Hopefully you didn’t buy DGI9?
I decided last night to buy it’s equivalent cordiant digital.
DGI9 down 30% at the moment, of course that could be considered overdone but its debt is one of its major problems and that won’t go away anytime soon.
Cordiant down 2% that could just be the market. Either way might use dividends for that or more SOHO
DIGITAL 9 INFRASTRUCTURE SCRAPS DIVI AS IT SWINGS TO H1 LOSS
(Sharecast News) - FTSE 250-listed Digital 9 Infrastructure has decided to scrap its second-quarter dividend after a tough first half, as it continues to look for investment partners in its Verne Global data centres in Iceland, Finland and the UK.
The company, which invests in subsea fibre systems and data centres, swung to a loss of 6.63p per share in the six months to 30 June, compared with earnings of 3.43p a year earlier.
D9’s IFRS net asset value stood at £866m, down from £950m a year earlier, as it was hit by adverse foreign exchange movements and higher interest rates.
As such, the company reported a pre-tax loss of ÂŁ57m, compared with a profit of ÂŁ27m previously, due to property valuation movements.
“Whilst cognisant of the dividend target set out at IPO, the high interest rate environment and therefore the critical importance of prioritising liquidity and sustainable balance sheet management have compelled the board to not declare the Q2 2023 dividend and withdraw the dividend target for the year,” said chair Phil Jordan. “In light of this, the board will be commencing a formal consultation with shareholders.”
Meanwhile, D9 said it has “significantly progressed the syndication” of Verne Global, and has received “several” offers to either a co-controlling or majority stake in the business.
Due to sustained and accelerated customer demand for its facilities, the growth capital expenditure pipeline for Verne Global has jumped from ÂŁ493m in January to ÂŁ610m.
D9 said it is looking to use any funds from a Verne Global stake sale to pay down a significant portion of the its drawn revolving credit facility and cancel part of it, thereby reducing costs. At 30 June, some ÂŁ356m was drawn under the ÂŁ375m RCF.