Cordiant Digital Infrastructure Ltd (LSE:CORD) has announced impressive financial results for the first quarter, showcasing a strong performance driven by strategic acquisitions and contract wins. The company's portfolio revenue surged by 8.9% to £80 million, while EBITDA climbed 14.2%.
Cordiant, which boasts investments in infrastructure projects spanning Poland, Czechia, Ireland, Belgium, and the US, has declared a dividend of 4.2p per share. This decision was underpinned by a robust financial position, with a 4.5 times EBITDA coverage and 1.6 times free cash flow.
Strategic Debt Management
In a strategic move, the company successfully refinanced its debt, ensuring no maturities before 2029. This achievement has significantly boosted the company's liquidity, with total available liquidity reaching £335.4 million.
Elimination of Refinancing Risk
Steven Marshall and Benn Mikula, co-heads of Cordiant Digital, highlighted the success of their strategic debt management efforts. "We have assembled a diversified portfolio of assets which has enjoyed a good start to the financial year. Strategic debt management has been a key focus for the investment manager in recent months and we are pleased with the outcomes achieved and the elimination of medium-term refinancing risk from the portfolio by terming out all debt, resulting in the next maturity occurring in 2029."
Positive Outlook
Chairman Shonaid Jemmett-Page expressed confidence in the company's continued success, emphasizing the strong operational performance and promising initiatives underway to generate further value.
Addressing Share Price Performance
While acknowledging the recent improvement in the share price, Jemmett-Page expressed disappointment with its overall performance, particularly the substantial discount to NAV.
"The board notes the recent improvement in the share price but nonetheless remains greatly disappointed with the share price performance, as we believe the company's operational and financial performance does not warrant the substantial discount to NAV still prevailing. We remain confident that the company's progress and achievements will be better reflected as current market conditions improve."
Cordiant Digital's Growth Strategy
Cordiant Digital Infrastructure's strong financial performance and strategic initiatives underscore its commitment to growth and value creation. The company's diversified portfolio, coupled with a robust financial position and a focus on strategic debt management, positions it for continued success in the future.
Seeking Out Opportunities
Cordiant's pursuit of strategic acquisitions and contract wins has been instrumental in driving its growth. The company is actively seeking out opportunities to expand its portfolio and invest in projects that align with its strategic objectives.
Focus on Sustainability
In addition to its focus on financial performance, Cordiant is committed to sustainability. The company's investments in infrastructure projects contribute to the development of sustainable communities and economies. Cordiant's commitment to sustainability is reflected in its efforts to reduce its environmental impact and promote social responsibility.
A Look Ahead
Cordiant Digital Infrastructure is well-positioned for continued success, with a strong financial foundation, a diversified portfolio, and a commitment to strategic growth. The company's impressive Q1 results provide a clear indication of its continued momentum. As market conditions improve, Cordiant's performance is expected to become even more prominent, reflecting the company's operational and financial achievements.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Before making any investment decisions, consult with a qualified financial advisor. The author may receive compensation for publishing this article.
