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3i Group PLC noted a challenging economic and political backdrop in Europe and the US, but said its private equity portfolio maintained momentum in the first half of its financial year. The London-based private equity and venture capital company said operating pretax profit jumped 60% to £3.29 billion in the six months to September 30 from £2.05 billion a year ago. Unrealised profit on the revaluation of investments dipped 0.7% to £1.92 billion from £1.93 billion. Diluted net asset value per share was 2,857 pence as at September 30, up 12% from 2,542p at March 31. Percentage return on opening shareholders’ funds was 13% in the six months to September 30, higher than 10% a year ago. The company announced a dividend of 36.5p for the first financial half, up 20% from 30.5p a year ago. 3i reported a foreign exchange gain on investments of £673 million, compared to a loss of £378 million a year ago. Looking ahead, Chief Executive Simon Borrows said: ‘The total return of 13% represents a very good first half for the group. Our long-term hold assets, Action and Royal Sanders, continued to deliver excellent compounding returns. Action’s new store expansion programme is on track for another record year with an excellent reception to the new stores in Switzerland and Romania. Year to date like for like trading remains good despite weakening consumer confidence since the summer.’ Action is a pan-European discount store chain, while Royal Sanders BV makes personal care products. Both are based in the Netherlands. CEO Borrows continued: ‘We remain cautious in the deployment of capital into new investment, but will continue to allocate selectively, including to lower-risk reinvestments in businesses we know and trust. We are mindful that both the transaction market and the wider environment are likely to remain challenging into the second half of our financial year.’ 3i shares fell 12% to 3,594.00 pence each on Thursday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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