LONDON (Alliance News) - 3i Group PLC Thursday issued a note of caution on the high valuations seen across "many financial markets" and currency volatility, as the FTSE 100 company reported a double-digit total return in its last financial year.
3i, which has private equity, infrastructure and debt management arms, said its total return of GBP659 million, equivalent to a profit on opening shareholders' funds of 19.9%, in the year ended March 31, compared with GBP478 million or 16.3% in the prior year.
"We remain cautious about the current environment. Many financial markets are at or near all time highs and currencies are subject to increased volatility. We are focused on enhancing the value of our existing investment portfolio as well as pursuing investment opportunities if the strategic and financial case is strong," Chairman Adrian Montague said in a statement.
The company's dividend for the year remained at 20 pence.
Montague, who will depart as chairman in June so he can focus on taking the same role at life insurer Aviva PLC, said the dividend was above the "top end" of its 15% to 20% distribution range as a result of net divestment in the year.
Montague's successor will be Simon Thompson, who chairs Tullow Oil PLC.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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3i Group (III)