Georgia Healthcare Share Discussion Threads

[loganair] 15/9/2019 11:28

MoneyWeek - Adventurous investors should head for the frontier in Georgia by David C Stevenson 13/08/2019:


Georgia Capital, a London-listed investment fund, is trading on a big discount and looks a good bet for the brave.

One of the great virtues of the London stockmarket is that there’s a healthy number of funds to appeal to investors looking for the next frontier. One of the lower-profile examples is Georgia, a destination that probably isn’t on the radar for many people, but represents an interesting prospect for the brave investor.
Solid fundamentals

Georgia is a tiny state nestled on the western edge of the Caucasus mountain range. It has a population of just 3.7 million, yet boasts a number of advantages. Its government is trying to stay friendly with the West as well as with Russia – although every once in a while its overbearing northern neighbour throws a tantrum and threatens exports.

National markets are steadily opening up to international competition (Turkey is one key trading partner) and Georgia is keen to position itself as a transit point in trade between Central Asia and Europe. Its lack of commodity wealth is also probably something of a positive, making local businesses work harder for their profits.

The economy has been growing at a fairly steady 4% to 6% clip since 2017 with inflation on target to stay below 3%, and a rapidly improving trade deficit. National finances look stable with interest rates at 6.5% and central-bank foreign-exchange reserves steadily growing.
A promising fund

Bank of Georgia, a local bank, has been listed on the main segment of the London Stock Exchange since the spring of 2012. Back in 2018 it decided to de-merge into two separate businesses: Bank of Georgia (LSE: BGEO), the banking business; and Georgia Capital (LSE: CGEO), the investment fund business.

At the time I thought that this investment arm was interesting, but timing wasn’t ideal and the demerger took place at net asset value (NAV), which I thought might be a bit rich. Rows then developed with Russia, which helped knock sentiment and since the demerger the shares have drifted ever lower. At the current share price of around £10 a share, the discount to NAV looks to be about 30%, which strikes me as better.

In simple terms, Georgia Capital is a hybrid fund, containing of two main components. The biggest chunk (60%) consists of substantial holdings in Bank of Georgia (19.9% stake) as well as a 57% stake in Georgia Healthcare (LSE: GHG). These are both performing well. Georgia Healthcare has recently announced a dividend policy, and plans to pay out 20%-30% of annual profit. Bank of Georgia’s shares are still lowly priced, trading at 1.4 times book value, on a price-to-earnings ratio of around five and a dividend yield of over 10%.
Fast-growing private equity

The other portion of the portfolio is a fast-expanding range of private-equity holdings. Recent investments include an 80% equity interest in Green School, the leading affordable private school, and an 80% interest in Amboli, the second-largest auto-service firm. In March, Georgia Capital’s drinks operation acquired the brand name and commercial assets of Kazbegi, the country’s oldest beer brand, for $3.65m (£3m). Meanwhile, the renewable energy business has commissioned the 30MW first phase of the Mestiachala hydro power plant, with a further 20MW second phase under way.

This frenetic pace of activity shows up in the latest reported quarterly numbers which showed a 7.2% return in local currency terms for the first quarter of this year (3.5% in sterling terms) – comprised of a 12.1% total return in local currency from the listed portfolio companies and a 2.1% total return from the private portfolio companies. Overall, I think Georgia Capital now looks like a good bet as long as Georgia can keep on good terms with Russia.

[jswjsw] 15/7/2016 08:00

"Undistributed profits no longer subject to 15% tax after this yr." !!!

Last qr:
There are still many service gaps in Georgia which, as the largest provider of healthcare services in the country, GHG is focused on covering.

Abs massive potential in this.

j

[luckymouse] 15/7/2016 06:52

dead board - incredible chart

[jswjsw] 14/7/2016 12:50

Head Of Georgia Nat Bank appointed CEO - & buys shs. Even though it's going vertical - time to buy methinks…
j

[boyblue] 05/3/2001 00:27

Aveso has only taken over part of GHG.....see below
I am stiil hopeful that we might get something when the dust has cleared.....
after all JH has a lot more to loose than me !!

RNS Number:8018Z
Avesco PLC
2 March 2001


AVESCO plc ('Avesco' or 'the Company')

Acquisition of Gearhouse Midlands

Avesco plc, the provider of specialist services to the corporate presentation,
entertainment and broadcast markets, announces that it has acquired the
business and certain assets of the Midlands and North division ('Gearhouse
Midlands') of Gearhouse Group plc ('Gearhouse Group') from Gearhouse Group
acting through its joint administrative receivers ('the Acquisition').

