30th Mar 2006 07:01
3i Group PLC30 March 2006 30 March 2006 3i Group plc - Pre-close period briefing 3i Group plc ("3i"), a world leader in private equity and venture capital, willbe briefing analysts and investors ahead of its close period for the full yearto 31 March 2006. 3i expects to announce its full year results for the year ending 31 March 2006on 11 May 2006. The main topics that will be discussed with analysts and investors are set outbelow. 1 Investment and realisations 3i invested a total of £1,184 million in the eleven months ended 28 February2006, compared with £843 million in the equivalent period last year. Thisincludes £186 million (2005: £157 million) invested on behalf of co-investmentfunds managed by 3i. Realisation proceeds received by 3i (excluding co-investment funds) totalled£1,815 million in the eleven months ended 28 February, which compares withrealisation proceeds of £1,146 million in the equivalent period last year. 2 Returns Realised profits (net of write-offs) on the disposal of investments for theeleven month period to 28 February are expected to be significantly higher thanlast year, reflecting the significant level of realisations. An important element in the determination of 3i's results for the year to 31March 2006 is the detailed valuation exercise carried out on its investmentportfolio as at that date. However, provisions against the carrying value ofinvestments in businesses which may fail are expected to be broadly in-line withthose made in the equivalent period last year. 3 Convertible bond and foreign exchange The significant rise in the Company's share price has given rise to an increasein the fair value of the derivative embedded in the €550 million ConvertibleBonds due 2008. The share price of 946p at the close of the market on 28 March2006 would result in a fair value adjustment of approximately £(79) million (£(14) million at 30 September 2005). In addition, a foreign exchange movement ofapproximately £50 million (£35 million at 30 September 2005) accrued for theeleven month period to 28 February, resulted mainly from the strengthening ofthe dollar relative to sterling. 4 Return of capital to shareholders Since receiving approval at its AGM in July 2005 to return surplus cash toshareholders, 3i has paid a special dividend of approximately £245 million andhas since then made aggregate on-market purchases of £220 million (exclusive ofstamp duty and brokers' commissions). Given the strong level of realisation proceeds, the Board is intending to make afurther return of cash to shareholders of not less than £500 million and expectsto make an announcement at the time of the full year results on 11 May 2006. Philip Yea, 3i's Chief Executive, said: "We have seen a continued strong performance from our business in buoyantfinancing markets. We have also continued to make good progress on ourstrategic agenda, growing our investment levels in existing markets whilstbuilding capabilities in newer markets." Ends For information please contact: Simon Ball Finance Director, 3i Group plc 020 7975 3356Patrick Dunne Group Communications Director, 3i Group plc 020 7975 3283Philip Gawith The Maitland Consultancy 020 7379 5151 This statement gives some indication of 3i's expected return (and of keycomponents of that return) for the twelve months to 31 March 2006. Theseindications reflect the Board's current view. They are subject to a number ofrisks and uncertainties and could change. The final numbers for the twelvemonths to 31 March 2006, due to be reported on 11 May 2006, may differaccordingly. Factors which could cause or contribute to such differencesinclude, but are not limited to, general economic and market conditions andspecific factors affecting the financial prospects or performance of individualinvestments within 3i's portfolio. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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