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9 Jul 2015 07:00
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND OR SOUTH AFRICA.
9 July 2015
John Laing Environmental Assets Group Limited
Response to Budget
The Board of John Laing Environmental Assets Group Limited ("JLEN" or the "Company") notes the Chancellor's statement in the Budget in relation to the removal of the Climate Change Levy exemption for renewable electricity. The impact of this measure is that certain assets held by JLEN will no longer receive additional revenue from Levy Exemption Certificates ("LECs").
The Board also notes the Chancellor's statement in the Budget regarding the reduction in the corporation tax rate to 19% in 2017 and 18% in 2020.
The net impact of these changes on the Company's NAV as at 31 March 2015 is estimated to be a reduction of approximately 0.6 pence per share with any loss of revenue from LECs being broadly offset by a reduction in the corporation tax rate. The Company dividend target remains unchanged, being 6.054 pence per share for the year to 31 March 2016, and increasing with inflation thereafter1, although the loss of revenues from LECs is likely to have a minor impact on dividend cover in the near term.
The limited impact on JLEN from the Budget reflects the benefits of diversification in the Company's portfolio with a number of assets being net beneficiaries of the changes announced in the Budget.
1These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.
For further information please contact:
John Laing Capital Management Limited David Hardy Chris Tanner
| +44 (0)20 7901 3559 |
Winterflood Investment Trusts Joe Winkley Neil Langford | +44 (0)20 3100 0000 |
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