HgCapital Trust Plc, the private equity investment trust, has announced positive preliminary results for the year ended 31 December 2005.
Net asset value (NAV) per share rose by 28.2% in the year ended 31 December 2005 from 484.5p to 621.3p, while share price and NAV compound annual growth (on a total return basis) over ten year period is 12.9% and 10.4% per annum respectively. This compares with a growth of 5.6% in the FTSE All-Share Index for the same period.
Other financial highlights include:
- An investment of £1,000 ten years ago would now be worth £5,486, based on the Company's share price at 31 December 2005, with dividends reinvested, compared with £2,139 for the FTSE All-Share Index.
- Dividend increased 20% to 10p per share (2004: 8p per share).
On the operationals ide, HgCapital Trust has invested GBP 35 million in 6 new and 5 follow on investments, up from GBP 22 million in 2004. The company has also generated record proceeds from realisations of GBP 52 million, up from GBP 47 million in 2004.
Other operational highlights for the year include:
- Four investments made in Germany and the Netherlands, increasing the Company's exposure to opportunities in Continental Europe.
- Significant proceeds realised from the sale of FTE - anoverall profit of £18.4 million (2.7 times original cost.
- Overall profit of GBP 12.6 million, 2.5 times original cost from the sale of Tunstall.
- Two tranches of shares sold in Raymarine. To date, Raymarine has realised 4.3 times cost, including value of residual shareholding.
- Winner of private equity investment trust of the year 2005 at the 'Investment Week Awards' in recognition of 10 years of sector leading fund performance.
'HgCapital Trust has rewarded investors over the past ten years,' says Roger Mountford, Chairman of HGCapital Trust. 'The total return to shareholders was 30%, compared with a return of 22% by both the FTSE All-Share Index and the FTSE Small Cap Index. Going forward we believe it will continue to offer investors an efficient vehicle with attractive long-term prospects for growth.'