John Laing Group

LN: JLG

£1835.5m market cap

374p last close

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

Investment summary

JLG’s H118 results showed a 9.3% rise in the NAV per share and recent announcements from John Laing have confirmed that the market for infrastructure investment remained strong in H2. According to JLG, investment commitments for FY18 were £302m, ahead of original guidance of £250m due to two renewable commitments(£35m), entered in to in late 2018. The market for disposals also remains buoyant and JLG recently announced the completion of the sale of its holding in Manchester Waste TPS taking FY18 disposals to £295m (guidance £250m). JLG will announce guidance for FY19 investment commitments and realisations at its FY18 results (5 March). JLG’s share price now stands at a c 12% premium to our FY18 NAV per share estimate of 318p reflecting expectations of continuing strength in the market for infrastructure investment.

Y/E Dec
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2016A N/A N/A N/A N/A N/A N/A
2017A 196.7 138.1 126.0 31.9 11.7 11.1
2018E 346.9 281.1 268.4 57.4 6.5 N/A
2019E 310.3 243.1 229.9 46.9 8.0 N/A
Last updated on 21/02/2019
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 21/02/2019
Share price graph
Balance sheet
Forecast net debt (£m) 46.8
Forecast gearing ratio (%) 4
Price performance
%
1m
3m
12m
Actual 6.9 15.8 48.9
Relative* 4.0 13.6 51.8
52-week high/low 374.0p/241.9p
*% relative to local index
Key management
Dr Phil Nolan Chairman
Olivier Brousse CEO
Patrick Bourke FD