REG - Duke Royalty Limited - Follow-On Investment into Existing Royalty Partner

Duke CapitalAnnouncement

20/04/2022 07:00

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RNS Number : 6692I  Duke Royalty Limited  20 April 2022

20 April 2022

 

Duke Royalty Limited

 

("Duke Royalty" or "Duke")

 

Follow-On Investment into Existing Royalty Partner

Duke Royalty, 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 £2.3 million into
existing royalty partner Tristone Healthcare Limited ("Tristone") to fund its
latest acquisition as well as provide funding for capital expenditure.

Tristone provides specialist residential and domiciliary care in two end
markets: i) high acuity adults with severe mental, physical or learning
disabilities; and ii) care leavers, aged between 16 and 19, who are
transitioning out of social care and into independent living.

Highlights:

 

·     Duke's funds will facilitate Tristone's acquisition of Beyond
Limits (Plymouth) Limited ("Beyond Limits"), which operates specialist care
homes predominantly in the Southwest of England, providing long-term
residential care to people with learning disabilities, mental health issues
and other support needs

·     The financing increases Duke's total investment into Tristone to
£14.4 million. The investment terms are the same as Duke's previous follow-on
investment into Tristone, including a starting yield of 13.5% and the normal
+/- 6% annual revenue adjustment factor

·     Beyond Limits represents Tristone's second acquisition supported by
Duke, in line with Tristone's stated buy & build strategy

·     Duke will also be providing £300k of funds to initiate the
refurbishment of premises that will be used as an extension of Pro Care Wales,
one of Tristone's existing businesses, which is seeing healthy demand from
local authorities to place additional service users

·     Tristone has a deep understanding of the demands of social care and
has extensive experience of investing in businesses of this nature, having
supported a number of different care businesses since formation in 2015.

 

Neil Johnson, CEO of Duke Royalty, said:

"It's pleasing to see Tristone executing on its 'buy-and-build' strategy using
our capital. Once again, the company has sourced and acquired a target that
shares both an existing culture of providing the highest quality of care, with
the opportunity for further growth and betterment.

"Beyond Limits will be a great addition to the existing Tristone community.
Supporting the acquisitions of our royalty partners allows them to grow and
diversify which benefits both themselves and Duke."

Further information regarding Beyond Limits

Beyond Limits, established in 2012, is a successful provider of support to
people with learning disabilities, mental health issues and other support
needs. Beyond Limits was founded by Doreen Kelly who was formerly a mental
health nurse and has been involved in the voluntary and independent sector
since 1986. Beyond Limits is a Care Quality Commission (CQC) registered
service provider and has achieved an overall rating of 'Outstanding'. The
service specialises in providing care for adults with learning disabilities,
autistic spectrum disorders, mental illness, or physical disabilities. The
support is provided to Service Users in their own homes, or through a
portfolio of residential homes primarily in Devon, Cornwall, and Somerset. The
service currently supports 26 individuals from the age of 18 plus, with some
people requiring support with personal care.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners are now included for reference
on the Partners page of our website: www.dukeroyalty.com/partners
(http://www.dukeroyalty.com/partners)

 

 

***ENDS***

 

 

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

 

 Duke Royalty Limited     Neil Johnson / Charles 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/ Max Richardson               +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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