9th Sep 2019 08:50
(Alliance News) - HgCapital Trust PLC on Monday said net asset value rose in the first half of 2019 due to growth in both sales and earnings in businesses owned by the company.
Shares in HgCapital Trust were up 5.4% at 235.54 pence in London in early morning trade.
HgCapital Trust is a vehicle which allows for investment in software and services businesses managed by the company. Its NAV per share as at June 30 was GBP2.42, having been GBP2.16 on December 31, a 12% rise. The firm's NAV total return for the six month period was 14%.
"The appreciation achieved in the first half of 2019 reflected further strong growth in sales and earnings across the businesses we own. Over the twelve months to June the top 20 companies, that make up 88% of our portfolio by value, reported sales growth of 26% and [earnings before interest, depreciation, taxation, and amortisation] growth of 35%," said HgCapital Trust Chair Roger Mountford.
Looking ahead, the company will provide more frequent updates on the valuation of investments, publishing valuations on March 31 and September 30. This means an updated NAV will be published in early May and early November 2020.
The firm lifted its dividend by 12% to 1.8p per share from 1.6p per share.
"As a vehicle offering exposure to high-growth software and service businesses, not otherwise available to small institutions and private investors, HgCapital Trust offers a way to invest alongside some of the largest institutional investors in the world. With a young portfolio of very attractive businesses, it continues to deserve an allocation in the portfolio of long-term investors seeking growth in value," said Mountford.
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HgCapital Trust plc