Georgia Capital PLC ("the Group") has published today a trading update for the first quarter of 2019. The trading update together with the supplementary financial information is available on the Group’s website at https://georgiacapital.ge/ir/financial-results. Georgia Capital PLC 1Q19 trading update presentation is available on the Group’s website at https://georgiacapital.ge/ir/presentations. An investor/analyst conference call, organised by the Group, will be held on 26 April 2019, at 14:00 UK / 15:00 CET / 9:00 U.S Eastern Time. The duration of the call will be 60 minutes and will consist of a 15-minute update and a 45-minute Q&A session.

Management Commentary

“We have started the year strongly and remain well positioned to take disciplined advantage of further investment opportunities. We continued to see high quality deal flow in 1Q19. NAV per share increased by 7.2% to GEL 50.51 as of 31 March 2019, while our portfolio value exceeded GEL 2 billion for the first time. The first few months of 2019 were eventful as a) We had two acquisitions: the beer business acquired a prominent beverages brand, Kazbegi, and the acquisition of the second largest auto service industry player, Amboli, subject to regulatory approvals; b) GHG announced a dividend policy following strong growth in their free cash flow generation; c) Renewable Energy launched their first hydro power plant in April 2019; d) all periodic vehicle inspection centres were successfully launched and are now operational; and e) unconditional title has been obtained on Water Utility assets, which represents 25% of our NAV. We expect this positive momentum to continue throughout 2019 and support sustainable growth in our NAV per share.”

1Q19 performance highlights

  • NAV per share (GEL) up 7.2%
  • Portfolio value in excess of GEL 2 billion
    • 12.1% total return from listed portfolio companies
    • 2.1% total return from private portfolio companies
  • Strong financial and operational performance across our private portfolio companies
  • GHG initiated a dividend policy in March, providing us with new stream of cash inflows
  • Renewable Energy successfully commissioned the first phase, 30MW, of Mestiachala hydro power plant
  • Fulfilled privatisation conditions and subsequently obtained full title on Water Utility assets
  • Commencement of construction of hotel in Kutaisi
  • Launched 26 Periodic Technical Inspection Centres
  • Our beer business was approved to launch production of one of the Heineken brands
  • The beer business acquired a prominent Georgian beverages brand, Kazbegi, with 5% market share
  • Signed an agreement to acquire the second largest auto service industry player, Amboli, subject to regulatory approvals

Conference call details

Dial-in numbers:  

30-Day replay:

Pass code for replays/Conference ID: 1597970 Pass code for replays / Conference ID: 1597970
International Dial In: +44 (0) 2071 928000 UK Freephone Dial In: 08082380667
UK Freephone Dial In: 08003767922 UK Local Dial In: 08445718951
UK Local Dial In: 08445718892 International Dial In: +44 (0) 3333009785
US: 18669661396 US: 1 (866) 331-1332

This announcement contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Georgia Capital PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct.