REG - Duke Royalty Limited - Follow-on investment into existing Royalty Partner

Duke CapitalAnnouncement

23/12/2021 07:00

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RNS Number : 5575W  Duke Royalty Limited  23 December 2021

23 December 2021

 

Duke Royalty Limited

 

("Duke Royalty", "Duke" or the "Company")

 

Follow-on investment into existing Royalty Partner

 

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions
to a diversified range of profitable and long-established businesses in Europe
and North America, is pleased to announce a follow-on investment of £5.25
million into its existing Royalty Partner MRDB Holdings Limited Group, which
undertakes business as Miriad Products ("Miriad", or the "Group"). Miriad,
formed in 1977, is the largest privately-owned recreational vehicle ("RV")
parts wholesale company in the UK.

 

·    The funds will enable Miriad to release equity value in the business
and restructure its shareholdings to enhance alignment with key members of the
senior management team and employees.

 

·    As part of the deal, Duke will also increase its equity interest in
Miriad to 30% on a fully diluted basis.

 

·  As the UK's leading RV and caravan parts distributor, Miriad has
benefitted from the changing behaviour of UK consumers who have, in increasing
numbers, decided or been required to stay in the UK for their holidays. Miriad
has also delivered a strong operating performance following its recent
acquisition of Quest Leisure Products.

 

·   Following this follow-on investment, Duke's investment into Miriad
will total £18.25 million. Monthly payments starting in January 2022 will
total approximately £208,000 and, based on current trading, Duke expects to
achieve a positive adjustment factor in February 2022.

 

 

Neil Johnson, CEO of Duke Royalty, said:

 

"Miriad continues to go from strength to strength and, as the Group's
preferred long-term capital partner, we are delighted to provide our
shareholders with further exposure to this UK success story. Miriad continues
to expand and has benefitted from the 'Staycation Surge' experienced in the UK
over the last two years because of the Covid-19 pandemic and increased
concerns about environmental impact of travelling abroad. Using Duke's capital
to release well-earned equity will allow Miriad's executive team to focus on
growing the Group further rather than exploring alternative capital release
options."

 

 

Penny Whitelock, CEO of Miriad, said:

 

"Duke's additional capital was a perfect fit for our objectives because it
allowed current shareholders to receive value for what we have built to date
while maintaining control of Miriad's destiny going forward. Furthermore,
Duke's capital is ideal for our long-term succession planning, and enables us
to offer the right sort of incentivisation to our secondary management team
and future leaders of the business."

 

***ENDS***

 

For further information, please visit www.dukeroyalty.com
(http://www.dukeroyalty.com)  or contact:

 

 Duke Royalty Limited     Neil Johnson / Charlie Cannon Brookes / Hugo Evans               +44 (0) 1481 730 613

 Cenkos Securities plc    Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson  +44 (0) 207 397 8900

 (Nominated Adviser

 and Joint Broker)

 Canaccord Genuity        Adam James / Georgina McCooke                                    +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (PR)         Elisabeth Cowell / Richard Bicknell / Megan Kovach               + +44 (0) 20 3757 6880 dukeroyalty@secnewgate.co.uk
                                                                                           (mailto:dukeroyalty@secnewgate.co.uk)

 

About Duke Royalty

 

Duke Royalty Limited provides alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and abroad.
Duke Royalty's experienced team provide financing solutions to private
companies that are in need of capital but whose owners wish to maintain equity
control of their business. Duke Royalty's royalty investments are intended to
provide robust, stable, long-term returns to its shareholders. Duke Royalty is
listed on the AIM market under the ticker DUKE and is headquartered
in Guernsey.

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