12th Dec 2019 09:19
(Alliance News) - John Laing Group PLC said Thursday its net asset value at the end of 2019 will be "marginally" below market expectations.
Shares in the FTSE 250-listed privately financed public infrastructure investor were down 11% in London in Thursday morning trade at 352.20 pence each.
John Laing said it has continued to benefit from strong public private partnership project delivery in the second half but said "uncertainty remains over a number of factors", leading it to guide for NAV to fall below current market views.
These include the final level of value enhancements achieved on internal valuation and ongoing transactions and discussions continuing on "certain" PPP projects.
Additionally are a decline in power price forecasts - which John Laing is guiding to take GBP40 million off NAV - and changes in "macroeconomic and tax assumptions", which will shave GBP7 million off NAV.
Finally, John Laing pointed to sterling strengthening as a final factor in its declining NAV. The company's portfolio will take a GBP50 million hit on currency movements.
At the end of 2018, net asset value per share was up 15% year on year to 323 pence, after total net asset value expanded 42% to GBP1.59 billion.
Despite these "uncertainties", John Laing said it has made "good progress" on other PPP projects, including one in the UK, the Intercity Express Programme, and 3 more in Australia.
The company also noted it is on track to meet its three-year investment and realisation target of GBP1 billion by 2021.
John Laing is scheduled to release its 2019 results on March 3.
By Paul McGowan; [email protected]
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