HgCapital Trust saw its share price drop 5% to 360p in early Monday morning trade, despite the trust reporting an increase in NAV per share to a record of $4.40 and nets assets over £2 billion in 2021.
HgCapital Trust also reported a proposed final dividend of 5p per share and a full year dividend of 7p.
The company noted a revenue growth of 27% and EBITA growth of 30% across its top 20 portfolio investments over the last year.
HgCapital added that its “defensive growth characteristics” of its portfolio would help it to maintain profitability despite the challenges of the Covid-19 pandemic in 2022.
The company is set tot invest in trends in the digitialisation of the business process across its sectors and territories.
HgCapital Trust focuses on businesses that provide services such as insurance, payroll technology and HR solutions. The portfolio includes companies such as Access, Visma and IRIS.
The trust will stay focused on the sale of “business-critical and non-discretionary software and services” for their underlying business customers, as a means to hit highly predictable levels of recurring revenue.
“As I noted in my last review, HGT and its portfolio have coped well with the challenges presented by the COVID-19 pandemic,” said CEO Jim Strang.
“The defensive nature of the businesses within the portfolio and the operational skill of Hg have both contributed to the success of HGT in weathering this challenging period.”
“I am happy to report that our full-year results continue to see the portfolio delivering strong growth and excellent returns.”