Foundry Sale at 79% uplift a highlight in strong first-half for HgCapital – HgCapital (HGT), which provides listed access to unquoted software and service businesses, has announced half-year results to 30 June 2019. Total return NAV increased by 13.9% over the six-month period
Performance summary:
- Share price total return of 22.5% to 30 June 2019;
- Revenue and EBITDA growth of 26% and 35% respectively across the top 20 investments (88% of the portfolio) over the last twelve months;
- Valuation multiple (EV/EBITDA) of 19.5x and net debt to EBITDA ratio of 6.3x for the top 20 investments;
HGT says it has outperformed the FTSE All-share over one, three, five, ten and twenty-year periods. Elsewhere, portfolio activity over the period included:
- Investment into Transporeon Group, one of the world’s leading cloud-based logistics platforms, team.blue, a leader in mass hosting services for SMEs across Europe, and Litera Microsystems, a leading provider of end-to-end document lifecycle solutions to the legal and life sciences industries worldwide;
- Foundry sold to Roper Technologies at a 79% uplift to book value delivering a 2.1x investment multiple and a 22% gross IRR over the investment period.
Going forward, HGT will continue to target “sweet-spot” software and service businesses in areas or ‘clusters’ where we have many years of deep knowledge.
HGT: Foundry Sale at 79% uplift a highlight in strong first-half for HgCapital
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