John Laing Share Discussion Threads

[jonwig] 24/8/2018 05:52

Citywire:

Peel Hunt continues to be baffled by the lowly rating on shares in John Laing (JLG) after strong half-year results from the infrastructure investment group.

Shares in the group jumped 7.2% to 314.2p after it reported £174.3 million of profits for the six months to the end of June, up from £36.6 million over the same period last year.

The big jump in profits was fuelled by a gain on the disposal of its Intercity Express Programme railway project investment.

‘Another set of results ahead of expectations underlines just how good John Laing is at building value,’ said analyst Andrew Shepherd-Barron.

‘We continue to believe that John Laing is undervalued by investors and that this will change,’ he added.

‘We do not see how investors will continue to price the equity at a discount [to net asset value] when a premium is fully deserved.’

Shepherd-Barron retained his ‘buy’ rating on the shares and upped his target price from 355p to 400p.

[skinny] 23/8/2018 08:05

Peel Hunt Buy 319.60 355.00 400.00 Reiterates

[jonwig] 23/8/2018 07:19

Thanks Skinny: I used the wrong search term!

Good to see geographic distribution away from UK.

Always a few niggles (which are also large investments):

Sydney Light Rail, New South Wales, Australia - the programme is approximately 12 months behind the contract schedule, but remains within the overall long-stop date. Part of the delay is attributable to the presence of below ground utility services not identified before construction commenced. This has led to various claims by the principal contractor, which are currently the subject of negotiations between the contractor and the public sector client, facilitated by the project company;

New Royal Adelaide Hospital, South Australia - the project company continues to monitor the performance of the facilities management services provider. Whilst performance has been improving, the project company and the South Australian government are currently in discussions about the application of the abatement regime resulting from service under-performance;

New Generation Rollingstock, Queensland, Australia - whilst the programme is currently behind schedule, a further 18 trains were accepted during the first half of 2018, bringing the total number of accepted trains to 24. The operating performance of the trains in service has been in line with forecast during the period; and

I-4 Ultimate, Florida, US - this availability-based road project in central Florida is approximately eight months behind the contract schedule. All parties are currently discussing schedule optimisation approaches in order to further mitigate any potential delays.,/I>

[skinny] 23/8/2018 06:35

JLIF & JLEN are mentioned 23 & 22 times respectively - this is in respect of the offer :-

"The offer is expected to become effective in late September/early October 2018. During this period, the Group expects to discuss with the acquiring consortium the future of its asset management services to JLIF. As previously disclosed, the Investment Advisory Agreement between JLIF and JLCM is terminable by either side with 12 months' notice."

[jonwig] 23/8/2018 06:23

Some key numbers:

dividend 1.8p, ex-div 27/09, pay 26/10,
NAV 307p (after 281p adjusted on 31/12).

I can't find anything about the future of their management contract with JLIF.

[skinny] 23/8/2018 06:04

John Laing Group plc (John Laing, the Company or the Group) announces its unaudited results for the six months ended 30 June 2018.

Highlights

· Net asset value (NAV) per share at 30 June 2018 of 307p (31 December 2017 - 281p1)

- 9.3% increase since 31 December 2017

- 11.7% increase including dividend paid in May 2018

· NAV of £1,505.4 million at 30 June 2018 (31 December 2017 - £1,123.9 million)

· £39.2 million in investment commitments (six months ended 30 June 2017 - £111.3 million)2

· Strong pipeline of £2.3 billion of investment opportunities, including 12 shortlisted PPP positions representing c.£325 million of potential investment

· Realisations of £241.5 million from the sale of investments in project companies (six months ended 30 June 2017 - £151.3 million)

· Profit before tax of £174.3 million (six months ended 30 June 2017 - £36.6 million) and earnings per share (EPS) of 38.8p (six months ended 30 June 2017 - 9.4p)3

· Portfolio value at 30 June 2018 of £1,259.7 million representing 18.2% increase on rebased portfolio value4 at 31 December 2017

· Interim dividend of 1.80p per share payable in October 2018 (six months ended 30 June 2017 - 1.75p per share5)

· 1 for 3 rights issue in March 2018 raising £210.5 million, net of costs (the Rights Issue)

· 2018 guidance for investment commitments and realisations maintained



Olivier Brousse, John Laing's Chief Executive Officer, commented:

"We are pleased with our performance in the first half of 2018. John Laing is growing as an international expert investor in greenfield infrastructure, in Europe, North America, Asia Pacific and beyond. Our pipeline of opportunities continues to grow, whilst our exposure to the UK market continues to reduce. The recent Rights Issue has given us the financial credibility to team up with the best international infrastructure players. At the same time we will retain our risk analysis and investment discipline to continue to grow safely and in a scalable way. Our pipeline should continue to drive our investment growth, whilst the quality of our secondary portfolio and the dynamism of the market for operational assets should continue to fund that growth. The recent reorganisation around our three regions will ensure scalability of our growth and cost base while reinforcing local presence. We are confident about our business model and our future performance."



