3i Group plc

3i reported a 13% total return on equity for the half year. NAV per share at end-September was GBP 28.57, versus GBP 22.61 a year ago; the half included a 43p dividend drag and a 78p foreign exchange benefit. Private equity gross investment return was 14% and infrastructure gross investment return was 9%. Action’s first 9 months showed net sales up 17.4%, operating EBITDA up 16.3% to GBP 1.563 billion, and like-for-like sales up 6.3%; net sales to end-October were EUR 12.54 billion and year-to-date like-for-likes to P10 were 5.7%. James Hatchley said the private equity gross investment return was GBP 3.2 billion, including GBP 805 million from FX, GBP 391 million of cash realizations, and GBP 732 million of investments. The portfolio ended the period at GBP 29.3 billion, including GBP 27.1 billion for private equity. Balance sheet metrics were net debt of GBP 772 million, gearing of 3%, liquidity of over GBP 1.6 billion, and cash of GBP 777 million as of 11 November 2025. The first FY26 dividend will be 36.5p per share, paid in early January. Forward, 3i expects a second half of further progress; Action still targets roughly 380 new stores this year, while management said France could make it hard to fully reach the 6.1% like-for-like guidance for the year and that EBITDA margin will depend on final-period trading.

Simon Borrows framed the half as another good period, emphasizing Action’s continued expansion, resilient trading across most of the portfolio, and strong earnings growth in the top private equity holdings. He said 86% of portfolio value had grown earnings by more than 10% over the last 12 months and that there were no notable write-downs. His tone was confident on Action’s long-term white-space opportunity and store rollout, but cautious on the macro backdrop and specifically on France, which he described as the key near-term challenge.

James Hatchley focused on the drivers of NAV growth: 250p per share of value growth, 78p from FX, and a 43p reduction from the dividend payment. He highlighted GBP 3.2 billion of gross investment return in private equity, with GBP 219 million of performance gains outweighing GBP 43 million of declines, plus relatively modest valuation multiple cuts of GBP 24 million. On cash and capital, he said infrastructure generated GBP 87 million of cash income, the segment ended with a GBP 12 million cash operating loss but is still expected to deliver a cash operating profit for the year, and the group maintained conservative leverage with GBP 772 million of net debt and liquidity above GBP 1.6 billion.

Analysts pressed management on Action’s softer seasonal trading, the negative France trend, and whether the French weakness would change store allocation or medium-term targets. Simon said it was too early to tell on seasonal sell-through, did not expect meaningful seasonal write-downs, and said France remains a challenge but not a reason to change the plan; he also said the long-term Action ambition is unchanged. Questions also covered the remaining Action ownership, U.S. plans, and realization prospects. Management said the remaining 38% is roughly 13% held by Hellman & Friedman with the balance mainly LPs and some management stakes, that there is no update on the U.S. beyond ongoing research and employees on the ground, and that realizations should pick up more next year than this year.