Half Yearly Report

RNS Number : 6033K

HgCapital Trust plc

23 August 2012

 



HgCapital Trust plc

Interim Results for the six months ended 30 June 2012

London, 23 August 2012:  HgCapital Trust plc ("the Trust"), which provides investors with a listed vehicle to invest in all private equity deals managed by HgCapital, today announces its interim results for the six months ended 30 June 2012.

HgCAPITAL TRUST PLC CONTINUES TO DELIVER LONG TERM OUTPERFORMANCE

Summary performance for six months to 30 June 2012 and pro-forma results taking into account three realisations since the period end detailed below

		Pro-forma			30 June 2012 as reported
		% Total return*	Adjusted		% Total return*	Actual
NAV per share	(diluted)	+10.1%	1,166.9p		+7.4%	1,138.3p
	(basic)	+11.5%	1,204.4p		+8.4%	1,170.8p
Share price					-6.1%	901.0p
FTSE All-Share Index					+3.3%
		Movement			Movement
NAV		+£36.5m	£383.3m		+£25.8m	£372.6m

* Assuming reinvestment of all dividends

§ +14.4% p.a. 10-year compound annual growth rate of the share price on a total return basis vs. +6.1% p.a. from the FTSE All-Share Index on a total return basis to 30 June 2012.

§ Strong Sales and EBITDA growth from top 20 buyout investments of +11% and +12% respectively over last 12 months to 30 June 2012.

§ Three realisations agreed since the period end (SHL, Mercury Pharma and RPP1's UK Wind operating assets) with a total consideration of £69.1 million.

-      Sale of SHL agreed, at a 3.1x investment multiple with cash proceeds of £26.8 million.

-      Sale of RPP1's UK wind platform, at a 2.0x investment multiple will return £5.9 million to the Trust

-      Sale of Mercury Pharma agreed at a 4.1x investment multiple (potentially rising to 4.3x), with a cash consideration of £35.4 million and further potential proceeds of £1.0 million over the next 30 months.

§ Pro-forma liquid resources post these transactions will be approximately £130 million (34% of pro forma NAV) with outstanding commitments of £179.1 million (47% of pro-forma NAV).

Manager Outlook

§  Despite the weak macro-economic environment across Western Europe we believe that our investment strategy of identifying high quality growth companies in market niches will continue to benefit the performance of our portfolio.

§  We remain relatively cautious on new investment although within our sectors of expertise we continue to find opportunities to acquire market leading businesses at reasonable prices.

§  As recently evidenced, we continue to see an active interest in acquiring a number of our portfolio companies which may lead us to realise a number of our investments over the next 18 months.

§  Owning a portfolio of quality growth companies run by talented managers should continue to build significant shareholder value over the medium-term.

Roger Mountford, Chairman of the Trust, commented:

"The Trust is well positioned, with a balance of assets that are steadily creating value under HgCapital's management and a pipeline of new investment opportunities. The portfolio continues to deliver double digit revenue and profit growth year on year. The Trust's record of rewarding long-term investors continues to justify investment".

- Ends -

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

For further details:

HgCapital
Nic Humphries    (CEO, HgCapital)	[phone]
Roger Mountford (Chairman, HgCapital Trust plc) Maitland	[phone]
Rowan Brown George Hudson	[phone]

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The Trust gives investors exposure, through a liquid vehicle, to a portfolio of high-growth private companies, 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.

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

Neither the contents of HgCapital's website, HgCapital Trust's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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