Cordiant Digital Infrastructure Ltd on Thursday said trading ‘remains strong’ across its portfolio, although it is ‘greatly disappointed’ by the gap between its shares and net asset value.

Cordiant, which invests in data centres, telecommunications towers and fibre networks in the UK, Europe and North America, said that during the year ended June 30 its portfolio companies generated aggregate earnings before interest, tax, depreciation and amortisation of £144.9 million. Free cash flow before capital expenditure totalled £72.8 million, which Cordiant said ‘amply covers’ its 4.2 pence per share total dividend.

For the first quarter, which ended on June 30, aggregate portfolio company Ebitda increased 14% to £38.5 million, ‘driven by contributions from bolt-on acquisitions undertaken in the year, contract wins, cost control and the beneficial effects of inflation on revenues’.

Aggregate portfolio company revenue increased 8.9% to £80.0 million during the quarter.

Cordiant also said it has ‘successfully implemented’ a programme of active debt management to make its portfolio more robust and to provide flexibility. The firm and its investees now have no debt maturities before June 2029.

It also said it has increased and refinanced senior debt facilities for Polish fibre business Emitel, leaving the portfolio with no medium-term financing risk.

Cordiant and its portfolio companies held net debt of £573.0 million at June 30, and gross drawn debt equivalent to £691.2 million.

Looking at the wider market, Cordiant believes demand ‘remains robust’ for digital infrastructure services. It also noted that inflation in its operating countries continues to decline, although interest rates are decreasing more slowly than originally anticipated.

Shares in Cordiant were 0.8% higher at 78.62p each in London on Thursday afternoon.

Copyright 2024 Alliance News Ltd. All Rights Reserved.