John Laing Group - Growth in buoyant markets

John Laing Group’s (JLG) trading update and recent disposal of a wind farm provided year-to-date figures for investment commitments and realisations. The figures confirmed the strength of the underlying infrastructure project market and highlighted the increased level of activity within the business. We have revised our forecasts and now expect a special dividend payment of 5.3p/share (6.5% of £299m), offering a yield on the final and special payments combined, of c 3.3%. We expect further NAV growth in FY17 and beyond, and believe JLG’s rating is undemanding.