HgCapital investment trust's share price soars on rising revenue and earnings

William Turvill
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(FILES) A picture taken 17 April 2007 in...
HgCapital Trust gives investors exposure to private equity firm HgCapital (Source: Getty)

HgCapital Trust’s share price jumped five per cent today after reporting revenue and earnings growth.

The figures

The company, which gives investors exposure to private equity firm HgCapital's portfolio, reported revenue growth of 12 per cent in the first six months of the year.

Earnings before interest, taxation, depreciation and amortisation (Ebitda), meanwhile, were up 22 per cent.

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HgCapital Trust reported its net asset value (NAV) per share at £15.63 as of 31 August, up from £14.20 in December last year.

The company said it has completed four exits since the EU referendum, including three sold to US trade buyers.

HgCapital Trust shares were up five per cent to 1,392.25p at the time of writing.

HgCapital Trust HgCapital Trust | mobile image

Why it’s interesting

It emerged over the summer that HgCapital is teaming up with former Deloitte UK chief executive John Connolly to launch a challenger to the Big Four accountancy firms. The venture will be known as CogitalGroup.

In its results today, HgCapital Trust said that it does not expect “there to be any specific negative consequences associated with the EU referendum vote on the performance” of its portfolio.

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What the company said

Chairman Roger Mountford:

The quality of the trust’s portfolio, and the high rates of growth in sales and profits being achieved, provide evidence of the potential for continuing, consistent growth in value for the benefit of shareholders.

The HgCapital 7 fund is now more than 70 per cent drawn and the board and the manager have therefore been in dialogue to discuss the commitment that the board will make on behalf of the trust to continue to invest alongside HgCapital’s institutional clients in its next vintage of mid-market buyouts. The board has indicated to the manager an appetite to commit some £350m to its HgCapital 8 fund when fundraising begins.