3i Group sees solid returns in first half
By Josh White
Date: Thursday 15 Nov 2018
(Sharecast News) - 3i Group issued its half-year results on Thursday, reporting "another good half" for the company, with a total return of £728m, or 10% on opening shareholders' funds, and a net asset value per share of 776p, up from 724p at the end of March.
The FTSE 100 firm said it saw a "good performance" from its private equity operations in the six months ended 30 September, with a gross investment return of £667m, or 11%, which it said was driven by growth across its larger investments in particular.
It completed two new private equity investments during the period, totalling £245m, in Royal Sanders and International Cruise and Excursions.
Cash realisations were £1.06bn in the first half, or £528m net of the £529m group reinvestment into Scandlines.
It also advised 3i Infrastructure on three investments and three refinancings, with Infrastructure's share price increasing by 14% in its first half.
The 3i Group board said it maintained its "conservative" balance sheet, and ended the period with net cash of £512m.
It declared an interim dividend of 15p, in line with its new dividend policy announced in May.
"This was another good half for 3i," said chief executive Simon Borrows.
"We generated a total return of 10%, completed the sale and our subsequent 35% reinvestment into Scandlines, invested in two new Private Equity portfolio companies and advised 3i Infrastructure on the acquisition of three new investments."
Borrows said the company remained confident in the growth plans across its investments, and would maintain its focus on active management to maximise value for shareholders and co-investors.
"We have good momentum across our portfolio, but remain cautious about the pricing of new investment in general and are focusing our origination efforts particularly on bilateral processes and on our buy-and-build platforms."
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