Avesco has acquired Gearhouse Midlands for a total consideration of #4 million
in cash. The business and assets acquired include the operations in
Birmingham, Manchester and Glasgow and at the NEC. The assets acquired are
primarily goodwill, fixed assets and stock, and exclude trade debtors.

Background to the Acquisition

On 28 December 2000, trading in Gearhouse Group shares on the London Stock
Exchange was suspended after Gearhouse Group announced that it would not be in
a position to announce its preliminary results for the year ended 30 June 2000
by the time required by the Listing Rules. On 23 February 2001, Gearhouse
announced that partners in Ernst and Young had been appointed as joint
administrative receivers.

Information on Gearhouse Midlands

Gearhouse Midlands, based in Birmingham, supplies audio visual presentation
and event production equipment for both rental and sale to the corporate and
exhibition markets. It provides audio visual staging services for all aspects
of the events industry, from corporate presentations and live entertainment
events to exhibitions and trade shows.

The relevant assets of Gearhouse Midlands being acquired had a net book value
at 30 June 1999, the date to which the last audited accounts of the companies
concerned were made up, of approximately#5.7 million. In the year ended 30
June 1999, the relevant companies representing Gearhouse Midlands reported
profit before tax of approximately #1.5 million. Subsequent unaudited
financial information of Gearhouse Midlands indicates a deterioration in
trading results and a reduction in the net book value of the assets concerned.

Reasons for and Benefits of the Acquisition

Avesco believes that the Acquisition represents a significant opportunity for
Avesco to extend its presence in the UK, in particular broadening its customer
base in the exhibition sector. Avesco considers that the Acquisition will
provide opportunities in the areas of customer cross selling and improved
resource utilisation.

Avesco believes that the Avesco and Gearhouse Midlands businesses together
will provide a platform for further growth and consolidation opportunities in
the Company's core markets.



For further information:

Avesco plc - Tel: [phone]

David Nicholson, Chief Executive

David Brocksom, Finance Director



Investec Henderson Crosthwaite - Tel: [phone]

Bruce Fireman, Managing Director of Corporate Finance

[taimur] 04/3/2001 19:09

You can bet that if Avesco have parted with cash then they have taken anything of value (including the customer base and goodwill) and the rest is up for auction for best return to immediate creditors.

Not many cmpanies make it back from Administration, especially not if they sell off the crown jewels during that period.

Taimur

[blue moon] 02/3/2001 18:51

Avesco has taken over gearhouse today, I'm not holding out any hope of my gearhouse shares being worth anything. If anyone knows anything different I would be grateful.
Thanks

[dave46] 25/2/2001 00:42

Yeah its very odd! I like so many others had alot of faith in Hemmings, his past surlely celebrates his good pick on stocks.
What is even odder is that the RNS of the 23 Feb is not up any more! (check it out?) Was it all a nightmare! Did it never happen?

[optimist] 24/2/2001 13:09

Administrative Receivers are appointed to run a company and give it some protection from claims from creditors.

In theory, this can allow a company to trade out of its difficulties and then be handed back to the shareholders as a going concern. This does happen occasionally, but it is much more likely that the assets of a company would be sold off and eventually distributed to The Banks and Inland Revenue, then the trade creditors, then the shareholders.

In practice, this means that trade creditors sometimes get a small amount back and shareholders get nothing.

Optimist (not)

[mrwildjuice] 23/2/2001 22:46

Appointment
23/02/2001 18:08:43

Gearhouse Group PLC23 February 2001

APPOINTMENT OF ADMINISTRATIVE RECEIVER

The Company announces that Ernst and Young have today been appointed asAdministrative Receivers to Gearhouse Group PLC.END

[blue moon] 23/2/2001 20:59

Why would hemmings buy 13% of gearhouse only to see it go under,a very expensive move.I'm glad i've only lost a few hundred quid.

[money loser] 23/2/2001 19:07

Commiserations to all who lost money

Thanks to my ever reliable source of info, I sold all mine for small loss of £100 day before suspension. Lady luck truly smiled on me that day.

[rhodesc] 23/2/2001 18:51

Bad

Shares worthless - money gone

[whysa4] 23/2/2001 18:43

RNS Number:4452Z
Gearhouse Group PLC
23 February 2001


APPOINTMENT OF ADMINISTRATIVE RECEIVER

The Company announces that Ernst and Young have today been appointed as
Administrative Receivers to Gearhouse Group PLC.

