Georgia Capital (GCAP) reported strong Q325 results, with 7.9% quarterly growth in NAV per share (on a total return basis, in Georgian lari), continuing its long-term growth path (five-year NAV CAGR stands at 29.1%) and bringing its one-year sterling NAV performance to 63.2%. The main value driver remained the listed Lion Finance Group, which posted an 8.1% share price increase in the quarter. The private portfolio showed a 6.7% increase in value, reflecting good operational performance, which prompted GCAP to increase its expectations of 2025 dividend income to GEL200m (from GEL180m), with a view that this increase will be permanent. The NAV per share growth was also supported by GCAP’s NAV-accretive buybacks (+1.2pp), as the company continues to deploy its GEL700m capital return programme, scheduled until end-2027. After the current tranche of US$50m is concluded, the remaining capital to be deployed will amount to GEL300m, which translates to 6.5% of end-September NAV.

Georgia Capital (GCAP) posted strong H125 results, with NAV per share up 31% in Georgian lari and 24% in pounds sterling in total return terms, accelerating its long-term growth (five-year NAV TR in Georgian lari stood at 31.7% pa). The main value driver remains GCAP’s stake in LSE-listed Lion Finance Group (LFG), a leading Georgian bank representing roughly half of GCAP’s portfolio. Its portfolio of private companies (concentrated in Georgian market leaders) posted aggregate EBITDA growth in H125 of 22% y-o-y. Over the past two years GCAP has made significant progress in deleveraging, reducing its net capital commitment (NCC) ratio below target, which allows it to accelerate capital deployment. GCAP recently announced a GEL700m capital return programme (15.7% compared to end-June 2025 NAV), which may include share repurchases, dividends and debt repayments. Confirmation of the validity of GCAP’s strategy through successful exits and its capital distributions have contributed to a narrowing of the discount to 30%, which we continue to view as wide.

Georgia Capital (GCAP) delivered a solid NAV total return of 11.2% in Q125 in local currency terms (9.8% in GBP), continuing its strong 15.1% growth per annum since end-2018. Q125 NAV growth was driven primarily by Lion Finance Group’s stock performance (BGEO, formerly Bank of Georgia), which contributed 6.9pp to NAV performance. The strength of GCAP’s private portfolio continues to be reflected in robust earnings growth and sustained dividend flows. The group has reiterated its guidance to receive GEL180m in recurring dividends in 2025 (flat vs 2023 and 2024, which was sufficient to cover 169% of GCAP’s share buybacks over the last two years). Given the persistent wide discount to NAV (currently 37% to end-March NAV), GCAP remains focused on accretive share repurchases, reinforcing its commitment to disciplined capital allocation.