Infrastructure investor John Laing Group PLC (LON:JLG) said on Friday continues to expect to spend £250mln on investments in 2018, having identified a “strong pipeline” of opportunities.
Chief executive Olivier Brousse said the company has the financial flexibility to take advantage of investment opportunities following a £210mln rights issue in May and the sale of its stake in Phase 1 of the Intercity Express Programme (IEP).
“Our focus is to continue to grow in a managed way by ensuring we select the projects with the best risk-adjusted returns and that we work with the best partners,” he said.
Shares rose 2.2% to 270p in morning trading.
John Laing sells investments to make way for new ones
The group has sold its remaining 15% shareholding in Phase 1 of IEP, an initiative to procure new trains to replace train fleets on the UK’s East Coast Main Line and Great Western Main Line, for £232mln.
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It has also sold its 50% interest in the Lambeth South Lambeth Social Housing project for £9.5mln.
John Laing said investments will be weighted towards the second half of the year.
Bidding activity picks up after slow start to 2018
Record investment commitments in 2017 meant bidding activity was lower in early 2018 but has now picked up in the core markets of Europe, North America and Asia Pacific.
Investment opportunities include a £7mln public private partnership (PPP) in Europe for which John Laing is the preferred bidder, a further 12 shortlisted PPP bids in North America and Europe at a potential value of £360mln and seven renewable energy positions worth £240mln.
The firm said it was pleased with the performance of its investment portfolio in the year to date, including Phase 2 of IEP, the Denver Eagle P3 project, the Optus Stadium in Perth, Sydney Light Rail and the New Royal Adelaide Hospital.
The group added that it moved into a pension surplus of £19.8mln the end of May from a deficit of £35.2mln at the end of 2017 thanks to a cash contribution of £26.5mln in March and a small increase in the discount rate used to value the liabilities.