Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • DGI9’s Half-year NAV at GBP 283m or 32.7p per share, down from GBP 297m.
  • Full repayment of GBP 53m revolving credit facility supported by asset disposals.
  • Aggregate revenues up 6% YoY to GBP 379m, led by Arqiva contracts.

Digital 9 Infrastructure plc (LSE:DGI9) is an investment trust listed on the London Stock Exchange and a constituent of the FTSE All-Share Index. The company’s current investment objective is to undertake a managed wind-down and realise all existing assets in its portfolio in an orderly manner.

Management Commentary

Eric Sanderson, Chair of D9, said: “With the first phase of the wind-down largely complete, the Company’s financial position is now stabilised. We have a platform to maximise shareholder value over time, following the full repayment of the RCF and completion of the Aqua Comms sale expected by the end of the year. With value-enhancing initiatives underway at Elio Networks and key decisions in relation to contract renewals regarding Arqiva’s DTT business to take place in 2027, significant value remains to be unlocked. The Board and Investment Manager continue to seek opportunities to maximise value for shareholders.”

Strategic Progress

The company advanced its wind-down process during the first half of 2025 with the disposal of SeaEdge UK1 in June for GBP 10.3 million, the completion of the EMIC-1 divestment in May for USD 43.0 million, and the Aqua Comms divestment announced in January 2025, with proceeds of USD 44.5 million including completion account adjustments and adverse foreign exchange impacts as of June 2025. Proceeds from these disposals enabled the full repayment of the GBP 53 million revolving credit facility in June 2025.

The company noted that capital returns to shareholders are expected in early 2026, following completion of the Aqua Comms divestment which remains subject to multi-jurisdictional regulatory approvals. In addition, the Prior Year Adjustment (PYA) Review, announced in December 2024, was concluded during the period by an independent expert. This review resulted in a downwards adjustment of GBP 111.5 million to the 31 December 2023 valuation.

Financial Results

Net Asset Value was GBP 283.1 million, or 32.7 pence per share, as of 30 June 2025 compared with GBP 297.3 million, or 34.4 pence per share, as of 31 December 2024. Aggregate revenues for investee companies during the period amounted to GBP 379 million, an increase of 6% from GBP 357 million in the prior year period. The increase was largely attributable to the ramping up of water metering contracts at Arqiva.

EBITDA decreased by 3% to GBP 166 million, mainly due to a changing business mix at Arqiva. Portfolio valuation was GBP 280 million at 30 June 2025 compared with GBP 331 million at 31 December 2024. Group cash, unrestricted, was GBP 4.0 million at the end of the period versus GBP 17.7 million at 31 December 2024. No dividends were declared for the period.

Earnings and Returns

For the six months ended 30 June 2025, the Company reported an earnings per share loss of 1.7 pence compared with a restated loss of 19.8 pence for the same period in 2024. The ongoing charges ratio stood at 1.90% on an annualised basis. Total return based on NAV was negative 4.7% for the period.