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Exploring investment in construction

Infrastructure investment across the UK looks set for a boost, and the Business Growth Fund is getting ahead of the curve with its investment in construction equipment supplier Molson, finds Jason Sinclair. He goes over the company’s timeline, where they’re at and what might be in store in future

Corporate Financier article imageThe UK’s December 2019 general election delivered an 80-seat majority for the Conservative Party. The swing, however, did not come from traditional swing seats. Instead, it came from an area that the media had, in the run-up to the election, labelled the ‘red wall’ – a set of constituencies in the Midlands and the North of England. As a result, some believe that the new Boris Johnson-led government, beholden to the intake of new Tory MPs in largely provincial towns, will mean a fresh look at infrastructure spending across the UK, a subject covered in the cover story ‘Building Britain’ in Corporate Financier in November 2019.

“The infrastructure market is a coiled spring at the moment, and everybody is waiting to benefit from it,” says Andrew Hodgson, a corporate finance partner at KPMG in Bristol. Like many others, Hodgson argues that infrastructure spending would be the best way to ‘reward’ the new Tory constituencies, with work and long-term benefits from such investment. “There’s an enormous pent-up road and rail building programme, and if you’re selling the machinery used in that then you’re well placed,” he adds.

About this article

This originates from the March 2020 edition of Corporate Financier. This magazine, available 10 times a year, is exclusively available to Corporate Finance Faculty members.