JIM STRANG, CHAIRMAN’S STATEMENT
The underlying trading performance across the HgT portfolio continues to be strong. In aggregate, the businesses that make up the HgT portfolio are demonstrating performance at or above levels seen in the prior year and continue to grow profits at 19%. This core driver of long-term shareholder value, together with Hg’s leadership in AI and a gradual recovery in the M&A market for technology companies, gives the Board grounds for optimism about prospects for the second half of the year.
HgT’s share price ended the period at around a 29% discount to NAV, compared to single digits at the start of the year, prior to the sell-off in public software. While the discount has since narrowed, both the Board and the Manager believe that it does not reflect the value or the future prospects of the underlying portfolio.
Get connected to a universe of software and service businesses
Highlights to 30 June 2026 included:
HgT's Net Asset Value (‘NAV’) stabilised in the second quarter of 2026, following a more volatile first quarter, with continued strong trading across the portfolio broadly offsetting a further reduction in valuation ratings.
- NAV per share of 530.7 pence (unaudited)
- NAV per share total return2 of ‑4.9% for H1 2026, with net assets of £2.4 billion
- Share price total return2 of -24.9%, with market capitalisation of £1.7 billion
- Interim dividend of 2.0p per share (2025 interim dividend 2.0p per share)
- LTM revenue and EBITDA growth of 16% and 19% (organic growth of 11% and 17%) respectively for the portfolio, with EBITDA margins of 34%3
- Reduction in weighted portfolio average valuation multiple (EV/EBITDA) from 25.2x at 31 December 2025 to 22.9x3 at 30 June 2026
- Reduction in net debt to EBITDA ratio to 6.9x (31 December 2025: 7.4x)3
- Total investments of £146 million and gross realisations of £134 million during the period
- Full exits completed at an average uplift of 31% to prior carrying value4, above the 10-year average uplift figure of 29%
- Available liquid resources of £254 million (including a £375 million credit facility*, of which £134 million was drawn as at 30 June 2026)
- Outstanding commitments to Hg funds of £2.0 billion, of which £1.8 billion is expected to be called over the next four to five years
- Share buybacks of £19 million over the period
- Hg announced its intention to increase its aggregate strategic ownership of HgT from c.6% to more than 15% over the medium term, with on market purchases now underway
*Post period, HgT agreed to extend and upsize the company’s revolving credit facility increasing the total credit available from £375 million to £450 million
Based on HgT’s share price at 30 June 2026 and allowing for all historic dividends being reinvested, an investment of £1,000 made 20 years ago would now be worth £9,375, a total return of 837%. An equivalent investment in the FTSE All-Share Index would be worth £3,879.
20 year historical performance
As at 30 June 2026
Total share price return
Annualised total share price return
Annualised NAV per share total return
Share price performance relative to the FTSE All-Share Index
The investment portfolio
As at 30 June 2026
LTM sales growth
LTM EBITDA growth
Latest news
21 September 2026
Hg extends collaboration with Anthropic to bring agentic AI capabilities across the portfolio
14 September 2026
Interim Results for the six months ended 30 June 2026
18 August 2026
Investment in Nourish Care
10 August 2026
Trading update for the six-month period ended 30 June 2026
29 July 2026
Hg announces a full exit of Quantios
22 July 2026
Investment in Street Group
04 June 2026
Hg reaffirms AI leadership and announces intention to increase strategic investment in HgT
27 May 2026
Investment in Rightsline
07 May 2026
Quarterly results for the period ended 31 March 2026
30 March 2026