Preliminary results for the year to 31 March 2007

10 May 2007

 

3i Group plc announces £1.075 billion total return, investment up 42% and 25% growth in assets under management

 

  2007 2006
     
Investment activity    
Investment £1,576m £1,110m
Realisation proceeds £2,438m £2,207m
     
Returns    
Realised profits on disposal of investments £830m £576m
Gross portfolio return on opening portfolio value 34.0% 24.4%
Total return £1,075m £831m
Total return on opening shareholders' funds 26.8% 22.5%
Final dividend 10.3p 9.7p
     
Portfolio and assets under management    
Own balance sheet £4,362m £4,139m
Third-party funds £2,772m £1,573m
  £7,134m £5,712m
     
Net asset value per share (diluted) 932p 739p

 

Highlights

  • A total return of £1,075 million representing a return of 26.8% on opening shareholders' funds
  • Investment increased by 42% to £1,576 million
  • Total assets under management increased by 25% over the year, from £5,712 million to £7,134 million
  • Realisation proceeds on the sale of assets of £2,438 million generating realised profits of £830 million
  • Final dividend of 10.3p, making a total ordinary dividend for the year of 16.1p, up 5.9%
  • Board confirms the return of £800 million to shareholders through a bonus issue of B shares

Baroness Hogg, Chairman of 3i Group plc, said:

"This has been an exceptional year for 3i. The Group has delivered a high return on shareholders' funds and a strong cash flow and, most importantly of all, has taken important steps to develop the business for the longer term."

3i's Chief Executive, Philip Yea, said:

"We continue to see good investment opportunities in our chosen areas, albeit that pricing remains high. Continued broadening of our investment activities by geography and asset class, and a focus on delivering real value within each specific opportunity, remain critical components of our strategy. Although levels of realisations are expected to slow, we remain confident of reporting further good progress in the delivery of our strategy over the year ahead."

Return of capital to shareholders

The Board of 3i Group plc also confirms, subject to shareholder approval, the proposed return of £800 million to shareholders. The proposed cash return is currently expected to be made by way of a bonus issue of listed B shares accompanied by a share consolidation designed to maintain comparability of share price and earnings per share. This is currently expected to take place in July.

Resolutions relating to the return of capital proposals will be put to shareholders at an Extraordinary General Meeting. A circular convening the EGM and giving more information and detail on the proposals is expected to be sent to shareholders in June.

For further information, please contact:

3i Group plc
Philip Yea, Chief Executive -  020 7975 3386
Simon Ball, Finance Director -  020 7975 3356
Patrick Dunne, Group Communications Director -  020 7975 3283

Maitland Consultancy
Philip Gawith -  020 7379 5151

For further information regarding the announcement of 3i's annual results to 31 March 2007, including video interviews with Philip Yea and Simon Ball (available 7.15am) and a live webcast of the results presentation (at 10.00am, available on demand from 2.00pm), please see http://www.3igroup.com/.

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, Asia and the US. 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.