Business
Update on Action valuation
Update on Action valuation.
About this update from 3i Group Plc
[{"type":"text","content":"\n \nRNS Number : 7191C 3i Group PLC 30 June 2016 \n\n30 June 2016\n \n \n3i Group plc\nUpdate on Action valuation \nSince the publication of 3i Group plc's (\"3i\" or \"the Group\") financial results for the year to 31 March 2016, 3i has received a number of approaches in respect of Action, the Group's largest portfolio investment.\n \nAction continues to grow strongly and, based on trading to mid-June, is performing on a trajectory similar to its 2015 performance with a similar level of like-for-like sales growth. Action is currently also on track to open materially more new stores this year than it did last year.\n \nIn light of the third-party interest in Action and its continuing growth and financial trajectory, the Board of 3i has decided to increase the book value of its investment in Action to £1,464 million1 after liquidity discount as at 30 June 2016 (31 March 2016: £902 million). This implies a post discount run-rate EBITDA multiple of 18.2x applied to the run-rate earnings as at 31 March 20162. The book valuation of £1,464 million amounts to a less than 15x projected run-rate EBITDA as at 31 December 20162 on the assumption that Action continues to grow on its current trajectory for the remainder of this calendar year.\n \n3i is actively engaged in the further development of Action and is not intending to sell its investment or organise a flotation of Action in the near future.\n \nWe will publish our Q1 performance update on 27 July 2016, which will include this adjustment and the results of our quarterly portfolio valuation.\n \nNotes \n1. Action's valuation currency is euros. The GBP equivalents at 30 June 2016 in this update have been calculated at a currency exchange rate of €1.2168:£1.\n \n2. Action is valued using a multiple of its run-rate earnings for the 12 months to the quarter end preceding the reporting period. The valuation uplift to £1,464 million at 30 June 2016 is calculated using run-rate earnings to 31 March 2016. The valuation as at 31 March 2017 will be calculated using run-rate earnings to 31 December 2016. \n \n- Ends -\n \nFor further information, please contact:\n \nSilvia Santoro\nInvestor Relations Director\nTel: 020 7975 3258\n \nToby Bates\nInterim Communications Director\nTel: 020 7975 3032\n \...