Banking
Posted: 4 years ago

Georgia Capital Portfolio Value Exceeded GEL 2 billion for the First Time

Georgia Capital PLC has published today a trading update for the first quarter of 2019.

“We have started the year strongly and remain well positioned to take disciplined advantage of further investment opportunities. We continued to see high quality deal flow in 1Q19. NAV per share increased by 7.2% to GEL 50.51 as of 31 March 2019, while our portfolio value exceeded GEL 2 billion for the first time.

The first few months of 2019 were eventful as a) We had two acquisitions: the beer business acquired a prominent beverages brand, Kazbegi, and the acquisition of the second largest auto service industry player, Amboli, subject to regulatory approvals; b) GHG announced a dividend policy following strong growth in their free cash flow generation; c) Renewable Energy launched their first hydro power plant in April 2019; d) all periodic vehicle inspection centres were successfully launched and are now operational; and e) unconditional title has been obtained on Water Utility assets, which represents 25% of our NAV. We expect this positive momentum to continue throughout 2019 and support sustainable growth in our NAV per share.”

1Q19 performance highlights

  • NAV per share (GEL) up 7.2%
  • Portfolio value in excess of GEL 2 billion
    • 12.1% total return from listed portfolio companies
    • 2.1% total return from private portfolio companies
  • Strong financial and operational performance across our private portfolio companies
  • GHG initiated a dividend policy in March, providing us with new stream of cash inflows
  • Renewable Energy successfully commissioned the first phase, 30MW, of Mestiachala hydro power plant
  • Fulfilled privatisation conditions and subsequently obtained full title on Water Utility assets
  • Commencement of construction of hotel in Kutaisi
  • Launched 26 Periodic Technical Inspection Centres
  • Our beer business was approved to launch production of one of the Heineken brands
  • The beer business acquired a prominent Georgian beverages brand, Kazbegi, with 5% market share
  • Signed an agreement to acquire the second largest auto service industry player, Amboli, subject to regulatory approvals.

The trading update together with the supplementary financial information is available on the Group’s website.