END

Is this good or bad news ?

[rhodesc] 14/2/2001 16:18

Rumours are rife of takeovers of either part or the whole group.

Wait and see at the moment and no point in worrying as there is nothing anyone can do who holds the shares.

Avesco has been mentioned as well as MBO's of parts of the group.

Hopefully we will know this month - Feb 2001

[harleymaxwell] 14/2/2001 14:11

anyone heard anything?should we worry?

[rhodesc] 17/1/2001 10:23

Todays News

New appointments and possible MBO's of certain parts of the business. Hopefully they are sorting things out:-

Gearhouse Group PLC
17 January 2001

GEARHOUSE GROUP PLC

Gearhouse Group today announced the appointment of David H Hargreaves FCA as
Group Chief Executive. He replaces John Napier who previously occupied the
position on a temporary basis. John will remain with the group to manage a
number of projects.

Gary Davis, Managing Director of Presentation Services Limited, has also
resigned as a Director to lead a management buyout of certain parts of the
Group. Gary will retain his executive responsibilities within the Group.

[rhodesc] 08/1/2001 09:14

Found this on citywire Monday Paper Round Up Part 3 this morning. Positive signs :-

GEARHOUSE GROUP's electronic billboards, on trial in Birmingham, expected to become common in UK over next two years

[golden touch] 03/1/2001 17:22

when do we think these shears will be up and running again?,or does no one have a clue

[alex69] 03/1/2001 00:20

News anyone?

[adipaul] 28/12/2000 20:13

Doesn't surprise me. Seems like a change of strategy since J.H. joined the board a few weeks ago. Of course, these things take time. A plan must have been initiated, but obviously they have not had time to complete before the results were due out. In that case, suspension must be the only way to go. I have a feeling it is a requirement if results are not submitted by the due date. Please correct me if I am wrong.

I think this is a good sign. They are not under pressure, the price is static, and we can look forward to a positive announcement.

GHG is not going bust. It would have gone down before now. Here is a quote from J.H. on Blakes Clothing which was a similar scenario and made him £700k from £15k.

"Interestingly Blakes was the sort of stock that everyone saw as going
bust. I initially had 4%, but started trickling out most of that at a
small profit just before suspension. It was just after suspension
that they rocketed (now that was a momentum stock)."

Regards,
Paul.

[tone] 28/12/2000 19:31

LONDON (AFX) - Gearhouse Group PLC shares have been temporarily suspended
from trading on the London Stock Exchange after the company announced it is
working with its bankers on a major debt rationalisation programme which may
involve the disposal of parts of the group.
The group will subsequently not be in a position to announce its preliminary
results for the year to June before the end of this month as required by the
Listing Rules.
In a statement, the group said it has "received expressions of interest for
certain subsidiaries that constitute a material part of the group's operations".
Gearhouse shares have therefore been suspended from trading on the London
Stock Exchange from 5.00 pm today at the request of the company.
Gearhouse said it intends to have its shares restored once the results have
been finalised and progress has been made on the debt reduction and
rationalisation programme.
The company announced in October that it was reviewing its financial
structure and was in talks with its bankers over its banking arrangements and
"the appropriate level of current facilities".
mps/jkm/

[boyblue] 28/12/2000 17:20

GHG suspended.......but the company is going to get sorted one way or another....JH will protect his investment and things might move faster than we thought.


RNS Number:4735W
Gearhouse Group PLC
28 December 2000

Gearhouse Group plc


The Board of Gearhouse Group plc ('Gearhouse' or the 'Group') announces that
it will not be in a position to announce the Group's preliminary results for
the year ended 30 June 2000 before the end of this month as required by the
Listing Rules.

On 19 October 2000, the Board announced that it was reviewing the Group's
financial structure and that it was in discussions with its bankers about the
banking arrangements and the appropriate level of current facilities. As a
result of these ongoing discussions, the Board has embarked, with the support
of the Company's bankers, upon a major working capital and debt
rationalisation programme, which may involve the disposal of parts or part of
the Group. The Board has received expressions of interest for certain
subsidiaries that constitute a material part of the Group's operations.

It is the Directors present intention to seek to have the shares of the Group
restoredonce the results for the year ended 30 June 2000 have been finalised
and progress has been made on the debt reduction and rationalisation
programme.


END