HgCapital Trust outperforms benchmark in 2024 but reduces dividend

(Alliance News) - HgCapital Trust PLC on Monday said it outperformed its benchmark index during 2024 as it saw a growth in its net asset value, but reduced its dividend payout.

London-based HgCapital Trust provides access to the private equity investments of manager Hg. The trust's total return for 2024 was 10.4%, outperforming its benchmark, the FTSE All-Share Index, which delivered a 9.5% return over the year.

NAV per share on December 31 was 545.5 pence, up 9.0% from 500.5p on December 31, 2023.

"I am happy to report that HgT performed well in 2024, successfully navigating the challenging investment environment in the private equity market," said Chair Jim Strang.

"The portfolio continued to see strong underlying trading performance, with sales and [earnings before interest, tax, depreciation and amortisation] across the top 20 investments (76% of the portfolio) growing at 19% and 23% respectively."

HgCapital Trust proposed a final dividend of 3.5p per share. This brought the total dividend for the year to 5.5p, a 15% decline on-year from 6.5p.

Chair Strang continued: "Investment and realisation activity continued at pace in 2024, consistent with the cycle that underpins long term value creation at HgT. The strong progress in 2024 supported a near 26% increase in the share price of HgT alongside a material narrowing of the discount. HgT shares ended the year at a 2% premium to NAV."

Shares in HgCapital Trust were down 0.3% at 527.69p in London on Monday morning. The stock remains up 16% over the past year.

By Emily Parsons, Alliance News reporter

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