21st Jun 2021 12:30
(Alliance News) - Georgia Capital PLC on Monday said it was trading ahead of management expectations in April and May as restrictions eased and international borders reopened in Georgia.
The London-based investor said revenue across its portfolio of Georgian companies totalled GEL328 million, around GBP74.8 million, in April and May, up 55% compared to the same period last year. Meanwhile, the portfolio's total earnings before interest, tax, depreciation and amortisation hit GEL73 million, more than doubling from those months a year before and up 53% compared to that period in 2019.
The company noted that the easing of lockdown and travel restrictions led to economic growth, with a rapid estimate showing that Georgia's real gross domestic product in April was up 45% compared to April 2020, and up 21% compared to April 2019.
Georgia Capital's investments in healthcare services, retail, water utility and insurance all grew in comparison with the past two years.
The company's Retail business did well with sales exceeding GEL65 million in April and May alone, indicating 44% year-on-year growth. The Water Utility segment saw the highest earnings before interest, tax, depreciation and amortisation, almost tripling year-on-year to GEL22.1 million on revenue of GEL34.2 million.
Georgia Capital's Insurance segment saw the slowest growth, with earned premiums at GEL25.6 million in April and May, up 15% from the same period the year before but only up 1.3% compared to those months in 2019.
Georgia Capital said: "Management expects that the strong performance of its portfolio companies will have a positive impact on their respective valuations which, when coupled with the recent Bank of Georgia share price performance and Georgian lari's appreciation against the US dollar, is expected to lead to strong net asset value per share growth in the second quarter of 2021."
Georgia Capital shares were trading up 1.7% at 646.00 pence each in London on Monday afternoon.
By Scarlett Butler; [email protected]
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