- Write-offs hit bottom line but infrastructure builder and owner raises 2020 dividend
- Net asset values declined in the first half but were kept stable in the second half of 2020
The green spending boom has not yet translated into a portfolio re-rating for infrastructure specialist John Laing (JLG). But despite the net asset value (NAV) decline last year, John Laing will pay out a higher dividend than 2019 and is planning a 2021 special payout as well.
Despite its green credentials, the company agreed close to £700m in sales last year. This was largely part of its renewables sell-off designed to “reduce the exposure of the portfolio to merchant power prices and reduce volatility in the portfolio value and returns”.
Its NAV per share, a key metric because of its portfolio holdings, was down 8 per cent as of 31 December compared to the end of 2019, at 310p. It did recover by 1p from the interim statement last year.
Chief executive Ben Loomes said the “solid and stable” second half performance had validated the public-private partnership-focused strategy.
John Laing saw its NAV climb in the second half and said it would return to full-year underlying growth this year. Buy.
| JOHN LAING GROUP (JLG) | ||||
| ORD PRICE: | 316p | MARKET VALUE: | £ 1.6bn | |
| TOUCH: | 315.2-316.4p | 12-MONTH HIGH: | 381p | LOW: 271p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | NA | |
| NET ASSET VALUE: | 310p* | NET DEBT: | 9% | |
| Year to 31 Dec | Income (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 261 | 192 | 48.1 | 5.14 |
| 2017 | 198 | 126 | 31.9 | 8.92 |
| 2018 | 397 | 297 | 63.1 | 9.50 |
| 2019 | 179 | 100 | 20.4 | 9.50 |
| 2020 | 25 | -65 | -13.3 | 9.70 |
| % change | -86 | - | - | +2 |
| Ex-div: | 29 Apr | |||
| Payment: | 14 May | |||
