3i Group's NAV grows in Q1

Private equity firm 3i Group said on Thursday that its net asset value had increased from 1,321.0p to 1,406.0p during the three months ended 30 June, with the company delivering a total return of 6.6% over the period.

3i said it had delivered a "resilient" quarter" from its private equity portfolio, as 90% of its top 20 private equity companies by value grew earnings to March 2022, while the return for the quarter also included "material reductions" in the value of two non-discount consumer companies, Luqom and GartenHaus.

The FTSE 100-listed firm said it saw "very good sales and EBITDA growth" from portfolio company Action, with sales for the quarter up 22% at €2.06bn and underlying earnings of €263.0m, 29% above 2021.

3i, which recognised a £332.0m gain on foreign exchange in the quarter, also said it had completed the sale of its European projects portfolio to the 3i European Operational Projects Fund for £106.0m and announced the sale of portfolio company Havea for expected proceeds of roughly €540.0m, representing an approximately 50% uplift on the company's value on 31 March.

Chief executive Simon Borrows said: "3i has made a good start to its new financial year. Both portfolios are trading resiliently in the current environment and Action is continuing to grow at an impressive rate.

"We see broader economic conditions deteriorating over the rest of the year but remain confident in the composition of our portfolio. We continue to focus on actively managing our portfolio and making sensibly priced investments and bolt-on acquisitions. We will also pursue our realisation projects where conditions allow."

As of 0905 BST, 3i shares were up 2.30% at 1,224.50p.

Reporting by Iain Gilbert at Sharecast.com