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(Alliance News) - HgCapital Trust PLC on Monday said its net asset value for the first half of 2020 rose despite a "very challenging environment" as it increased its dividend payout for the period.
HgCapital Trust is a listed vehicle for investing in unquoted software and service businesses managed by Hg.
The FTSE 250-listed company said NAV per share as at June 30 was 268.5 pence, rising 5.3% from 255.1p on December 31. The figure rose further as at August 31 to 282.2p. NAV total return for the six-month period to June 30 was 6.6%.
The share price as at June 30 was 235.5p, down 8.5% from 257.5p at December-end but showing an improvement on August 31 at 273.5p. The stock was trading 1.0% higher at 277.67p each on Monday morning in London.
HgCapital Trust declared an interim dividend of 2.0p per share, up 11% from 1.8p the year prior.
"The trading performance demonstrated by the portfolio during a very challenging environment again reinforces our thinking and focus on software and service businesses selling critical and quality services. This focus has led to a very strong year-to-date for realisations, whilst also giving Hg the conviction to deploy significant capital during this period. We expect headwinds from lower global growth in 2020, but believe that the portfolio will continue to deliver growth over the long-term," said Luke Finch, partner & head of client services at Hg.
Over GBP250 million was returned - net of carried interest - to HgCapital Trust through the full exits of Evaluate, Citation and Sovos, in addition to the partial sale of Visma, all at uplifts to book value. The partial sale of Visma represented an uplift of 22% over the December 2019 book value, Sovos was exited at an increase of 55% over the December 19 book value, and the sale of Citation Group was at an increase of 26% over the December 2019 book value.
By Ife Taiwo; ifetaiwo@alliancenews.com
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