Hydrogen Capital Growth (HGEN) Status Update summary

Financial performance and portfolio update

• NAV per share declined to 90.39p as of 31 December 2024, down 12.2% year-on-year, mainly due to the HH2E write-down and portfolio revaluations, with total NAV at £116.4 million.

• Portfolio companies generated £85 million in revenue for 2024, an 11% increase year-over-year, reflecting strong supply chain demand and order book growth.

• Cash holdings at year-end were £3.1 million, supporting ongoing operations and new investments.

• Portfolio weighted average discount rate increased to 12.8%, impacting NAV by 2.4 pence per share.

• The portfolio is fully focused on private, high-conviction positions in the UK and Europe, mainly in revenue-generating supply chain companies.

Portfolio composition and developments

• Portfolio is diversified across the hydrogen value chain, with top holdings in Sunfire, HiiROC, Elcogen, Strohm, Cranfield Aerospace Solutions, and Bramble Energy.

• Sunfire secured a 50MW electrolyser contract and €200m in guaranteed financing, while Elcogen received a €24.9m EU grant and €5m from SmartCap.

• HiiROC advanced commercial deployment with major partners, achieved triple ISO certification, and secured new industrial projects.

• Strohm won a contract for 33km of pipeline for Saudi Aramco, marking its first onshore project in the region.

• Bramble Energy advanced its fuel cell technology and won UK Tech Innovation of the Year.

Portfolio developments and investment strategy

• HH2E was written down after entering self-administration, reducing NAV by 8.4p per share, with no expected recovery for shareholders.

• Gen2 Energy was exited at NAV, divesting the smallest private investment (~£3m, 3% of NAV as of June 2024).

• Portfolio companies benefit from co-investment with strategic industrials and institutions, supporting growth and exit strategies.

• The fund maintains a clear strategy to grow NAV through active stewardship and revenue-generating equipment suppliers.

• Target total NAV return remains 10-15%, though this is not a profit forecast.