Update: 3i Infrastructure preserves NAV

Date: Thursday 05 Nov 2009

Investment firm 3i Infrastructure saw profits slide in the first half of its financial year but its net asset value remained stable.

Profit before tax in the six months to the end of September tumbled to £28.3m from £54.4m as 3i's investment return dropped to £38.7m from £66.3m the year before.

Diluted net asset value (NAV) per share on an investment basis eased to 110.8p from 111.3p a year earlier.

The company achieved a total return of £16.3m over the period, representing a 1.8% return on shareholders’ equity at the start of the reporting period.

The company said its portfolio performance remains robust, with 1.8% growth in earnings before interest, tax, depreciation and amortisation (EBITDA) of underlying equity investments over the prior corresponding six-month period.

While the pipeline for the second half is encouraging, conditions for infrastructure investment remain challenging. Completion risk remains high, due to uncertainty in the macro outlook and ongoing volatility in asset pricing,’ said Cressida Hogg, managing partner, Infrastructure, 3i Investments.

The company had cash balances of £330m at the end of September. It has declared an interim dividend of 2.2p.

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