Interim Management Statement

RNS Number : 2957V

3i Group PLC

08 July 2009

 



3i Group plc - Interim Management Statement 

8 July 2009

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 relates to the three month period from 

1 April 2009 to 30 June 2009. 

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

'Our focus in the first quarter was on strengthening the balance sheet. A substantial increase in liquidity and the reduction in net debt provide further resilience in what remains a fragile environment. We have also significantly enhanced our ability to take full advantage of improved conditions as they emerge.' 

He added:

'Given our view of the general economic outlook we will continue to take a cautious approach to new investment, maintain our focus on the portfolio and ensure that we build upon our strong positions in the mid-market buyout, growth capital and infrastructure markets.'

1.	Balance sheet

Improving 3i's balance sheet strength was a key priority for the period. The successful rights issue, the receipt of the proceeds from 3i QPE, and other operational cash in-flow resulted in a reduction of net debt to £961 million at 30 June 2009 from £1,912 million at 31 March 2009. 

2.	Realisations and Investment

Realisation proceeds received by 3i (excluding funds managed or advised by 3i) were £163 million (2008: £301 million). Realisations for the three month period were achieved at a modest uplift to 31 March 2009 valuations.  

Realisations exceeded new investment by £87 million for the three months to 30 June 2009. There were no investments in new portfolio companies in the period.

Investment and realisations for the quarter by business line were as follows: 

Investment £m

	3 months ended	3 months ended
	30 June	30 June
	2009	2008
Buyouts	37	251
Growth Capital	28	160
Infrastructure	2	-
Non-core	9	17
Total	76	428

Note: Non-core includes the Venture portfolio and SMI portfolio.

Realisation proceeds by business line were as follows:

Realisations £m

	3 months ended	3 months ended
	30 June	30 June
	2009	2008
Buyouts	31	169
Growth Capital	68	96
Infrastructure	-	5
Non-core	64	31
Total	163	301

Note: Non-core includes the Venture portfolio and SMI portfolio.

3.

Returns

Results for the year to 31 March 2009 were announced on 8 May 2009. The next detailed valuation exercise of the investment portfolio is for the half year results to 
30 September 2009. 

Ends

For information please contact:

Patrick Dunne	Group Communications Director, 3i Group plc	020 7975 3566
Philip Gawith	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 2009 to 30 June 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.

 

END

 

 

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