HGT

TIDMHGT

HgCapital Trust PLC

13 September 2022

London, UK, 13 September 2022

Edison issues update on HgCapital Trust (HGT)

HgCapital Trust (HGT) consistently executes its successful active ownership strategy, undeterred by the turbulent macroeconomic conditions. It has invested a net amount of c GBP332m ytd (16% of opening NAV) in announced deals (closed and to be closed), all in the manager's core areas of software and services expertise. Moreover, HGT should receive net proceeds of c GBP180m from exits and refinancings announced so far this year (with more exits in the near-term pipeline). HGT posted a 1.8% NAV per share total return (TR) in H122 and a one-year NAV TR of 20.6% (22.2% per year over the last five years). HGT's discount to end-June 2022 NAV is now c 17%, while it has traded much closer to NAV in recent years.

HGT's slightly positive NAV TR in H122 of 1.8% (2.7% ytd to end-August 2022) was driven by continued strong portfolio performance with last 12-month revenue and EBITDA for its top 20 holdings up 31% and 26% y-o-y, respectively. This is in line with the 2017-2021 average EBITDA growth of 28% per year, of which c 10-15% is normally organic. We believe that despite the weaker global economy, the earnings outlook for tech and services companies with a mission-critical, low-spend offering (such as HGT's holdings) remains favourable as corporate customers seek to improve business flexibility and cost efficiency. In July 2022, Gartner forecast global software and IT services spending to increase by 9.6% and 6.2% in 2022, respectively (followed by 11.8% and 8.3% in 2023).

Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website

www.edisongroup.com

About Edison: E dison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.

Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.

Edison is authorised and regulated by the Financial Conduct Authority .

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information, please contact Edison:

Milosz Papst +44 (0)20 3077 5720 investmenttrusts@edisongroup.com

Richard Williamson +44 (0)20 3077 5720 investmenttrusts@edisongroup.com

Learn more at www.edisongroup.com and connect with Edison on:

   LinkedIn        https://www.linkedin.com/company/edison-group-/ 
   Twitter             www.twitter.com/Edison_Inv_Res 
   YouTube       www.youtube.com/edisonitv 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word "Reach" in the source column of the News Explorer pages of London Stock Exchange's website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

NRAFLFFSADIFLIF

(END) Dow Jones Newswires

September 13, 2022 02:46 ET (06:46 GMT)

Hg Capital (LSE:HGT)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2023

Hg Capital (LSE:HGT)
Gráfico Histórico do Ativo
De Mar 2022 até Mar 2023