Interim Management Statement

09 Jul 2008

 

3i Group plc ("3"), the international private equity company, today issues its Interim Management Statement in accordance with FSA Disclosure and Transparency Rule 4.3. This statement relates to the three month period from 1 April 2008 to 30 June 2008.

Philip Yea, 3i's Chief Executive, said: 

"The mid-market has remained open over the first three months of the year, providing both investment opportunities and continued realisations despite the challenging economic outlook."

He added: 

"We remain highly selective with respect to new investment, and continue to monitor closely the financial performance of our portfolio. This approach, combined with the diversity of our business in terms of asset class, geography and sector put us in a good position to deal with what continues to be an uncertain economic environment."

1. Investment and realisations

3i invested £428 million (2007: £591 million) during the three months ended 30 June 2008. A further £347 million (2007: £111 million) was invested on behalf of funds managed or advised by 3i during the equivalent period, bringing total investment for the period to £775 million (2007: £702 million).

3i investment by business line was as follows:

Investment £m

 

  3 months ended 
30 June
2008
3 months ended 
30 June
2007
Buyouts 251 107
Growth Capital 160 271
Infrastructure - -
QPE - 182
SMI - -
Venture Portfolio 17 31
Total 428 591

 

Realisation proceeds received by 3i (excluding funds managed or advised by 3i) were £301 million (2007: £605 million). This excludes the realisation proceeds of approximately £240 million from ABX and Freightliner, which were both announced during the period and are expected to complete in the next three months.

Realisation proceeds by business line were as follows:

Realisations £m

 

  3 months ended 
30 June
2008
3 months ended 
30 June
2007
Buyouts 169 256
Growth Capital 96 231
Infrastructure 5 -
QPE - 2
SMI 11 32
Venture Portfolio 20 84
Total 301 605

 

2. Returns

Returns for the three months to 30 June 2008 represent a positive start to the year ending 31 March 2009.

Realisations for the three month period have been achieved at aggregate uplifts over 31 March 2008 carrying values of 26%. The largest realisation in the period, Giochi Preziosi, was valued on an imminent sales basis at £151 million at 31 March 2008, being a 10% discount to final proceeds.

The quoted portfolio has generated a positive return of £79 million during the period.

As usual, an important element in the determination of 3i's results for the half year to 30 September 2008 will be the detailed valuation exercise carried out on its investment portfolio as at that date.

3. Balance sheet

During the period, 3i issued £430 million of new 3.625 per cent convertible bonds due 2011 to refinance the existing €550 million convertible bond due 25 July 2008.

The current view remains that investment and realisations will be broadly balanced over the full year so year-end net debt at 31 March 2009 will be similar to opening net debt.

For further information please contact:

Simon Ball, Finance Director, 3i Group plc -  020 7975 3356
Group Communications Director, 3i Group plc -  020 7975 3566

Lydia Pretzlik, Maitland -  020 7379 5151

This statement aims to give an indication of material events and transactions that have taken place during the period from 1 April 2008 to 30 June 2008 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.