AGM statement guides to trading in line with expectations and we leave our FY20 and FY 21 FD EPS unchanged, despite absenteeism and shortage of materials. We maintain our FY 21 average net cash estimate of £463m, noting the strong performance YTD. £58m has been bought back in first 4 months and on track for £150m for FY. The order book has fallen from the FY level of £17.0bn to £15.7bn, with softness and selectivity in the US. At Construction, the outlook in the UK is exciting given strong PMI and the announced investment in infrastructure, and US military housing is approaching the end game. At Investments, disposals are ongoing, valuations remain stable helped by low real yields and noting KKR’s interest in John Laing. A CY 21 P/E of 15.3x is attractive given the PPP portfolio and low real yields.
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