John Laing Share Discussion Threads

[skinny] 05/5/2020 08:01

FWIW - Peel Hunt Buy 361.50 357.60 400.00 - Reiterates

[skinny] 05/5/2020 06:24

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John Laing Group plc ("John Laing" or "the Group"), the international active investor and partner behind responsible infrastructure, is pleased to announce that it has completed the sale of its 30% interest in Auckland South Corrections Facility to AMP Capital for a price in-line with the Group's latest valuation.

more.....

[skinny] 30/4/2020 06:12

Yes - pretty encouraging in these uncharted waters.

[jonwig] 30/4/2020 06:11

I found it pretty encouraging - no new stumbles.

[skinny] 30/4/2020 06:07

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COVID-19 update

We continue to prioritise the health and wellbeing of all our people and are fully adhering to government guidance in each of the markets in which we operate. We are proud to have developed and own frontline assets such as Royal Adelaide Hospital in Australia and Alder Hey Children's Hospital in the UK. We continue to work with all our stakeholders to find ways of supporting them at this critical time.

Portfolio update

For our primary portfolio, comprised of assets under construction, only two of our 16 projects have experienced complete site closure and both are preparing to re-open, subject to appropriate workplace protocols. Elsewhere, construction works have continued albeit with some delays due to reduced staffing levels and availability of materials. Our largest asset, IEP East remains on track with 53 out of 65 trains having achieved qualified acceptance.

Our secondary portfolio, comprised of operational assets, is well positioned given its bias towards availability-based PPPs as well as wind and solar projects, the majority of which have long term off-take agreements in place. Asset availability has been maintained in-line with expectations. Only two of our 32 assets are volume based - the I-77 Managed Lanes project in the US and the A130 in the UK (c50% of revenue exposed to volume). Although both have seen significant reductions in traffic, the valuation for the I-77 in particular is based on a long concession period which means it is insulated from short-term effects.

For the portfolio as a whole, progress with value enhancements has been modest, with operational improvements hampered by the lockdown. Credit market movements have eroded some of the upside from opportunistic refinancings. For those SPVs with short-term debt, none have any requirement to refinance in 2020 and we continue to monitor the market closely.

Investments and realisations

The current crisis presents both opportunities and risks - we see mid-to longer-term opportunities relating to the potential role of infrastructure in building resilience and supporting economic recovery, while the risks relate mainly to shorter-term timing effects. As previously outlined, investment activity in early 2020 has been subdued and we continue to expect modest progress in H1. The majority of opportunities are subject to public procurement processes and, with public bodies in most geographies focused on the immediate crisis, we have seen some slippage of investments timing from 2020 into 2021. On the other hand, the current environment also creates scope for late-stage entries and M&A opportunities that are not yet reflected in the pipeline.

We are pleased to have announced the divestments of Buckthorn Wind Farm and our French wind portfolio during Q1 for total proceeds of just over £70m. We continue to progress our divestment plans, albeit the logistical challenges of lockdown, including conducting onsite due diligence, could cause some delays. While it is too early to fully understand the impact of COVID-19 on secondary markets, the combination of a weak macro-economic outlook and lower interest rates should serve to highlight the attractions of our assets, particularly those which are availability-based. Moreover, our strong financial position gives us flexibility to ensure we maximise value.

In summary, while our investments pipeline remains strong, consistent with the 2019 year end position, and we have continued to progress our divestments programme, it is too early to fully assess the impact of the crisis on timing for both.

Net Asset Value ('NAV')

For the first half of 2020, we expect only modest value creation from project delivery, value enhancements and value uplift on financial closes primarily due to the effect of COVID-19, although overall H1 NAV growth (before dividends deducted) will benefit from an IAS 19 pension gain due to higher corporate bond yields.

In terms of factors outside of our control, to date we have experienced a modest foreign exchange gain, while the long-term off-take agreements in place for our wind and solar assets have insulated us from short-term power price volatility.

Looking ahead, there are a number of factors that could impact our portfolio, and therefore NAV, which we are monitoring closely, the most significant being deflation, long-term power prices and construction delays.

Balance sheet and dividend

The Group's balance sheet and liquidity position remain strong, with financial resources of c£340m available at 1 April to deploy into investment opportunities. In view of this position and our continuing confidence in the business's prospects, the Board has decided that it is appropriate to proceed with paying the 2019 final dividend of 7.66p per share (including special dividend), pending approval by shareholders at the 2020 AGM.


CEO appointment

As separately announced today, we are pleased to confirm the appointment of Ben Loomes as Chief Executive Officer and expect him to take up the position on 8 May.

[jonwig] 12/3/2020 20:24

Edison note, a week old:

[jonwig] 03/3/2020 07:23

FY results:



Good second half made up for the H1 write-downs. NAV is 337p.
Decent special divi again. Total 9.5p for year.
Divi dates are right at the end - a tease!

[shieldbug] 07/2/2020 08:18

Any news on why Brousse resigned or what he is going to do? Perhaps he just wanted to go back to France?

Hopefully he is going for a promotion and not running away from some bad contracts.

[skinny] 23/1/2020 14:47

FWIW :- Peel Hunt Buy 374.89 440.00 Reiterates

[jonwig] 23/1/2020 09:12

Mmm - they aren't saying what he will be doing there.

[ec2] 16/1/2020 16:17

I'm not entirely sure if the general comments in the market in the last day about falling wholesale electricity prices is already in the price given the press release on 12 Dec but I'm not taking any chances having picked the shares up at 330p on that day. I've decided to cash in and take my profits.

[jonwig] 14/12/2019 11:47

Edison note gives some information on consensus NAV as well as clarification of impacts:



Also IC says 'BUY' with the conclusion:

Peel Hunt now expects NAV per share of 335p for FY2019, against the prior year’s 323p. It has reduced its adjusted EPS forecast from 38.6p to 21p. Analysts here note that “the recent headwinds and slow rate of investment mean that investors have to take a longer-term view, but JLG’s essential investment case remains intact”. On balance, while the shares trade at 362p, we stay positive. Buy.

[biglad1] 13/12/2019 10:45

You tube there is a video that explains the talk cant remember the name but think it's talking shares or something like that

[chc15] 13/12/2019 09:36

Added a bit at 3. 65, averaging down from a 3.99 purchase a while back.

[ec2] 12/12/2019 15:21

Alerted by the massive price drop this morning and bought in blind at 330p as at the end of the day this is a well run company with respected management operating in a growth area. There is a growing push worldwide to increase infrastructure spending, and JLG are the experts to benefit from this. To justify such a big price drop the news would have to be catastrophic and it wasn't. I didn't listen in to the 8.00am call but based on the press release JLG were simply resetting expectations in advance of year end results.

[blobby] 12/12/2019 10:27

Summary here:

www.morningstar.co.uk/uk/news/AN_1576142361538068400/top-news-john-laing-group-net-assets-to-fall-below-expectations.aspx

Does anyone know what the "market expectations" are as referenced in the announcement. I wish companies could be more specific rather than talking in code to those in the know.

[carer] 12/12/2019 10:25

over 100 million write off. That is a lot of money. better stay away from this one.

[skinny] 12/12/2019 10:23

I've bought back what I sold on the 2nd @332p - a bit overdone!

[chc15] 12/12/2019 09:59

Ouch, it was recovering nicely too, what a shame. I'll just have to hold now.