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Home > News room > News archive > 2005 > News archive - 2005

News archive - 2005

Printable version

Disposal of 50% of Defence Management (Holdings) Ltd to Serco Investments Ltd

Monday, October 03, 2005

John Laing plc ('Laing') announces today that it has sold its 50% interest in
Defence Management (Holdings) Limited ('DMH') to Serco Investments Ltd ('Serco')
for £5.9 million in cash. The investment was held by Laing's wholly owned
subsidiary Equion Ltd.

DMH, through its subsidiary Defence Management (Watchfield) Ltd holds a DBFO
contract with the Ministry of Defence ('MoD') to design, build, finance, operate
and maintain the Joint Services Command & Staff College in Shrivenham.
Construction was completed in August 2000 and the concession to operate and
maintain the facility expires in 2028. Laing has been involved in this
award-winning project since its inception and now that it is well into the
operational phase it is widely recognised as a first class facility.

As a result of cash distributions and profit recognition to date, Laing's
interest in DMH was carried in the balance sheet at a net liability of
£1.9 million immediately prior to sale. Laing will record a profit on disposal
of £7.8 million in the current financial year.

The proceeds will be made available for further investment in Laing's
infrastructure businesses.

Andy Friend, Chief Executive of John Laing plc, commented:

'Under an MoD initiative the college is to be integrated into a wider Defence
Academy Campus structure with Serco appointed to the Campus Integrator role.
This disposal generates value for Laing and facilitates that integration to the
benefit of both project and client. It is consistent with our strategy of
carrying out equity disposals only where appropriate circumstances prevail.
However, more usually we will be maintaining long-term stakes in operational
projects.

Laing continues to work successfully with both Serco and the MoD on other
significant infrastructure projects.'

For further information please contact:

John Laing plc 020 7901 3200
Andy Friend, Chief Executive
Adrian Ewer, Finance Director

Finsbury Group 020 7251 3801
Edward Orlebar / Faeth Birch

Notes to Editors

* Laing's portfolio of investments currently includes national and
international roads, rail and accommodation projects. Road projects include the
Severn River Crossings, the E39 road in Norway, the M6, Sirhowy Way in Wales, as
well as the UK M40 DBFO road. Laing also owns Chiltern Rail, one of the UK's
most successful train operating companies. Accommodation investments include the
MOD main building, two police firearms training centres, hospitals including the
Queen Elizabeth in Greenwich and the Newcastle and Norwich hospital in Norfolk.
It also invests in a number of NHS LIFT healthcare projects and schools projects
throughout the UK.

* For further information and media resolution images, visit John Laing
plc's website http://www.laing.com