LAING ROADS IS THE JOHN LAING DIVISION SPECIALISING IN PFI ROAD AND BRIDGE CONCESSIONS (INCLUDING HIGHWAYS MAINTENANCE AND STREET-LIGHTING PROJECTS). IT MANAGES A PORTFOLIO OF 10 ROADS CONCESSIONS, INCLUDING 8 IN THE UK AND 2 IN THE NORDIC REGION (NORWAY AND FINLAND). IN ADDITION, THE DIVISION ALSO MANAGES INVESTMENTS IN 2 UTILITIES CONCESSIONS IN THE UK.
PARTNERSHIPS CONTINUE TO BE DEVELOPED TO PURSUE FUTURE EUROPEAN ROAD OPPORTUNITIES, FOR EXAMPLE IN THE NORDIC REGION, GERMANY AND FRANCE.
2003 Highlights
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PROFIT BEFORE TAXATION OF £6.6 MILLION (2002 – £3.9 MILLION)
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PORTFOLIO OF 10 SIGNED PROJECTS AS AT 22 MARCH 2004 (2002 – 5)
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E39 NORWAY WON AND CLOSED IN THE FIRST HALF OF 2003, WITH OUR PARTNER SKANSKA, THE FIRST OF A NEW PFI PROGRAMME IN THAT COUNTRY. THE PROCUREMENT WAS COMPLETED IN RECORD TIME FOR A PILOT PROJECT, SPANNING JUST OVER ONE YEAR
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INVESTMENTS ACQUIRED IN MARCH 2003 AS PART OF A PORTFOLIO OF PROJECTS FROM AMEY PLC (M6 AND WALSALL STREET-LIGHTING) WERE SUCCESSFULLY INTEGRATED INTO THE PORTFOLIO DURING 2003
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ENTRY INTO UK STREET-LIGHTING SECTOR ACHIEVED THROUGH AMEY ACQUISITION AND SUBSEQUENT PROJECTS WITH AMEY HIGHWAYS. THE WAKEFIELD STREET-LIGHTING PROJECT REACHED FINANCIAL CLOSE IN LATE 2003, AND THE MANCHESTER STREET LIGHTING PROJECT IS EXPECTED TO REACH FINANCIAL CLOSE VERY SOON
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COMPLETION OF THE FINAL SECTION OF THE A130 PROJECT IN ESSEX IN THE FIRST HALF OF 2003, THE FIRST LOCAL AUTHORITY PFI ROAD CONCESSION AWARDED IN THE UK. TRAFFIC LEVELS ON THE A130 HAVE GROWN MORE SLOWLY THAN FORECAST TO DATE WHICH REQUIRED THE PROJECT FUNDING TO BE RESTRUCTURED. A REFINANCING WAS SUCCESSFULLY COMPLETED IN JANUARY 2004, PROVIDING A ROBUST LONG-TERM INVESTMENT STRUCTURE FOR THE PROJECT, WHICH REMAINS PROFITABLE
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THE SIRHOWY WAY PROJECT IN WALES WON AND CLOSED IN JANUARY 2004, FOR CAERPHILLY BOROUGH COUNCIL, ANOTHER LOCAL AUTHORITY PFI ROAD CONCESSION IN THE PORTFOLIO
Financial Highlights
2003
£ million
2002
Restated*
£ million
Turnover
37.3
16.4
Profit before taxation
6.6
3.9
Net assets
126.3
107.3
* restated for changes in accounting policies, refer to note 1.
