10 Nov 2016
Results for the six months to 30 September 2016
- Financial
Download the results highlights
An excellent first half performance
- Strong progression in NAV per share to 551 pence (31 March 2016: 463 pence), after payment of 16 pence FY2016 final dividend and total return of £1,006m or 23% of opening shareholders’ funds
- Private Equity gross investment return of £989m underpinned by continued strong financial and operational performance across the portfolio
- Very busy period for Private Equity realisations with proceeds of £654m at a money multiple of over 2x. Patient approach to investing in an environment where valuations remain high; invested £287m in two new Private Equity investments, Schlemmer and BoConcept
- Good progress in Infrastructure with the particularly strong performance from 3i Infrastructure plc (“3iN”) contributing to a gross investment return of £90m in addition to fee income. 3i invested £131m in 3iN’s equity raise, all of which has now been invested or committed
- Debt Management launched two new CLOs in Europe and one in the US despite challenging markets
- On 25 October 2016 3i announced the sale of the Debt Management business to Investcorp for gross cash proceeds of £222m. The sale is expected to complete by 31 March 2017 subject to closing conditions
- Interim dividend of 8.0 pence in line with our dividend policy
- We expect to recommend a total dividend for the year of no less than the 22.0 pence total dividend paid in respect of the year to 31 March 2016
Simon Borrows, 3i’s Chief Executive, commented:
“3i continues to benefit from its clear strategy and a portfolio with limited exposure to the repercussions caused by the current geopolitical and financial market volatility. We are navigating these challenges from a position of strength; our diverse portfolio, rigorous investment processes and robust balance sheet underpin our confidence about the future success of the Group.”
Financial highlights1
| Six months to/as at 30 September 2016 |
Six months to/as at 30 September 2015 |
|
|---|---|---|
| Group | ||
| Total return including discontinued operations | £1,006m | £168m |
| Total return1 | £922m | £163m |
| Operating expenses including discontinued operations | £66m | £63m |
| Operating expenses1 | £54m | £50m |
| Operating cash profit including discontinued operations | £34m | £17m |
| Operating cash (loss)1 | £(4)m | £(3)m |
| Dividend per ordinary share | 8.0p | 6.0p |
| Proprietary Capital | ||
| Realisation proceeds | £666m | £358m |
| - Uplift over opening book value2 | £51m/9% | £29m/9% |
| - Money multiple | 2.3x | 1.7x |
| Gross investment return | £1,079m | £269m |
| - As a percentage of opening 3i portfolio value | 25.3% | 7.3% |
| Operating profit3 | £1,042m | £207m |
| Cash investment | £422m | £208m |
| 3i portfolio value | £5,073m | £4,037m |
| Gross debt | £844m | £819m |
| Net cash/(debt) | £187m | £(12)m |
| Gearing4 | nil | 0.3% |
| Liquidity | £1,360m | £1,157m |
| Net asset value | £5,320m | £3,851m |
| Diluted net asset value per ordinary share | 551p | 401p |
1The sale of our Debt Management business was announced on 25 October 2016. Debt Management’s total return for the six months to 30 September 2016 has been classified as discontinued operations and the prior period results have been represented. Unless stated, all balances are on continuing operations.
2 Uplift over opening book value excludes refinancings.
3 Operating profit excludes carried interest and performance fees payable/receivable.
4 Gearing is net debt as a percentage of net assets.
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 half yearly results to 30 September 2016, including a live videocast of the results presentation at 10.00am, please visit www.3i.com.
