Interim results for the six months to 30 September 2003
Positive total return of £359 million
Return on opening shareholders' funds of 12.2%
Diluted net asset value per share of 534p
Realisation proceeds of £503 million and realisation profits of £129 million over opening valuation
Significant reduction in the level of provisions to £65 million
Investment of £273 million (including co-investment funds managed by 3i)
Recommended interim dividend of 5.1p per share, an increase of 4.1%
Baroness Hogg, chairman of 3i Group plc, said:
"This encouraging performance was driven by better results in all of our key areas of activity - buy-outs, growth capital and early stage technology."
The Group achieved a positive total return of £359 million for the six months to 30 September 2003; a return on opening shareholders' funds of 12.2%.
Realised profits totalled £129 million. The aggregate uplift on equity realisations over 31 March 2003 valuations, net of losses, was 61%.
A net cash inflow of £225 million during the period results in gearing being reduced to 25% at 30 September from 35% at 31 March 2003. €550 million was raised through the issue of convertible bonds.
Investment of £273 million (including co-investment funds) compares with £393 million for the same period last year.
Commenting on the performance and outlook, 3i's chief executive, Brian Larcombe, said:
"We have seen a strong turnaround in 3i's financial performance, as the benefits of changes to the business over the last two years have flowed through. With positive returns, a strong balance sheet and increasing corporate activity, 3i is well placed to increase investment."
For further information, please contact:
|3i Group plc|
|Brian Larcombe, Chief Executive||Tel: 020 7975 3386|
|Michael Queen, Finance Director||Tel: 020 7975 3400|
|Patrick Dunne, Group Communication Director||Tel: 020 7975 3566|
|Issued by The Maitland Consultancy|
|Philip Gawith||Tel: 020 7379 5151|
Notes to editors
3i brings capital, knowledge and connections to the creation and development of businesses around the world. It invests in a wide range of opportunities from start-ups to buy-outs and buy-ins, focusing on businesses with high growth potential and strong management. 3i invests in businesses across three continents through local investment teams in Europe, the US and Asia Pacific. To date, 3i has invested over £14.5 billion (including co-investment funds).