12 Nov 2015
Results for the six months to 30 September 2015
- Financial
Download the results highlights
Another solid half year with each business making important progress
- Good progression in NAV per share to 401 pence, after the payment of the 14 pence final FY2015 dividend
- Strong performance in the Private Equity portfolio underpinned by continued earnings momentum in our key assets
- Productive first half for Private Equity with selective investment of £208 million and realised proceeds of £307 million
- Infrastructure had a good first half, advising 3i Infrastructure plc on three new investments and contributing a special dividend of £51 million and cash income of £25 million to 3i
- Debt Management assets under management now £7.5 billion as the team raised £0.8 billion of new assets from one new CLO in Europe and one new CLO in the US and launched the Global Income Fund
- Efficient operating platform supported operating cash profit of £17 million
- Well funded balance sheet with net debt of only £12 million
- Interim dividend of 6.0 pence per share and expect to pay a full year dividend of at least 15 pence per share
Simon Borrows, 3i’s Chief Executive, commented:
“We have completed another solid half year with each business making important progress. The macro and market environment has clearly deteriorated over the course of this year and the steps we have taken since 2012 to create a more resilient business are proving their value.
We are enjoying good momentum across 3i and anticipate that the current environment will, over time, create attractive opportunities and we have the people, financial resources and agility to take advantage of them.”
Financial highlights
| Six months to/as at 30 September 2015 |
Six months to/as at 30 September 2014 |
|
|---|---|---|
| Group | ||
| Total return | £168m | £234m |
| - Total return on opening shareholders’ funds | 4.4% | 7.1% |
| Dividend per ordinary share | 6.0p | 6.0p |
| Operating expenses | £63m | £63m |
| - As a percentage of assets under management1 | 0.9% | 1.0% |
| Operating cash profit | £17m | £16m |
| Proprietary Capital | ||
| Realisation proceeds | £359m | £324m |
| - Uplift over opening book value2 | £29m/9% | £36m/15% |
| - Money multiple | 1.7x | 1.8x |
| Gross investment return | £272m | £297m |
| - As a percentage of opening 3i portfolio value | 7.0% | 8.3% |
| Operating profit3 | £204m | £262m |
| Cash investment | £294m | £199m |
| 3i portfolio value | £4,037m | £3,672m |
| Gross debt | £819m | £831m |
| Net debt/(cash) | £(12)m | £(161)m |
| Gearing | 0.3% | 5% |
| Liquidity | £1,157m | £1,020m |
| Net asset value | £3,851m | £3,426p |
| Diluted net asset value per ordinary share | 401p | 358p |
| Fund Management | ||
| Total assets under management | £13,469m | £12,923m |
| - Third-party capital | £10,143m | £9,566m |
| - Proportion of third-party capital | 75% | 74% |
| Total fee income | £58m | £63m |
| - Third-party fee income | £37m | £41m |
| Operating profit3 | £10m | £13m |
| Underlying Fund Management profit3,4 | £13m | £16m |
| - Underlying Fund Management margin | 22% | 26% |
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Annualised actual operating expenses, excluding restructuring costs of nil (September 2014: nil, March 2015: £1 million), as a percentage of weighted average assets under management.
-
Uplift over opening book value excludes refinancings. The September 2014 balance has been restated from £35 million to £36 million to exclude refinancings.
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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.
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Excludes Fund Management restructuring costs of nil (September 2014: nil, March 2015: £1 million) and amortisation costs of £3 million (September 2014: £3 million, March 2015: £6 million).
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 Half-yearly results to 30 September 2015, including a live videocast of the results presentation at 10.00am (registration from 9.00am), please visit www.3i.com.
