John Laing Group


£1939.5m market cap

393.4p 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’s H119 results showed that as at 30 June 2019 the NAV per share had risen 0.6%, to 325p. NAV growth was restricted by asset write-downs to Australian (13p/share) and European (11p/share) renewable assets. The write-down to the valuation of the renewable assets was offset, in part, by a strong performance in value enhancements from its existing projects (16p/share) which, along with the ’embedded’ sources of value creation (18p/share), contributed significantly to the fair value movement (35p/share). The DPS increased 2.2% to 1.84p per share, in line with our estimates. We have revised our forecasts to reflect the reduction in the value of some of the renewable assets seen during H1. Our revised forecast for FY19e NAV per share is now 353p (previously 360p). Despite the mixed H1, JLG remains confident for FY19e and beyond.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 196.7 138.1 126.0 31.9 12.3 N/A
2018A 397.4 331.9 296.6 63.1 6.2 N/A
2019E 279.7 214.9 200.6 41.0 9.6 N/A
2020E 338.9 272.8 253.8 50.9 7.7 N/A
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 11/12/2019
Share price graph
Balance sheet
Forecast net debt (£m) 155.9
Forecast gearing ratio (%) 9
Price performance
Actual 8.1 10.1 31.9
Relative* 9.2 10.9 22.5
52-week high/low 402.0p/308.4p
*% relative to local index
Key management
Olivier Brousse CEO
Luciana Germinario CFO

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