(Alliance News) - John Laing Group PLC on Monday reported a rise in assets during 2019 but a sharp fall in profit.
The FTSE 250 stock was trading 1.0% lower at 327.20 pence each on Monday morning in London.
The infrastructure project investor said that, as at the end of December, net asset value per share was up 4.3% to 337p from 323p a year prior. Net asset value was up 4.4% to GBP1.66 billion from GBP1.59 billion in 2018. However, pretax profit fell sharply to GBP100 million from GBP296 million.
The dividend payout was unchanged year-on-year at 9.50p, comprising a 7.66p final dividend and an interim dividend of 1.84p, which was paid in October.
"We delivered a solid performance in 2019, despite facing challenges principally in our renewable energy portfolio. Following the write-down taken in the first half of the year, we announced that we would be reassessing our activities in wind and solar generation investment. Having completed the review, we have taken the decision to cease investing in standalone wind and solar generation projects across all our geographies. In our view, these asset classes have become commoditised and returns for John Laing are insufficient to cover the external risks," said Chair Will Samuel.
John Laing's wind and solar assets will be available for sale once construction is complete and steady operational performance has been achieved, and are expected to be sold over the next two years, it said.
Looking ahead, the company said it will increase its focus on other emerging infrastructure opportunities, including technologies that enable high penetration of renewables, decarbonisation of other sectors, and the delivery of increased energy efficiency.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
