Investment firm HG Capital weathers the turmoil of the war in Ukraine and the pandemic

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Tuesday, May 10, 2022 9:10 a.m.

Investment firm HG Capital Trust weathered the pressures of war in Ukraine and the pandemic as it reported an increase in revenue of almost 5%.

The London-listed company’s share price was up 435.5 points at the end of March, with net assets reaching £2 billion.

Its top 20, representing nearly 80% of the portfolio’s value, has seen sales growth of more than 30% over the past year,

Jim Strang, chairman of HgCapital Trust plc, spoke of the “significant increase in geopolitical risk and uncertainty” over the new year, “particularly the tragic events still unfolding in Ukraine.”

“This, combined with the continued effects of Covid-19, creates a challenging investment environment,” he said.

“As a result, investors have chosen to reduce their exposure to risky assets, and in particular to high-growth companies with less established business models, which has had a direct negative effect on share prices and market valuations in these areas.”

“There has also been a collateral impact on the valuations of established and profitable companies, some of which form the peer group that HGT uses to derive its valuations.”

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