Digital 9 Infrastructure (DGI9) H2 2024 earnings summary

Executive summary

• InfraRed, as the new investment manager, has implemented a realization plan focused on asset divestments, deleveraging, and restoring shareholder value after a challenging year marked by significant write-downs and strategic changes.

• Key priorities included rebuilding lender trust, making tough valuation decisions, and providing strategic direction to portfolio companies.

• The board and manager relationship is now effective, with a focus on transparency and confidence in NAV.

Financial highlights

• Final audited NAV for 2024 was £297 million (34.4p/share), down from £302 million in February and a 22% drop from £424 million in June.

• Portfolio value reductions were driven by divestments (Aqua Comms, EMIC), a 9.6p reduction in Arqiva, and other fair value adjustments.

• Loss per share was £0.45, reflecting significant write-downs.

• Aggregate completed and signed divestments to date total £419 million.

Outlook and guidance

• RCF is expected to be fully repaid by June 2025, with distributions to shareholders commencing after Aqua Comms closes (late 2025/early 2026).

• Elio and Arqiva sales are targeted for 2027 onwards, but timing will be reassessed to maximize value.

• There is potential for outperformance of current NAV depending on outcomes for Elio and Arqiva.