FTSE 100 investment trust 3i has continued to benefit from the performance of prized asset, the Dutch retailer Action.
The company delivered a total return of £2bn in the six months to September, up from £1.7bn in the same period last year. The firm’s net asset value (NAV) per share rose to 2,261p at the end of September, up from 2,085p at the end of March.
3i said it will pay an interim dividend of 30.5p per share, up from 26.5p in the same period last year.
“Against an uncertain geopolitical environment and weak growth across much of Europe, we move into the second half of FY2025 with a portfolio that is well positioned to build on a solid first half,” Simon Burrows, chief executive at 3i said.
Burrows pointed to the strong contribution of Action the Dutch discount supermarket in which 3i holds a 58 per cent stake. “Action is the major contributor to our returns and continues to produce sector-leading growth,” he said.
The firm generated net sales of €9.6bn (£8bn) in the period, with like-for-like sales growth at 9.8 per cent. 3i received proceeds worth £1.2bn in the period, of which £768m was reinvested.
“With a strong business and financial model and significant white space to expand into, we believe it will continue to do so for many years to come,” Burrows said.
3i said that the “majority” of the other companies in 3i’s portfolio were performing well. “We are seeing the gradual unwind of some of the challenges which weighed on performance in 2023,” Burrows added.
As well as Action’s performance, the group also reported total proceeds of £662m from its private equity business. During the period the team completed the sale of businesses nexeye and signed the realisation of WP, at multiples of two times the initial investment.
3i’s infrastructure business produced a return of £43m or three per cent. Returns were boosted by the offer received for Valorem and by the partial syndication of Future Biogas.