Business
Results for the year to 31 March 2020
Results for the year to 31 March 2020.
About this update from 3i Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 8396M\n 3i Group PLC\n 14 May 2020\n \n \n \n \n \n \n \n 14 May 2020\n \n \n \n \n \n 3i Group plc announces results for the year to 31 March 2020 \n \n \n \n \n \n Resilient performance despite severe disruption from COVID-19\n \n \n \n \n \n · \n \n Total return of £253 million or 3% on opening shareholders' funds\n \n (March 2019: £1,252 million, 18%) and \n \n NAV per share of 804 pence\n \n (31 March 2019: 815 pence) after paying 37.5 pence of dividends in the year. \n \n \n \n \n \n · \n Our Private Equity business delivered a gross investment return of £352 million or 6% (March 2019: £1,148 million, 20%). The portfolio had performed well overall in the 11 months to 29 February 2020 and was on track to generate returns consistent with our strategic objectives before the significant impact of COVID-19 on the portfolio valuation at 31 March 2020. The pandemic has impacted our travel, retail and automotive portfolio companies, while companies in medical technology, personal care products, e-commerce and other specialty manufacturers are experiencing strong demand.\n \n \n \n \n \n · \n Action traded strongly in 2019 and in the first two months of 2020, but COVID-19 caused major short-term disruption to the business, as it was forced to implement total or partial temporary store closures in a number of countries. As of today, virtually all of Action's stores have reopened and it is rebounding strongly now that lockdowns are being lifted. \n \n \n \n \n \n · \n Earlier this year we closed the transaction to provide liquidity to investors in Eurofund V from the realisation of the Fund's investment in Action through a sale to the 3i 2020 Co-investment vehicles. This transaction achieved an enterprise value of €10.25 billion and was funded by a combination of rolling LPs, new LPs and 3i, which reinvested in Action to increase its gross holding from 45.3% at 31 December 2019 to 52.6% at 31 March 2020. At 31 March 2020, we valued Action at a level consistent with the valuation achieved in this transaction. This is a step back from the valuation of the investment at the end of December 2019, and is broadly equivalent to using Action's run-rate earnings to March 2020 and reducing the multiple used to c.17x post discount.\n \n \n \n \n \n · \n In co...