlights FOR THE YEAR TO 31 december 2017

§  NAV per share of £19.32, a total return of 21.5%.

§  Share price total return of 19.5% to 31 December.

§  Strong revenue and EBITDA growth of 14% and 16% respectively across the top 20 buyout investments (83% of the portfolio) over the last twelve months.

§  Valuation multiple (EV/EBITDA) of 16.4x and debt to EBITDA ratio of 5.4x for the top 20 buyout investments.

§  £224 million of cash returned to the Company and £73 million invested on behalf of the Company (including £12 million as co-investment free of fees and carried interest).

§  Board's range of skills and experience enhanced by the appointment of Jim Strang (Managing Director of Hamilton Lane) and Guy Wakeley (CEO of Equiniti Group plc).

§  New commitments to invest up to £225 million in Hg Saturn and Hg Transition Capital over next 4-5 years, broadening the investment reach of the Company in its chosen sectors.

year to date to 28 FEBRUARY 2018

§  NAV per share of £19.25, primarily reflecting unrealised currency movements since year-end

§  Share price of £17.20.

§  Pro-forma liquid resources post completion of all announced transactions are £181 million (25% of NAV).

§  Pro-forma outstanding commitments, including the new commitments to Hg Transition Capital and Hg Saturn, of up to £667 million (93% of NAV). We expect these to be drawn down over the next four to five years.

Hg's Outlook

§  Strong trading from the businesses, combined with capital returns from exits above book value, continued to drive value for our investors

§  Following a strong year for realisations, Hg expects to see several further exits over the next six months

§  While the primary focus is currently on realisations, Hg continues to invest selectively, capitalising on situations where it has a unique angle and has developed many years' knowledge of the business, and typically building on a strong relationship with a founder or management team

§  Robust trading performance from the underlying businesses continues to underpin Hg's confidence in the quality of these investments

§  Hg's focus on operational improvement, coordinated by its dedicated Operations Innovation team, continues to drive the performance of the network of businesses, and deliver network benefits to these companies

§  This focus will continue to drive value for shareholders in HgCapital Trust plc

Roger Mountford, Chairman of the Company, commented:

"Following an excellent year for returns, the Company is well placed to realise a number of investments, while broadening our investment reach and taking advantage of new opportunities within the Manager's established area of expertise."

- Ends -

The Company's 2017 Annual Report and a video from the Manager to accompany the results are available to view at:  http://www.hgcapitaltrust.com/.

For further details:

HgCapital Trust plc
Roger Mountford (Chairman, HgCapital Trust plc)	[phone]
Laura Dixon (Senior Investor Relations Manager, Hg)	[phone]
Maitland
Vikki Kosmalska	[phone]

About HgCapital Trust plc

HgCapital Trust plc is an investment company whose shares are listed on the London Stock Exchange (HGT.L). The Company 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.

For further details, see www.hgcapitaltrust.com and www.hgcapital.com

 

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