HgCapital Trust Plc reported a net asset value (NAV) per share of 528 pence at March 31, delivering a total return of -5.4% for the first quarter, the trust said in a trading update on Thursday.
The company attributed the NAV decline mainly to a deterioration in ratings, which reduced the opening NAV by 11.2%. That fall was only partly offset by positive trading performance, which contributed 6% to the NAV, along with foreign exchange gains of 0.9%.
Operationally, the portfolio continued to register growth. On a 12-month basis to March 31, portfolio revenues rose 16% while EBITDA increased 19%. For comparison, the trust reported 17% revenue growth (11% organic) and 19% EBITDA growth (17% organic) as of December 31, indicating a modest shift in the composition of the reported growth between the two reporting dates.
Valuation multiples moved lower during the quarter. The portfolio's average enterprise value to EBITDA multiple stood at 24 times as of March 31, down from 25.2 times at year-end.
Transaction activity in the period showed the trust investing £42 million in the first quarter while realisations totalled £91 million. After the quarter closed, HgCapital Trust disclosed an additional £91 million of new investments and £20 million of further realisations.
Liquidity and funding were outlined on a pro-forma basis. The trust reported approximately £38 million of cash and £259 million of availability on its £375 million revolving credit facility, combining to give total pro-forma liquidity of about £297 million. The facility was drawn to £116 million on a pro-forma basis, up from £36 million at year-end. Management said the increased draw reflected portfolio investments and £19 million deployed into share buybacks.
The update provides a snapshot of the trust's current financial position and recent activity, showing continued portfolio revenue and EBITDA growth alongside valuation multiple compression and a NAV contraction driven by ratings movements. The balance between realisations and new investments, together with the drawn level of the credit facility, shaped the trust's reported pro-forma liquidity at the quarter end.