25th Nov 2020 11:51
(Alliance News) - UK infrastructure projects developer John Laing Group PLC on Wednesday said it plans to broaden its investment platform as part of new strategy.
John Laing said the new strategy is comprised of three priorities. "Grow" will see the company "creating a scalable and more diversified platform that capitalises on its existing greenfield purchasing power parity projects". This will include investing in adjacent greenfield infrastructure projetc opportunities and developing investment capability.
"Optimise" involves John Laing using a disciplined and centralised approach to portfolio and capital management. It plans to target annualised run-rate operating cost savings of GBP6 million from re-focusing the business.
"Enhance" will see the company develop additional capabilities to support the new strategy, further embedding and integrating environmental, social and governance considerations into the its processes and activities, and strengthening the funding model.
John Laing said it anticipates that this strategy is capable of delivering sustainable returns of between 9 and 12% per annum, to be achieved over the medium term.
Chief Executive Ben Loomes said that the strategy update builds on "John Laing's strong competitive position and track record in greenfield infrastructure development and enables us to benefit from the positive market outlook for infrastructure investment around the world. Through broadening our investment platform into adjacent areas in infrastructure, improving the efficiency of our operating model, and diversifying our sources of funding, while remaining focused on investing in infrastructure that respond to public needs, we will be able to deliver attractive and more sustainable shareholder returns."
Shares in John Laing were down 1.7% at 320.00 pence in London on Wednesday.
By Zoe Wickens; [email protected]
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