Investment firm HG Capital weathers turbulence of war in Ukraine and the pandemic
Investment firm HG Capital Trust has weathered pressures of the war in Ukraine and the pandemic, as it reported its revenue up nearly five per cent.
The London-listed firm’s share price was up 435.5 points at the end of March, with its net assets up to £2bn.
Its top 20, representing almost 80 per cent of the portfolio value, had sales growth of more than 30 per cent in the last year,
Jim Strang, Chairman, HgCapital Trust plc, reflected on the “significant increase in geo-political risk and uncertainty” in the new year, “especially the tragic events still unfolding in Ukraine.”
“This, combined with the ongoing effects of Covid-19 make for a challenging investment environment”, he said.
“As a consequence, investors have chosen to reduce exposure to risk assets, and in particular to high growth businesses with less established business models, which has had a direct negative effect on share prices and stock market valuations in these areas.”
“There has also been some collateral impact on the valuations of established and profitable businesses, some of which form the peer group which HGT uses to derive it valuations.”