John Laing profit dips on coronavirus and energy troubles
Profit at infrastructure investor and manager John Laing fell in the first half because of the impact of coronavirus and poor renewable energy performance it said today.
The company said its total return fell six per cent in the six months to 30 June.
John Laing said its net asset value (NAV) per share fell to 309p from 325p a year earlier.
John Laing said its “solid PPP portfolio performance” had been “offset by renewable energy projects challenges and covid-19.”
The company said it was unlikely to meet its target of £1bn of investments by the end of 2021, given the impact of the covid-19 pandemic on the industry and its business.
“Low investment activity in the period, largely due to delays in public procurement and bid processes from 2020 to 2021, driven by covid-19 disruption,” John Laing said.
Chief executive Ben Loomes said: “The first half of 2020 has been challenging and I would like to thank all of my colleagues for their hard work and commitment. The resilient performance of the PPP portfolio and continued good project delivery have been more than offset by challenges in the renewable energy portfolio as well as macro-economic factors.
“New investments in the period were minimal, with covid-19 delaying public procurement processes, as well as the decision taken earlier this year to cease new investment in wind and solar generation.
“Nevertheless, I am confident in the outlook for the business. We are building good momentum in our pipeline of preferred and short-listed bidder positions in PPP projects, and the prospects for infrastructure investment are stronger than ever.”
John Laing shares fell 2.5 per cent this morning to 296p.