reports
Edison issues update on HgCapital Trust (HGT): Strong earnings growth ...
Edison Investment Research Limited Edison issues update on HgCapital Trust (HGT): Strong earnings growth and realisations in FY23 22-March-2024 / 15:07 GMT/BST The issuer is solely responsible for the content of this announcement. London, UK, 22 March 2024 Edison issues update on HgCapital Trust (HGT): Strong earnings growth and realisations in FY23 HgCapital Trust (HgT) posted an 11.1% NAV total return in FY23 (based on final audited numbers), which allowed it to sustain strong five- and 10-year returns of 20.4% and 18.4% pa, respectively. This has been mostly driven by ...
- Pedro Fonseca
HgT - Strong earnings growth and realisations in FY23
HgCapital Trust (HgT) posted an 11.1% NAV total return in FY23 (based on final audited numbers), which allowed it to sustain strong five- and 10-year returns of 20.4% and 18.4% pa, respectively. This has been mostly driven by robust earnings momentum across its portfolio. HgT defied the tough private equity exit environment, generating £345.9m of total realisation proceeds excluding carried interest in FY23. Moreover, it has a healthy commitment coverage ratio of 73% (based on current pro forma ...
Edison issues flash on HgT (HGT): Preliminary FY23 NAV total return of...
Edison Investment Research Limited Edison issues flash on HgT (HGT): Preliminary FY23 NAV total return of 10.7% 05-Feb-2024 / 12:01 GMT/BST The issuer is solely responsible for the content of this announcement. London, UK, 5 February 2024 Edison issues flash on HgT (HGT): Preliminary FY23 NAV total return of 10.7% HgT’s preliminary unaudited FY23 trading update reported a 10.7% net asset value total return (NAV TR) in FY23 (of which c 1% in Q423). This was supported by continued strong trading across its portfolio, with the top 20 holdings (representing 77% of the portfol...
- Pedro Fonseca
HgT - Preliminary FY23 NAV TR at 10.7%
HgT’s preliminary unaudited FY23 trading update reported a 10.7% net asset value total return (NAV TR) in FY23 (of which c 1% in Q423). This was supported by continued strong trading across its portfolio, with the top 20 holdings (representing 77% of the portfolio’s value) posting average revenue and EBITDA growth of 25% and 28% respectively. HgT therefore sustained its multi-year track record of delivering c 20–30% pa revenue and EBITDA growth. Despite muted global M&A activity and private equi...
- Pedro Fonseca
HgCapital Trust - Seizing ‘buy-and-build’ opportunities
HgCapital Trust (HGT) delivered a 4.6% NAV TR in H123, with its performance continuing to be mostly driven by robust trading across its portfolio (with the associated increase in portfolio value in H123 of £203.8m, or 8.3% of end-2022 portfolio value) and a minor positive impact from multiples (£34.1m or 1.4%). Hg was cautious in terms of new platform investments in H123, but saw record high M&A activity across its portfolio, highlighting increasingly attractive pricing and a strong flow of oppo...
- Pedro Fonseca
HgCapital Trust - High quality, high growth, high margin
HgCapital Trust (HGT) continues to operate against the backdrop of a tougher macroeconomic environment, muted M&A markets and higher interest rates. Nevertheless, it delivered a 12-month NAV TR to end-March 2023 of 10.3%, which supports its longer-term outperformance of listed PE peers and major public indices. While Hg (its investment manager) expects some pressure on sales to new customers across HGT’s portfolio, it sees several other organic growth drivers, including cross- and up-sell. Last ...
- Shonil Chande
LIBERUM: Alternatives Daily: CHRY | HGT | BBOX | GCP
Chrysalis Investments - Smart Pension follow-on increases portfolio funding to profitability to 84%HgCapital Trust - Trading drives 3.1% NAV upliftTritax Big Box - Trading update: Robust occupational demandGCP Infrastructure Investments - Loan refinancing adds 1.2p to NAV
- Pedro Fonseca
HgCapital Trust - Improving its commitment coverage ratio
HgCapital Trust (HGT) posted a 5.4% NAV total return (TR) in FY22, mostly assisted by continued good earnings momentum (revenue and EBITDA across the top 20 holdings increased in 2022 by 30% and 25%, respectively) and the average 28% uplift to end-2021 carrying value achieved on exits. This was only partly offset by lower multiples and higher net debt across HGT’s portfolio (with net debt to last 12-month EBITDA for the top 20 holdings at 8.0x at end-2022). HGT’s recent balance sheet measures st...
- Shonil Chande
- Pedro Fonseca
HgCapital Trust - NAV resilient, but near-term outlook uncertain
HgCapital Trust (HGT) posted a 2.3% increase in NAV per share total return (TR) in Q322, as positive earnings growth across the portfolio over the last 12 months (LTM) again outweighed multiple contraction. Despite the latter, the average EV/LTM EBITDA across HGT’s top 20 holdings stands at 28.8x vs 27.4x at end-2021 (see our previous note for a discussion on HGT’s valuations). The weaker global economy and tightening credit conditions weigh on both HGT’s near-term portfolio performance outlook ...
