Investec reinforces Digital 9 Sell rating over 'perilous position'

Following annual results

Investec has reinforced its ‘Sell’ rating on Digital 9 Infrastructure over its “perilous position” following the trust’s annual results last week.

Investec analysts Alan Brierley and Ben Newell warned in a note that they were concerned about both the balance sheet of the trust and the sustainability of the dividend, describing its position as "challenged". They explained that following the completed purchase of communications service provider Arqiva in October, the trust's balance sheet was now "stretched". Brierley and Newell argued the trust "can no longer fund the extensive capex programmes required by its underlying portfolio companies in order to realise their growth strategies", as a result. Furthermore, the trust launc...