12 Dec 2019 07:00
JOHN LAING GROUP plc
聽
PRE-CLOSE UPDATE
聽
John Laing Group plc ("John Laing" or "the Group"), the international greenfield infrastructure investor, today issues a pre-close update for the year ending 31 December 2019 ahead of the Group's results on 3 March 2020.
聽
Overview
聽
路; In the second half of the year, John Laing has continued to benefit from strong PPP project delivery and ongoing value enhancements
聽
路; The translational effect of Sterling strengthening from 1 July 2019 to 30 November 2019 has negatively impacted the value of the portfolio by c.拢50 million
聽
路; There remains uncertainty over a number of factors that will impact the Group's full year results:
o Internally, these include the final level of value enhancements achieved, progress with ongoing transactions and the outcome of discussions on certain PPP projects
o Externally, a decline in power price forecasts - currently expected to have an adverse impact of c.拢40 million - and changes in macroeconomic and tax assumptions, expected to have a c.拢7 million negative impact
聽
路; As a result, Net Asset Value for the full year, before the above mentioned impact of foreign exchange, is expected to be marginally below market expectations.
聽
Active asset management driving strong PPP project delivery
聽
Good progress on a number of projects, including:
路; IEP Phase 2 (rolling stock) - all 75 trains expected to be delivered on schedule by mid-2020
路; Sydney Light Rail (12km of track and 60 trams) - first passenger service due on 14 December 2019 and full service for both stages expected by Q1 2020
路; New Generation Rollingstock (rolling stock, Brisbane) - all 75 trains expected to be delivered on schedule by the end of 2019
路; New Royal Adelaide Hospital (800 beds facility) - settlement commercially agreed between project company and South Australian government including revised payment mechanism.
聽
Growing pipeline of investment opportunities. On track to reach three-year investment and realisation target of 拢1bn by 2021
聽
路; 拢157 million of investment commitments completed in four projects
路; Growing pipeline of investment opportunities in the US, Australia and Latin America. We also continue to assess other asset classes and geographies that may fit our business model
路; Pipeline includes two preferred bidder and several shortlisted and exclusive positions with a potential investment opportunity of 拢463 million, due to close within the next 18 months
路; 拢132 million of proceeds from realisations completed to date. Other disposal processes are underway to take advantage of strong secondary markets
- ENDS -
A call for analysts and investors will be held at 8.00am (London time) today.
聽
Conference call details:
Number 0800 358 9473
US number +1 855 85 70686
Pin code 51736751#
聽
Further information
Analyst/investor enquiries:
Luciana Germinario, Chief Finance Officer +44 20 7901 3200
Tejal Patel, Investor Relations & Finance Manager +44 20 7901 3200
www.laing.com
聽
Media enquiries:
Matthew Denham / Camilla Cunningham, Teneo +44 20 7420 3186
聽
聽
Appendix I: Exchange rates at 31 December 2018, 30 June 2019 and 30 November 2019
聽
Exchange rate vs Sterling | 31 December 2018 | 30 June 2019 | 30 November 2019 |
Euro | 1.1134 | 1.1165 | 1.1721 |
US dollar | 1.2748 | 1.2706 | 1.2901 |
Australian dollar | 1.8096 | 1.8121 | 1.9031 |
New Zealand dollar | 1.9000 | 1.8924 | 2.0049 |
Colombian Peso | 4,141.10 | 4,078.50 | 4,532.81 |
聽
聽