3i on track to meet restructuring targets

Jersey-incorporated, closed-ended infrastructure investment company 3i has reported that it is on track to meet its cost and debt reduction targets after what it termed 'strong and measurable' progress in implementing the restructuring announced in June.

In the half year ended September 30th assets under management totalled £11,347m, compared to £12,281m the same period the previous year.

Although the group's asset value dropped from 279p to 273p per share over the the six month period, this came in above analyst expectations of 269p.

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The interim dividend of 2.7p share was maintained.

Simon Borrows, 3i's Chief Executive, said: "Since the announcement of 3i's future strategy in June, we have wasted no time in implementing the significant organisational and cultural changes that are needed.

"As a result, we have made strong and measurable progress against the immediate priorities and targets that we set out in June, and the group has delivered steady overall performance in the first half in what remain challenging economic conditions and subdued markets.

"There is much more to do and we will continue to work hard to drive improved performance across our business.

"Our strategic goal is to be a leading international investor in mid-market private equity, infrastructure and debt management, and to deliver top quartile cash investment returns over the longer-term."

The company's priorities now are to reduce staff, consolidate its office network, and make further savings on its operation costs.

The group did warn that it remains cautious over the macroeconomic outlook and said the private equity market is facing a number of headwinds and activity levels remain well below historical levels. It also said that concerns over the sovereign debt of a number of Eurozone countries and over the banking sector in Europe will likely create ongoing uncertainty.

NR