**Summary of Hydrogen Capital Growth PLC Half-Year Financial Report (November 2025)**
**Overview**
Hydrogen Capital Growth PLC (HGEN), a London-listed fund focused on clean hydrogen investments, released its half-year financial report for the period ending 30 June 2025. The report highlights significant challenges, including a 54.1% decline in Net Asset Value (NAV) per share to 41.48p, driven by a weakened hydrogen market and funding constraints for portfolio companies. The company has shifted its strategy to a managed realisation of assets, pending shareholder approval.
**Key Metrics**
**NAV per share**41.48p (down 54.1% from 90.39p in December 2024).
**NAV**£53.4m (down 54.1% from £116.4m).
**Share price**27.45p (up 26.8% from 21.65p).
**Market capitalisation**£35.4m (up 26.9% from £27.9m).
**Share price discount to NAV**33.8% (down from 76.0%).
**Strategic Changes**
1. **Change in Investment Adviser**Appointed RWC Asset Management LLP (Redwheel) and Global Fund Management Services Limited (GFM) as new investment adviser and AIFM, respectively, replacing HydrogenOne Capital LLP and FundRock.
2. **Managed Realisation**Proposed a managed wind-down of assets, subject to shareholder approval at a General Meeting on 1 December 2025.
**Portfolio Performance**
**Private Hydrogen Assets**Valued at £51.9m, with significant write-downs due to funding challenges and market conditions. Key holdings include Sunfire SE (44.5% of NAV), Elcogen plc (15.5%), and HiiROC Limited (14.8%).
**Valuation Adjustments**Increased discount rates (22.9% in June 2025 vs. 12.2% in March 2025) reflect heightened risks and market uncertainties.
**Financial Results**
**Total losses after tax**£63.0m (48.90p per share).
**Losses on investments**£62.5m, primarily due to portfolio devaluations.
**Cash position**£1.6m as of 30 June 2025, with working capital until early 2026.
**Challenges**
**Funding Constraints**Portfolio companies faced difficulties securing additional capital, impacting their growth and valuation.
**Market Weakness**The clean hydrogen sector experienced slower momentum, regulatory delays, and reduced investor appetite.
**Operational Delays**Companies like Strohm Holding BV faced order fulfilment delays, affecting revenue recognition.
**Post-Period Updates**
**Bramble Energy**Entered administration, leading to a full write-down of HGENs stake.
**Elcogen and Cranfield**Secured near-term funding through convertible loan notes but introduced dilution risks.
**Outlook**
HGEN is focused on realising value through asset disposals, pending shareholder approval of the managed realisation strategy. The company aims to address cash constraints and optimise outcomes for shareholders despite ongoing sector challenges.
**Governance**
The Board recommends shareholders approve the managed realisation strategy at the General Meeting, emphasizing it as the best course of action given current circumstances.
**Conclusion**
HGEN faces significant headwinds, including a deteriorating NAV, funding challenges, and a weakened hydrogen market. Strategic shifts, including a new investment adviser and a proposed managed realisation, aim to navigate these challenges and maximise shareholder value.
| Metric | 30 June 2025 | 31 December 2024 | % Change |
|---|---|---|---|
| Net Asset Value (NAV) per Ordinary Share (pence) | 41.48 | 90.39 | (54.1) |
| NAV (£ million) | 53.4 | 116.4 | (54.1) |
| Ordinary Share Price (pence) | 27.45 | 21.65 | 26.8 |
| Market Capitalisation (£ million) | 35.4 | 27.9 | 26.9 |
| Ordinary Share Price Discount to NAV (%) | 33.8% | 76.0% | |
| Ongoing Charges Ratio (%) | 2.84% | 2.53% | |
| Cash Balance (£ million) | 1.6 | 2.8 | (42.9) |
| Total Losses After Tax (£ million) | 63.0 | N/A | |
| Losses on Investments (£ million) | 62.5 | N/A |