Edison's Latest Report on Georgia Capital Highlights NAV Decline

Edison Investment Research Limited has issued a new report on Georgia Capital (LSE: CGEO) dated 3 September 2024. The report reveals a 12.8% quarter-on-quarter decline in the net asset value (NAV) per share for Georgia Capital in Q224, measured in Georgian lari. The decrease extends to 16.5% when converted into sterling. This drop is largely attributed to the expanding bond yields and credit spreads amid the recent political instability in Georgia.

Edison's analysis indicates that the devaluation of Bank of Georgia shares contributed a 7.1 percentage point reduction in GCAP’s NAV. Additionally, higher discount rates applied to private portfolio companies resulted in a further 7.5 percentage point decline. Despite these setbacks, portfolio companies are continuing their expansions and dividend payments. By 12 August 2024, Georgia Capital had collected GEL105 million, with management maintaining a dividend income projection of GEL180–190 million for FY24.

Further, GCAP has expanded its share buyback program, with US$16.7 million remaining to be repurchased as of 30 August 2024. Edison's comprehensive report is accessible through their website.