Annual Results for the year ended 31 December 2017

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05 March 2018

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London, 5 March 2018: HgCapital Trust plc (“HGT”), which provides investors with a listed vehicle to invest in unquoted businesses managed by Hg, today announces its annual results for the year ended 31 December 2017.

CONTINUED STRONG NAV PERFORMANCE DRIVEN BY DOUBLE-DIGIT REVENUE AND PROFIT GROWTH AND EXITS ABOVE BOOK VALUE

Summary performance

	28 February 201	31 December 2017	31 December 2016	% Total return¹
NAV per share	£19.25	£19.32	£16.50	+21.5%
Share price	£17.20	£17.68	£15.41	+19.5%
FTSE All-Share Index				+13.1%
				2017 Movement
Net Asset Value	£718.5m	£721.0m	£615.8m	+£105.2m

¹ Assuming reinvestment of all historic dividends

Key Highlights for the Year to 31 December 2017

NAV per share of £19.32, a total return of 21.5%.
Share price total return of 19.5% to 31 December.
Strong revenue and EBITDA growth of 14% and 16% respectively across the top 20 buyout investments (83% of the portfolio) over the last twelve months.
Valuation multiple (EV/EBITDA) of 16.4x and debt to EBITDA ratio of 5.4x for the top 20 buyout investments.
£224 million of cash returned to HGT and £73 million invested on behalf of HGT (including £12 million as co-investment free of fees and carried interest).
Board’s range of skills and experience enhanced by the appointment of Jim Strang (Managing Director of Hamilton Lane) and Guy Wakeley (CEO of Equiniti Group plc).
New commitments to invest up to £225 million in Hg Saturn and Hg Transition Capital over next 4-5 years, broadening the investment reach of HGT in its chosen sectors.

Year to Date to 28 February 2018

NAV per share of £19.25, primarily reflecting unrealised currency movements since year-end
Share price of £17.20.
Pro-forma liquid resources post completion of all announced transactions are £181 million (25% of NAV).
Pro-forma outstanding commitments, including the new commitments to Hg Transition Capital and Hg Saturn, of up to £667 million (93% of NAV). We expect these to be drawn down over the next four to five years.

Hg’s Outlook

Strong trading from the businesses, combined with capital returns from exits above book value, continued to drive value for our investors
Following a strong year for realisations, Hg expects to see several further exits over the next six months
While the primary focus is currently on realisations, Hg continues to invest selectively, capitalising on situations where it has a unique angle and has developed many years’ knowledge of the business, and typically building on a strong relationship with a founder or management team
Robust trading performance from the underlying businesses continues to underpin Hg’s confidence in the quality of these investments
Hg’s focus on operational improvement, coordinated by its dedicated Operations Innovation team, continues to drive the performance of the network of businesses, and deliver network benefits to these companies
This focus will continue to drive value for shareholders in HgCapital Trust plc

Roger Mountford, Chairman of HGT, commented:

"Following an excellent year for returns, HGT is well placed to realise a number of investments, while broadening our investment reach and taking advantage of new opportunities within the Manager’s established area of expertise."

- Ends –

HGT’s 2017 Annual Report and a video from the Manager to accompany the results are available to view at: http://www.hgcapitaltrust.com/.

For further details:

HgCapital
Roger Mountford (Chairman, HgCapital Trust plc)
+44 (0)7799 662601
Laura Dixon (Senior Investor Relations Manager, Hg)
+44 (0)20 7089 7888

Maitland
Vikki Kosmalska
+44 (0)20 7379 5151

About HgCapital Trust plc

HgCapital Trust plc is an investment company whose shares are listed on the London Stock Exchange (HGT.L). HGT gives investors exposure, through a liquid vehicle, to a portfolio of high-growth unquoted companies, managed by Hg, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors.

For further details, see www.hgcapitaltrust.com and www.hgcapital.com

Annual Results for the year ended 31 December 2017

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