7th Nov 2013 09:33
LONDON (Alliance News) - 3i Infrastructure PLC Thursday reported an increase in the value of its portfolio over the six months to end-September, but returns fell heavily as weakness in India almost entirely offset a better performance from its European portfolio.
The company reported a total return of GBP5.3 million, down from GBP30.5 million a year earlier, giving a total return on shareholders equity of 0.5% compared with 2.9%.
Its portfolio value rose to GBP1.27 billion on September 30, from GBP1.17 billion a year earlier, giving a net asset value per share of 123 pence, up from 121.9p. The figure was 119.7p, up from 118.9p, after deducting the interim dividend which was increased to 3.35p, from 2.97p.
It said its portfolio income of GBP31 million had met its expectations was in line with last year's income.
"Our European portfolio continues to deliver robust returns, but the overall return was affected by the sharp depreciation of the Indian rupee and by challenges in India," Chairman Peter Sedgwick said in a statement, adding that it validated its decision to focus investments in Europe going forward.
"Looking beyond this year, we remain confident that we have a strategy in place to deliver a 10% annual return and a dividend of 5.5% of opening NAV with reduced volatility," he added.
Its investment strategy is now focused on North European infrastructure and public-private partnership deals.
3i Infrastructure shares were down 1.5% at 133.46 pence Thursday morning, one of the biggest declines on the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
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