FTSE 250 movers: Bank of Georgia surges on results, Indivior feels ill

Bank of Georgia posted another bumper set of results for the last quarter 2022 as economic growth continued to rocket and the country's currency, the lari, continued to appreciate.

Underlying operating profit jumped by 59% versus the year earlier period to reach 351m Georgian lari (Numis: 257m GEL).

Across 2022, the economy of the country, which is located on the Black Sea in the Caucasus region was estimated to have grown by 10.1%.

The lender's net interest margin jumped from 5.3% to 5.7% alongside income growth of 54%.

In parallel, its cost:income ratio plummeted from 40% to 31%.

Its return of equity meanwhile shot higher during the quarter, reaching a record 33.7%, helped by a 113m GEL share buyback programme

Bank of Georgia's common equity tier one ratio improved from 13.2% to 14.7%.

The CET1 ratio excluded an extraordinary gain of GEL391m related to a settlement involving one of its legacy defaulted borrowers, which was being held at the holding company level.

In line with the lender's distribution policy, on Thursday it unveiled a further GEL148m share buy back authorisation which would commence on 16 February.

Analysts at Numis described the results as "exceptional" and raised its target price for the shares from 4,777.0p to 5,752.0p.

"We believe BoG offers lower risk, materially higher returns and structurally superior growth, compared to every UK lender.

"Despite the shares trading at very close to an all-time high (and banks doing that are very thin on the ground) BoG is being valued at just 4.1x current year earnings, falling to 3.7x next year."

As of 1123 GMT, shares of Bank of Georgia were trading 6.8% higher at 2,905.0p, having earlier risen to 3,005.0p.

Shares in pharmaceuticals business Indivior slumped after the group revealed it had put aside $290.0m for ongoing litigation in the US.

Indivior stated the money was intended to cover "multidistrict antitrust class and state claims" and follows legal action over the firm's attempts to delay competition to its best-selling addiction treatment product Suboxone.

"The provision is the group's estimate at this time of a potential aggregate settlement," said Indivior.

"However, the group cannot predict with any certainty whether Indivior Inc will reach a settlement with any of the plaintiffs, and the final aggregate cost of these matters, whether resolved by settlement or trial, may be materially different."

In terms of earnings, Indivior posted a 14% uptick in full-year revenues to $901.0m, with fourth-quarter revenues rising 9% to $241.0m. Adjusted operating profits came to $212.0m in 2022, up 13% from the previous year.

The FTSE 250-listed firm added that total net revenue for 2023 was expected to be between $950.0m and $1.02bn.

FTSE 250 - Risers

Bank of Georgia Group (BGEO) 2,825.00p 3.86%
Darktrace (DARK) 269.70p 3.14%
Ferrexpo (FXPO) 140.00p 2.49%
Petershill Partners (PHLL) 166.00p 2.09%
Wetherspoon (J.D.) (JDW) 512.00p 1.79%
Watches of Switzerland Group (WOSG) 858.50p 1.78%
Dunelm Group (DNLM) 1,200.00p 1.69%
W.A.G Payment Solutions (WPS) 79.60p 1.66%
Babcock International Group (BAB) 313.40p 1.49%
The European Smaller Companies Trust (ESCT) 171.50p 1.48%

FTSE 250 - Fallers

Indivior (INDV) 1,706.00p -12.69%
Moonpig Group (MOON) 121.60p -3.65%
Ashmore Group (ASHM) 271.00p -3.35%
BH Macro Ltd. GBP Shares (BHMG) 434.00p -3.13%
Currys (CURY) 71.90p -2.77%
HICL Infrastructure (HICL) 161.40p -2.77%
AJ Bell (AJB) 336.80p -2.72%
FirstGroup (FGP) 106.00p -2.57%
ASOS (ASC) 811.00p -2.35%
Pennon Group (PNN) 863.50p -2.32%