3i Group sees NAV rise 8% in third quarter

(Sharecast News) - Jersey-headquartered private equity and venture capital firm 3i Group reported an 8% increase in net asset value (NAV) over the third quarter and an "excellent" result from Europe-focused non-food discounter Action.

NAV per share was 2,034p by 31 December, up from 1,886p at the half-year stage at 30 September, generating a total return of 18% for the first nine months of the financial year, after a negative foreign exchange translation impact of £151m or 16p.

At Action, which has 2,300 stores across 11 countries in Europe, net sales and operating EBITDA over the nine-month period were 28% and 34% ahead of the previous year. 3i received a dividend from Action of £189m in December 2023.

The company said its value-for-money, private label, healthcare and infrastructure investments "continue to perform resiliently" and represented 86% of the investment portfolio by the end of the third quarter. Outside of these sectors, the performance was more mixed.

"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," said chief executive Simon Borrows.

"Action has again produced an all-round, impressive set of results and has started 2024 with good momentum across all of its markets. Action's mission is to help customers by offering great value products at low prices and selling an increasing range of essentials through its flexible format," Borrows said.

The stock was down 1.7% at 2,438p in early deals on Thursday.