2003 saw a significant development of John Laing’s forward pipeline in each of our core sectors. Successful bidding strategies have been reinforced by the strong and growing reputation of Equion, Laing Roads and Laing Rail for delivering quality outputs in line with their contractual commitments.
 Our investment in bids was particularly successful during the second half of 2003 when the impact of earlier decisions to expand bid resources fed through. A total of 17 bids on which the Group was previously short-listed were decided during this period, with preferred bidder status achieved on 9 of these projects (for a total of 18 preferred bidder positions at 31 December 2003). These new preferred bidder projects have an estimated combined capital value of £2.0 billion and, in aggregate, John Laing expects to provide 54% of the equity required in these projects.
The Group expects ExcellCare to reach financial close on a further 5 LIFT schemes during 2004 and, through Equion, on a further 4 UK hospital investments during 2004-5. Given announced Government plans, the health sector is expected to remain a major focus for Equion, with an expanded programme of schools bidding also increasing in importance. In Roads, we expect to progress bidding a number of opportunities elsewhere in the European region during 2004. Within Rail, financial close on schemes to deliver further track and facility improvements for Chiltern is forecast for 2004 and, depending on SRA confirmation of its franchising timetable, we expect London & Western Railways to initiate bid activity in relation to the proposed Greater Western franchise.
2003 saw development of significant liquidity in the UK’s secondary market for operational infrastructure assets, and this trend is expected to continue in 2004 and beyond. While the market is expected to take some time to mature, it will in due course allow the Group to release significant value from operational projects. The number of fully operational projects is expected to increase during 2004 as projects currently under construction reach completion. Particularly significant in this regard will be the completion of the MoD Main Building project forecast for the second half of 2004.
Having implemented the transformation of the Group during 2003, we enter 2004 with confidence in the outlook for our core investments business. The prospects for all our markets in PFI/PPP investment are strong and the high quality of our existing portfolio supports our bidding for new projects. |
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