Goals pay off for TV technology specialist Cordiant: MIDAS STOCK TIPS UPDATE

The Euros have had more than their share of ups and downs, particularly for England fans, who are now anxiously awaiting to see if the time to return home really does come.

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

Cordiant owns cell towers, cables and data centers that enable you to purchase goods online, stream live TV, make calls, send emails and much more over the Internet.

Modern life would be almost impossible without these assets and Cordiant owns hundreds of them across Eastern Europe, Belgium, Ireland and the United States.

Cordiant was listed on the stock market in February 2021, with a share price of £1. At the time, there were high hopes for growth and initial performance was strong.

Today, however, shares are trading at just 76p, hit by market woes, concerns about Cordiant’s prospects and comparisons with struggling peer Digital 9.

Many of these concerns seem overblown, as Cordiant is well-run, conservatively funded, and has proven it can buy good assets and generate decent revenues.

Dividends have risen steadily since issue, from 3p in 2022 to 4.2p in the year to last March.

There are expectations of a further rise in 2025 and boss Steven Marshall has expanded the portfolio, buying cell towers in Belgium, stocking up on fibre cables in Ireland and winning contracts in Poland.

Marshall knows what he’s doing. An engineering graduate from Manchester, he spent 11 years at American Tower, a New York-listed mobile phone tower company whose profits quadrupled during his tenure.

Other team members also benefit from long-term industry knowledge, which is helpful in attracting the best tenants.

These 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 shares are trading at a discount of almost 40 per cent to the value of its assets.

The discrepancy reflects fears that Cordiant’s estate is worth less than Marshall claims, but this seems overly harsh.

The group uses an independent administrator, accountants BDO and an external valuer to arrive at the £920m figure and its client list provides reassurance.

Marshall has demonstrated his confidence in the company by aggressively buying stock, purchasing 800,000 shares last month and raising his stake to more than nine million shares.

Further consolation came earlier this month with new funding plans that leave Cordiant with more than £200m to spend, either expanding existing assets or acquiring new ones.

Midas Verdict: The digital infrastructure market grew 60-fold between 2010 and 2023 as households and businesses became increasingly dependent on the internet and usage skyrocketed.

Growth is expected to continue apace and Cordiant should benefit. Shareholders who bought shares at the time of the IPO have not received sufficient support but, at 76p, the stock deserves to rally and investors can take encouragement from the 5 per cent dividend yield expected going forward.