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3i Group PLC Reports Strong Financials Despite Macro-Economic Challenges

Strategic Insights

— 1 min read

3i Group PLC, the private equity giant, has reported its final results for the year to 31 March 2025, with a notable 7% decline in shares following the publication. This drop can likely be attributed to profit-taking, given the shares' recent all-time highs and a 45% increase over the past 12 months. Despite this, the company's financial performance remains impressive, with a total return of £5.05 billion, equivalent to 25% on opening shareholders' funds. The net asset value (NAV) per share rose to 2,542p at the end of March, a significant increase from 2,085p a year ago.

Key Takeaways:

  • The private equity giant, 3i Group PLC, has reported a total return of £5.05 billion, representing a 25% increase on opening shareholders' funds for the year to 31 March 2025.
  • The company's NAV per share rose to 2,542p at the end of March, a 21.1% increase from 2,085p a year ago.
  • The main investment, Dutch non-food discount chain Action, generated a return of £4.6 billion, or 32% on its opening value, with annual revenue growth of 22%, like-for-like sales growth of 10.3%, and EBITDA growth of 29%.
  • Despite a slowdown in LFL sales growth to 6.2% in the first three months of 2025, Action achieved a 22% annual revenue growth and 10.3% LFL sales growth.
  • Chief executive Simon Borrows hailed the result as "another successful year for 3i" and emphasized the company's ability to compound growth across the portfolio in the years to come.
  • 3i has hiked its total dividend to 73p per share, with a second dividend of 42.5p to be paid in July, subject to shareholder approval.

Statistics:

  • Total return: £5.05 billion
  • NAV per share: 2,542p
  • Increase in NAV per share: 21.1%
  • Return on investment for Action: £4.6 billion, representing 32% on its opening value
  • Annual revenue growth for Action: 22%
  • Like-for-like sales growth for Action: 10.3%
  • EBITDA growth for Action: 29%
  • Second dividend: 42.5p per share

Sources:

  • 3i Group PLC. Final Results for the Year to 31 March 2025. 3i Group PLC, 2025.

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