Shares in 3i Group PLC (LSE:III) rose after the private equity group posted a third-quarter update driven by a strong performance from its largest asset, European discount retailer Action.
The FTSE 100-listed private equity group reported a 20% total return for the nine months to 31 December 2025 and a jump in net asset value per share to 3,017p.
Action delivered 16% growth in annual sales and a 14% rise in operating profit, with the discount chain adding a record 384 new stores and reporting like-for-like sales growth of 4.9%, ahead of forecasts.
Notably, trading in the previous weak spot of France showed signs of recovery, with sales turning positive in December and rising 2.1% in January.
3i increased its stake in Action to 62.3% at the end of December and earlier this month agreed to acquire a further 2.9% from Singapore investment fund GIC for £1 billion in shares, expected to complete later this week.
Elsewhere in the portfolio, personal care products manufacturer Royal Sanders and tour operator Audley Travel contributed positively, while 3i Infrastructure paid a £18 million dividend.
Analysts at UBS said the improved sales trend at Action should be well received by the market, particularly after investor concerns following weaker growth in the autumn.
A further investor update is expected at Action’s capital markets day in March.