Shares in 3i Group rose after the group posted an increase in returns and net asset value per share for its fiscal first half.
The stock jumped as high as 5% in early trading to 3,499 pence before paring some gains. Year to date, shares have risen around 41%.
The London-listed international investment manager on Thursday posted a total return--its comprehensive income--of 2.05 billion pounds ($2.60 billion) for the six months ended Sept. 30 compared with 1.67 billion pounds for the same period a year earlier. This represents a 10% return on shareholders' funds at the start of the period, flat on last year's, it said.
The group, which focuses on midmarket equity and infrastructure, said its gross investment return rose to 2.14 billion pounds from 1.89 billion pounds.
Action--the European discount retailer that makes up most of its portfolio--continues to perform well and had like-for-like sales growth of 9.8% of the first nine months of the calendar year, it said.
The acceleration in momentum in Action has driven the recovery in gross investment return back to levels similar to the first half of fiscal 2023, Panmure Liberum analysts said in a note to clients.
"We think Action has been performing ahead of expectations so far this year but there has been no change to guidance, and we note that there are still two big months to come," RBC Capital Markets said.
Net asset value per share stood at 2,261 pence as of Sept. 30, up from 1,886 pence a year prior, 3i Group said.
"Against an uncertain geopolitical environment and weak growth across much of Europe, we move into the second half of FY2025 with a portfolio that is well positioned to build on a solid first half," Chief Executive Simon Borrows said. He added that some of the companies in its portfolio that were impacted by challenges in 2023 are starting to see improved trading.
The board declared an interim dividend of 30.5 pence a share against 26.5 pence.