3i Infrastructure progresses but India drags

Investment company 3i infrastructure has seen steady growth in its net asset value in the full year to the end of March but India has been a let down.

Profit before tax generated by the firm's portfolio of 14 assets was £56.0m, against a prior year comparison of £85.5m, with the total return on average shareholders' equity sliding to 5.6% from 9.2% the year before.

The investment return fell to £71.3m from £103.7m the year before, largely as a result of a capital loss of £2.0m versus a capital gain the year before of £32.9m. This reversal was partially offset by an increase in the income from loans and receivables to £30.3m from £18.1m the year before, while dividend income improved to £41.0m from £39.4m a year earlier.

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The portfolio value rose to £890.8m from £821.7m the year before, while the cash balance dipped to £173.4m from £174.6m.

The net asset value (NAV) per share rose from 120.3p in 2011 to 121p this year.

The total dividend has been raised from 5.72p to 5.94p.

"The company delivered steady NAV growth this year in challenging conditions. This stable performance builds on a strong track record for the company which, in its five years of existence, has delivered annualised returns to shareholders of 9.4%, including the payment of a 5% dividend in each year," said Peter Sedgwick, Chairman of 3i Infrastructure.

During 2011/2012 3i spent £203.6m on new investments, including £194.8 million on Lakeside Network Investments in Finland.

The problem for 3i is its India Infrastructure fund, which lost £28.7m in value in the last 12 months, leaving the asset worth just £114.2m by the year's end.

Nevertheless the market was broadly happy with the results, the shares were up 0.6% by 09:39.

BS