3i Increases Cost Savings Targets to 60 Million Pounds in 2014
3i Group Plc (III), Britain’s largest publicly traded private-equity firm, increased its target for cost savings in 2014 to 60 million pounds ($91.3 million) after investments returned to profit.
The company reduced costs by 51 million pounds in the 12 months ended March 31, exceeding its 40 million-pound goal for that year, London-based 3i said in a statement today. It had sought to eliminate 45 million pounds of costs by March 2014.
3i replaced its chief executive officer last year and began cutting costs after shareholders urged the company to stop making deals and return money to investors. Activist investor Edward Bramson started building a stake in 3i five months ago. He became chairman of London-based F&C Asset Management Plc (FCAM) after criticizing the company’s business strategy and ousting his predecessor.
“We have made significant and rapid progress in the turnaround of 3i,” CEO Simon Borrows said in the statement. “This represents a major step toward our objective of aligning 3i’s cost base with its annual cash income.”
Net asset value increased 11.5 percent from the year-earlier period to 311 pence a share at the end of March. 3i reaped 606 million pounds by selling assets, down from 771 million pounds in the year-earlier period. The company spent 172 million pounds on investments, compared with 464 million pounds in the preceding 12 months.
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