3i Group plc announces full year results to 31 March 2013
Strategic and restructuring highlights
Significantly outperformed cost savings target; achieved a £51 million run-rate operating cost reduction by 31 March 2013, 28% ahead of the original target of £40 million.
Today we are announcing a material increase to the cumulative run-rate operating cost reduction target by 31 March 2014 of £45 million to £60 million. This cost savings target represents almost a third of the Group's opening run-rate cost base of £185 million at 31 March 2012.
Substantial gross debt reduction with target achieved ahead of schedule. Gross debt of £1,081 million at 31 March 2013. Gross debt of £917 million at 30 April 2013, representing a 44% reduction from £1,623 million at 31 March 2012.
Strong Private Equity realisations delivering realised profits over opening value of £190 million, a significant increase compared to £22 million in FY2012, and representing an uplift to opening value of 49% and a money multiple of 2.1x.
Total AUM growth of 23% to £12.9 billion, including growth in third-party AUM of 45% to £9.2 billion. Largely driven by growth in Debt Management, including strategic acquisition of Fraser Sullivan in the US.
Established framework arrangements, including fees and carry payable to 3i, with a number of leading investors to invest alongside 3i in mid-market European private equity buy-out opportunities. These innovative arrangements demonstrate confidence in 3i's investment capabilities and provide access to additional investment capital.
Financial highlights
Total return of £373 million representing 14.2% on opening shareholders' funds, a significant improvement on the prior year loss of £(656) million and negative return of (19.5)%.
Strong performance from Private Equity with gross portfolio return of £518 million or 19.7% on opening portfolio value compared to a loss of £(341) million and negative return of (9.7)% in the prior year.
NAV per share of 311 pence, up 11.5% over the period, after taking into account implementation costs and dividends in the period of 5.8 pence and 8.1 pence per share respectively.
Confirming proposed final dividend of 5.4 pence per share, bringing the total dividend for FY2013 to 8.1 pence per share, subject to shareholder approval.
Expect to initiate additional shareholder distributions above the annual base dividend in respect of FY2014.
