Key highlights
Continuing to deliver against our strategic plan
Strong flow of Private Equity realisations with proceeds of £528 million, representing a 32% uplift to opening value
Solid Private Equity portfolio performance; continuing to see benefits of asset management improvement initiatives
Good contribution by Infrastructure and Debt Management to fee income generation
Expect to exceed operating cost savings target of £60 million by March 2014
Total return of £175 million after accounting for a foreign exchange translation loss of £79 million
Good progression in NAV per share to 322 pence at 30 September 2013 (31 March 2013: 311 pence)
Initiating additional shareholder distribution - proposing distribution of 20 pence per share for the year to March 2014, including annual base dividend of 8.1 pence; remainder to be distributed via special dividend
On this basis, confirming interim dividend of 2.7 pence and special interim dividend of 4.0 pence
Simon Borrows, 3i's Chief Executive, commented:
"The Group has performed well during the first six months of the financial year which reflects the strong progress we have made against our strategic priorities. We are now generating some real momentum in the business.
"There has been a strong flow of realisations and a good progression in NAV per share to 322 pence at September 2013 compared to 311 pence at 31 March 2013.
"Given our strong run of realisations, combined with a net cash position and good levels of liquidity, we are initiating additional shareholder distributions. For the financial year 2014, we expect to propose a total dividend of 20 pence per share, including the annual base dividend of 8.1 pence per share."
Dividend
In May 2012, the Board announced a strengthened distribution policy designed to give shareholders a direct share in the success of the Group's realisation activities by adopting a policy of returning to shareholders a proportion of gross cash realisations subject to certain conditions. These conditions have been satisfied and we are therefore initiating additional shareholder distributions above the base dividend.
The Board currently intends to propose a total dividend for the year of 20 pence per share, including the annual base dividend of 8.1 pence per share, subject to the financial results at 31 March 2014 and shareholder approval. Accordingly, the Board has decided to pay a total interim dividend of 6.7 pence per share (2012: 2.7 pence per share), representing one third of the expected total full year dividend. The total interim dividend of 6.7 pence per share will comprise a special dividend of 4.0 pence per share plus a base dividend of 2.7 pence per share.
