Queen sets 3i's five-year targets
Chief executive Michael Queen outlined the strategy as 3i's annual results exceeded expectations even though the group was forced to write off the value of its fourth-largest investment. It took a 198 million impairment against outsourcing specialist Enterprise, which is facing challenging market conditions amid government cutbacks.
"Its profitability has not grown as fast as we expected, and we anticipate that there will be headwinds over the next few years," Queen said yesterday.
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Hide Ad3i's total 324m return is up 10.6 per cent on shareholders' funds at the start of the year. Assets under management were 12.7 billion, against 9.6bn previously. A proposed final dividend of 2.4p, up 20 per cent, makes 3.6p for the year.
Under Queen, 3i has slashed its debts and re-organised its business along three distinct lines: debt management, growth capital and buyouts, and infrastructure.
The debt management arm was boosted by the acquisition of Mizuho Investment Management, which has some 3.3bn in assets. Queen plans to further grow this business.