John Laing grows NAV by 15%, proposes 5.3p final dividend

John Laing Group has proposed a final dividend of 5.3p per share after the infrastructure investor increased net asset value 15.4% in 2015.

The FTSE 250 group, which floated in February last year, said it had become well established as both a renewable energy and a PPP investor as its investment commitments reached £180.5m, versus an annual average of £135m across the previous four years.

After realisations of £86.3m, net asset value at the year end grew 15.4% to £889.6m, or 242p per share, with profit before tax down 11.5% to £106.6m.

Realisations were short of £100m guidance as management decided to seek better terms on a particular PPP transaction, which was subsequently agreed in February 2016.

With cash yield from the investment portfolio of £38.9m, directors have pledged a final dividend of 5.3p per share in line with policy, including a special dividend of 2.1p per share.

Chief executive Olivier Brousse said: "2015 has been a very good year for John Laing with more than 15% of net asset value growth. Our business model has proved resilient in a volatile macro-economic environment.

"We have the people, agility and brand recognition to take advantage of the markets for new infrastructure in the regions we operate in and we are confident in our future prospects."

The company believes that infrastructure needs are generally "substantial and urgent" due to global population growth, urbanisation and climate change.

The European PPP market was said to be more subdued in the near term, though hopes are for the wider market to follow the bullishness of Germany, the Netherlands, Norway and Ireland.

An immature US market offers "significant" prospects for the office opened there in 2014, with several states having passed PPP legislation and "a visible need to replace or upgrade existing bridges, roads and other transport assets".

After the recent COP summit in Paris, confidence is strong for renewable energy, though the markets for onshore wind and solar farms is becoming "increasingly competitive". New markets offer opportunities, however, such as smart meters in the UK or LNG and other energy assets.