Georgia Capital PLC on Monday said its net asset value dropped in the first quarter of 2022 on market movements and the war in Ukraine.

Further, the Tbilisi, Georgia-based investor warned that the long-term consequences of the war still remain difficult to predict.

The investor in businesses in Georgia said its net asset value per share stood at ₾52.62, or £14.16, as at March 22, down 17% versus ₾63.03 as at December 31.

The company’s NAV fell by 18% quarter-on-quarter to ₾2.37 billion from ₾2.88 billion.

Georgia Capital explained that this reflected a hit to portfolio asset valuations from market movements in discount rates, as well as the negative impact of the war in Ukraine.

‘The Russia-Ukraine war has resulted in extraordinary global economic disruption, as unprecedented sanctions were imposed upon the Russian economy; energy prices have surged, and global spillover risks have been substantially increased,’ the company explained.

Revenue of the investor’s total portfolio grew 15% to ₾435.0 million from ₾378.3 million, while earnings before interest, tax, depreciation, and amortisation fell 0.7% to ₾53.8 million from ₾54.2 million in the first quarter of 2022 compared to the final one last year.

Georgia Capital credited this to the robust operating performance of its portfolio companies.

Looking ahead, the company said it is well-positioned to withstand potential pressures and deliver consistent NAV per share growth over the medium term.

However, Georgia Capital warned that the long-term consequences of the war still remain unpredictable and very difficult to assess.

‘I have always highlighted that we must be constantly mindful of emerging risks, whilst continuing to tap attractive investment opportunities. We will be increasing our focus on balancing the varying risks and opportunities in an ever-changing, very volatile environment, where it is extremely difficult to predict the short and long-term impacts of the recent geopolitical tensions on our people, our businesses, and our country,’ Chair & Chief Executive Irakli Gilauri said.

Separately, the company announced that Chair & CEO Gilauri has proposed to separate the roles of chair and CEO.

The proposal was accepted and Gilauri will step down as CEO and continue as chair. Meanwhile, deputy chief executive officer Nikoloz Gamkrelidze will take on the role of CEO

Shares were down 3.0% at 578.00 pence each on Monday morning in London.

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