3i Group plc

3i reported a total return on equity of 13% for the half, with NAV per share of GBP 28.57 versus GBP 22.61 last year. The NAV increase was driven by 250p per share of value growth, a 78p per share foreign-exchange gain, and reduced by a 43p per share dividend payment. Private equity generated a gross investment return of 14% and GBP 3.2 billion of gross investment return overall, while infrastructure generated a 9% gross investment return; the portfolio ended at GBP 29.3 billion. 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%; end-October net sales were EUR 12.54 billion and year-to-date like-for-likes were 5.7%. Management said Action’s 2025 store openings are now expected to be approximately 380 new stores, up from prior guidance, and that France could leave full-year like-for-likes below the 6.1% guide. 3i will pay a first FY26 dividend of 36.5p per share in early January.

Simon Borrows emphasized that the half was another good one, driven by Action’s growth, resilient trading in the private equity portfolio, and strong performance from Royal Sanders. He repeatedly framed Action as a long-duration compounding asset, saying the store rollout remains ahead of plan and the medium-term ambition is unchanged. His tone was confident but measured on France, calling it a challenge and saying the company is being careful on new investments given the macro backdrop.

James Hatchley said the 13% total return was mainly driven by 250p per share of value growth, with a 78p foreign exchange benefit and a 43p dividend drag. He cited GBP 2.1 billion of Action-related value contribution, GBP 219 million of PE performance increases versus GBP 43 million of decreases, and noted no material detractors and no notable write-downs. On the balance sheet, he highlighted 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. He also said infrastructure produced GBP 87 million of cash income, ended with a GBP 12 million cash operating loss, and that the expectation remains for a cash operating profit for the year.

Analysts focused heavily on Action, especially the softer seasonal selling environment, the downturn in France, the mix and margin implications by country, and whether store openings might be shifted away from France. Management said it was too early to judge Christmas sell-through, expected any seasonal write-downs to be modest, and reiterated that France is challenging but still a major growth market with 1,200 stores still planned there. Questions on ownership and capital allocation were answered with the disclosure that about 13% of the remaining 38% of Action is held by H&F, with the rest mainly LPs and some management stakes, and that 3i still has appetite and resources to buy more when opportunities arise. Management also said there is no change to Action’s medium-term ambition and that the U.S. is still at the research stage, with employees on the ground.