Hydrogen Capital Growth (HGEN) H1 2024 earnings summary

Executive summary

• NAV per share increased by 0.6% to 103.60p as of 30 June 2024, with NAV rising to £133.5m and steady growth since December 2023.

• Portfolio companies delivered £76m in revenue for the last twelve months, up 44% year-over-year.

• Portfolio companies attracted €670 million in third-party investments in H1 2024, including Baker Hughes and GIC.

• 157,868 tCO2e greenhouse gas emissions avoided since IPO, reflecting strong ESG and climate impact.

• The fund is actively managing follow-on investments, exits, and secondaries to generate cash and maintain liquidity.

Financial highlights

• NAV at period end was £133.5 million, with market capitalization at £68.9 million and a share price discount to NAV of 48.4%.

• Portfolio generated £76 million in revenues over the last 12 months to Q2 2024, up 44% year-over-year.

• Portfolio average discount rate for June 2024 was 13.3%, down from 14.2%, positively impacting NAV.

• Ongoing charges ratio improved to 2.41% from 2.56% year-over-year.

• Cash and listed hydrogen company investments totaled £2m at period end.

Outlook and guidance

• On track for planned portfolio disposals by year-end 2024, expected to support ongoing fund operations.

• Targeting 10–15% total NAV return over time, though actual returns depend on multiple factors.

• Management expects continued revenue growth and sees further upside as hydrogen sector matures.

• The fund is positioned to benefit from accelerating investment and deployment in the hydrogen sector globally.

• Focus remains on cash preservation, realisations, and supporting portfolio growth.