3i Group, the international investment manager, announced a decline in its total and gross investment returns for the first half of fiscal year 2024 amidst a challenging macroeconomic environment.
The company reported a total return of £1.67 billion ($2.05 billion) for the six months ended September 30, compared to £1.765 billion for the same period last year. This signifies a 10% return on opening shareholders’ funds, as opposed to the previous year’s 14%.
Gross Investment Return
3i Group’s gross investment return dropped from £2.02 billion to £1.87 billion. Within this, its private-equity business contributed £1.83 billion, a decrease from £1.97 billion the previous year.
Strong Performance of Action
Despite the overall decline, Action, the European discount retailer that constitutes a major portion of 3i Group’s portfolio, continues to perform well. It achieved a like-for-like sales growth of 19% during the first nine months of the calendar year.
Net Asset Value Per Share
The net asset value per share rose to 1,886 pence as of September 30, compared to 1,745 pence on March 31.
The board declared an interim dividend of 26.5 pence per share, showing an increase from the previous year’s 23.25 pence.
Strong Balance Sheet
“We have a strong balance sheet and are under no pressure to sell companies if the price or terms do not properly reflect the prospects of the business,” stated Chief Executive Simon Borrows.