17 May 2018
Results for the year to 31 March 2018
- Financial
Download the results highlights
Strong all-round performance
- Total return of £1,425 million or 24% on opening shareholders’ funds and NAV per share of 724 pence (31 March 2017: 604 pence)
- Continued strong performance from Private Equity, with gross investment return of £1,438 million or 30%, driven by Action, Scandlines, ATESTEO and Basic-Fit in particular. The gross investment return from investments completed between 2013 and 2016 was 29%
- Private Equity team generated excellent realisations of £1,002 million, announced a further c.£350 million of proceeds to complete by the summer of 2018 and invested a total of £587 million in four new portfolio companies, as well as two important further investments
- A very good year for Infrastructure, which advised 3i Infrastructure plc (“3iN”) on six investments and commitments totalling £525 million and the disposals of Elenia and AWG, which helped to generate a total return of 29% for 3iN as well as a special dividend of £143 million for 3i
- Closed two European Infrastructure fund platforms, raising assets of more than £1 billion, and invested £177 million in our first US infrastructure investment, Smarte Carte
- Total dividend of 30 pence per share for FY2018, with 22 pence to be paid in July subject to shareholder approval
Simon Borrows, 3i''s Chief Executive, commented:
“3i delivered another strong all-round performance in FY2018, generating a total return of 24%. Our investment teams had a very busy year. We received £1,323 million of proceeds, announced a further c.£350 million of realisations to complete by July 2018, and invested £827 million, including in five new companies.
We enter FY2019 with good momentum across the Group. Our fund management initiatives in Infrastructure, together with our reinvestment into Scandlines, will generate important cash income while our Private Equity portfolio remains well positioned to generate top-tier capital returns. We remain confident in our ability to deliver continued growth and our new dividend policy provides shareholders with clarity on future distributions.”
Financial highlights
| Year to/as at 31 March 2018 |
Year to/as at 31 March 2017 |
|
| Group | ||
| Total return1 | £1,425m | £1,592m |
| Operating expenses | £121m | £117m |
| Operating cash profit | £11m | £5m |
| Realisation proceeds1 | £1,323m | £1,275m |
| - of which are the proceeds from the sale of Debt Management | £152m | £270m |
| Gross investment return | £1,552m | £1,755m |
| - As a percentage of opening 3i portfolio value | 27% | 40% |
| Cash investment | £827m | £638m |
| 3i portfolio value | £6,657m | £5,675m |
| Gross debt | £575m | £575m |
| Net cash | £479m | £419m |
| Gearing2 | nil | nil |
| Liquidity | £1,404m | £1,323m |
| Net asset value | £7,024m | £5,836m |
| Diluted net asset value per ordinary share | 724p | 604p |
1 The FY2017 total return and realisation proceeds includes discontinued operations. Unless state, all balances are on continuing operations.
2 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
Kathryn Van Der Kroft, Communications Director
Tel: 020 7975 3021
For further information regarding the announcement of 3i’s annual results to 31 March 2018, including a live videocast of the results presentation at 09.30am, please visit www.3i.com.
