GDS Holdings is a reminder that an appealing industry can struggle to generate an appealing return. Data centres are one of the market’s favourite infrastructure themes: cloud demand, artificial intelligence, digitalisation, outsourcing, and the endless growth in data consumption all point in the same direction. On paper, that sounds like a very attractive place to be. The question, though, is...

Spanish construction and infrastructure company Ferrovial does not currently raise any major specific accounting concerns. However, recognition of revenue and profits at its construction business are highly subjective, the potential impact of which is compounded by its low profitability. While judgements are also required for its infrastructure business, these should have less impact on earnings given inherently higher profitability. Nonetheless,...