Interim Management Statement

28 Jan 2010

 

3i Group plc ("3i"), the international private equity company, today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement which, as usual, is unaudited, relates to the three month period from 30 September 2009 to 31 December 2009.

Michael Queen, 3i's Chief Executive, said: 

"We start 2010 in a strong financial position, building on the performance of the previous quarter.  We have continued to see good realisations from the portfolio and the pipeline for new investment has strengthened."

1. Realisations

Realisations (excluding co-investment funds) were £270 million for the third quarter, bringing realisations to £777 million for the nine months to 31 December 2009 (2008: £942 million). Realisations from the portfolio, including the IPO of PCD in China and the sales of DNA and Dockwise in the Nordic region, have been made at good uplifts over opening carrying value at the start of the year.

Realisations by business line were as follows:

Realisations (£m)

 

Six months ended

Three months ended

Nine months to

Nine months to

30 September

31 December

31 December

31 December

2009

2009

2009 (total)

2008 (total)

Buyouts

62

62

124

488

Growth Capital

275

153

428

259

Infrastructure

45

-

45

55

Non-core activities

125

55

180

140

Total

507

270

777

942

2. Investment

3i invested £59 million during the quarter, bringing the total investment in the nine months to 31 December 2009 to £249 million. Of this investment £111 million was invested in the existing portfolio, the balance related primarily to capitalised interest.  Investment for the equivalent nine month period last year was £841 million. In addition, £34 million (2008: £81 million) was invested in the quarter on behalf of co-investment funds managed by 3i.

Investment by business line was as follows:

Investment (£m)

 

Six months ended

Three months ended

Nine months to

Nine months to

30 September

31 December

31 December

31 December

2009

2009

2009 (total)

2008 (total)

Buyouts

111

51

162

486

Growth Capital

62

6

68

290

Infrastructure

2

-

2

22

Non-core activities

15

2

17

43

Total

190

59

249

841

3. Cashflow and balance sheet

The Group had cash, cash deposits and undrawn committed facilities of £2.34 billion as at 31 December (30 September 2009: £1.96 billion). The significant cash movements from realisations and investment generated a net cash inflow of £231 million during the three month period. As a result of these and other cashflows, net debt was further reduced by £211 million to £643 million, which is below our objective of £1.0 billion of net debt by mid-2010.

For further information, please contact:

Patrick Dunne
Group Communications Director - 3i Group plc
020 7975 3566

Rachel Richards
3i Press Office

020 7975 3573

Maitland Consultancy
Suzanne Bartch

020 7379 5151

This statement aims to give an indication of material events and transactions that have taken place during the period from 30 September 2009 to 31 December 2009 and their impact on the financial position of 3i Group plc.  These indications reflect the Board's current view.  They are subject to a number of risks and uncertainties and could change.  Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within 3i's portfolio