15th May 2025 10:12
(Alliance News) - Shares in 3i Group PLC on Thursday fell as it reported a lower-than-expected net asset value per share and below forecast total returns in the last financial year.
The London-based investment manager said net asset value increased 22% to GBP24.61 billion in the year to March 31 from GBP20.17 billion a year prior.
Diluted net asset value per ordinary share rose 22% to 2,542 pence from 2,085p but missed Visible Alpha consensus of 2,610p. This includes a 27p per share loss on foreign exchange translation, the firm explained.
Total returns increased 32% to GBP5.05 billion from GBP3.84 billion but missed VA consensus of GBP5.7 billion.
The improvement was driven primarily by Action's continued strong performance. Royal Sanders, 3i's other longer-term hold investment, also produced a very strong return, driven by organic and acquisitive growth.
3i owns around 58% of Action, the Dutch non-food discount retailer.
Operating profit was little changed at GBP469 million compared to GBP467 million a year prior.
In response, shares in 3i fell 7.3% to 3,892.00p each in London on Thursday morning.
3i said Action generated a gross an investment return of GBP4.55 billion, annual revenue growth of 22%, like-for-like sales growth of 10% and earnings before interest, taxes, depreciation and amortisation growth of 29% in calendar 2024.
The company said Action has started 2025 "well", with LFL sales year-to-date to May 11 up 6.8%.
In March, 3i Group said sales at Action had been disrupted by temporary availability issues as a result of the changeover of Action's enterprise resource planning system at the turn of the year.
Chief Executive Simon Borrows said it was another "successful" year against what remains a "challenging macro-economic and geopolitical backdrop."
"Our FY2025 result was underpinned by the powerful compounding growth from our long-term hold assets Action and Royal Sanders, and by the performance of several other larger portfolio companies. This reinforces our conviction in allocating additional capital to our best performing assets. We remain confident in our ability to compound growth across the portfolio in the years to come," he added.
The total dividend was increased by 20% to 73.0p per share from 61.0p a year ago.
By Jeremy Cutler, Alliance News reporter
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