LONDON, May 15, 2026, 13:08 BST
3i Group plc shares bounced 5.1% to 2,218p by 12:53 p.m. in London, recouping some of Thursday’s sharp losses. The FTSE 100 investment firm, which relies heavily on European discounter Action, saw its stock post the index’s biggest gain late Friday morning after tumbling 12.76% the previous day on weaker Action sales.
This is notable: 3i effectively trades as a public-market stand-in for Action these days. As of March 31, the company put a £23.74 billion price tag on its 65.4% holding in Action, out of a total portfolio worth £31.82 billion. That’s about three quarters of everything 3i owns.
Same-store sales showed the weakness. Action’s like-for-like revenue was up just 2.4% for the 19 weeks ending May 10, a sharp slowdown from last year’s 6.8%. France and Germany made no real gains — shoppers stayed cautious, store traffic didn’t pick up.
3i booked a full-year total return of £5.30 billion, translating to 22% on opening shareholders’ funds, with net asset value coming in at 3,030p per share after liabilities. The company bumped its total dividend up to 84.5p a share and rolled out a buyback program for up to £750 million—purchases set to wrap up no later than Dec. 31, with shares cancelled to shrink share capital.
After the board gave its signal, directors stepped in with share purchases. James Hatchley picked up 10,000 shares at £20.825 apiece, according to a Friday regulatory filing. Peter McKellar purchased 25,000 shares at just below £20.758 each. Both trades went through on the London Stock Exchange.
Action posted stronger top-line results. Net sales climbed to €4.01 billion in the first three periods of 2026, up from €3.52 billion a year ago. Operating EBITDA reached €498 million, an increase from €464 million. Store openings totaled 69 so far this year, and as of May 10, cash on hand stood at €925 million.
Chief Executive Simon Borrows described FY2026 as “another good year” for 3i, though he stressed the market backdrop “remains complex” and flagged geopolitical risk linked to the Middle East. Borrows also said 3i anticipates inflation ticking higher in the months ahead.
James Carthew, who heads investment company research at QuotedData, struck a cautious tone. The £750 million buyback, he argued, “may not move the dial” since it’s under 5% of 3i’s total market value. Carthew also pointed out that compared to Action’s overwhelming presence, the rest of the portfolio “feels like a rounding error.” The AIC
This fierce competition is driving investor response. In its March Action presentation, 3i compared the retailer to rivals like B&M, Dollar General, and Pepco Group, highlighting Action’s lead on metrics such as store expansion, net sales gains, and operating EBITDA, both over the past five years and in the last year.
But there’s a risk: investors might stop treating Action as a structural compounder and instead lump it in with retailers vulnerable to weather, sluggish shoppers and geopolitical headwinds. Should France and Germany remain stagnant, Action’s 18.5-times run-rate EBITDA valuation multiple could come under fire, and the buyback might only put a dent in the discount.
At the end of March, 3i reported £1.86 billion in liquidity, net debt standing at £547 million, and gearing at 2%—so the balance sheet gives the group some breathing space. Still, the figures that really matter keep rolling out of Action’s stores.
