6th Nov 2018 09:55
LONDON (Alliance News) - Georgia Capital PLC said Tuesday its third quarter performance demonstrated another quarter of operational excellence as its net assets fell due to global equity market trends.
At September 30, Georgia Capital's net asset value was GEL1.61 billion, about GBP448.0 million, a 4.7% decrease from GEL1.69 billion, about GBP470.1 million, at June 30.
The investment company focused on Georgian businesses reported a NAV per share of GEL44.6 at the end of the third quarter, a 2.4% decrease from GEL45.7 at June 30.
"The third quarter results demonstrated another quarter of excellence in operational execution in our private investment portfolio, while the market value of listed investments was impacted by global equity market trends," said Chairman & Chief Executive Irakli Gilauri.
The investment company said the decrease in its net asset value reflected the market decline of the Bank of Georgia Group PLC and Georgia Healthcare Group PLC, in line with global equity market trends.
Georgia Capital said it no longer expects to own less than a 50% stake in Georgia Healthcare at the end of 2018, as it believe that the current share price "significantly undervalues the performance and value creation prospects of Georgia Healthcare".
At September 30, Georgia Capital held a 57% stake in Georgia Healthcare and a 20% stake in the Bank of Georgia.
Georgia Capital's NAV decrease was partially offset by an increase in the value of its private portfolio to GEL673.1 million from GEL623.2 million.
Gilauri continued: "During the third quarter we invested GEL 32 million in our early stage portfolio businesses primarily across Beverages and Hospitality & Commercial Real Estate to capitalise on the fast-growing Georgian economy. At the same time, we continue to build the ground for the Group's intended expansion into the education industry."
Gilauri added: "From a macro-economic perspective, despite emerging market volatilities, the Georgian economy remained resilient with 4.0% year-on-year real GDP growth and close to target, 2.9%, inflation in the third quarter."
Shares in Georgia Capital were up 1.2% at 1,249.86 pence each.
Related Shares:
Bank Of Georgia GroupGHG.L