LONDON - Cordiant Digital Infrastructure Ltd (CORD) has disclosed its interim results for the six-month period ending September 30, 2024. The company observed a net asset value (NAV) per share increase of 3.6%, with a total return of 5.4% based on the ex-dividend opening NAV. Moreover, the share price total return was notably high at 38.9%.
The increase in NAV was attributed primarily to the operational performance of the company's assets and a reduction in discount rates. Notably, Emitel experienced a 6.4% value uplift due to its revenue inflation-linked contracts, while CRA saw a rise of 4.5% on account of discount rates, a recent bolt-on acquisition, and its own inflation-linked contracts. Speed Fibre's value surged by 34.2% following debt repayment and a discount rate reduction, coupled with a 4.3% revenue increase.
However, the period did face challenges from currency fluctuations, with the strength of sterling negatively impacting the NAV.
Cordiant's strategic 'Buy, Build, Grow' approach has been reflected in its capital expenditure on growth projects, such as the expansion of DAB radio in Poland and the Czech Republic, new customer connections for Speed Fibre, and additional investment in cloud and data centers for CRA.
The board has proposed an interim dividend of 2.1p per share, aligning with the recently upgraded target, and dividend cover has improved to 1.8 times, primarily due to increased earnings.
Following the results, the company announced its intention to acquire a stake in DCU, alongside a local investor and another Cordiant vehicle, which would expand its portfolio to six companies, pending completion.
The company also reported a narrowing of its discount, though it remains wider than the historical average. Share buybacks have continued, and members of the team have made significant share purchases.
As part of its financial strategy, Cordiant Digital Infrastructure has refinanced its debt facilities, which has consolidated debt at the company level and provided additional liquidity. The gearing is now 38.1% on a gross asset value basis, with 71% of the debt being fixed.
Shonaid Jemmett-Page, Chair of Cordiant, commented on the strong performance of the portfolio companies, noting their robust cash flows and earnings growth. She also emphasized the focus on efficient investment in the existing portfolio through disciplined capital expenditure and strategic acquisitions.
This report is based on a press release statement from Cordiant Digital Infrastructure Ltd.
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