3i Group reported a strong first half driven by its discount retail chain Action, and said it increased its stake in the business twice despite signs of weakening consumer confidence.
The British private equity firm on Thursday posted a total return of 3.3 billion British pounds for the six months to Sept. 30, up from 2 billion pounds a year earlier.
In October, 3i reinvested 755 million pounds to acquire a further 2.2% stake in Action, lifting its ownership to 62.3%, the company said.
That transaction, which followed a separate 2.2% stake purchase in September, came after a capital restructuring at Action returned 944 million pounds to 3i.
Action's net sales for the first nine reporting periods of the year rose to 11.2 billion euros, with like-for-like sales growth of 6.3%.
However, 3i noted that softening trading in France could pull the retailer's full-year growth below previous guidance.
"We remain cautious in the deployment of capital into new investment, but will continue to allocate selectively, including to lower-risk reinvestments in businesses we know and trust," Chief Executive Simon Borrows said.
The company's net asset value per share rose to 2,857 pence from 2,542 pence at the end of March.
More from this issuer
Related coverage
3i Group PLC said on Thursday it has agreed to buy an additional 2.2% stake in European discount retailer Action from Singapore's sovereign-wealth fund GIC.