John Laing gives upbeat, if slightly cautious, update

John Laing (JLIF), the private public partnership (PPP) infrastructure investment company, has posted 2.1 per cent underlying growth in the first quarter of 2013, equal to 8.7 per cent on an annualised basis.

John Laing (JLIF), the private public partnership (PPP) infrastructure investment company, has posted 2.1 per cent underlying growth in the first quarter of 2013, equal to 8.7 per cent on an annualised basis.

It said the actual portfolio value increased by £10.7m to £548.1m during the period, in which time it completed around £30m of acquisitions from the market.

The dividend was increased by 4.2% to 3.125p per share for the second half of 2012.

The net asset value at the end of the period totalled £542.1m.

The group also revealed it has doubled its credit capacity with a new three-year £150m revolving credit facility.

Paul Lester, Chairman of the John Laing Infrastructure Fund, said: "The start of 2013 has seen JLIF's strong performance continue, with underlying growth in our investments resulting in a 2.1% increase in the value of the Portfolio. This has been further enhanced by market acquisitions in the year to date totalling approximately £30m.

"In recognition of the growth in JLIF's portfolio and the success of the underlying projects, as previously announced the board has decided to increase the dividend for the six month period ended December 31st 2012 by 4.2% which will be reflected in the dividend payable on May 14th 2013."

The group is confident the government's introduction of a new infrastructure procurement model, PF2, will it believes will help boost the flow of projects coming to market and said it believes the pipeline available to the company will increase in both the medium and long term.

However, it also warned that there continue to be challenges faced by the UK, which JLIF believes may have an impact on infrastructure delivery.

Andrew Charlesworth, Director of John Laing Capital Management(JLCM), the investment adviser to JLIF, remains confident: "We are pleased to have made two new acquisitions in the period, both acquired on the open market. This takes the percentage of the investments sourced from third parties from 41% in 2012 to over 50% in total since the end of 2011.

"The secondary market has been particularly active in the first few months of 2013 with a range of investment opportunities presented to JLIF both in the UK and overseas.

"The new debt facility will enhance JLIF's ability to respond to acquisition opportunities, especially of large portfolios of projects, while supporting JLIF's ongoing commitment to ensure that capital raised in the equity markets remains fully invested, minimising cash drag."

The share price dripped 0.09% to 114.70p by 08:40 Friday.

NR

Recommended

The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
7 sin stocks to buy yielding up to 8%!
Share tips

7 sin stocks to buy yielding up to 8%!

Sin stocks don’t have the best reputation, but when it comes to investment returns, they’re certainly worth a closer look.
2 Dec 2022
Share tips of the week – 2 December
Share tips

Share tips of the week – 2 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Dec 2022
3 emerging-market stocks to watch
Share tips

3 emerging-market stocks to watch

The top emerging-market stocks to keep an eye on, according to Union Bancaire Privée’s Eli Koen.
1 Dec 2022

Most Popular

Fan heater vs oil heater – which is cheaper?
Personal finance

Fan heater vs oil heater – which is cheaper?

Sales of portable heaters have soared, as households look to cut their energy costs. But which is better: a fan heater or an oil heater? We put them t…
21 Nov 2022
Stock market crash? This time it’s (slightly) different
Stockmarkets

Stock market crash? This time it’s (slightly) different

The bears expecting a stock market crash have got it wrong, says Max King.
30 Nov 2022
Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022