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Results for the six months to 30 September 2017

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Another good first half performance

  • Continued progression in NAV per share to 652 pence (31 March 2017: 604 pence), after payment 
    of the 18.5 pence FY2017 final dividend, and a total return of £655 million or 11% of opening shareholders’ funds
  • Private Equity performed well, with strong performances from Action, Scandlines, ATESTEO, 
    Audley Travel, Basic-Fit, Q Holding and Aspen Pumps contributing to its gross investment return 
    of £715 million
  • Completed four new Private Equity investments totalling £514 million in Hans Anders, Formel D, Lampenwelt and Cirtec Medical
  • Significant growth of the third-party Infrastructure fund management business, including the addition of 
    £830 million of assets under management in two new European infrastructure funds
  • Announced our first North American infrastructure investment, Smarte Carte
  • Strong balance sheet supported the increase in investment activity, resulting in net debt of £48 million at 30 September 2017. Good pipeline of investments and realisations in progress, which are expected to complete in the second half
  • Interim dividend of 8.0 pence in line with our dividend policy

Simon Borrows, 3i’s Chief Executive, commented:

“This was another good half for 3i. We used our strong balance sheet to invest in some attractive and well-priced businesses in Private Equity and added £830 million of assets under management in Infrastructure. Our Private Equity portfolio has been transformed over recent years and is on track to deliver another year of strong growth.”

Summary financial highlights under the Investment basis

3i prepares its statutory financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”). However, we continue to report using a non-GAAP “Investment basis” as we believe it aids users of our report to assess the Group’s underlying operating performance. The investment basis (which is unaudited) is an alternative performance measure (“APM”) and is described on page 15. Total return and net assets are the same under the Investment basis and IFRS and we provide a reconciliation of our Investment basis financial statements to the IFRS statements from page 17.

Investment basis Six months to/as at
30 September
2017
Six months to/as at
30 September
20161
12 months to/as
at 31 March
2017
Total return2 £655m £1,006m £1,592m
% return on opening shareholders’ funds2 11% 23% 36%
Dividend per ordinary share 8.0p 8.0p 26.5p
Proprietary capital return      
Realisation proceeds £374m £666m £1,005m
    Uplift over opening book value3 £53m/20% £51m/9% £38m/5%
    Money multiple4 2.7x 2.3x 3.6x
Gross investment return £746m £1,109m £1,755m
    As a percentage of opening 3i portfolio value 13% 25% 40%
Proprietary capital balance sheet      
Cash investment £572m £430m £638m
3i portfolio value £6,584m £5,207m £5,675m
Gross debt £575m £844m £575m
Net (debt)/cash £(48)m £187m £419m
Liquidity £877m £1,360m £1,323m
Diluted net asset value per ordinary share 652p 551p 604p
  1. The sale of our Debt Management business completed on 3 March 2017. The FY2017 total return attributed to the business sold to Investcorp was classified as discontinued operations and the results for the six months to/as at 30 September 2016 have been re-presented. Unless stated, all balances are on continuing operations.
  2. Total return and % return on opening shareholders’ funds include discontinued operations.
  3. Uplift over opening book value excludes refinancings.
  4. Cash proceeds over cash invested. For partial realisations, the valuation of any remaining investment is included in the multiple.

 

Disclaimer

These half-year results have been prepared solely to provide information to shareholders. They should not be relied on by any other party or for any other purpose. These half-year results may contain statements about the future, including certain statements about the future outlook for 3i Group plc and its subsidiaries (“3i” or “Group”). These are not guarantees of future performance and will not be updated. Although we believe our expectations are based on reasonable assumptions, any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

Enquiries:

Silvia Santoro, Investor Relations Director
020 7975 3258

Kathryn Van Der Kroft, Communications Director
020 7975 3021

For further information, including a live videocast of the results presentation at 10.00am on 16 November 2017, please visit www.3i.com.

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