John Laing Group posts sharp rise in profits, sending shares to five-year high

John Laing Group posted a sharp increase in half-year profits, boosted by divestments.

Investors welcomed the infrastructure investor's latest set of figures, pushing its shares to a fresh five-year high.

Commenting on the firm's performance, John Laing boss Olivier Brousse highlighted continued growth in the outfit's pipeline of opportunities, while emphasising its growing geographical footprint, even as it reduces its exposure to the UK market.

He also stressed how a recent rights issue had given it the "financial credibility" to team-up with the best international infrastructure players and continue growing, while controlling risk.

For the six months to 30 June, the outfit posted a 376% jump in its profits before tax to reach £174.3m, after realising £241.5m from the sale of investments in project companies.

That was up from £151.3m in realisations seen over the same period of 2017.

Earnings per share for the period thus rose from 9.4p in the comparable year-ago period to 38.8p.

In parallel, the company's net asset value increased by 33.9% versus the year-end 2017 level to £1,505.4m.

The company also described its existing pipeline of investment opportunities, of £2.3bn, as "strong", saying it included 12 shortlisted Public-Private Partnership positions representing about £325m of potential investment.

Management stuck to its previous guidance for realisations in 2018.

The half-year dividend was raised by 0.05p to 1.80p.

As of 0909 BST, shares in the company were rising by 3.14% to 302.40p.