HgCapital Trust (HGT) Q2 2024 earnings summary

Executive summary

• NAV per share rose 6.4% to 527.9p in H1 2024, with net assets of £2.4bn and share price total return of 12.7%.

• £310m invested and £348m of gross realisations achieved in H1 2024, with further transactions pending.

• Discount to NAV narrowed from 13% to 7% as portfolio trading remained strong.

• Long-term strategy focuses on profitable, growing B2B software and services companies with resilient, recurring revenue models.

• HgT's share price and NAV per share have consistently outperformed the FTSE All-Share Index over the long term, with a 10-year share price return of +20.0% p.a.

Financial highlights

• H1 2024 NAV total return: +6.4%; share price total return: +12.7%.

• Net assets: £2.4bn; market cap: £2.2bn; NAV per share: 527.9p; share price: 485.0p.

• £348m of gross realisations in H1 2024, up from £248m in H1 2023, representing 14% of opening portfolio value.

• Interim dividend of 2.0p per share proposed, unchanged from prior year.

• Pro forma NAV per share at 518.5p as of 31 August 2024, reflecting FX movements.

Outlook and guidance

• Resilient trading performance expected, underpinned by mission-critical products and services.

• Improving deal environment supports increased investment activity; further liquidity events anticipated.

• Long-term opportunity remains strong as businesses seek automation and productivity solutions amid rising labor costs.

• Focus remains on consistent realisations and further liquidity events.