(Alliance News) - 3i Group PLC on Wednesday said that it has seen a strong momentum in medical technology and consumer goods investees and a "very good" recovery in retail businesses.
Shares in 3i were up 3.5% at 953.40 pence each in London. Year-to-date the stock is down 13%.
The investment manager said its September semi-annual portfolio company review has reinforced 3i's belief in the resilience and strength of earnings performance in a significant majority of investments.
"The automotive sector remains challenged, and public health policy has prolonged the uncertainty for the travel sector. However, we continue to see strong momentum in portfolio companies exposed to medical technology and personal care products and very good recovery in our retail businesses, particularly in online, and of course in Action," 3i explained.
Action, a non-food discount retailer in Europe, has continued its impressive performance, 3i said, with earnings before interest, tax, depreciation and amortisation, and cash generation above expectations for July, August and September to date. Year-to-date sales at over EUR3.7 billion have recovered to be approximately 8% ahead of last year with strong trading continuing across all geographies.
3i expects Action's Ebitda for the nine months to September 30 to total EUR575 million, up from EUR506 million recorded in the year-ago period.
FTSE 100-listed 3i currently owns around a 50% stake in Action.
By Tapan Panchal; tapanpanchal@alliancenews.com
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3i Group (III)