John Laing interim profit plunges but net asset value edges higher
British infrastructure group John Laing saw its interim profit plunge on the back of currency headwinds and “lower fair value movement”.
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In the six months to the end of June, the FTSE 250 posted a 68% year-on-year decline in pre-tax profit to £32.6m, as the price at which the company could expect to sell its assets was substantially lower than last year.
Adverse currency exchange rates dealt a significantly blow to the group’s profit, as approximately 70% of the London-listed company’s earnings come from overseas.
There was more positive news, however, on the net asset value front, which increased 6.6% year-on-year to £821.7m, after the group posted £44.5m in fair value movement in the period.
John Laing said it expects its full-year investment commitments to be between £150 to £200m, as previously indicated, adding it hopes to benefit from "population growth, urbanisation and climate change" in the long-term future.
“Our focus has been on investment commitments and realisations, which are on track to meet our targets for the full year, alongside enhancing the value of our existing investments,” said group chief executive Olivier Brousse.
“The strength of our pipeline of opportunities gives us confidence in our business model and we are pleased to declare our first dividend since our return to the listed market.”
John Laing shares were down 0.52% to 210.00p at 0848 BST on Thursday.