Results for the year to 31 March 2016
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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.
Notes to editors
3i is a leading international investment manager focused on mid-market Private Equity, Infrastructure and Debt Management. Our core investment markets are northern Europe and North America. For further information, please visit: www.3i.com.
Notes to the announcement of the results
Note 1
All of the financial data in this announcement is taken from the Investment basis financial statements. The statutory accounts are prepared under IFRS for the year to 31 March 2016 and have not yet been delivered to the Registrar of Companies. The statutory accounts for the year to 31 March 2015 have been delivered to the Registrar of Companies. The auditors’ reports on the statutory accounts for these years are unqualified and do not contain any matters to which the auditor drew attention by way of emphasis or any statements under section 498(2) or (3) of the Companies Act 2006. This announcement does not constitute statutory accounts.
Note 2
Copies of the Report and accounts 2016 will be distributed to shareholders on or soon after 31 May 2016.
Note 3
This announcement may contain statements about the future including certain statements about the future outlook for 3i Group plc and its subsidiaries (“3i”). These are not guarantees of future performance and will not be updated. 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.
Note 4
Subject to shareholder approval, the proposed final dividend is expected to be paid on 22 July 2016 to holders of ordinary shares on the register on 17 June 2016.