In This Article:
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Total Return: 10% for the half year.
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Net Asset Value (NAV) per Share: GBP22.61 at the end of September.
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Gross Investment Return: 11% from private equity, 3% from infrastructure.
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Cash Income: GBP68 million.
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Action Net Sales Growth: 21% increase.
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Action Operating EBITDA: Up 26% to EUR1.34 billion for the first nine months.
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Like-for-Like Sales Growth: 9.8% at the end of September.
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New Store Additions: 244 new stores added, on track for 350 by year-end.
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Action Refinancing: Raised $1.5 billion in the US and EUR700 million in Europe.
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Leverage: Action's leverage reduced from 3.2 times to under 3 times.
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Dividend Payment: 34.5p per share in July.
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First FY25 Dividend: 30.5p per share to be paid in early January.
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Portfolio Value: GBP23 billion at the end of the period.
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Private Equity Portfolio Value: GBP20.9 billion.
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Infrastructure Cash Contribution: GBP68 million.
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Balance Sheet Cash: GBP386 million at the end of September.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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3i Group PLC (TGOPF) delivered a total return of 10% for the half year, with a net asset value per share of GBP22.61.
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The private equity portfolio showed strong performance, with 94% of the portfolio by value growing earnings over the past 12 months.
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Action, a key investment, reported net sales up 21% and operating EBITDA up 26% for the first nine months of the year.
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The company completed significant disposals, including Nexeye and WP, achieving good returns despite a challenging market.
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3i Group PLC (TGOPF) increased its stake in Action to 57.9%, reflecting confidence in its long-term growth potential.
Negative Points
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Foreign exchange movements negatively impacted the net asset value by 48p per share.
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The automotive sector and the white-collar recruitment market in North America faced specific sector difficulties, affecting some portfolio companies.
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The share price of 3i Infrastructure has not reflected the strength of the underlying portfolio, which remains a disappointment.
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The company faces challenges from weak growth and political uncertainties in several markets.
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Action's performance was slightly hindered by a negative price effect due to price reductions over the past 21 months.
Q & A Highlights
Q: Can you quantify the negative price drag on Action this year and any plans to change it in the last two months? A: The negative price drag is less than a whole percentage point, and we don't expect a major change. It depends on the mix of seasonal versus non-seasonal products as we progress through the year. Simon Borrows, CEO