Another upgrade to the value of Benelux-based discount retailer Action boosted private equity group 3I’s (LON:III) latest half year.
Action now has a target of 2,700 stores and €10bn of turnover, though 3i added that two new distribution centres in France and Germany will hit margins in the short term.
Investments rising in value
The investment in Action is now valued at £2bn, up from £1.7bn in March and is set for another sizeable upgrade over the remainder of the year.
Upgrades to the value of 3i’s portfolio totalled £539mln (£731mln) in the half year to September, with ATESTEO and Q Holding also going well.
That helped net asset value rise to 652p from 604p in March, though the interim dividend remains unchanged at 8p per share.
Simon Burrows, chief executive, said: “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."