London, May 16, 2026, 21:04 (BST)
- 3i shares finished Friday at 2,210p, gaining 4.6% for the session, though still off about 14.7% this week.
- Action reported a like-for-like sales rise of 2.4% over the first 19 weeks of 2026, down from 6.8% in the same period last year.
- 3i said it will buy back as much as £750 million of shares. Two directors picked up about £727,000 worth of stock after the drop.
3i Group shares rebounded Friday but still finished the week deep in the red. Investors sold off the London-listed investment company after Action, the discount retailer behind much of its growth, reported slower trading.
London markets were shut for the weekend, as the London Stock Exchange only offers trading on weekdays. The next trading session is Monday. 3i booked a profit this year. The concern is whether Action’s growth is slowing down just as things could get tricky.
3i shares finished Friday at 2,210p, climbing 4.64%. The FTSE 100 dropped 1.71%. That bounce recouped some Thursday losses, but the stock was still down almost 15% for the week from its previous Friday close of 2,590p.
Action is now key for 3i. At March 31, 3i put a £23.74 billion value on its 65.4% holding in the retailer, out of a £31.82 billion total portfolio. As of Friday’s close, 3i shares traded about 27% under the reported net asset value per share.
3i reported that Action’s like-for-like sales grew 2.4% in the year to May 10, down from 6.8% a year earlier. The firm cited cooler weather, weaker seasonal sales, more cautious French consumers, and less German traffic since the Middle East conflict intensified at the end of March.
RBC Capital Markets analyst Manjari Dhar told Investors’ Chronicle the last seven weeks were “no better than flat,” adding Action “has a lot to do” in the second half if it wants to hit guidance. That view set the tone for trading. Investors’ Chronicle
Chief Executive Simon Borrows pitched a longer-term view, saying, “FY2026 was another good year for 3i.” He said Action kept “quality at the lowest price” and pointed to years of store expansion to come. Borrows also said the market environment is still complex, warning that geopolitical risk will probably push inflation higher in the next few months. 3i
3i posted a total return of £5.30 billion, which is 22% on opening shareholders’ funds. Diluted NAV per share came in at 3,030p, up from 2,542p the year before. The company raised its full-year dividend to 84.5p a share and said it would buy back up to £750 million of shares, planning to cancel them and cut share capital.
Insider buying popped up again Friday as a filing revealed Finance Director James Hatchley picked up 10,000 shares at £20.825 each. Non-executive director Peter McKellar bought 25,000 shares just below £20.758 a piece. The pair spent around £727,000.
ICG shares slid 3.42% to £18.07 on Friday and Bridgepoint lost around 2% to 261p. The moves didn’t read as a clear private-equity sector trade. 3i traded differently this week, with its selloff linked to a single, portfolio-dominant asset.
The risk for 3i is clear. If economic weakness in France and Germany goes beyond weather or geopolitics, Action’s valuation multiple could face fresh pressure. That multiple is what investors will pay for earnings. 3i said a one-point move in Action’s post-discount multiple shifts the value of its investment by £1.5 billion.
Traders are set to watch this week if buybacks and insider buying can help stabilize the shares. Broker research keeps pointing to the same issue: Action’s second half needs to get better. Repurchases under the buyback must be reported within seven trading days of buying, so investors have a short-term record to track.
