John Laing Group

LN: JLG

£1835.9m market cap

372.4p last close

John Laing is an originator, active investor in, and manager of greenfield infrastructure projects. It operates internationally and its business is focused on the transport, energy, social and environmental sectors.

Investment summary

JLG posted strong growth in FY18, with the principal benchmark, NAV per share, up 15% (18.2% including dividends paid). The growth in the NAV per share was achieved thanks to a strong increase in the fair value (72p/share) boosted by continuing growth in ‘embedded value’ (29p/share) and by a significant rise in ‘value enhancements’ to the portfolio (+27p/share) derived from the above book value disposal of Intercity Express Programme Phase I and the subsequent impact on IEP Phase 2. JLG can now point to a compound growth rate in NAV per share (with dividends) of 15.8% since its IPO in 2015. Appetite for infrastructure assets remains strong and we believe JLG’s balance sheet, track record and geographic capabilities should allow it to exploit these opportunities. JLG currently trades at a premium to our FY19e NAV per share of 360p.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 196.7 138.1 126.0 31.9 11.7 N/A
2018A 397.4 331.9 296.6 63.1 5.9 N/A
2019E 312.7 247.9 233.4 47.7 7.8 N/A
2020E 349.9 283.8 264.6 53.1 7.0 N/A
Last updated on 17/06/2019
Industry outlook

Predicted population growth and a drive for increased renewable energy generation create a favourable outlook for investment in infrastructure projects.

Last updated on 17/06/2019
Share price graph
Balance sheet
Forecast net debt (£m) 131.4
Forecast gearing ratio (%) 12
Price performance
%
1m
3m
12m
Actual (4.4) (4.0) 31.9
Relative* (4.2) (5.2) 38.2
52-week high/low 402.0p/264.2p
*% relative to local index
Key management
Olivier Brousse CEO
Luciana Germinario CFO

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