Georgia Capital half-year results 2026: record NAV and £1 billion capital plan

Record NAV leads a strong second quarter

Georgia Capital PLC has reported a record net asset value, stronger operating results from its major private businesses and a substantially improved capital position in its 2026 half-year report.

Net asset value, or NAV, represents the value of the group's assets after liabilities. NAV per share reached GEL 175.12 at 30 June 2026, up 13.1% during the second quarter and 13.2% since the end of 2025.

For UK investors, the sterling figure is particularly relevant. NAV per share increased by 15.6% quarter-on-quarter to GBP 50.10, and was 18.0% higher than at December 2025.

The group also unveiled a new GEL 1 billion capital allocation programme running to the end of 2029. At least half is expected to be returned to shareholders, beginning with a US$ 50 million share buyback and cancellation programme.

The full figures are available in the original company announcement.

Georgia Capital's key figures

Metric	30 June 2026	Change from March 2026	Change from December 2025
NAV per share	GEL 175.12	13.1%	13.2%
NAV per share	GBP 50.10	15.6%	18.0%
Total NAV	GEL 5.79 billion	12.5%	11.5%
Total portfolio value	GEL 5.41 billion	7.3%	6.7%
Cash and liquid funds	GEL 499.8 million	Not meaningful	Not meaningful
NCC ratio	-2.9%	Improved by 6.8 percentage points	Improved by 5.2 percentage points

The net capital commitment, or NCC, ratio compares expected capital outflows with the portfolio's value. A negative ratio means Georgia Capital's net cash exceeded its planned investments, announced buybacks and liquidity buffer.

This was the first time that had happened, giving the group what management described as its strongest capital position to date.

What drove the increase in value?

Georgia Capital generated GEL 723.5 million of portfolio value creation during the second quarter.

Lion Finance Group, its listed holding, accounted for GEL 484.1 million after the company's share price rose 22.1% during the quarter. Georgia Capital reduced its Lion Finance stake from 16.6% to 14.9%, selling around 780,000 shares at an average price of GBP 111.60.

The private portfolio contributed another GEL 239.4 million. Its three large businesses - retail pharmacy, healthcare services and insurance - produced GEL 239.1 million of value creation between them.

There is a useful distinction here. Some of the private portfolio uplift came from operating performance, but GEL 112.6 million also reflected changes in implied valuation multiples and foreign exchange rates. Those valuation assumptions can move in either direction.

Georgia Capital said a one percentage point change in the discount rates used to value its unquoted investments would alter their fair value by approximately GEL 273 million, or 9%.

Private businesses are growing quickly

The operational figures were encouraging. Aggregate second-quarter revenue from the large private portfolio companies rose 19.1% year-on-year, marking an eighth consecutive quarter of double-digit growth.

Their EBITDA increased by 21.2% to GEL 75.4 million. EBITDA is a measure of operating profit before interest, tax, depreciation and amortisation. Net operating cash flow rose by 41.4% to GEL 76.2 million.

Retail pharmacy

Retail pharmacy revenue increased by 14.1% to GEL 255.6 million, while EBITDA excluding lease accounting rose 22.3% to GEL 29.8 million.

Same-store revenue grew by 8.5%, the average bill increased by 9.3%, and six pharmacies opened during the quarter. Free cash flow more than doubled to GEL 20.7 million, while net debt-to-EBITDA improved to 0.8 times.

Healthcare services

Healthcare revenue rose 17.9% to GEL 139.5 million. EBITDA excluding lease accounting increased 25.1% to GEL 29.6 million, supported by demand for outpatient care and a shift towards higher-margin services.

However, the division recorded a GEL 13.3 million net loss excluding lease accounting. This included a GEL 25.0 million write-off of legacy intangible assets, partly offset by a GEL 6.8 million gain on unused property sales.

Leverage remained fairly high at 3.5 times net debt-to-EBITDA, although that was an improvement from 3.7 times in March.

Insurance

Insurance revenue increased by 32.0% to GEL 127.6 million, helped by 49.3% growth in medical insurance. Combined pre-tax profit rose 14.4% to GEL 15.3 million.

Property and casualty insurance was affected by GEL 3.0 million of motor claims following a severe hailstorm in Tbilisi. Its combined ratio, which measures claims and expenses as a percentage of premiums, weakened by 4.8 percentage points to 89.2%.

A ratio below 100% still indicates an underwriting profit, but the deterioration is worth watching.

Disposal strengthens the balance sheet

Georgia Capital completed the sale of housing developer m2 in June. The transaction reduced aggregate net debt across the emerging and other businesses, excluding renewable energy, by approximately 49%, or around US$ 39 million.

Their net debt-to-EBITDA ratio fell from 3.8 times to 2.0 times.

This fits the group's capital-light strategy and removes some property development risk. S&P Global Ratings subsequently upgraded Georgia Capital's corporate credit rating from BB- with a positive outlook to BB with a stable outlook.

The remaining US$ 50 million of local sustainability-linked bonds are due to be redeemed on 19 August 2026. Following settlement, Georgia Capital expects to have no holding company debt.

A bigger capital allocation programme

The previous GEL 700 million capital return programme is being completed more than a year ahead of its original December 2027 deadline.

Georgia Capital has now launched a GEL 1 billion programme through the end of 2029. It will combine share buybacks, possible dividends and investments in Georgia and potentially Armenia.

At least half is expected to go towards capital returns. The initial US$ 50 million buyback is significant, but management is also signalling greater willingness to consider acquisitions as the share price discount to NAV narrows.

Buybacks can be particularly effective when shares trade below NAV because each cancelled share may increase the asset value attributable to the remaining shares. Georgia Capital said buybacks added 0.3 percentage points to NAV per share growth during the second quarter.

Since its demerger, the group has repurchased 16.7 million shares for US$ 295 million, equal to 35.0% of peak issued share capital.

What investors should watch next

The half-year report contains several positives: record NAV, strong growth from the large private businesses, better cash generation, lower leverage and a clear commitment to shareholder returns.

There are still risks. Lion Finance represents 46.9% of the portfolio, leaving Georgia Capital meaningfully exposed to one listed investment. Private company valuations depend partly on discount rates and market multiples, while healthcare leverage remains elevated.

Performance was also mixed outside the core holdings. Renewable energy EBITDA fell 55.9% year-on-year in the second quarter, while the wine and hospitality businesses reported negative EBITDA.

Finally, first-half portfolio value creation of GEL 772.3 million was 23.9% below the previous year, and adjusted net income declined 27.1% to GEL 720.6 million. The stronger second quarter therefore sits alongside tougher half-year comparisons.

Even so, the main message is that Georgia Capital enters the second half with a stronger balance sheet and greater capital allocation flexibility. The key test will be whether management can maintain private portfolio growth while balancing buybacks, potential dividends and new investments without rebuilding financial risk.