CORDIANT DIGITAL INFRASTRUCTURE LIMITED has released a trading update, highlighting its operational performance, balance sheet, dividend coverage, and market outlook. The company continues to focus on its "Buy, Build & Grow" strategy, aiming to increase the cash flow-generating asset bases of its diversified platform companies. The annual NAV total return target of 9% comprises capital growth and a progressive dividend fully supported by free cash flows generated by its portfolio.
The company reported that aggregate portfolio company EBITDA for the nine months to 31 December 2023 increased by 6.4% to £99.4 million, and aggregate portfolio company revenue increased by 8.2% to £217.4 million during the same period. The dividend target for the financial year to 31 March 2024 of 4.0p is confirmed and is 4.5x covered by EBITDA and 1.6x covered by free cash flow after Company-level costs, net finance costs, taxation, and maintenance capital expenditure.
The company completed the acquisition of Speed Fibre, a leading open access backbone fibre network provider in Ireland, and České Radiokomunikace ("CRA") continued to expand its data centre and cloud business. Both CRA and Emitel S.A ("Emitel") have won valuable long-term contracts to broadcast digital audio broadcasting ("DAB") radio in their respective home markets. The company also provided an update on its share buy-back program and its financial position, reporting total liquid resources of £162 million and gross debt of £695 million as of 31 December 2023.
Shonaid Jemmett-Page, Chairman of Cordiant Digital Infrastructure Limited, expressed encouragement by the company's progress and operational performance, while Steven Marshall and Benn Mikula, Co-Heads of Cordiant Digital, highlighted the strong operational performance of the diversified portfolio of assets and the execution of the Buy, Build & Grow model.
The company's progress and achievements are expected to be better reflected as current market conditions improve, as stated by the Chairman and Co-Heads.