John Laing Environmental Assets Group Ltd (LON:JLEN) said it expects to see limited impact from the changes announced in the UK government's Summer Budget, reflecting its diversified portfolio.
The environmental infrastructure investment fund said on Thursday that as a result of the end of the Climate Change Levy (CCL) exemption for renewable electricity, some of its assets would no longer receive additional revenue from Levy Exemption Certificates (LECs). This, however, would be broadly offset by the announced reduction in the corporation tax rate to 19% in 2017 and 18% in 2020.
The company estimates that net impact of the two changes on its net asset value (NAV) as at March 31, 2015 will be a reduction of about GBP 0.006 per share. The fund also confirmed its dividend target, although it said the LLC change was "likely to have a minor impact on dividend cover in the near term."
JLEN's portfolio consists of wind and solar as well as water and waste management assets.