TIDMJLG
RNS Number : 6990J
John Laing Group plc
30 June 2017
JOHN LAING GROUP plc
PRE-CLOSE UPDATE
John Laing Group plc ("John Laing" or "the Group"), the
international originator, active investor and manager of
infrastructure projects, today issues a pre-close update for the
half-year ending 30 June 2017.
Investment activity
-- We have made investment commitments in two of our three
geographical regions: Asia Pacific and Europe
-- Total investment commitments in 2017 to date of GBP111 million (see Appendix I):
o PPP: Grafton Prison (Australia): GBP79 million
o Renewable Energy: two commitments totalling GBP32 million in
France and Australia
-- Total investment commitments for 2017 expected to be in line with GBP200 million guidance.
Realisations
-- Total 2017 realisations to date of GBP151 million, with
aggregate prices achieved in line with portfolio valuation (see
Appendix I)
-- Sale of investments in:
o A1 motorway, Poland for GBP120.4 million
o M6 road, Hungary for GBP22.7 million
o Croydon and Lewisham Street Lighting for GBP8.2 million
-- Further realisations planned for H2 2017; full year guidance
of approximately GBP200 million maintained.
Investment portfolio
-- Our investment portfolio as a whole is performing in line with expectations.
New Royal Adelaide Hospital
-- In South Australia, the New Royal Adelaide Hospital project
successfully reached commercial acceptance on 13 June 2017, as a
result of which we expect the investment to be included in our
Secondary Investment portfolio as at 30 June 2017.
Manchester Waste
-- Further to the update issued on 2 May 2017, discussions are
currently ongoing with the Greater Manchester Waste Disposal
Authority. We will keep the market updated, as appropriate, as to
the outcome of these discussions.
-- John Laing has investments in Manchester Waste VL Co and
Manchester Waste TPS Co, which are contractually linked. As stated
in our update on 2 May 2017, taken together the fair value of the
two investments represented 8% of John Laing's investment portfolio
of GBP1,176 million at 31 December 2016. Like all John Laing
investments, the two investments are made on a non-recourse
basis.
Other Investments
-- Six projects are expected to be completed and move from the
Primary to the Secondary Investment portfolio during the first half
of 2017: Llynfi, Glencarbry and Hornsdale 2 wind farms, Lambeth
Housing, Speyside Biomass and New Royal Adelaide Hospital.
-- Five further investments - Denver Eagle P3, Cramlington
Biomass and Sterling, Kiata and Nordegründe wind farms - are
expected to be completed and move into the Secondary Investment
portfolio during the second half of 2017.
Pension fund
-- As at 31 May 2017, the IAS19 net pension deficit was
estimated at GBP30 million based on an IAS 19 discount rate of
2.60% and long term RPI of 3.10%. The deficit has decreased since
31 December 2016 primarily as the result of a scheduled cash
contribution of GBP24.5 million to the John Laing Pension Fund in
March 2017.
Outlook
-- The pipeline of new investment opportunities remains
attractive in both PPP and renewable energy, particularly across
Asia Pacific and North America
-- John Laing is currently part of eleven shortlisted PPP bids
due to reach financial close in the next two years, including six
in North America
-- We continue to assess opportunities in infrastructure sectors
closely linked to our existing PPP and renewable energy sectors
-- The market for secondary infrastructure investment remains active
Olivier Brousse, John Laing's Chief Executive, said:
"It has been an active year so far and we are in line with our
full year guidance for investment commitments and disposals. The
New Royal Adelaide Hospital reached a key milestone with its
commercial acceptance by the Government of South Australia on 13
June, and our team was instrumental in reaching a solution for this
project. Looking to the second half and beyond, our teams continue
to bring forward a steady stream of new investments, while the
asset management teams are actively managing the projects through
the construction phase. John Laing is well established as an
international greenfield investment expert and we plan to continue
to scale up our model based on our expertise as an originator,
investor and manager of greenfield infrastructure projects. "
The Group's results for the half-year ending 30 June 2017 will
be announced on 24 August 2017.
A call for analysts and investors will be held at 8.00am (London
time) today.
Conference call details:
UK number +44 333 300 0804
Pin code 84249298#
Further information
Analyst/investor enquiries:
Olivier Brousse, Chief Executive +44 20 7901 3200
Patrick O'D Bourke, Group Finance Director +44 20 7901 3200
Tom Randell, Head of Investor Relations and Communications +44 20 7901 3200
Media enquiries:
James Isola, Maitland +44 20 7379 5151
www.laing.com
Appendix I: details of investment commitments and
realisations
Investment commitments Region PPP RE Total
GBPm GBPm GBPm
------------------------ -------------- ------ ------ ------
Grafton prison Asia Pacific 79.3 - 79.3
------------------------ -------------- ------ ------ ------
Hornsdale 3 wind farm Asia Pacific - 10.0 10.0
------------------------ -------------- ------ ------ ------
CAM Energie rooftop
solar Europe - 22.0 22.0
------------------------ -------------- ------ ------ ------
Total 79.3 32.0 111.3
---------------------------------------- ------ ------ ------
Realisations completed Shareholding Purchaser Total
GBPm
------------------------ ------------- --------------- -------
Strabag and
M6 Hungary 30% Intertoll 22.7*
------------------------ ------------- --------------- -------
A1 Poland 29.69% NDI Autostrada 120.4*
------------------------ ------------- --------------- -------
Croydon and Lewisham
Street Lighting 50% JLIF 8.2
------------------------ ------------- --------------- -------
Total 151.3
-------------------------------------------------------- -------
*GBP amounts incorporate the effect of dividend payments by the
project company and adjustments to the
sale price made subsequent to the agreement to sell, as well as
the impact of foreign exchange hedging
JLIF = John Laing Infrastructure Fund
Appendix II: Exchange rates vs Sterling
Exchange rate 30 June 2016 31 December 31 May 2017
vs Sterling 2016
-------------------- ------------- ------------ ------------
Euro 1.2086 1.1708 1.1481
-------------------- ------------- ------------ ------------
US dollar 1.3410 1.2329 1.2901
-------------------- ------------- ------------ ------------
Australian dollar 1.8166 1.7094 1.7350
-------------------- ------------- ------------ ------------
New Zealand dollar 1.8871 1.7754 1.8172
-------------------- ------------- ------------ ------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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