Cordiant Digital Infrastructure Ltd (LSE:CORD) has reported another steady set of results, with earnings across its portfolio companies rising and net asset value edging higher during the six months to 30 September.
The group, which invests in data centres, fibre networks and other digital backbone assets, said portfolio EBITDA grew 6.5% on a constant currency, pro forma basis to £81.6 million.
Revenue increased 7% to £168.8 million, helped by new contracts, inflation-linked income and the addition of Belgian data centre operator Datacenter United, acquired in February.
Net asset value per share climbed to 140p from 129.6p at the end of March. The company said the uplift reflected earnings growth, strong cash generation and the strengthening of the Polish and Czech currencies.
Even so, Cordiant’s shares continued to trade at a wide discount: based on last week’s closing price, the gap to NAV stood at 31.4%.
Total return for the period was 10% of the opening ex-dividend NAV, ahead of the company’s 9% annual target. Shareholders who reinvested dividends would have seen a 14.7% share price total return over the six months.
Operationally, the period was described as busy. Key projects progressed, including expansion work at the Žižkov and Prague Gateway data centres and the completion of Speed Fibre’s acquisition of BT Ireland’s wholesale and enterprise business.
New financing facilities were secured for Datacenter United, and trials continued across the portfolio in areas such as AI-ready infrastructure and 5G broadcasting.
Directors and the investment manager’s team have also been buying shares, adding 1.3 million since March. Steven Marshall, chair of Cordiant’s digital investment arm, accounted for 0.9 million of these, bringing total insider ownership to 2.2%.
Management fees for the half-year, which are linked to market capitalisation, equated to 0.67% of NAV on an annualised basis.
Shonaid Jemmett-Page, chair of the company, said she was pleased with the “strong cash flows and robust earnings growth”.
She added that the board remained frustrated by the share price discount, which it sees as driven by broader market sentiment rather than company-specific issues.