3i cautious about current year
Private equity firm 3i said it has achieved a strong performance in the year despite challenging conditions but warned that it remains cautious about the current year.
For the year, the group delivered a return on opening shareholders' funds of 18.6% to £792m as well as a 37% growth in assets under management to £9.8bn. Pre-tax profit for the year fell to £834m from £1.05bn previously.
As expected, there was a lower level of realisation proceeds of £1.74b compared to last year's exceptional level of £2.43b.
"With so much uncertainty still clouding economic prospects in the major economies, we take a cautious view of the coming year," said the group.
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"Management has for some time made it clear that realisations were expected to slow, as time would be needed to fulfil the growth plans of newly-acquired assets and realise full value from these investments, and we will be taking a highly selective approach to investment," it added.
The group also launched an offering for around £425m unsecured convertible bonds due 2011.
Total dividend has been raised by 5.6% to 17p per share.
