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

Duke CapitalAnnouncement

03/07/2023 07:00

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RNS Number : 6361E  Duke Royalty Limited  03 July 2023

03 July 2023

 

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 £1.9 million into
existing royalty partner New Path Fire and Security Limited ("New Path"), to
fund its latest acquisition.

New Path is a buy build platform in the Fire and Security sector, primarily
servicing SME clients with some exposure to high end residential clients in
London. New Path's operating subsidiaries are established operators with
strong reputations in their local territories.

 

Highlights:

 

·       Duke's funds will facilitate New Path's acquisition of BDI
Security Limited ("BDI"), a provider of installation and maintenance services
focused on CCTV and access control, ANPR (Automatic Number Plate Recognition)
& barrier access to commercial customers

·       The financing increases Duke's total investment in New Path to
£6.9 million. The investment terms are the same as Duke's initial investment
into New Path, including a starting yield of 13.5% and a +/- 6% annual revenue
adjustment factor in respect of royalty payments due

·       BDI represents New Path's third acquisition supported by Duke,
in line with New Path's stated buy & build strategy

 

Neil Johnson, CEO of Duke Royalty, said:

 

"We are pleased to support New Path as it executes its 'buy-and-build'
strategy. New Path has sourced and acquired a target that shares both existing
revenue streams with the group and adds new capabilities, at an attractive
EBITDA multiple. New Path's stated acquisition criteria give us confidence
about their disciplined approach to growth, and BDI is a good case study. We
look forward to continuing to support New Path with its growing pipeline in
the future."

 

Further information regarding BDI

 

Founded in 2002, BDI Security Limited provides installation and maintenance
services focused on CCTV and access control, ANPR (Automatic Number Plate
Recognition) & barrier access to commercial customers. BDI Security is run
from commercial premises near Huntingdon in Cambridgeshire. BDI's origins lie
in serving life sciences customers and a strong raft of these clients persists
to this day whilst it has now diversified into other sectors including
manufacturing, pharmaceuticals and engineering research.

 

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 231 816

 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 / Alice Cho / Matthew Elliott      +44 (0) 20 3757 6882 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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