Shares in Hydrogen Capital Growth (HGEN) have been suspended while its new fund managers at RWC struggle to ascertain the valuation of its investments in clean energy.
The company, whose market value had plunged to £33m in the bear market for renewables, said delays in the provision of information from its previous fund managers and material developments in some of the portfolio companies had “significantly hampered” the ability of RWC, trading as Redwheel, GFM, its alternative investment fund manager, and the board to progress the valuation process with its new independent valuer.
“It has become clear that the previously announced timeline for publishing the net asset value (NAV) as at 30 June 2025 by the end of September 2025 will no longer be achievable,” the company said, saying it would look to release the information in late October.
This will delay its half-year results to 30 June which should have been published this month under FCA rules.
James Carthew, head of investment company research at QuotedData, said the suspension was unsettling. “I can only guess that it implies the upcoming NAV haircut will be severe.”
The company added: “It has also become apparent through Redwheel’s extensive work so far that there is material uncertainty as to the trading position of four of the company’s investee companies which require imminent funding and are in various stages of negotiations.
“The board has determined, following discussions with its advisers, that there has been a material deterioration from the last published NAV as at 31 March 2025, though it is not able to currently state with certainty what the value should be.”
The company said it would seek the resumption of trading in its shares once the NAV and interims were published.
It is preparing a circular detailing plans to wind down the company which had become sub-scale after a 75% share price fall in the past five years with the shares stranded at a 70% discount to the now abandoned NAV.
The sale of one of the investments and procurement of debt funding for the company, which has just £1.2m cash, were being urgently explored. “The board is focused on achieving liquidity for the company, while balancing its need for working capital with the preservation of shareholder value.”
