HG Capital's portfolio showing sales growth

6th Oct 2010 15:07

Private equity investment group HG Capital Trust has seen an improvement in the market for new buy-out investment in the last 12 months, with bank finance more freely available.Since 30 June 2010 the total return (net asset value - or NAV - per share plus dividend) increased by 2.2%, compared with a 13.6% increase in the FTSE All-Share Index. NAV per share at the end of September stood at 959.5p on a basic basis or 957.9p on a fully diluted basis.Following the partial realisation of the company's investment in Visma (expected to be completed in November 2010), the NAV of the company is estimated to be £317.1m, equivalent to 1,019.4p per share.Liquid resources are estimated to be £60.6 million (19.0% of the estimated NAV). Assuming all subscription shares in issue are exercised at their minimum price of 950 pence, the diluted NAV per share is estimated to be 1,007.8 pence per share.The bulk of the companies in the trust's portfolio have their financial year end at the end of December so there is still plenty of time for things to change but, as at the end of August, the vast majority of them were enjoying sales that are running ahead of the same period last year, with 15 of the top 20 increasing sales by 5% or more including nine by more than 10%; only one has reported profits materially below last year.