John Laing Group posts decline in 1H profits but shows NAV growth

John Laing Group posted a small rise in its net asset value at the half-year stage amid writedowns on the value of two of its investments.

The infrastructure project originator and investor reported a net asset value of £1.04bn for the six months to 30 June, up 2.3% since year-end 2016.

In parallel, the company, which originates, invests in and manages infrastructure projects won under governmental public-private partnerships and renewable energy schemes, recorded £151.3m in realisations from the sale of investments, up from £57.7m one year back.

John Laing boss, Olivier Brousse said: "It has been an active year so far and I am pleased to report growth in NAV, after taking into account the reduction in value on our two Manchester Waste investments. [...] We continue to see strong opportunities for attractive growth in our business by scaling up our model in our three core regions: North America, Asia Pacific and Europe."

Profits before tax on the other hand fell from £108.3m to £36.6m for earnings per share of 10.2p, down from 29.1p for the comparable period of a year ago.

Nevertheless, the bulk of that decline was the result of a difficult base for comparisons because in 2016 the company benefitted from a positive exchange rate effect of £49.4m linked to the Brexit vote as well as a £25.5m writedown on the value of its two Manchester waste investments.

Adding back last year's final dividend payout of £23.1m - which was paid in May 2017 - NAV growth was 4.6%.

During the period, the company also committed to investing in three projects, New Grafton Correctional Centre, Solar House and Hornsdale 3 Wind Farm, totalling £111.3m.

Adjusted for realisations, cash yield and new investments the value of the company's investment portfolio grew by 5.0% or £53.3m to £1.12bn.

In line with the group's dividend policy, the interim payout was raised by 3.2% to 1.91p.

As of 1159 BST, shares in the group were 1.40% lower to 303.50p.