Georgia Capital Plc (LON: CGEO) reported a slip in the net asset value over the third quarter, however outlook remains strong after growth in its private portfolio.
Georgia Capital’s net asset value dropped 9.8% over the three month period. Before the Q3 results total value was GEL1.94 billion, falling to GEL1.75 billion.
Georgia Capital have looked to expand business and recently acquired Redberry.
Redberry is a leading digital marketing agency, and outlined in an investor presentation this acquisition allows them ‘to have a platform for investment in the digital business’.
In 2019, Georgia Capital bought back 90.3 million shares, including 31.5 million in the third quarter.
Irakli Gilauri, Georgia Capital Chairman and CEO, commented: “I am pleased to report that we had an excellent quarter in terms of operating cash flow generation and step up in capital allocations. Firstly, operating cash flow generation across the private portfolio companies increased by 44.7% y-o-y in 3Q19 and by 67% y-o-y in 9M19”
He added “Secondly, our investments – while remaining disciplined – were our highest in a single quarter as we successfully converted active pipeline deals into acquisitions. We made a bolt-on acquisition in the wine business, while also successfully closing the acquisitions of majority stakes in three leading Georgian private schools. We continue to have a robust pipeline and our outlook for 4Q19 and beyond remains strong as our private portfolio continues to grow”
The private portfolio value was driven by growth in water utility as well as triple sales in the energy sector.
Along with this, there was strong value creation from its private portfolio, and disciplined share buybacks.
Georgia Capital’s total portfolio value ended the quarter at GEL2.18 billion, down 2.4% from GEL2.24 billion at the end of June but up 16% from GEL1.88 billion at the end of December.
Currently, shares of Georgia Capital PLC are trading at 975p, with a 1.02% fall. 22/10/19 11:12BST.
