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

Duke CapitalAnnouncement

13/12/2022 07:00

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RNS Number : 4463J  Duke Royalty Limited  13 December 2022

13 December 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 £3.2 million into
existing royalty partner Tristone Healthcare Limited ("Tristone") to fund its
latest acquisition.

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 K Bond
Healthcare Limited, trading as Next Steps ("Next Steps"), a well-respected
residential and nursing care provider with operations across Greater
Manchester

·    The financing increases Duke's total investment into Tristone to
£17.6 million. The investment terms are the same as Duke's previous follow-on
investment into Tristone, including a starting yield of 13.5% and a +/- 6%
annual revenue adjustment factor in respect of royalty payments due

·    Next Steps represents Tristone's third acquisition supported by Duke,
in line with Tristone's stated buy & build strategy

 

Neil Johnson, CEO of Duke Royalty, said:

"It is great to be supporting Tristone's acquisition of another successful
company with this follow-on funding. Next Steps provides the highest quality
of care and maintains a culture that aligns well with Tristone's own core set
of beliefs. This acquisition represents an important strategic step in
expanding Tristone's geographical presence in the North West and there is
scope to open further facilities, replicating Next Steps' existing and highly
successful model.

"Our flexible financing model is perfect for companies such as Tristone which
are executing an effective buy and build strategy and our shareholders benefit
from the growth that we achieve through expanding our relationship with a
trusted partner."

Further information regarding Next Steps

Next Steps, which was founded in 2015, specialises in providing individuals
with chronic and treatment-resistant mental illnesses with a therapeutic home
environment to receive the highest quality of residential and nursing care.
Employing 42 staff, and supporting 22 individuals, the provider currently
operates across four specialist nursing homes. The care package for each
service user is assessed on an individual basis, with Next Steps being a
premium provider for complex cases at the higher end of the sector typical
metrics.

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 / Michael Johnson    +44 (0) 207 397 8900

 (Nominated Adviser

 and Joint Broker)

 Canaccord Genuity        Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (PR)         Elisabeth Cowell / Axaule Shukanayeva               +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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