PFI specialist says it is well positioned for 2006 despite uncertainty over government NHS spending.
John Laing, the PFI specialist, was today upbeat about prospects for 2006, despite the fact that some of its projects face uncertainty in the light of the government’s review of NHS spending.
Laing, which invests in and operates in PFI/PPP accommodation, roads and rail, said in a pre-close trading update that it was “well-positioned” in the year ahead.
However, it is part of the consortium selected to redevelop the £4.6bn Royal London and Barts hospital scheme, which health secretary Patricia Hewitt said was being assessed just before it was due to reach financial close.
The Department of Health said that it had asked the trust to reconsider the scheme to ensure it was affordable and met local needs.
Other big hospital schemes are also believed to be at risk as the government decides whether to abandon them in favour of smaller projects.
In the future, it is likely that acute hospital schemes in England & Wales will tend to be of lower average size than in the past.
Trading statement
Laing is also awaiting financial close on the North Staffordshire Hospitals ‘fit for the future’ project.
It has 22 operational accommodation projects.
A statement to the stock exchange said: “In the future, it is likely that acute hospital schemes in England & Wales will tend to be of lower average size than in the past, and may be fewer in number; however, this is being offset by a growing number of health projects in Scotland, Northern Ireland and in the EU outside the UK, and additional opportunities in the LIFT and intermediate markets within the UK”.
