HGT Hg Capital Trust Plc

RNS Number:5317N
HG Capital Trust PLC
14 June 2005



The following is the text from a press release issued by HgCapital, which
manages the investment portfolio of HgCapital Trust plc alongside those of other
clients.



HgCapital Trust plc, a quoted investment trust that participates in all
HgCapital's investments, will realise a total of #16 million from its investment
in Tunstall, an uplift of #4.4 million against the latest published net asset
value at 31st May 2005. The estimated impact of the realisation on the net asset
value of HgCapital Trust plc would be 17p per share.



                   HgCapital sells Tunstall for #225 million

                #136 million returned to clients over five years



London, 14 June 2005. HgCapital, a sector-focused European private equity
investor, has sold Tunstall Holdings Limited, Europe's leading manufacturer and
provider of personal and home reassurance telecare products, to Bridgepoint for
#225 million.



HgCapital completed the #102 million management buy-out of Tunstall in 1999.
Under HgCapital's ownership, Tunstall has expanded its activities in every major
European market as well as North America and Australasia.  This focus on new
markets together with improved manufacturing processes and quality has resulted
in a doubling of profits since acquisition, from #9 million to #18 million,
representing an annual year-on-year growth of 15%.  Turnover has increased 56%
to #78 million.



In 2004 the company was recapitalised, allowing #26 million to be returned to
clients.



Following the sale, HgCapital's #51 million investment will have returned a
total of #136 million, representing 2.8 times original cost and an IRR of 22%.
A further #3.3 million is dependent on current year performance.



Lindsay Dibden, Head of HgCapital's healthcare team, commented: "Tunstall is now
an exceptional business, poised to benefit further from the clear recognition
that telecare is the most cost-effective solution to the reassurance needs of
the elderly.  The business has developed new products, expanded internationally
and improved operations, and is now the leading European player in the sector.
After five years working alongside Tunstall's management, we are delighted to be
able to sell such a strong business."



James Buckley, Managing Director of Tunstall, commented: "Tunstall has benefited
considerably from the investment of HgCapital. Their hands-on approach combined
with their deep understanding of the sector, has contributed to the strong
global growth of the business. We look forward to working alongside our new
investors equally successfully."



                                    - ends -

For further information contact:


HgCapital

Lindsay Dibden          +44 (0)20 7089 7980        lindsay.dibden@hgcapital.net


Maitland

Neil Bennett            +44 (0)20 7379 5151        nbennett@maitland.co.uk
Peter Ogden                                        pogden@maitland.co.uk










                      This information is provided by RNS
            The company news service from the London Stock Exchange
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