John Laing plc results for the year to 31 December 2012
John Laing, the specialist investor in and manager of infrastructure assets, announces audited results for the year ended 31 December 2012.
KPIs and financial highlights
|Assets under management1||£1,102.1m||£944.0m|
|Cash yield from investments3||£26.7m||£25.2m|
|New investment committed||£146.1m||£60.6m|
|IFRS statutory accounts|
|Profit before tax||£65.6m||£29.8m|
|Proceeds from investment realisation4||£137.4m||£132.2m|
|•||Strong growth in assets under management|
|•||Value added of £63.8 million (2011: £45.7 million)|
|•||Investment commitments of £146.1 million on seven projects (2011: £60.6 million on five projects)|
|•||IFRS profit before tax increased to £65.6 million (2011: £29.8 million)|
|•||£92.9 million proceeds from sales of investments in five PPP projects, resulting in an IFRS profit of £5.7 million and a profit against original cost of £47.3 million|
1. Assets under management comprise the sum of the Directors’ portfolio valuation (net of the market value of John Laing’s shareholding in the John Laing Infrastructure Fund (JLIF)), JLIF’s market capitalisation and Public Private Partnership (PPP) assets held by the John Laing Pension Fund (JLPF) as at 31 December. The Directors’ portfolio valuation treats investments in subsidiary PPP project companies in the same way as investments in joint venture PPP project companies whereas, under IFRS, investments in subsidiary PPP project companies are treated differently to investments in joint venture PPP project companies. Under IFRS, investments in subsidiary PPP project companies are consolidated in the Group’s financial statements on a line-by-line basis in accordance with IAS 27.
2. Value added represents growth in the Group’s net assets as adjusted for the fair value of subsidiary PPP project companies not in net assets and excluding contributions to and changes in the JLPF deficit.
3. Cash yield from investments comprises subordinated debt interest, dividends and capital redemptions received from subsidiary and joint venture project companies.
4. Proceeds from investment realisation include £44.5 million from sales of JLIF shares.
Commenting on the results Adrian Ewer, Chief Executive of John Laing plc, said: “These are challenging times, but John Laing’s strategy of diversifying geographically, working with strong local supply chain partners and spreading its activities across a range of infrastructure sectors has held it in good stead throughout the economic crisis. It is because of our strategy and experience that we were able to deliver a record year for new investment commitment in infrastructure projects (£146.1 million), more than double our profit before tax in 2012 to £65.6 million and increase the portfolio valuation to £556.0 million.”
John Laing plc is a specialist investor in, and manager of, infrastructure assets in the UK and internationally, principally for the public sector. By combining its skill in the management of development risk, project financing, asset management and operations with those of its chosen partners and the project supply chain, it has built an enviable reputation as a market leader in privately financed infrastructure. John Laing’s key target sectors include accommodation, health, transport, waste and renewable energy, focusing on markets in the UK, Continental Europe, North America and the Asia Pacific region.
John Laing’s primary investment activities involve sourcing, bidding for and winning greenfield infrastructure projects. Its primary investment portfolio includes traditional PPP projects, strategic partnership structures for healthcare schemes in the UK, as well as renewable energy. John Laing works with partners who are individually selected for each project and it brings its broad skills base to everything the Group does.
John Laing’s secondary investment activities involve holding operational infrastructure projects, most of which were originally primary investments for John Laing. It aims to deliver projected investment returns and consistent growth in the value of the secondary investment portfolio. Key to this is developing strong working relationships with partners over the full life of project concessions.
Asset management services are provided to both John Laing’s primary and secondary investment portfolios and, in addition, in respect of John Laing Infrastructure Fund’s (JLIF) investments, through John Laing Capital Management. These services cover: managing project delivery during the construction phase; provision of technical input; and the delivery of a number of services through Management Services Agreements. A further significant area of activity is the identification and implementation of operational improvements to and realisation of value in both the Group’s and JLIF’s investment portfolios.
John Laing Integrated Services (JLIS) provides facilities management services to a number of PPP project companies as well as directly to public sector clients. Sectors covered include local government, education, police, fire and rescue, health and rail.
John Laing’s strategy is to deliver predictable investment returns and consistent growth in the value of both the primary and secondary investment portfolios it manages on behalf of its shareholders, as well as the secondary investments it manages on behalf of third party investors.
Please click here to view the 2012 Annual Report & Accounts.
James Isola / Robbie Hynes,
T +44 (0)20 7379 5151