Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
3i Group trimmed its dividend after annual returns and net asset value fell as the Covid-19 pandmic had a 'significant impact' on the value of its private equity portfolio.
For the year ended 31 March, the company reported total return of £253m, down from £1,252m and net asset value per share fell to 804 pence from 815 pence.
Our private equity business delivered a gross investment return of £352m, or 6%, down from a return of £1,148m, or 20%.
'The portfolio had performed well overall in the 11 months to 29 February 2020 and was on track to generate returns consistent with our strategic objectives before the significant impact of COVID-19 on the portfolio valuation at 31 March 2020,' the company said.
'The pandemic has impacted our travel, retail and automotive portfolio companies, while companies in medical technology, personal care products, e-commerce and other specialty manufacturers are experiencing strong demand,' it added.
The company recommended a second 2020 dividend of 17.5p, down from 20.0p, taking the total dividend for the year an unchanged 35.0p a share.
The company warned it faced 'the most uncertain outlook for generations' as it entered 2021,
At 8:06am: (LON:III) 3I Group PLC share price was +10.6p at 760.4p