Georgia Capital (LON:CGEO) Posts Quarterly Earnings Results

Georgia Capital (LON:CGEO) released its earnings results on Tuesday. The company reported GBX 668.73 EPS for the quarter, Digital Look Earnings reports. Georgia Capital had a net margin of 99.61% and a return on equity of 39.19%.

Here are the key takeaways from Georgia Capital’s conference call:

• NAV per share increased 13% in Q2, supported by a 22% rise in Lion Finance Group’s share price and strong operating performance from private portfolio companies. NAV per share has delivered a 20% CAGR since inception.
• Aggregate private-portfolio revenue grew 19.1% in Q2 and EBITDA rose 21% in the first half, while operating cash increased 41% in Q2. Pharmacy, healthcare services, and insurance all reported strong revenue and EBITDA growth, with improving margins and cash generation.
• Georgia Capital expects to eliminate holdco debt by August and has reduced private-portfolio leverage to 2.1x EBITDA from 5.0x in 2019. It also launched a GEL 1 billion capital allocation program through 2029, including at least GEL 500 million of buybacks or dividends and potential investments in Georgia and Armenia.
• Insurance earnings were affected by a one-off severe hailstorm claim in Tbilisi; reported P&C pre-tax profit declined 11% in Q2, although management said adjusted profit would have increased 23%. Expected 2026 dividend inflows were also reduced to about GEL 200 million because of the lower stake in Lion Finance Group.

Georgia Capital Stock Up 10.1%

CGEO traded up GBX 413.26 during trading on Tuesday, reaching GBX 4,490. 108,216 shares of the company were exchanged, compared to its average volume of 268,313. The company has a market cap of £1.39 billion, a price-to-earnings ratio of 0.99 and a beta of 0.67. Georgia Capital has a 12-month low of GBX 2,190 and a 12-month high of GBX 4,700. The company’s 50-day moving average is GBX 4,120.01 and its two-hundred day moving average is GBX 3,822.69.

Insider Buying and Selling

In other news, insider Neil Janin bought 4,136 shares of the stock in a transaction on Tuesday, June 16th. The shares were acquired at an average cost of GBX 4,107 per share, for a total transaction of £169,865.52. Corporate insiders own 6.45% of the company’s stock.

About Georgia Capital

Georgia Capital PLC (“Georgia Capital” or “the Group” or “GCAP”– LSE: CGEO LN) is a platform for buying, building and developing businesses in Georgia with holdings in sectors that are expected to benefit from the continued growth and further diversification of the Georgian economy. The Group’s focus is typically on larger-scale investment opportunities in Georgia, which have the potential to reach at least GEL 300 million equity value over 3-5 years from the initial investment and to monetise them through exits, as investments mature.