9th Feb 2023 10:12
(Alliance News) - Cordiant Digital Infrastructure Ltd on Thursday said that it sees opportunity to build a substantially bigger digital infrastructure platform in the year ahead, following progress at its portfolio companies.
Cordiant Digital is a Guernsey-based investor in core digital infrastructure, with a portfolio focused on data centres, telecommunications towers and fibre networks in the UK, EEA and the US.
For the nine months to December 31, aggregate portfolio company revenue stood at GBP146 million, up 8.8% on a like-for-like constant currency pro-forma basis.
Aggregate earnings before interest, tax, depreciation and amortisation increased to GBP76.5 million, up 5.5% an adjusted like-for-like basis.
Cordiant emphasised progress at Emitel Sp Zoo, a Poland-based digital infrastructure business that it bought for PLN1.92 billion, around GBP359.4 million, in November.
It said the company had performed "better than expected" during the acquisition approval process, earning revenue of PLN416 million for the nine months to December 31.
Emitel's contracted order book has also expanded above PLN2.6 billion, with contracts extending as far as 2035 and further wins expected this year.
Meanwhile, Cordiant's other investment CRA saw revenues increase 5.9% to CZK1.66 billion, around GBP62.03 billion, on the strength of its data centre business.
Its data centre capacity utilisation rose 22%, which Cordiant said signalled strong demand for the planned 26 megawatt data centre to be built on CRA-owned land. The company is currently looking to develop a data centre outside of Prague, complete with on-site solar power.
"The board continues to be pleased with the progress made by the company in the two years since its IPO. Both CRA and Emitel continue to perform well operationally and financially, and Hudson InterXchange is well positioned for revenue and earnings growth. The investment manager's strong, hands-on operational capabilities are being deployed effectively at the portfolio platforms," said Chair Shonaid Jemmett-Page.
Cordiant said that its dividend target for the year of 4 pence is 3.3x covered by Ebitda, and 1.4x covered by free cash flow.
The board has authorised a programme of discretionary share buybacks of up to GBP20 million, subject to its working capital position.
Cordiant shares were trading 4.1% higher at 87.00p each in London on Thursday morning.
By Holly Beveridge; Alliance News reporter
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