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) |
+44 (0)7799 662601 |
Laura Dixon (Senior Investor Relations Manager, Hg) |
+44 (0)20 7089 7888 |
Maitland |
|
Vikki Kosmalska |
+44 (0)20 7379 5151 |
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