22 June 2023
LEI: 213800T8RBBWZQ7FTF84
Cordiant Digital Infrastructure Limited
Full year results for the year ended 31 March 2023
A strong overall performance underpinned by double digit NAV growth and robust dividend cover
Cordiant Digital Infrastructure Limited (the Company), the sector-focused specialist owner and operator of Digital Infrastructure that enables modern communications and the internet, is pleased to announce its full year results for the year to 31 March 2023.
Financial highlights:
| – | NAV per share increased by 10.0%1 or 10.5p on a total return basis to 113.4p |
| – | Net assets increased to £875.7 million |
| – | NAV total return since inception of 21.1% (2022: 10.0%), exceeding IPO expectations |
| – | Gross return from investments in the year2 of 12.3% achieved notwithstanding increase in average discount rate by 81bps during the year |
| – | Total dividend for the period increased to 4.0p, in line with guidance; 3.4x covered by earnings and 1.5x covered by adjusted funds from operations (AFFO) |
| – | Acquisition of Emitel completed at effective EV purchase multiple of 8.8x FY22 EBITDA |
| – | Equity raised at IPO and in subsequent capital raises now fully invested at an average EV/EBITDA multiple of 10.6x |
| Operational highlights: | |
| – | Continued strong overall performance by portfolio companies which generated aggregate EBITDA growth of 10.0% year on year3 to £104 million |
| – | Emitel delivered strong performance with revenue up 13% and EBITDA up 8% year on year. |
| – | CRA is meeting performance expectations and winning new broadcast and telecoms customer contracts. |
| – | Hudson has won several new contracts and now seeks to convert its substantial pipeline of opportunities. |
Commenting, Shonaid Jemmett-Page, Chairman of Cordiant Digital Infrastructure Limited, said:
“I am pleased to report a strong overall performance by the Company, despite a challenging year for the listed investment trust sector and global markets generally. The Company made a total NAV return for the year of 10.0% and the aggregate pro forma1 normalised EBITDA of the portfolio companies for the year to 31 March 2023 increased from £94 million to £104 million. Significant milestones were achieved included the completion of the acquisition of Emitel, the Company’s largest acquisition to date, as well as substantial strategic progress at CRA and the raising of a €200 million Eurobond facility.
“The portfolio we have constructed is high quality with strong potential for growth, with predominantly blue-chip clients, and it is generating strong cash flows through long-term, largely inflation-linked contracts. This, combined with a strong deal pipeline, access to funds and more realistic pricing for mid-market Digital Infrastructure assets, gives us confidence for the coming year and beyond.”
1. Based on opening ex-dividend NAV at 1 April 2022 of 104.8p.
2. Based on investment cost, time-weighted for any follow-on investments made.
3. On a pro forma, normalised, constant currency basis.
For further information, please visit www.cordiantdigitaltrust.com or contact:
| Cordiant Capital, Inc. | +44 (0) 20 7201 7546 |
| Investment Manager | |
| Stephen Foss, Managing Director | |
| Aztec Financial Services (Guernsey) Limited | +44 (0) 1481 748831 |
| Company Secretary and Administrator | |
| Chris Copperwaite / Laura Dunning | |
| Investec Bank plc | +44 (0) 20 7597 4000 |
| Joint Corporate Broker | |
| Tom Skinner (Corporate Broking) | |
| Lucy Lewis / Denis Flanagan (Corporate Finance) | |
| Jefferies International Limited | +44 (0) 20 7029 8000 |
| Joint Corporate Broker | |
| Stuart Klein / Gaudi Le Roux | |
| Celicourt | +44 (0)20 7770 6424 |
| Financial Communications Advisor | |
| Philip Dennis / Felicity Winkles / Ali AlQahtani |
Annual report and results webcast for analysts
The 2023 Annual Report will be available to download at cordiantdigitaltrust.com/investors/results-centre/ from 26 June 2023 and will be posted to shareholders on 28 June 2023.
The Company will be hosting an analyst meeting at 10.00am BST at the offices of Investec, 30 Gresham Street, London, EC2V 7QN. For those wishing to attend, please contact Ali AlQahtani at Celicourt via CDI@celicourt.uk.