Here is a summary of the key points from the 3I Group PLCs Q3 performance update for FY2025
Increase in NAV per share to 2,457 pence, and a total return of 20% for the first nine months of the financial year, despite negative foreign exchange translation impacts.
Action, a portfolio company, performed exceptionally well, with strong sales, EBITDA, and cash generation. 3I received a dividend of £215 million from Action in December 2024.
The majority of the remaining Private Equity portfolio companies are resilient, with strong contributions from consumer and private label sectors. However, some assets in discretionary consumer spending and recruitment markets face challenges.
3I signed and completed several investments and bolt-on acquisitions during the period, including WaterWipes and four bolt-on acquisitions across its existing Private Equity portfolio.
Realizations during the period included the full realization of WP in October 2024, resulting in proceeds of £280 million for 3I.
3I Infrastructure plcs share price decreased by 7% in the quarter, but bolt-on activity continued with acquisitions by Amwaste and Regional Rail.
The Groups balance sheet remains strong, with gross cash of £792 million and an undrawn RCF of £900 million at the end of December 2024. Gearing was 2%.
The Group expects to pay a further £70 million in Q4 FY2025 to complete the final carry buyback associated with Action, removing dilution from its gross equity stake.
Despite macroeconomic and geopolitical caution, 3I is well-positioned for a strong financial year to March 31, 2025.