Hg Capital mulls fundraise and share split – HgCapital Trust has published results for 2018. Highlights are:
- NAV per share of GBP21.57, a total return of 14.3%.
- Share price total return of 3.5% to 31 December 2018.
- Proposed final dividend of 30 pence per share (full year dividend of 46 pence per share).
- Strong revenue and EBITDA growth of 25% and 27% respectively across the top 20 investments (89% of the portfolio) over the last twelve months.
- Valuation multiple (EV/EBITDA) of 17.3x and net debt to EBITDA ratio of 5.6x for the top 20 investments.
- Net GBP217 million (after the payment of carried interest to the manager) of cash returned to the company and GBP187 million invested on behalf of the company.
- Board’s range of skills and experience enhanced by the appointment of Jim Strang (managing director and head of EMEA at Hamilton Lane Associates Inc.) and Guy Wakeley (CEO of Equiniti Group Plc).
- New commitments to invest up to GBP225 million in Hg Saturn and Transition Capital over next 2-3 years
Over the first two months of 2019 (to 28 February 2019)
- NAV per share slipped to GBP21.13, primarily reflecting unrealised currency movements since year-end.
- Share price of GBP20.00, market capitalisation of GBP746 million, year-to-date performance of 12%.
- Pro-forma liquid resources post-completion of all announced transactions and the proposed dividend payable in April 2019, are GBP116 million (15% of 28 February NAV).
- Pro-forma outstanding commitments of GBP411 million (52% of 28 February NAV). They expect these to be drawn down over the next two to three years.
- A ten for one share-split announced for 28 May 2019.
- Further commitments to Hg funds expected to be announced in early 2020.
- Standby bank facility extended to 2022; with ability to increase quantum further, if required.
The board says it “has been discussing with Hg the likely timing and potential size of new commitments. We expect to have detailed discussions towards the Autumn of 2019 and enter into new commitments at the start of next year. In order to maintain the company’s momentum, these future commitments may represent a further step up in size, and therefore the board will consider a potential share issue, providing the market conditions permit, offering existing and new shareholders the opportunity to subscribe and increase our equity base.”
HGT : Hg Capital mulls fundraise and share split