3i flags strong trading at Action

(Sharecast News) - Dutch retailer Action saw sales jump over the first half of the year, its British owner 3i Group said on Thursday. Updating on its portfolio at the annual general meeting, the blue chip private equity firm - Britain's oldest - said like-for-like sales grew by 6.9% at Action in the first 25 weeks of the year.

In addition, there were net new store openings of 111 during the period, leaving it on track with expansion plans.

3i chief executive Simon Burrows said: "The like-for-like performance continues to be transaction driven, with a strong contribution from seasonal sales.

"Action is set for another good quarter of profit growth."

3i first bought into the budget chain, which operates primarily out of retail parks, in 2011. Its 58% stake now accounts for around 65% of the portfolio by value.

Founded in 1993, Action now has more than 3,000 stores across 13 mainland Europe countries.

Commenting on the rest of the portfolio, Burrows told shareholders that its performance was in line with internal expectations.

He also flagged the recent sale of pet food brand MPM. Announced earlier this month, 3i sold the business to Swiss-based private equity firm Partners Group for estimated gross proceeds of around £400m, representing a 3.2x money multiple of invested capital.

As at 0830 BST, share in 3i were trading 1% higher at 3,988p.