Cordiant Digital Infrastructure Ltd (LSE:CORD) chairman, Steven Marshall, and CFO, Andrew Ewe, talked with Proactive about the company’s continued financial performance and strategic progress, with net asset value (NAV) surpassing £1 billion.
Marshall said the NAV growth reflects the strong demand across digital infrastructure, as "demand for more and more capacity across the plumbing of the internet" continues to drive performance. He highlighted the strength of Cordiant's buy, build and grow strategy and underscored the value being delivered through hands-on management of portfolio companies.
Ewe detailed the financial resilience underpinning the results, noting a 2.17 pence per share interim dividend, which is "50 percent of the target set earlier in the year." He also pointed to a dividend coverage ratio of 1.7 times and over £200 million in undrawn debt and cash, supporting continued capital expenditure and acquisitions.
The acquisition of BT Ireland and construction plans for the Prague Gateway data centre are among key growth catalysts. Ewe noted that "this could be a significant driver of the NAV" as development progresses.
Both executives acknowledged the current discount to NAV, with Marshall stating he and colleagues had bought more shares, confident in the long-term value of the platform.
Proactive: Steve, Andrew, very good to speak with you. Steve, I'll start with you. Congratulations on delivering another strong set of results with CORD’s NAV now over £1 billion. Looking across the portfolio, what were the key drivers of the growth in NAV during the period?
Steven Marshall: We couldn't do it without you. Another great set of results, consistent with what we've been achieving over the last nearly five years. It’s not surprising, because these are characteristics of the digital infrastructure space—demand for more and more capacity across the plumbing of the internet, which drives our revenue growth and profitability.
We have a great management team and asset base. We continue to sell more and more space to our customers, which drives results. It's pushed another 10% over the period, taking net asset value per share up to 140 pence. Another great set of results, which reflects our buy, build and grow strategy.
Proactive: Andrew, with NAV growth being such a strong headline, can you walk us through how this is translated into the company's financial resilience and what measures you're taking to support sustainable returns as we move into 2026?
Andrew Ewe: Underpinned by another strong set of results, we're pleased to announce an interim dividend of 2.17 pence per share. This is 50% of the target we set earlier in the year. The dividend remains well covered by adjusted funds from operations at 1.7 times. We continue to pursue a progressive dividend policy, having increased the dividend for every financial year since the IPO.
Gearing remains prudent and steady at just under 41%. We have no debt maturities until June 2029. From a liquidity point of view, we have over £200 million in undrawn debt and cash. This provides funding to continue growth CapEx and acquisitions for the portfolio. We continue to be well aligned with shareholders—the management fee remains linked to market capitalization and insider ownership stands at 2.2% of the outstanding stock.
Proactive: Steve, it's clear that active management has enabled CORD to execute its buy, build and grow strategy to date. Could you share examples of where your expertise and hands-on management have translated into performance improvements for your portfolio companies?
Steven Marshall: First of all, we have absolutely first-class management teams across all our portfolio companies. They are number one or two in their respective markets and generate interest from talent wanting to join. At the centre, half of our staff come from industry, private equity or banking, and we engage closely with local operating executives.
We look at opportunities to pursue medium to long-term initiatives and work with them in areas of challenge. A clear example is BT Ireland—we worked seamlessly through the due diligence, negotiation, and now integration with our existing assets through Speed Fibre Group in Ireland. It’s a collaborative approach that has served us well over the last four or five years.
Proactive: Andrew, Cordiant has delivered consistent growth over the past four and a half years. Do you see any stepwise accelerations of growth above this?
Andrew Ewe: We expect to continue delivering low-risk, steady returns—targeting at least 9% annually to shareholders, through income and capital growth. But there are catalysts that could help us outperform. From a sectoral basis, the tailwinds are strong. The proliferation of artificial intelligence, video streaming, and high-intensity computing drives demand for connectivity and processing infrastructure.
A good example is the 26-megawatt Prague Gateway data centre in the Czech Republic. We’re commencing the main construction phase next year, and this could be a significant NAV driver. Right now, only development costs are included in our valuation.
Another example is the acquisition of BT Ireland. This positions Speed Fibre as the main competitor to the incumbents in wholesale fibre provision. We expect this to generate synergies.
We also have a significant mobile tower portfolio. Comparable companies trade at around 20 times. We see an opportunity to unlock value by potentially monetising that portfolio. Deutsche Bank recently published a sum-of-the-parts report with a mid-case valuation of nearly 170 pence per share.
Steven Marshall: Just to add: we have a predictable, growing cash flow stream based on long-term contracts with blue-chip clients. Escalation clauses support this growth. As Andrew said, there are additional initiatives that could drive stepwise changes in valuation.
The new Czech data centre could make us the largest provider in that country. The BT Ireland integration will enhance our offering across Ireland and Poland. Emitel, one of our companies, has also won a sizable contract to build up to 320 mobile telecom towers for Orange in Poland.
These are opportunities on top of our normal growth trajectory, which has been consistent over the last five years and will likely continue over the next decade. We're excited about the future. Frustrated by the discount to NAV, I’ve bought more shares, and so have my colleagues—we see strong future potential.
Proactive: Steve, Andrew, congratulations again on those results. I hope you'll continue to keep us updated with your progress.