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3i Group plc
Report and accounts 2006
Report and accounts 2006
Unrealised value movement
The unrealised profit on revaluation of investments was £245 million (2005: £245 million). An analysis of the components of this return is given in table 5.
Table 5: Unrealised profits/(losses) on revaluation of investments
| 2006 £m |
2005 (as restated)* £m |
|
|---|---|---|
| Earnings multiples1 | 41 | 40 |
| Earnings | 95 | 20 |
| First-time uplifts2 | 70 | 149 |
| Provisions3 | (62) | (66) |
| Up rounds | 3 | 36 |
| Uplift to imminent sale | 97 | 101 |
| Other movements on unquoted investments | (29) | (45) |
| Quoted portfolio | 30 | 10 |
| Total | 245 | 245 |
* As restated for the adoption of IFRS.
- The weighted average earnings multiple applied to investments valued on an earnings basis increased from 12.0 to 12.2 over the year.
- The net valuation impact arising on investments being valued on a basis other than cost for the first time.
- Provisions against the carrying value of investments in businesses which may fail.
The aggregate attributable earnings of investments valued on an earnings basis at both the start and end of the year increased by 5%, giving rise to a value increase of £95 million (2005: £20 million).
Assets which were revalued on an imminent sale basis generated value uplifts of £97 million, reflecting the good realisations pipeline at the year end.