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3i Group: 3i Group's Strong H1 Performance Driven by Action's Growth

3i Group reported a 13% total return for the half-year, with a net asset value per share of GBP 28.57, up from GBP 22.61 the previous year. The private equity portfolio delivered a 14% gross investment return, driven by strong performances from Action and Royal Sanders. The company's actual EPS came out at 1.82, beating estimates of 1.43. Action, a 62.3%-owned subsidiary, saw net sales rise 17.4% in the first 9 months, with operating EBITDA up 16.3% to GBP 1.563 billion. The like-for-like sales growth was 5.7% year-to-date.

III.L

GBp 2662.5

-1.3%

A-Score: 5.9/10

Publication date: November 13, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Total Return & NAV Growth: 3i Group achieved a 13% total return, boosting net asset value per share to GBP 28.57 (vs. GBP 22.61 prior year).
  • Private Equity Portfolio Performance: Generated 14% gross investment return, fueled by Action’s 17.4% sales growth and GBP 1.563 billion EBITDA (16.3% increase).
  • Action Shareholding Expansion: Increased ownership in Action to 62.3% via GBP 755 million investment from GBP 944 million distribution.
  • Infrastructure Segment Growth: 14% rise in 3iN share price, alongside GBP 1.6 billion liquidity and 3% net debt gearing (GBP 772 million debt).

Valuation Metrics

With a P/E Ratio of 6.37 and an EV/EBITDA of 6.7, 3i Group's valuation appears reasonable considering its strong growth prospects. The company's ROE is 21.67%, indicating a high return on equity. The Dividend Yield is 2.2%, providing a relatively stable income stream. The Net Debt / EBITDA ratio is 0.17, indicating a healthy debt position.

Action's Performance and Growth Prospects

Action has demonstrated extraordinary growth over the last 5 years, contributing to 3i's compounding returns. The company's customer focus, white space potential, and remarkable store payback periods are expected to drive strong returns. Action's growth has been fueled by its expansion in various markets, including France, Italy, and Eastern Europe. Despite a slowdown in like-for-like sales in France, the company remains confident in its growth prospects, with a target of opening 380 new stores.

Challenges in France and Future Plans

In France, Action faced challenges due to the current political situation and economic uncertainty. However, the company believes that its 900 stores in the market will continue to perform well in the long term. To meet its like-for-like guidance, Action needs to see a focus on Christmas purchasing, particularly in France. The company intends to open more stores in 2024, with a target of exceeding this year's number.

Expansion into New Markets

Action is seeing high sales per store in Switzerland and strong performance in Romania, indicating successful expansion into new markets. 3i has an ongoing appetite to buy more equity in Action when opportunities arise, demonstrating its confidence in the company's growth prospects. Analysts estimate next year's revenue growth at 21.5%, indicating a strong outlook for the company.

3i Group's A-Score