Edison Issues New Report on HgT's Performance

London-based Edison Investment Research Limited released a report detailing the recent performance of HgT (LSE: HGT). In the third quarter of 2024, HgT exhibited a robust earnings momentum among its primary holdings, driven significantly by upselling and cross-selling opportunities. This contributed 5 percentage points (pp) to its net asset value (NAV) performance.

The top 20 holdings, constituting 76% of HgT's portfolio, reported a 20% sales growth over the past year, with 12% being organic. Additionally, these holdings achieved a 24% EBITDA growth by the end of September 2024, maintaining a 34% average EBITDA margin.

Despite the strong earnings, adverse currency movements, primarily the strengthening of sterling, negatively impacted the NAV by 3pp, resulting in a 0.9% decline in NAV total return for Q3. However, post-quarter foreign exchange dynamics partially reversed. HgT's year-to-date NAV total return was 5.5%, bolstered by a 16% average uplift in realisations. Over five and ten years, NAV total returns remain strong at 17.6% and 18.4%, respectively.