Edison's Report on HgT Highlights Strong Performance

On February 3, 2025, Edison Investment Research Limited issued a report on HgT (LSE: HGT), highlighting a preliminary NAV total return (TR) of 10.1% for FY24. This performance was mainly attributed to the strong trading results of its core portfolio, consistent with HgT's historical trends. Notably, the top 20 holdings, which represent 76% of HgT's portfolio, showed significant growth with revenue and EBITDA increasing by 19% and 22%, respectively, until November 2024.

The strengthening of the sterling against the euro by nearly 5% presented some foreign exchange challenges, affecting the NAV TR. However, the trust's share price TR surpassed the NAV TR, reaching 25.7%, causing shares to trade at a premium by the year's end. Portfolio valuations have been validated, with valuations seeing an average uplift of 15% upon realisation in 2024. Additionally, HgT capitalized on liquidity events, resulting in £505 million from exits and refinancings, accounting for around 22% of the NAV at the start of 2024.