Private equity firm 3i Group PLC (LON:III) reported an 11% increase in investment returns for the first half but issued a cautious outlook, saying it “cannot be immune to market developments”.
The total return for the six months to September 30 was £728mln, representing a 10% return on opening shareholders’ funds. That compared to a return of £728mln, or 11%, a year ago.
Net asset value per share rose to 776p from 724p at March 31 with a strong performance in its infrastructure holdings.
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The company made more than £300mln from the sale and immediate reinvestment in ferry operator Scandlines. It sold its 55% stake in Scandlines to pension funds managed by First State and Herme but then re-invested back into the business with a reduced 35% stake.
“We have good momentum across our portfolio, but remain cautious about the pricing of new investment in general and are focusing our origination efforts particularly on bilateral processes and on our buy-and-build platforms,” said chief executive Simon Borrows.
“Overall, whilst we cannot be immune to market developments, careful asset management and clear strategic focus mean that our portfolio is better positioned than in the past. Our balance sheet strength allows us to withstand market turbulence, holding investments for longer if necessary, while maintaining our focus on delivering mid to high teens returns for shareholders through the cycle.”
3i declared an interim dividend of 15p, up from 8p a year ago.
Shares fell 2.09% to 842p in morning trading.