- Pedro Fonseca
HgCapital Trust - Business as usual for boring but critical tech
HgCapital Trust (HGT) consistently executes its successful active ownership strategy, undeterred by the turbulent macroeconomic conditions. It has invested a net amount of c £332m ytd (16% of opening NAV) in announced deals (closed and to be closed), all in the manager’s (Hg’s) core areas of software and services expertise. Moreover, HGT should receive net proceeds of c £180m from exits and refinancings announced so far this year (with more exits in the near-term pipeline). HGT posted a 1.8% NAV...
- Pedro Fonseca
HgCapital Trust - The King of ‘Dulltech’
HgCapital Trust’s (HGT’s) sector expertise has allowed it to consistently deliver strong performance, with a 10-year NAV total return (TR) at 17.6% per year (with 30.9% over the last 12 months), materially above the FTSE All-Share of 7.2% per year and LPX Europe NAV Index of 11.5% per year. Importantly, this has largely been driven by top-line and earnings growth (90% of returns on HGT’s software and services holdings exited in 2001–2022 ytd) rather than multiple expansion, with five-year EBITDA...
- Pedro Fonseca
HgCapital Trust - NAV total return of 36% in 9M21
HgCapital Trust (HGT) delivered a strong NAV total return of c 36% in the first nine months of 2021, including c 12% in Q321, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 29% y o y). Its transaction activity remains high, with the volume of completed and announced investments and realisations at £378m and £204m, respectively in 2021 so far (vs £403m and £364m in the record-high 2020). HGT’s coverage ratio was a healthy c 85% at 10 Decem...
- Pedro Fonseca
HgCapital Trust - NAV total return of 36% in 9M21
HgCapital Trust (HGT) delivered a strong NAV total return of c 36% in the first nine months of 2021, including c 12% in Q321, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 29% y o y). Its transaction activity remains high, with the volume of completed and announced investments and realisations at £378m and £204m, respectively in 2021 so far (vs £403m and £364m in the record-high 2020). HGT’s coverage ratio was a healthy c 85% at 10 Decem...
- Pedro Fonseca
HgCapital Trust - Strong momentum continues
HgCapital Trust (HGT) posted a strong NAV TR of 8.4% in Q121, driven primarily by double-digit earnings growth across the portfolio (LTM EBITDA for top 20 holdings up 30% y-o-y). After record-high transaction volumes in FY20 (investments at £403m and realisations at £364m), HGT has maintained a high transaction activity to date in 2021 (£147m and £112m, respectively). Its coverage ratio was a healthy 69% at 12 May 2021, supported by tap equity issues, which totalled c £50m to 8 June 2021 (versus...
- Pedro Fonseca
HgCapital Trust - Posting a 24% NAV total return in FY20
HgCapital Trust (HGT) reported a strong NAV total return of 24.0% in FY20, driven by double-digit earnings growth across the portfolio (last 12 months EBITDA for top 20 holdings up 31% y-o-y) and solid uplifts to end-2019 book values on exits (50% on average in FY20). Investments and realisations reached record-high levels in FY20 and HGT had a healthy coverage ratio of c 64% as at 24 March 2021 (vs 48% on average between 2015 and 2019), backed by a £200m credit facility secured in Q420 and c £5...
- Pedro Fonseca
HgCapital Trust - Flying high despite COVID-19
HgCapital Trust (HGT) continues to outperform its benchmark over the short and long term, with NAV total return strongly increasing c 20% in the nine months to end-September 2020 (vs a fall of c 20% for the FTSE All-Share Index in the period). Following a record amount of investments and realisations in FY20, we estimate HGT’s commitment ratio stood at 60% in mid-December (vs 48% on average between 2015 and 2019), supported by a new £200m credit facility that it secured in early October 2020. Th...
- Pedro Fonseca
HgCapital Trust - Reporting a considerable uplift to NAV
Following a solid H120, HgCapital Trust (HGT) announced several portfolio transactions representing a considerable uplift to the carrying value at end March 2020 and translating into a c 12.0% ytd NAV total return (TR) to end August. On completion of these deals, HGT’s cash resources will improve significantly to £314m from £123m in early July, while its unfunded commitments will decline to £814m. Consequently, HGT’s commitment coverage ratio will improve markedly to c 39% vs 13% in early July.
- Pedro Fonseca
HgCapital Trust - Resilience from tech and services focus
HgCapital Trust’s (HGT) 12-month NAV TR to end-March 2020 was a solid 13.8% despite the COVID-19 market downturn in March 2020 (ytd NAV performance since end-December 2019 was a 6.2% decline). The coverage ratio reached a historically low level (13% vs three-year average of 53%) after HGT notably increased its investment activity and commitments in Q120. However, a significant part of these new commitments will not be drawn in the near term. The board continues to review its future funding arr...
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