Carillion collapse to have no material impact on John Laing Infrastructure

John Laing Infrastructure Fund updated the market on the impact of the liquidation of Carillion on Monday, saying that its investment adviser John Laing Capital Management was implementing its contingency plans to replace Carillion as facilities management provider on the nine JLIF projects.

The FTSE 250 company said it expected that to occur on similar terms to the existing contracts within the projects.

It said the investment adviser anticipated that there would be “minimal” service disruption, however it initially expected additional advisory and transaction costs in respect of the appointment of replacement facilities managers to cost approximately £3m in aggregate.

“JLIF reiterates that it has no projects currently in construction where Carillion is the contractor,” the board said in its statement.

“JLIF owns one project where Carillion is still liable for any construction defects found on the project, with the construction period having completed over 10 years ago.

“JLIF reiterates that a recently completed routine defects survey has not highlighted any significant areas of concern.”

The investment adviser reportedly believed that the compulsory liquidation of Carillion should have no material impact on the company, and no impact on the company's dividend policy.

John Laing Infrastructure Fund said it would continue to manage the situation as it developed, and provide further updates as appropriate.