Cordiant Digital Infrastructure Ltd (LSE:CORD) has increased its interim dividend after posting a confident first-half financial performance for the six months to 30 September.
The London-listed investment company, which owns a portfolio of telecoms and data centre assets spread across Europe, achieved a 15.2% year-on-year increase in aggregate EBITDA to £77.4 million.
Net asset value (NAV) per share increased to 124.4p from 120.1p in the previous period.
Cordiant’s discount to NAV narrowed to 30.5%, representing a substantial improvement from 46.7% discount at the start of the period. This was attributed to a period of improved market sentiment and operational performance.
Two of Cordiant’s major investments – Polish telecoms provider Emitel and Czech digital infrastructure platform České Radiokomunikace (CRA) – achieved notable revenue and earnings growth in the first half.
Cordiant increased the first-half dividend by 5% year on year 2.1p per share, consistent with its annual target of 4.2p per share. The dividend remains well covered, with EBITDA coverage at 4.7 times.
Chairman Shonaid Jemmett-Page stated: "I am pleased to report a good performance by the company… reflecting the excellent performance of our portfolio companies, which offer robust cashflows and strong earnings growth.
“We maintained our focus on efficient investment in the existing portfolio, through disciplined capex spend, coupled with bolt‑on acquisitions where appropriate.
“We also continued to selectively look at opportunities which reflect the current pricing environment, and which further diversify the portfolio by geography and asset class.”
“The company is in a strong position to continue its approach to the allocation of capital in support of shareholder returns through its Buy, Build & Grow model."
Post period, Cordiant acquired a 37.2% stake in Belgian data centre businesses DCU Invest and DCU Brussels. This move aligns with its strategy to diversify geographically and by asset class.
Cordiant shares are currently valued at 85p each, having surged 11% year to date.