NCP
- Realisation
- Location: UK
- Sector: Support Services
- www.ncp.co.uk
First investment
3i's Eurofund IV invested £121m in September 2005 to enable the £555m buyout of NCP from Cinven and to provide capital to develop NCP Services.
Nature of business
NCP Group comprised NCP Off Street, providing services ranging from city-centre car park management to rail and airport parking; and NCP Services, providing traffic enforcement and management services to local authorities, Transport for London and government agencies.
| Results to 31 December | 2005 (audited) £m |
|---|---|
| Sales | 439 |
| EBITDA | 42 |
Developments since 3i invested
3i has utilised its sector knowledge and experience in Support Services and Outsourcing to assist in the development of NCP. Total workforce grew from 4,500 at the time of the buyout to 6,200 in early 2007. New contracts have enabled NCP Services to grow revenue; it now has a turnover approaching £140m.
During 2006, the decision was taken to form NCP Services as a distinct company in order to maximise value. In March 2007, NCP Off Street was sold to Macquarie for £790m, generating a realised money multiple of three times for 3i and investors in Eurofund IV, who retain a combined 76% shareholding in NCP Services.
| 3i Group plc’s return on investment as at 31 March |
2007 £m |
2006 £m |
|---|---|---|
| Cost | ||
| Equity and loan | 3 | 96 |
| Realised value | ||
| Equity and loan | 264 | n/a |
| Unrealised value | ||
| Equity and loan | 26 | 96 |
| Equity interest | 42% | 40% |
| Income in the year | 16 | 12 |