3i Group plc ("3i"), a world leader in private equity and venture capital, will today host a seminar for analysts and investors to discuss the impact of International Financial Reporting Standards ("IFRS"). From 1 January 2005, in line with other European listed companies, 3i is required to prepare its financial statements in accordance with IFRS as adopted for use in the European Union. The Group's Interim results for the six months ended 30 September 2005 will be its first set of financial results prepared exclusively on this basis. The key conclusions drawn at today's seminar will be that adoption of IFRS will not have a significant impact on:
the economics of 3i's business;
the relevant key measures of 3i'business performance.
Adoption of IFRS is expected to have the following key impacts on 3i's financial statements:
Total return of £512 million for the year to 31 March 2005 under UK GAAP becomes £515 million of Total Recognised Income and Expense for the same period under IFRS;
£9.0 million (-1.75%) decrease in profit for the period to 31 March 2005 under IFRS
£75 million (13 pence per share) increase in net assets at 31 March 2005.
The changes largely result from the final dividend no longer being recorded as a liability at the balance sheet date (IAS 10), the revised valuation of quoted equities and derivative instruments (IAS 39), and the adoption of IFRS 2 regarding share based payments. The presentation will be available on http://www.3igroup.com/from 3:00pm today.
For further information, please contact:
|Simon Ball||Finance Director, 3i Group plc||020 7975 3356|
|Douwe Cosijn||Head of IR, 3i Group plc||020 7975 3283|
Notes to editors
3i is a world leader in private equity and venture capital. We focus on buyouts, growth capital and venture capital and invest across Europe, in the United States and in Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.