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HgCapital Trust PLC’s share price rose in the third quarter, backed by growth in its core investments despite currency pressures.
During the three months ending September 30, the London-based investment vehicle, which invests in private software and services companies, saw its share price increase by 6.6%, narrowing the discount to its net asset value from 7% to 1%. Year-to-date, its share price has risen by 20%.
HgCapital’s net asset value declined by 0.9% over the quarter, primarily due to ‘adverse’ foreign exchange movements. At quarter-end, the net asset value per share stood at £5.21, with total net assets of £2.4 billion.
HgCapital shares were up 1.0% at 521.08 pence in London on Thursday afternoon.
The company attributed its long-term performance to its top 20 investments, which make up 76% of the portfolio. These investments reported 20% growth in sales and a 24% rise in earnings before interest, tax, depreciation and amortisation over the past year, with Ebitda margins reaching 34%.
HgCapital reported £420 million in available resources, including an undrawn £312 million bank facility, and £720 million - 30% of net asset value - in committed capital for investment over the next three to four years. Third-quarter investments totalled £213 million, with co-investments now comprising 10% of the portfolio, up from 5% at the start of the year.
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