Edison issues report on HgT (HGT)
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Edison Investment Research Limited
London, UK, 26 March 2025
Edison issues report on HgT (HGT) Edison issues report on HgT (LSE: HGT) HgT’s portfolio of IT software and services companies providing mission-critical, low-spend services to SMEs has maintained its strong sales and earnings momentum on the back of the secular digitalisation trend. Revenue and EBITDA growth in FY24 were 19% and 23% across HgT’s top 20 holdings (at an average 34% EBITDA margin) respectively. As valuation multiples remained broadly stable and portfolio debt increased amid high refinancing activity (which resulted in improved debt pricing), this led to a 10.4% NAV total return (TR) in FY24. HgT maintains a healthy long-term track record with five- and 10-year NAV TR of c 18% pa. HgT’s manager, Hg, remains committed to leveraging GenAI across its portfolio, noting some initial promising progress, and it hopes to see a more meaningful impact on the top and bottom line in the next one to two years. Therefore, it could prove a good play on the rise of AI-powered applications following the global investment in AI infrastructure (most notably chips and data centres). HgT’s shares now trade at a 9% discount to NAV versus a slight premium at end-2024. Click here to read the full report. All reports published by Edison are available to download free of charge from its website Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: +44 (0)20 3077 5700 Connect with Edison on:
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2106910 26-March-2025
