3i slashes debt and operating costs in 2013

3i stated it had achieved £70m of cumulative run-rate operating cost reductions in the year ending March 2014, ahead of targeted savings of £60m. The group had achieved savings of £51m in the previous year. Overall operating expenses amounted to £136m, against £170m in 2012/13. 3i embarked on a cost-saving strategy in 2012, which initially led to several offices being closed down and jobs slashed.

3i generated an operating cash profit of £5m over the last 12 months, against an £8m loss in the 2012-13 financial year. The group introduced the annual operating cash profit KPI in 2013, which measures the difference between its annual cash income (cash fees from managing third-party funds and cash income from the investment portfolio) and the annual operating expenses, excluding restructuring costs.

The listed investor also reduced its gearing last year, from 11% to 5%. Net debt amounted to £160m in 2013-14, against £335m in the year prior.

Realisation proceeds, meanwhile, increased from £606m to £677m, with the group's total return reached £478m versus £373m in 2012-13. NAV per share also saw a 12% uplift to £3.48 in the latest report.

3i confirmed a final dividend of £0.20 for FY 2014, up from £0.08 in the previous financial year.

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