The NAV and shareholder total returns were 22.5% and 13.9% respectively vs 13% for the FTSE All Share. Over 10 years, the annualized excess returns relative to this index is 3.2%, while over 20 years, the NAV total return is 1,429% vs 171% for the FTSE All Share. Around two-thirds of the uplift in H1 came from growth in profits of the underlying investments, while after a strong couple of years for realisations, just one company was sold outright (at a 79% uplift to book value). A number of businesses were refinanced. The company invested £100m in three companies in Germany, North America and Belgium, and follow-on investments in several others. While multiples on acquisitions are relatively high, the manager looks to grow the portfolio through bolt-on acquisitions by existing portfolio companies, which can be at significantly lower valuation multiples. 14% of the NAV is invested in co-investments, which do not attract fees or carried interest. Over the year to 30 June 2019, a period which has seen companies continue to struggle to deliver earnings growth, the top 20 portfolio companies (88% of the portfolio) delivered sales and EBITDA growth of 26% and 35% respectively. The Chairman notes that these are the strongest operational figures the company has ever reported, which reflects the quality of the underlying portfolio. More than 80% of the portfolio is focused on software and services that make use of technology. In the year to 30 June 2019, the largest 20 portfolio companies reported aggregate sales of £3.7bn and EBITDA of £1bn, with EBITDA margins of 28%. To put this into context, this would make the company one of the largest software businesses in Europe. The Partners and staff of Hg now hold c.13m shares, with a current market value of c.£30.6m. In addition, they will make commitments to each vintage fund that Hg raises, typically c.2% of the total funds raised. Investec view: A solid set of results, but it is the long-term performance numbers that are genuinely exceptional. The underlying portfolio is in rude health and looking forward, we expect the strong operational performance to underpin superior returns, while the manager has advised that it expects to see further exits and re-financings over the next 12 months. That said, it is prudent to note that the portfolio EV to EBITDA multiple has moved to a record 19.5x, while the net debt to EBITDA ratio has risen to 6.3x; although the valuation multiple is a function of the strong operational characteristics, these features are likely to contribute to short-term volatility in a more challenging environment. Continued overleaf