3i Group goes negative

May 17, 2001
Web posted at: 0851 GMT

LONDON (CNN) -- Europe's No. 1 listed venture capital company 3i Group posted a  2.7 percent negative return on opening funds as technology stocks dropped.

The group said diluted net asset value per share was 815 pence, with a recommended final dividend of 8.1 pence per share. The total dividend for the year was up 6.6 percent to 13 pence from 12.2 pence the previous year.

3i Group, which invests in start-ups and established companies, said there was a net reduction in the valuation of its portfolio of £676 million. Its current value is £6 billion.

"For the first time in many years, 3i has not generated a positive total return in a financial year," said Chairman George Russell.

"The deterioration of the financial markets, particularly in the technology sector, and a worsening corporate earnings outlook, was particularly marked in the second half of the year."

The company said it invested £2 billion during the year in over 700 companies. It invested £770 million in continental Europe, but some strong returns were offset by a drop in value of companies listed on Frankfurt's tech-dominated Neuer Markt.

3i said its performance was still strong in relative market terms as it outperformed London's FTSE indices by more than 8 percent, and the tech stock indices by more than 50 percent.

"Looking ahead, our plans anticipate another challenging year," said Chief Executive Brian Larcombe. "While we are devoting more of our resources to assist our portfolio companies, this is not a time to be shy of making new investments."

3i (III) shares rose 1.75 percent to 1,224 pence in London trading.

3i Group

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