HgCapital's top investments drive NAV growth in first half

16th Sep 2024 07:33

(Sharecast News) - HgCapital Trust, the FTSE 250-listed investor in European and transatlantic software and services businesses, reported a 6.4% increase net asset value (NAV) in the first half, with double-digit revenue and profit growth achieved across its top 20 investments.

NAV per share increased to 527.9p from 500.5p at the start of the period, with net assets rising to £2.4bn. The company recorded a share price total return of 12.7% over the period, giving the company a market cap of £2.2bn.

HgCapital Trust spent £310m in new and further investments in the first half, with a further estimated £183m of transactions signed and expected to close in the second half. Meanwhile, it recorded £348m of gross realisations, with full and partial realisations at an average uplift of 16% to carrying value.

"HgT delivered another solid performance over the first six months of the year, successfully navigating challenging private market conditions," said chair Jim Strang.

"The portfolio continued to experience strong underlying trading performance over the period with sales and EBITDA across the top 20 investments (78% of the portfolio) growing at 19% and 26% respectively."

Looking ahead, the firm gave an upbeat outlook, underpinned by its investment potential in the workplace automation markets as enterprises seek to improve productivity and manage rising labour costs.

"The combination of the long-term nature of listed private equity investment with the types of business that Hg invests in, and robust double-digit growth in trading is expected to continue to drive long-term performance," the company said.