City analysts expect shares in support services group Laing to increase about 40% to more than 200p in the next 12 months, despite its reporting of a pre-tax loss of £18.6m this week.
Laing's bottom line has been hit by its decision to refocus its business from traditional contracting to PFI work. Last year, it posted a loss of £30.3m, but this was reduced in 2002 after the sales of its housebuilding business and property division. The share price is currently hovering around the 120-130p bracket.

Michael Donnelly, an analyst at Bridgewell Securities, said: "This is a period of change and everyone knew that. The results this year are irrelevant – we think the shares are worth more than 200p. Twelve months from now I would be disappointed if the market had not really understood the [restructured] company."

Bridgewell estimates that Laing's pre-tax profit will be £16m in 2003, rising to £20m in 2004.

Turnover in the 12 months to 31 December last year was £444.2m, from operations that were not sold off in the period. The company also posted a pre-tax profit in its continuing divisions of £12.3m, adding weight to claims that the underlying business is strong.

Laing’s results this year are irrelevant – we think the shares are worth more than 200p

Michael Donnelly, Bridgwell Securities analyst

Executive chairman Bill Forrester said: "The prospects for the infrastructure investment and operations business are excellent."

Laing also announced a £142.8m pension deficit.