19 May 2016
Results for the year to 31 March 2016
- Financial
Download the results highlights
Another year of strong performance
- Total return of £824m / 22% (FY2015: £659m / 20%) and NAV per share of 463 pence (FY2015: 396 pence)
- Private Equity gross investment return of £1,011m, or 32%, underpinned by a strong performance from a number of our key investments such as Action, Scandlines, Basic-Fit and ATESTEO (formerly GIF)
- Momentum in Private Equity realisations continues with proceeds of £743m and a further c.£224m announced in April 2016. Maintained a disciplined approach to investment and invested £365m in three new portfolio companies; Audley Travel, Weener Plastic and Euro-Diesel
- Good progress in Infrastructure with a 13% total shareholder return from 3i Infrastructure plc (“3iN”) and a significant increase in origination activity. 3i will support 3iN’s fundraising to maintain its 34% investment in 3iN
- Debt Management delivered a solid performance, raising £1.5bn of AUM from 4 CLOs and launching the Global Income Fund
- Robust balance sheet with net cash of £165m and nil gearing at 31 March 2016
- Proposed final dividend of 16.0 pence per share, bringing the total dividend for FY2016 to 22.0 pence per share, subject to shareholder approval
Simon Borrows, 3i’s Chief Executive, commented:
“These strong FY2016 results demonstrate 3i’s continued momentum in the face of challenging macro-economic conditions. We enter FY2017 firmly focused on delivering our clear and consistent strategy and generating good returns and distributions for our shareholders”
Financial highlights
| Year to/as at 31 March 2016 |
Year to/as at 31 March 2015 |
|
|---|---|---|
| Group | ||
| Total return | £824m | £659m |
| - Total return on opening shareholders’ funds | 21.7% | 19.9% |
| Dividend per ordinary share | 22.0p | 20.0p |
| Operating expenses | £134m | £131m |
| - As a percentage of assets under management | 1.0% | 1.0% |
| Operating cash profit | £37m | £28m |
| Proprietary Capital | ||
| Realisation proceeds | £796m | £841m |
| - Uplift over opening book value1 | £70m/13% | £145m/27% |
| - Money multiple | 2.4x | 2.0x |
| Gross investment return | £1,069m | £805m |
| - As a percentage of opening 3i portfolio value | 27.6% | 22.6% |
| Operating profit2 | £920m | £721m |
| Cash investment3 | £453m | £474m |
| 3i portfolio value | £4,497m | £3,877m |
| Gross debt | £837m | £815m |
| Net cash | £165m | £49m |
| Gearing4 | nil | nil |
| Liquidity | £1,352m | £1,214m |
| Net asset value | £4,455m | £3,806m |
| Diluted net asset value per ordinary share | 463p | 396p |
| Fund Management | ||
| Total assets under management | £13,999m | £13,474m |
| - Third party capital | £10,703m | £10,140m |
| - Proportion of third party capital | 76% | 75% |
1 Uplift over opening book value excludes refinancings.
2 Operating profit for the Proprietary Capital and Fund Management activities excludes carried interest and performance fees payable/receivable, which is not allocated between these activities.
3 Cash investment includes £4 million of Debt Management investment awaiting settlement at 31 March 2016 (31 March 2015: nil).
4 Gearing is net debt as a percentage of net assets.
- ENDS -
For further information, please contact:
Silvia Santoro, Investor Relations Director
Tel: 020 7975 3258
Toby Bates, Interim Communications Director
Tel: 020 7975 3032
For further information regarding the announcement of 3i’s annual results to 31 March 2016, including a live videocast of the results presentation at 10.00am, please visit www.3i.com.
