Thursday 12 December 2019 8:58 am

John Laing shares drop after warning net assets will fall below expectations

Shares in John Laing dropped this morning after the greenfield infrastructure investor said its net asset value (NAV) for the year would be below expectations. 

In a trading update issued this morning, the group said that uncertainty over a number of factors will impact its full-year results, including progress with ongoing transactions and the outcome of discussions on certain projects. 

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A decline in power price forecasts is expected to have an adverse impact of around £40m, while changes in macroeconomic and tax assumptions is expected to have a roughly £7m negative impact, John Laing said. 

Shares dropped as much as 8.5 per cent in morning trading following the update.

The investor said that as a result of the uncertainty outlined in the update, its NAV for the full year is now expected to be “marginally below market expectations”.

John Laing also said the translational effect of sterling strengthening between July and November had negatively impacted the value of its portfolio by around £50m.

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The company said it is on track to reach its £1bn investment and realisation target by 2021. 

John Laing’s full-year results are due to be released on 3 March.