HGCapital Trust PLC · LSE:HGT
HGCapital Trust — Q3 2019 Earnings Presentation
10 slides from HGCapital Trust's earnings presentation, September 2019
Slide 1: Get connected to a universe of software and service businesses
Q3 Quarterly Report – 30 September 2019 Get connected to a universe of software and service businesses +32% Share price at 30 September 2019 was £2.30, a total return YTD of: +18% NAV per share at 30 September 2019 was £2.50, a total return YTD of: NAV now in excess of £1 billion Top 20 of the portf
Slide 2: Financial highlights
Financial highlights Share NAV per Market Net LTM sales LTM EBITDA price share capitalisation assets growth* growth* £ 2.30 £ 2.50 £ 926m 1 £ bn 24% 35% Based on the Company’s share price at 30 September 2019 and allowing for all historic dividends to be reinvested, an investment of £1,000 twenty ye
Slide 3: 20-year performance
20-year performance Long-term performance – ten year share price total return: +13.5% 400 +1,452% +15% p.a. 350 300 Performance Index 250 Total share price return Annualised share price total return 200 150 +14% p.a. +9% p.a. 100 50 Sep Sep Sep Sep Sep Sep 2009 2011 2013 2015 2017 2019 NAV per share
Slide 4: Top 20 investments
Top 20 investments (representing 91% of the portfolio value) LTM sales growth: LTM EBITDA growth: EV to EBITDA multiple: Debt to EBITDA ratio: +24% +35% 19.2x 6.2x £m £m 9 £m £m 8 55% 2,500 700 600 4 3,000 51% 7 45% 20% 600 500 2,500 2,000 6 500 3 33% 400 2,000 31% 1,500 400 5 6 300 21% 1,500 6 30%
Slide 5: Portfolio analysis by value
2% Below Portfolio Net asset value Total Net asset Geographic spreadTwenty bylargest value*investments valuation £’000 value % 1 of primary buyout 1portfolio Visma 214,060 21.3% 2 Sovos Compliance Net assets 87,557 by8.7%class UK 3 IRIS 31% 56,123 5.6% Sector by value Analysis by value Sector by val
Slide 6: Q3 investments and Q3 realisations
Q3 investments Q3 realisations Further investments in the three months to 30.09.19 Exits in the three months to 30.09.19 £2m invested on behalf of the Company £16m returned to the Company In September, the Hg Mercury 2 Fund made a further bolt-on investment in Rhapsody. Headquartered in Boston, USA,
Slide 7: Q3 investments and realisations; Outlook
Q3 investments and realisations Outlook Investments made during the quarter Investments We continue to have an active pipeline of investments and over Q3 2019 this has been demonstrated Company Sector Geography Activity Cost with the investment into Argus Media announced in October. Over the period
Slide 8: Top 10 investments (representing 71% of the value of the Company's investments)
Top 10 investments (representing 71% of the value of the Company’s investments) 01 02 03 04 05 Web: www.visma.com Web: www.sovos.com Web: www.iris.co.uk Web: www.theaccessgroup.com Web: www.transporeon.com Investment sector: Software Investment sector: Software Investment sector: Software Investment
Slide 9: Top 10 investments (representing 71% of the value of the Company's investments)
Top 10 investments (representing 71% of the value of the Company’s investments) 06 07 08 09 10 Web: www.cogitalgroup.com Web: www.mobility‑holding.de Web: www.litera.com Web: www.mitratech.com Web: www.itrelation.dk Investment sector: Services Investment sector:Services Investment sector: Software I
Slide 10: Further information
Further information Environmental, social and governance matters – Socially responsible investment The Board has endorsed Hg’s policy to invest the Company’s funds in a socially responsible manner. The Company’s focus is on identifying high‑quality and sustainable businesses, and supporting their gr