Summary Essay

2721 Words Oct 30th, 2012 11 Pages
Table of content

1.0 Introduction

3i Group plc is an international investor headquartered in London, United Kingdom. The essay will analyze the key financial trends among five years of the company; compare the capital strategy performance analysis among the company and also to identify best or worst performing measures on future development. Additionally, the essay will focus on the exchange rate risk and country and political risk and give any recommendations based on the risks.

2.0 Description on 3i plc

3i Group plc is one of the world’s leading investors and it is a United Kingdom-based company which belongs to financial services
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The operating profit of the company was £328 million in 2011, presenting an increase of 15.90% over 2010. Also the net profit of the company was £186 million in 2011, increasing in 20.78% compared to that in 2010.

3.0 Financial trends among five years

|Revenue trends among five years |
|Year |2007 |2008 |2009 |2010 |2011 |
|Revenue (£million) |1406 |1041 |-2206 |843 |601 |


From the table, it can be seen the significant drop in 2009. Because in May 2008, the company has got a great impact of the credit crunch, energy prices and raw material costs on economic activity, and also the pressure from the world’s monetary authorities without precipitating recession or a sharp rise in inflation (3i plc annual report, 2011). It was clearly to be seen that it could not be avoid a deep recession for almost companies whether the UK government try to avoid further worst impact of inflation by modifying the policy, and 3i plc had serious implications for the recession which had a deep reduction on revenue. Then after the economic crisis, 3i plc got on track from 2010, and the revenue began to rise from then

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