14 May 2014
Results for the year to 31 March 2014
- Financial
Download the results highlights
Key highlights
- Strong total shareholder return of 30%
- Good flow of Private Equity realisations with proceeds of £669m, representing a 43% uplift over opening value
- Building investment momentum with three new Private Equity investments and one substantial further investment. Closed acquisition of Barclays’ European infrastructure fund management business and seeing a good pipeline of primary PPP projects from this platform. Also closed 4 CLOs during the year; two each in the US and Europe
- Substantially outperformed cost savings target; achieved £70 million of cumulative run-rate operating cost reductions, ahead of targeted savings of £60 million. Exceeded our target of covering operating costs with cash income, with an annual operating cash profit of £5m for the year
- Solid and simplified balance sheet with gross debt reduced to £857m and gross interest costs reduced to £54m, ahead of target of £60m. Net debt reduced to £160m and gearing to 5%
- Total return of £478 million after accounting for a foreign exchange translation loss of £116m
- Good progression in NAV per share to 348 pence and a distribution yield of over 6%
- Confirming final dividend of 13.3 pence per share, bringing the total dividend for FY2014 to 20.0 pence per share, subject to shareholder approval
Simon Borrows, 3i’s Chief Executive, commented:
“We have met or exceeded all of our strategic priorities and targets for the year.
“3i is now a more streamlined, decisive organisation focused on high performance and delivering attractive shareholder returns. We have started the new financial year with good momentum in our private equity portfolio and ambitious plans in our three businesses.”
Financial data
| Year to/as at 31 March 2014 |
Year to/as at 31 March 2013 |
|
|---|---|---|
| Group | ||
| Total return | £478m | £373m |
| - Total return on opening shareholders’ funds | 16.3% | 14.2% |
| Dividend per ordinary share | 20.0p | 8.1p |
| Total shareholder return1 | 30% | 54% |
| Operating expenses | £136m | £170m |
| - As a percentage of assets under management2 | 1.0% | 1.3% |
| Annual operating cash profit/(loss) | £5m | £(8)m |
| Proprietary Capital | ||
| Realisation proceeds | £677m | £606m |
| - Uplift over opening book value | £202m/43% | £190m/46% |
| - Money multiple | 1.8x | 2.1x |
| Gross investment return3 | £665m | £598m |
| - As a percentage of opening 3i portfolio value | 20.2% | 18.7% |
| Operating profit4 | £539m | £386m |
| Cash investment | £337m | £149m |
| Net interest payable | £51m | £95m |
| 3i portfolio value | £3,565m | £3,295m |
| Gross debt | £857m | £1,081m |
| Net debt/(cash) | £160m | £335m |
| Gearing | 5% | 11% |
| Liquidity | £1,197m | £1,082m |
| Net asset value | £3,308m | £2,934m |
| Diluted net asset value per ordinary share | 348p | 311p |
| Fund Management | ||
| Total assets under management | £12,911m | £12,870m |
| - Third party capital | £9,508m | £9,176m |
| - Proportion of third party capital | 74% | 71% |
| Total fee income | £127m | £127m |
| - Third-party fee income | £76m | £71m |
| Operating profit/(loss)4 | £19m | £(13)m |
| Underlying Fund Management profit4,5 | £33m | £17m |
| - Underlying Fund Management margin | 26% | 13% |
For further information, please contact:
Silvia Santoro, Investor Relations Director
Tel: 020 7975 3258
Kathryn van der Kroft, Communications Director
Tel: 020 7975 3021
For further information regarding the announcement of 3i’s annual results to 31 March 2014, including a live videocast of the results presentation at 10.00am, please visit www.3i.com.
