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25 Aug 2011 07:00
HgCapital Trust plc
Interim Results for the six months ended 30 June 2011
London, 25 August 2011: 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 2011.
HGCAPITAL TRUST PLC CONTINUES TO DELIVER LONG TERM OUTPERFORMANCE
Financial Highlights for the above period
% Total return* | 30 June 2011 | 31 December 2010 | ||
Share price | +16.1% | 1,140.0p | 1,006.0p | |
NAV per share | (basic) | +6.3% | 1,160.4p | 1,118.8p |
(diluted) | +6.1% | 1,129.3p | 1,090.7p | |
FTSE All-Share Index | +3.0% | |||
Movement | ||||
NAV | +£21.0m | £369.0m | £348.0m | |
Market Cap | +£49.6m | £362.5m | £312.9m |
* Assuming reinvestment of all dividends
§ +14.7% p.a. 10-year compound annual growth rate of the share price on a total return* basis vs. 4.8% p.a. from the FTSE All-Share Index on a total return* basis to 30 June 2011.
§ Strong sales and EBITDA growth from top 20 buyout investments of +17% and +12% respectively over last 12 months to 30 June 2011.
§ Liquid resources were £94m (26% of NAV) with outstanding commitments of £191m (52% of NAV).
Operational Highlights
§ £29m deployed over the period, principally in two new buyout investments.
§ £40m of cash proceeds from realisations generated over the period; exits at a 71% uplift to book value as at 31 December 2010.
Events since 30 June 2011
§ NAV per share at 31 July 2011 was 1,142.6p (basic) and 1,114.1p (diluted); movement from June mainly due to foreign exchange fluctuations.
§ Sale of Mondo agreed, with cash proceeds of £14m expected in H2.
§ The Trust has finalised a £40m three year standby facility with Lloyds TSB Bank plc, on an unsecured basis.
§ New commitments totalling £75m made since period end, consisting of a £15m secondary commitment to Hg6 and a £60m commitment to the Manager's Mercury fund that invests in smaller companies in the TMT sector.
§ Numis Securities Limited appointed as joint corporate broker.
Outlook
§ Economic weakness likely to create opportunities for buyout investments.
§ Existing portfolio companies will continue to strengthen management capabilities, market position, operational and financial performance and balance sheets.
§ Continued confidence in HgCapital's thematic investing approach using sector expertise to identify industry 'champions' and focus on delivering long-term profit growth ahead of the market.
Roger Mountford, Chairman of the Trust, commented:
The Trust has performed well in the first half. Again, the Trust has significantly exceeded its benchmark, the FTSE All Share Index. Encouragingly, most of the Trust's top 20 buyout investments grew both sales and EBITDA.
On-going macroeconomic instability does create opportunities for private equity and we remain confident in the Manager's dedicated thematic approach to identify and invest in outstanding companies. We also believe HgCapital has the skill and resource to participate actively in portfolio companies, enabling value to be protected and grown through trading while minimising balance sheet risk.
It is also important to ensure that additional risk is not being taken at the level of the investment vehicle. Transparent reporting enables the investor to assess these factors. The Board remains confident that the Trust offers an attractive proposition to the long-term investor.
- Ends -
The full Interim Results and a webcast describing the results are available at http://www.hgcapitaltrust.com/. Additionally, an overview of HgCapital's thematic investing strategy, given by CEO, Nic Humphries is available here:
For further details:
HgCapital | |
Ian Armitage (Chairman, HgCapital) | +44 (0)20 7089 7888 |
Roger Mountford (Chairman, HgCapital Trust plc) | +44 (0) 77 99 66 26 01 |
Maitland | |
Rowan Brown | +44 (0)20 7379 5151 |
George Hudson |
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.
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