What does the company do?
John Laing invests in, and manages through the construction phase, Public Private Partnership (“PPP”) infrastructure projects such as transportation and renewables. It is diversified by geography and project.
Why do we like the investment?
The Investment Manager believes it has a competitive advantage in its vertical integration and human capital that are hard to replicate and are attractive to potential consortium partners. Any growth should be driven by looser fiscal policy while the need for projects is driven by urbanisation, population growth and climate change. The operations of the group haven't been affected by the Covid-19 virus. The value of the group is reflected in its net asset value that evolves as assets are developed and sold. These assets are attractive to secondary buyers as their quality can be relied on. The shares provide diversification benefits for the portfolio as they are only loosely correlated with other assets. The company has a strong ESG narrative as it delivers necessary infrastructure and renewable energy projects and helps employ significant numbers of people. The Investment Manager thinks the current valuation underestimates the potential growth that the company can deliver over the long-term.
In which year did we first invest?
Where is their head office?