CORD, Cordiant Digital Infrastructure, has released its financial results for the year ending 31/03/2024. The trust saw its NAV per share increase by 7.8% and a total return of 9.3% based on the ex-dividend opening NAV. CORD completed purchases of Speed Fibre and Norkring Belgie, increasing the total number of portfolio companies from three to five, across a mix of asset classes.
Emitel was the biggest contributor to performance, driven by new contract wins and cash flow growth. Speed Fibre also positively contributed to performance. However, CRA was a slight detractor due to an increase in the discount rate and forex headwinds. The board announced a 5% increase in the dividend to 4.2p per share, with dividend cover increasing to 1.6x.
Despite strong operational performance, the discount widened to 48% at year end. The board allocated £20m to a share buyback program, with £5.4m spent in the year. Gearing is approximately 39% of gross assets on a look-through basis.
Kepler Trust Intelligence views these results as encouraging, with strong performance aided by operational revenue and contract wins. The portfolio's growth to five companies has diversified concentration risk and supported income generation. The increase in operational revenue has led to an improved dividend outlook, with underlying revenues growing over 50% from the previous year.
The trust had liquidity of approximately £167.7m at year end, and total net debt increased, resulting in gearing of 38.9% on a GAV basis. Despite the widened discount, Kepler Trust Intelligence believes it could represent an attractive entry point for long-term investors, with the board's share buybacks being accretive to NAV.
In conclusion, CORD's financial results and portfolio expansion demonstrate encouraging performance, with strong operational revenue, diversification, and an improved dividend outlook. Despite the widened discount, the trust's share buyback program and strong operational performance make it an attractive prospect for long-term investors.