Goals pay off for TV tech specialist Cordiant: MIDAS SHARE TIPS UPDATE

The European Championship has had more highs and lows than usual, especially for the England fans who are now anxiously awaiting whether it will really be a home game.

Despite the early elimination, viewers in Poland and the Czech Republic are enthusiastic followers of the tournament, helped by UK-listed Cordiant Digital Infrastructure.

Cordiant owns mobile phone masts, cables and data centers that allow you to buy goods online, stream live TV, make calls, send emails and much more via the Internet.

Modern life would be almost impossible without these assets. Cordiant owns hundreds of them in Eastern Europe, Belgium, Ireland and America.

Cordiant went public in February 2021, with shares priced at £1 each. At the time, expectations for growth were high and initial performance was strong.

Today, however, the stock is trading at just 76p, amid market concerns, concerns over Cordiant’s prospects and comparisons with sector peer Digital 9.

Many of these concerns appear overblown, as Cordiant is well managed, conservatively financed and has demonstrated its ability to acquire assets well and generate decent income.

Since the IPO, dividends have risen steadily, from 3p in 2022 to 4.2p in the year to March last year.

Another increase is expected in 2025 and boss Steven Marshall has expanded the portfolio by buying telephone masts in Belgium, laying fibre optic cables in Ireland and winning contracts in Poland.

Marshall knows what he is talking about. He graduated as an engineer from Manchester and spent 11 years at New York-listed American Tower, a mobile phone mast company whose profits quadrupled during his tenure.

Other team members also benefit from their years of industry knowledge, which is useful in attracting top tenants.

Examples include Microsoft, Google and Amazon, telephone companies such as Vodafone and O2 and dozens of banks and large companies.

The group’s portfolio is valued at £920m, or £1.20 per share, meaning the stock is trading at a discount of almost 40 per cent to the value of its assets.

This discrepancy reflects fears that Cordiant’s stable is worth less than Marshall claims. However, this seems exaggerated.

The group uses an independent administrator, accounting firm BDO and an external valuer to arrive at the £920m figure, with its client list providing certainty.

Marshall has shown his confidence in the company by buying stock vigorously, buying 800,000 shares last month, bringing his holdings to more than nine million shares.

Further certainty emerged earlier this month with new financing plans, leaving Cordiant with more than £200m to spend, expand existing assets or acquire new ones.

Midas Pronouncement: The digital infrastructure market has grown sixty-fold between 2010 and 2023, as households and businesses become increasingly dependent on the internet and its use has increased dramatically.

Growth is expected to continue at a rapid pace and Cordiant should benefit. Shareholders who bought in at the IPO have been badly served, but at 76p the shares deserve a recovery and investors can take heart from the 5% dividend yield along the way.