Half-year results 2012

15 Nov 2012

Key highlights

  • Strong and measurable progress in implementing the restructuring announced in June
  • On track to meet the announced cost and debt reduction targets
  • Steady overall returns, driven by improved performance in Private Equity and steady contributions from Infrastructure and Debt Management, partly offset by restructuring costs
  • Realisations and investment activity has been low in subdued M&A markets
  • NAV per share has been resilient at 273p at 30 September 2012 compared to 279p at 31 March 2012
  • Interim dividend of 2.7 pence per share, same level as last year.

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

"Since the announcement of 3i's future strategy in June, we have wasted no time in implementing the significant organisational and cultural changes that are needed. As a result, we have made strong and measurable progress against the immediate priorities and targets that we set out in June, and the Group has delivered steady overall performance in the first half in what remain challenging economic conditions and subdued markets. There is much more to do and we will continue to work hard to drive improved performance across our business. Our strategic goal is to be a leading international investor in mid-market private equity, infrastructure and debt management, and to deliver top quartile cash investment returns over the longer-term."

  6 months to/as at 30 September 2012 6 months to/as at 30 September 2011
Returns
Gross portfolio return £180m £(331)m
Gross portfolio return on opening portfolio value 5.6% (8.3)%
Net portfolio return £109m £(385)m
Net portfolio return on opening portfolio value 3.4% (9.6)%
Total return £(5)m £(523)m
Total return on opening shareholders' funds (0.2)% (15.6)%
Dividend per ordinary share 2.7p 2.7p
Operating expenses as a percentage of assets under management1 1.5% 1.6%
Assets under management ("AUM")
3i £4,059m £5,262m
External funds £7,288m £7,019m
Total assets under management £11,347m £12,281m
Balance sheet
3i portfolio value £3,115m £3,412m
Gross debt £1,249m £1,722m
Net debt £493m £531m
Gearing 19% 19%
Liquidity £1,251m £1,680m
Net asset value £2,575m £2,804m
Diluted net asset value per ordinary share £2.73 £2.94
Investment activity
Investment £138m £448m
Realisations £268m £532m

1 Annualised operating expenses, excluding implementation costs of £25 million in the six months to 30 September 2012, as a percentage of weighted average assets under management

 

For further information, please contact:

Kathryn van der Kroft, Press Office
Tel: 020 7975 3021

Silvia Santoro, Investor Relations
Tel: 020 7975 3258

Guy Lamming, Finsbury
Tel: 020 7251 3801

For further information regarding the announcement of 3i's Half-yearly results to 30 September 2012, including a live videocast of the results presentation from 09:45am, please see www.3igroup.com.

 

Notes to editors

3i is an international investor focused on mid-market private equity, infrastructure and debt management, across Europe, Asia and the Americas.

A pdf of the Half-yearly report 2012 will be available at www.3igroup.com from 7.30am today.

This Half-yearly report may contain certain statements about the future outlook for 3i Group plc and its subsidiaries ("3i"). 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.

This report has been drawn up and presented for the purposes of complying with English law. Any liability arising out of or in connection with the Half-yearly report for the six months to 30 September 2012 will be determined in accordance with English law. The Half-yearly results for 2012 and 2011 are unaudited.