Notes:

(1) NAV per share at 31 December 2017 of 281p is the previously reported NAV per share of 306p multiplied by the Rights Issue bonus factor6

(2) Based on new investment commitments secured in the six months ended 30 June 2018; for further details see the Primary Investment section of the Business Review

(3) Basic EPS (adjusted for the Rights Issue); see note 7 to the Condensed Group Financial Statements

(4) Rebased portfolio value is described in the Portfolio Valuation section

(5) Interim dividend per share for the six months ended 30 June 2017 of 1.75p is the 1.91p paid in October 2017 multiplied by the Rights Issue bonus factor6

(6) For details of the Rights Issue bonus factor see note 7 to the Condensed Group Financial Statements



A presentation for analysts and investors will be held at 9:00am (London time) today at The Lincoln Centre, 18 Lincoln's Inn Fields, London WC2A 3ED. A webcast of the presentation and a conference call facility will be accessible using the details below.



Conference call dial in details:



UK: 020 3936 2999

Other locations: [phone]

Participant access code: 39 57 10



Participant URL for live access to the on-line presentation:

[skinny] 20/8/2018 13:19

I hadn't noticed PHNX! :-)

[jonwig] 20/8/2018 11:44

Thanks Skinny - hadn't realised. PHNX same day. Hard work this investment lark!

[skinny] 20/8/2018 11:32

Half year results on 23rd.

[topvest] 16/7/2018 10:35

Interesting news of a possible cash bid at JLIF.

[jonwig] 05/7/2018 04:34

New Edison note can be downloaded here:

[alter ego] 29/6/2018 21:41

Chuckol, that description sounds more like you than jonwig. You're filtered so naff off.

[robbiereliable] 29/6/2018 13:58

I am content with the update. Potentially could have done more to attract investors, but I have always found them to be reliable. Steady growth share. Was delighted to pick up the additional offering at the lower share price Onwards and upwards

[danielbird193] 29/6/2018 10:49

Today's announcement lacked detail. Financial information about the disposals was scant, and there was no detail about the valuation of the investment portfolio. A missed opportunity by management.

UHOUND, you suggest "better value elsewhere". Any particular stocks in mind?

[chuckol] 29/6/2018 10:15

jonwig does not have the slightest clue about anything. He likes to act superior, but he's pretty unintelligent and unprincipled.

[chuckol] 29/6/2018 10:15

jonwig does not have the slightest clue about anything. He likes to act superior, but he's pretty unintelligent and unprincipled.

[uhound] 29/6/2018 07:46

Underwhelming update. Possible opportunities ahead but if they don't win contracts then disappointment beckons.

As mentioned - a few issues on a couple of projects.

Better value elsewhere perhaps.

[jonwig] 29/6/2018 07:35

Am out of UK so not easy to post, but one of my brokers met them recently and was impressed. So so weakness a bit puzzling.

Update shows two projects with issues. This sort of thing explains why discount is to be expected

[igoe104] 29/6/2018 07:01

no idea Rlivsey, especially as today update seems very positive.

its that time of year, when folks are paranoid and shares can get oversold, but its creates opportunities.

[rlivsey] 28/6/2018 13:19

Very quiet board this one. Anyone have any ideas why such an awful drop

[rlivsey] 20/6/2018 14:58

Teetering on the support line, potentially dropped through it. So could be in for a drop

[danielbird193] 13/6/2018 10:36

@Rlivsey

Latest reported NAV was 306p per share (as at 31/12). Based on the share price of the listed infrastructure funds (including JLIF and JLEN) I think these should trade at a premium of 5% - 10% above NAV which puts my target in the region of 330p.

Of course there has been a rights issue since the latest reported NAV and I think this may be holding the price back a little. I would expect the company to release a pre-close update for H1 2018 at the end of this month, and then half-year results in August. These announcements could well be the catalyst for an upwards move, depending on what the results show.

[rlivsey] 17/5/2018 09:16

What's everyone's target for this. Could potentially go past the 52 week range