3i Group makes solid start as Q1 NAV rises 4%

(Sharecast News) - Private equity and infrastructure investment firm 3i Group said it had an "encouraging start" to the new financial year, with net asset value (NAV) rising 4% over the first quarter. NAV per share totalled 2,167p by 30 June, up from 2,085p on 31 March, despite a negative FX translation impact of £113m or 12p per share.

The company's biggest portfolio company, Action, the Benelux-focused non-food discount retailer, put in a strong performance with net sales and EBITDA up 20% and 23% over the first six months of 2024.

Since the end of the quarter, Action raised €2.1bn in funds, as well as a capital restructuring with a pro-rata redemption of shares. 3i said it used €821m of the €1.37bn gross proceeds received to acquire more shares in Action, raising its stake in the retailer from 54.8% to 57.6%.

The company's increased exposure to Action "will benefit shareholders in the months and years to come", according to chief executive Simon Borrows.

"Action had a good first half of 2024, with net sales and operating EBITDA ahead of budget and prior year, despite a continued focus on price reductions and the impact of softer seasonal sales in a rather wet and cold June across north western Europe," Borrows said.

Elsewhere, the rest of the portfolio is said to have performed well, with 3i seeing "positive developments" in some of the assets which experienced headwinds in 2023.

"We remain selective in our capital allocation and, in the quarter, secured a new investment and a number of bolt-on acquisitions, as well as a significant realisation," Borrows said.