Home Estate Planning Infrastructure giant 3i Group boasts strong results thanks to Dutch discount retailer

Infrastructure giant 3i Group boasts strong results thanks to Dutch discount retailer

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Infrastructure giant 3i Group boasted of a “good result” for the last quarter of 2023, thanks in large part to its largest holding, Dutch discount retailer Action.

The trust’s net asset value per share grew from £18.86 to £20.34 over the final three months of the year, with this coming entirely from the value of its stake in Action, growing £910m over the three months.

Meanwhile, the trust’s share price increased six per cent over the quarter but still sits on a massive 33 per cent discount.

In November, the trust surpassed £20bn in assets for the first time thanks to the rapid growth of Action, which it holds a majority stake in and now makes up 65 per cent of its assets.

In the company’s quarterly results today, 3i Group sang the retailer’s praises, putting it front and centre as Simon Borrows, chief executive of 3i Group, touted the retailer’s “impressive set of results”, starting 2024 with “good momentum”.

The company also reinvested £455m in Action throughout the three months, while gaining £762m from it due to a capital restructuring.

However, among its other (much smaller) investments, results were more mixed, with few increasing substantially in value and at least three of its top ten investments, which make up 85 per cent of its holdings, shrinking over the three months.

“Macroeconomic conditions and global uncertainty are likely to continue to have an impact on selected names within the portfolio but we feel our unrelenting focus on good capital allocation means that 3i is well set for a strong return for the group for this financial year,” Borrows added.

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