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

Duke CapitalAnnouncement

20/07/2023 07:00

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RNS Number : 5788G  Duke Royalty Limited  20 July 2023

20 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 £2.80 million into
its existing royalty partner, InTec Business Solutions Limited ("InTec"), to
fund its latest acquisition as well as for the settlement of deferred
consideration in relation to a previous acquisition.

InTec is an investment holding company created to execute a buy and build
strategy of synergistic companies within the I.T. managed services sector in
the United Kingdom and Ireland.

Highlights:

 

·    Duke's investment will facilitate InTec's acquisition of Sweethaven
Computers Limited ("Sweethaven"), a managed IT services provider to SMEs with
a primary focus on securing long term relationships and contracts within the
education sector.

·     The financing increases Duke's total investment into InTec to
£23.9 million. The investment terms will remain in line with Duke's previous
follow-on investment into InTec, including the normal 6% annual adjustment
factor.

 

Neil Johnson, CEO of Duke Royalty, said:

"The acquisition of Sweethaven marks an exciting step forward for InTec, as it
bolsters the company's existing education-focused offering and expands our
scale and credibility within the public education sector. There is a strong
cultural fit between InTec and Sweethaven, and we look forward to seeing the
positive impact that this new addition will have within the wider group."

Further information regarding Sweethaven

 

Established in 1977, Sweethaven provides managed IT services to SMEs with a
primary focus on securing long term relationships and contracts within the
education sector. