16 Nov 2017
Results for the six months to 30 September 2017
- Financial
Download the results highlights
Download the half year results in full
Another good first half performance
- Continued progression in NAV per share to 652 pence (31 March 2017: 604 pence), after payment
of the 18.5 pence FY2017 final dividend, and a total return of £655 million or 11% of opening shareholders’ funds - Private Equity performed well, with strong performances from Action, Scandlines, ATESTEO,
Audley Travel, Basic-Fit, Q Holding and Aspen Pumps contributing to its gross investment return
of £715 million - Completed four new Private Equity investments totalling £514 million in Hans Anders, Formel D, Lampenwelt and Cirtec Medical
- Significant growth of the third-party Infrastructure fund management business, including the addition of
£830 million of assets under management in two new European infrastructure funds - Announced our first North American infrastructure investment, Smarte Carte
- Strong balance sheet supported the increase in investment activity, resulting in net debt of £48 million at 30 September 2017. Good pipeline of investments and realisations in progress, which are expected to complete in the second half
- Interim dividend of 8.0 pence in line with our dividend policy
Simon Borrows, 3i’s Chief Executive, commented:
“This was another good half for 3i. We used our strong balance sheet to invest in some attractive and well-priced businesses in Private Equity and added £830 million of assets under management in Infrastructure. Our Private Equity portfolio has been transformed over recent years and is on track to deliver another year of strong growth.”
Summary financial highlights under the Investment basis
3i prepares its statutory financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”). However, we continue to report using a non-GAAP “Investment basis” as we believe it aids users of our report to assess the Group’s underlying operating performance. The investment basis (which is unaudited) is an alternative performance measure (“APM”) and is described on page 15. Total return and net assets are the same under the Investment basis and IFRS and we provide a reconciliation of our Investment basis financial statements to the IFRS statements from page 17.
Investment basis |
Six months to/as at 30 September 2017 |
Six months to/as at 30 September 20161 |
12 months to/as at 31 March 2017 |
|---|---|---|---|
| Total return2 | £655m | £1,006m | £1,592m |
| % return on opening shareholders’ funds2 | 11% | 23% | 36% |
| Dividend per ordinary share | 8.0p | 8.0p | 26.5p |
| Proprietary capital return | |||
| Realisation proceeds | £374m | £666m | £1,005m |
| Uplift over opening book value3 | £53m/20% | £51m/9% | £38m/5% |
| Money multiple4 | 2.7x | 2.3x | 3.6x |
| Gross investment return | £746m | £1,109m | £1,755m |
| As a percentage of opening 3i portfolio value | 13% | 25% | 40% |
| Proprietary capital balance sheet | |||
| Cash investment | £572m | £430m | £638m |
| 3i portfolio value | £6,584m | £5,207m | £5,675m |
| Gross debt | £575m | £844m | £575m |
| Net (debt)/cash | £(48)m | £187m | £419m |
| Liquidity | £877m | £1,360m | £1,323m |
| Diluted net asset value per ordinary share | 652p | 551p | 604p |
-
The sale of our Debt Management business completed on 3 March 2017. The FY2017 total return attributed to the business sold to Investcorp was classified as discontinued operations and the results for the six months to/as at 30 September 2016 have been re-presented. Unless stated, all balances are on continuing operations.
-
Total return and % return on opening shareholders’ funds include discontinued operations.
-
Uplift over opening book value excludes refinancings.
-
Cash proceeds over cash invested. For partial realisations, the valuation of any remaining investment is included in the multiple.
Enquiries:
Silvia Santoro, Investor Relations Director
020 7975 3258
Kathryn Van Der Kroft, Communications Director
020 7975 3021
