John Laing Group plc Strategy update (4447G)
November 25 2020 - 2:00AM
UK Regulatory
TIDMJLG
RNS Number : 4447G
John Laing Group plc
25 November 2020
25 November 2020
John Laing Group plc
Strategy update
Delivering attractive and sustainable returns
John Laing Group plc ("John Laing" or "the Group") announced at
its half year results in August that a strategic review of the
Group was underway, led by recently appointed Chief Executive
Officer, Ben Loomes. The Group is today presenting the results of
that review and setting out its future priorities.
Commenting on the future strategy, Ben Loomes, said , "Following
a comprehensive review of the business, we are today announcing a
future strategy to position John Laing for sustainable growth. This
builds on John Laing's strong competitive position and track record
in greenfield infrastructure development and enables us to benefit
from the positive market outlook for infrastructure investment
around the world. Through broadening our investment platform into
adjacent areas in infrastructure, improving the efficiency of our
operating model, and diversifying our sources of funding, while
remaining focused on investing in infrastructure that respond to
public needs, we will be able to deliver attractive and more
sustainable shareholder returns."
John Laing's future strategy is built around three priorities.
These are to:
Grow by creating a scalable and more diversified platform that
capitalises on the Group's existing strong greenfield PPP projects
expertise. This will include investing in adjacent greenfield
infrastructure project opportunities as well as developing an
investment capability in mid-market Core-plus economic
infrastructure businesses and platforms. John Laing continues to
see attractive greenfield investment opportunities in its core
markets of North America and Australia, as well as in Colombia,
while the UK and Western Europe are expected to be the initial
focus for investment in Core-plus infrastructure.
Optimise through a more disciplined and centralised approach to
portfolio and capital management, including strengthening
investment, asset management and divestment processes, and greater
operational efficiency. The Group is targeting annualised run-rate
operating cost savings of GBP6 million (including a reduction of
approximately 15% of total headcount) from re-focusing and
centralising the business, and these savings will be re-allocated
to investing in growth initiatives, including building a Core-plus
investment team.
Enhance by developing additional capabilities to support the
future strategy, further embedding and integrating ESG
considerations into the Group's processes and activities, and
strengthening the Group's funding model. John Laing believes that
there is an opportunity to further leverage our platform and create
additional shareholder value through managing third-party capital
alongside its balance sheet.
John Laing anticipates that this strategy is capable of
delivering sustainable returns of between 9 and 12% per annum, to
be achieved over the medium term.
Presentation
A presentation of our update will be web-cast for analysts and
investors today at 2:00pm (GMT) and will be followed by a live
Q&A session starting at c.3:40pm (GMT), also accessible on the
same platform. The link to register for the web-cast is available
on our website at:
https://johnlaing.connectid.cloud/register
Presentation materials will be available on John Laing's website
shortly before the event begins.
For further information, please contact
investorrelations@laing.com
Enquiries:
Analyst & investors:
Kellie McAvoy Head of Investor Relations +44 (0) 7923 249298
Media:
Tashi Lassalle Director of Communications +44 (0) 7823 249384
Matthew Denham Teneo +44 (0) 7825 735596
Camilla Cunningham Teneo +44 (0) 7464 982426
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