TIDMHGT
RNS Number : 1828D
HG Capital Trust PLC
18 March 2011
HgCapital Trust plc
Announcement of Results for the year ended 31 December 2010
London, 18 March 2011: HgCapital Trust plc (or "the Trust"),
which provides investors with a listed vehicle to invest in all
private equity deals managed by HgCapital, today announces its
results for the year ended 31 December 2010.
Financial highlights of 2010
-- Total return (share price plus dividend) growth of +22.8% in
year; outperformed FTSE All-Share Index by 8.3%.
-- Long term outperformance: 10 year annual compound total
return to shareholders of 14.0% p.a., a substantial outperformance
against the 3.7% p.a. return from the FTSE All-Share Index
-- Total return (NAV plus dividend) increase of +22.6% (basic);
+19.5% increase on a diluted basis. NAV per share increased from
937.2 pence per share at the beginning of the year to 1,118.8 pence
per share basic (1,090.7 pence per share diluted) at 31 December
2010.
-- Growth: Average EBITDA and revenue growth for the Trust's top
20 buy-out investments (92% of the portfolio) of 16% and 13%
respectively over the 12 months to 31 December 2010.
-- Realisations in 2010 totalled GBP82 million, primarily from
the sale of Pulse Staffing and Hoseasons and the partial sale of
Visma, at an average uplift over book value at 31 December 2009 of
64%. Average proceeds over book value have been 1.8x on last 30
exits.
-- Record year for investments: GBP111m invested, mainly in
seven new buyout investments and renewable energy projects.
-- Growth in net assets of GBP 112 million helped by GBP50
million proceeds (pre expenses) from a placing and open offer of
new ordinary shares that completed in April 2010 at GBP8.45 per
share, improving the liquidity in the Trust's shares.
Post-year end
-- Proposed final dividend for the year ended 31 December 2010
of 28.0 pence per ordinary share to be paid on 13 May 2011, subject
to shareholder approval, 100% designated as a distribution of
interest.
-- In February 2011, the sale of SiTel (Elite) was completed,
the Trust's share of proceeds was GBP9.4 million and compares to a
carrying value as at 31 December 2010 of GBP5.4 million, an uplift
of GBP4.0 million (13.1 pence per share basic; 10.9 pence per share
diluted).
-- In March 2011, the Trust contributed GBP9.9 million towards
an investment in ATC Group, a leading independent provider of
corporate services to multinational corporations and financial
institutions.
-- Basic NAV per share at 28 February 2011 of 1,131.4 pence per
share basic (1,101.2 pence per share diluted) with 25.1% of net
assets in liquid funds.
Operational Highlights
-- 2010 offered an improving backdrop for the businesses in the
Trust's portfolio, reflected in a strong increase in valuation. The
unrealised portfolio appreciated in value by GBP35.9 million (2009:
GBP5.8 million), primarily driven by strong earnings growth.
Realised gains (including interest) over December 2009 book value
were GBP32.0 million (2009: GBP3.7 million), an uplift of 64%.
-- Invested a record GBP111 million, largely in the buyout of
seven, primarily fast growing, companies: TeamSystem (Italy,
GBP24.4 million); Stepstone (UK, GBP19.3 million); Frosunda (Nordic
region, GBP14.3 million); JLA (UK, GBP11.5 million); Manx Telecom
(Isle of Man GBP11.0 million); SimonsVoss (Germany, GBP10.1
million) and Teufel (Germany, GBP9.4 million).
-- The Company was chosen, for the sixth consecutive year, as
Private Equity Investment Trust of the Year in the 'Investment
Week' awards. The citation for the award referred to the Company's
outstanding long-term performance and its high standards of
governance.
Outlook
-- New investments made in 2010 are on the whole performing in
line with the Manager's investment plan showing strong growth year
on year.
-- Short term NAV growth will be driven by potential realisation
activity from the 2006 vintage fund and continued strong trading
performance of the unrealised portfolio.
-- Medium term growth will be driven by the performance of the
2009 vintage fund, a majority of which is valued at cost and
growing strongly.
-- Taking a longer term view, it remains the Manager's belief
that the provision of capital by a patient and knowledgeable
investor, like HgCapital, will continue to be very attractive to
both vendors of businesses and the management teams that run them
and will continue to be rewarding for the Manager's clients, such
as HgCapital Trust.
Roger Mountford, Chairman of the Trust, commented:
"2010 was an active year for HgCapital Trust and one in which we
made strong progress towards our strategic goals. Following a quiet
year for realisations in 2009, the total value of realisations to
the Trust was over GBP82 million, marking a return to the levels
achieved on average over the period 2006-8.
"Shareholder value was further created by a strong increase in
the unrealised revaluation of portfolio investments. The Manager's
analysis indicates that the largest contributor to this increase
was the growth in profits of portfolio companies. Strong cash flows
from trading also enabled portfolio companies to reduce net
debt.
"The Trust continues to bring together long-term capital and the
Manager's talent in identifying good businesses and helping them to
create value, to the benefit of individual and institutional
investors alike.
"We believe that given the strong performance and growth
characteristics of the principal buyout businesses, along with the
Manager's vigilance in assessing risk and opportunities, the
prospects for the Trust look favourable for the coming year."
- Ends-
For further details:
HgCapital
Ian Armitage (Chairman, HgCapital) +44 (0)20 7089
7888
Roger Mountford (Chairman, HgCapital +44 (0) 77 99 66 26 01
Trust plc) Maitland
Neil Bennett +44 (0)20 7379
Rowan Brown 5151
About HgCapital Trust plc
HgCapital Trust plc is an investment trust whose shares are
listed on the London Stock Exchange. The Trust gives investors
exposure, through a liquid vehicle, to a portfolio of high-growth
private companies, managed by HgCapital, an experienced and
well-resourced private equity firm with a long-term track record of
delivering superior risk-adjusted returns for its investors.
For further details, see www.hgcapitaltrust.com and
www.hgcapital.com
Neither the contents of HgCapital's or HgCapital Trust's website
nor the contents of any website accessible from hyperlinks on the
websites (or any other website) is incorporated into, or forms part
of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SFEFAWFFSEID
Hg Capital (LSE:HGT)
Historical Stock Chart
From May 2024 to Jun 2024
Hg Capital (LSE:HGT)
Historical Stock Chart
From Jun 2023 to Jun 2024
