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(Alliance News) - Georgia Capital PLC on Tuesday reported a slip in net asset value over the third quarter but its outlook remains "strong" on the back of its growing private portfolio.
At September 30, the Georgian-focused investment company's NAV per share stood at GEL50.04, about GBP13.03, compared to GEL53.90, about GBP14.04, at June 30 - which represents a 7.2% decrease. Compared to December 31, the company's NAV per share is 13% higher, when it stood at GEL44.32.
Georgia Capital's net asset value slipped 9.8% over the period to GEL1.75 billion from GEL1.94 billion at the beginning of the quarter. In the nine-month period, net assets are up 3.5%.
In 2019, Georgia Capital has bought back 90.3 million shares, which included 31.5 million in the third quarter.
The quarterly drop in NAV was attributed to a GEL174 million decrease in the market value of the company's listed portfolio and GEL14 million in negative forex movements. This was partially offset by GEL37 million in "value creation" from the company's private portfolio.
The nine-month rise was attributed to the same "strong value creation" from its private portfolio and "disciplined" share buybacks.
The private portfolio value rise was driven by a "strong" operating performance from Water Utility, Georgia Capital said, which saw energy sales triple in the third quarter.
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.
"I am pleased to report we had an excellent quarter in terms of operating cash flow generation and step up in capital allocations," said Chief Executive Irakli Gilauri.
He continued: "Firstly, operating cash flow generation across the private portfolio companies increased by 45% year on year in the third quarter and by 67% year on year in the first nine months.
"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 the fourth quarter and beyond remains strong as our private portfolio continues to grow."
Shares in Georgia Capital were flat in London on Tuesday at 985.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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