Resilient third quarter for 3i Group

Investment company 3i Group finished the 2015 calendar year on a resilient note, as the company updated the market on its third quarter on Thursday.

The FTSE 100 firm said at the end of the three months to 31 December 2015, it had a net asset value of 413p per share, and total return of 7.4%.

It realised £403m in the nine months to 31 December, excluding the £188m due from the sale of Element Materials Technology.

3i Group also launched two new collateralised loan obligations in its debt management division in the quarter - one in Europe and one in the United States.

The company's board also said the portfolio companies in the private equity division continued to perform well, with increases in unrealised value supported by value weighted earnings growth - including acquisitions - of 18%.

"This was another steady quarter for 3i. We delivered a solid result, supported by good levels of investment and divestment activity, despite the challenging market backdrop", said chief executive Simon Borrows.

"Our portfolio companies continue to perform well with strong unrealised value growth from a number of our key investments such as Action, 3i Infrastructure, Scandlines and GIF", he added.

During the quarter, the company completed a £159m investment in luxury travel firm Audley Travel, while the £188m sale of Element Materials represented a 30% uplift on its value at 31 March 2015.

That sale was expected to be completed before the end of the 2016 financial year.

The group's board described its balance sheet as "remaining strong", with gross debt and liquidity at the period end at £820m and £950m respectively. Net debt increased to £220m, primarily due to the investment in Audley Travel during the period.

Post-period end, notable cash movements included the 6p per share interim dividend paid to shareholders on 6 January 2016, and the £85m refinancing of Audley Travel that was completed on 27 January.

"With earnings growth - including acquisitions - of 18% and average gearing under 3x EBITDA in private equity, we expect out investment portfolio to continue to demonstrate its resilience as we complete the important final quarter of our financial year", Borrows concluded.