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LONDON - HgCapital Trust plc (LSE:HGT.L), a London-listed investment firm, has announced its financial results for the first quarter ended March 31, 2025. The company, which invests in unquoted software and services businesses, reported a net asset value (NAV) per share decline of 2.0% for the quarter, with the NAV per share standing at £5.31 and net assets totaling £2.4 billion.
Despite the decrease in share price by 5.5% during the quarter, HgCapital Trust highlighted a robust trading performance within its portfolio, contributing 5% to NAV growth. This growth, however, was offset by lower valuation multiples. The last twelve months witnessed sales and EBITDA growth of 20% and 21% respectively, with EBITDA margins maintaining at 33%.
The firm’s balance sheet remains strong, with available liquid resources of £461 million, including an undrawn bank facility of £375 million. Commitments to Hg funds stand at £1.4 billion, which are expected to be invested over the next three to four years.
Realizations in the quarter amounted to £49 million, with post-period exits of £102 million, indicating sustained interest in the company’s underlying investments. Investment activities for the first quarter included £46 million in new commitments, with post-period estimates reaching £232 million. Co-investments now represent 10% of the portfolio value, up from 9% at the beginning of the year.
HgCapital Trust also noted that it continues to explore a promising pipeline of investment opportunities and anticipates further liquidity events in the next six to twelve months.
The company provided a long-term performance perspective, stating that based on its share price at the end of March 2025, a £1,000 investment made twenty years ago would now be valued at £16,038, a total return of 1,504%. In comparison, the same investment in the FTSE All-Share Index would be worth £3,831.
The announcement was made based on a press release statement, and it was emphasized that past performance is not indicative of future results, with the value of shares subject to market and currency fluctuations.
Investors can access the full Q1 2025 report and accompanying presentation on the HgCapital Trust website.
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