13th Aug 2024 11:10
(Alliance News) - Georgia Capital PLC on Tuesday said management remains confident it can deliver medium-term growth after asset valuations declined in the second quarter amid challenging economic conditions.
The Tbilisi-based investor in domestic Georgian businesses said pretax loss narrowed to GEL192.3 million, approximately USD71.4 million, in the half-year that ended June 30 from GEL242.5 million a year previous.
Net asset value per share fell 13% in the second quarter to GEL78.55 on June 30 from GEL90.04 on March 31, while the buyback and cancellation of 810,508 shares for GEL27.3 million reduced outstanding shares by 1.2% in the quarter.
In May, Georgia Capital launched a USD25 million buyback and cancellation programme. This now has been increased by USD15 million, with repurchases occurring through to December 31.
By 2026, the company aims to commit at least GEL300 million, about USD111 million, towards buybacks.
Chief Executive Officer Irakli Gilauri said: "Recent geopolitical volatility, although challenging for our portfolio asset valuations as well as our share price, has not affected the underlying performance of our portfolio companies, which remained robust in 2Q24.
"Looking ahead, we will also continue enhancing and developing our high-quality assets, where we see even greater potential for value creation. I believe that Georgia Capital has all the key fundamentals in place to continue delivering consistent NAV per share growth over the medium to long term - and to progress further towards achieving our key strategic priorities. This outlook is underpinned by the resilience of the Georgian economy, which has demonstrated consistent and substantial growth over the past few years."
Georgia Capital shares were down 5.3% to 983.00 pence each in London on Tuesday morning.
By Elijah Dale, Alliance News reporter
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