3i Group (III) H1 2025 earnings summary

Executive summary

• Achieved a total return of 10% for H1 FY2025, with NAV per share rising to 2,261p, despite FX losses and dividend payment.

• Private Equity delivered an 11% gross investment return, led by Action's strong sales and EBITDA growth.

• Portfolio focused on resilient sectors: value for money, private label, infrastructure, and healthcare, now 87% of total value.

• Realised proceeds of £1,548m and cash income of £68m, supporting a first FY2025 dividend of 30.5p per share.

• Action and Royal Sanders, long-term holdings, continue to outperform sector peers.

Financial highlights

• NAV per share increased to 2,261p (31 March 2024: 2,085p), after a 34.5p per share dividend and FX loss.

• Portfolio value reached £22,953m, with gross cash of £386m and undrawn RCF of £900m.

• Private Equity gross investment return was 11% of opening portfolio, with £2,071m return and £1,548m realisations.

• Infrastructure delivered a 3% gross investment return, with AUM at £6.2bn and 3iN share price up 4%.

• Cash income of £68m; dividend payment of 30.5p per share declared for January 2025.

Outlook and guidance

• Portfolio positioned for resilience and long-term growth, with significant platforms in Action, Royal Sanders, and healthcare assets.

• Expect continued strong performance in the final two months of 2024, especially from Action.

• Like-for-like sales growth for Action expected to normalize to mid- to high-single digits in 2025.

• Dividend policy maintained; first FY2025 dividend of 30.5p per share to be paid in January.

• Disciplined review of new investment opportunities will continue.