Bottom Line: More good news on the horizon and for UK infrastructure as well

 
Marc Sidwell
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AFTER profits before tax of £592m for the first half of the year, up 13 per cent compared to the same period last year, it might be tempting to ask if such a pace can be sustained. But the positive market reaction to Legal & General’s results yesterday suggests the answer is yes. After the last six months saw earnings per share up 13 per cent year on year and dividends per share up 22 per cent, investors are still betting on more to come.

That’s good news for UK infrastructure as well, since L&G sees potential in the retrenchment of the big banks to expand its direct investment. Having already invested over £4bn in this way, including a 46.5 per cent shareholding in Cala Homes, chief executive Nigel Wilson has spoken of increasing its infrastructure investments by a further £12bn over the next decade.

Fortunately, too, L&G brings its business sense when investing for social purpose. Its sceptical view on fashionable projects like High Speed 2 augurs well for future updates.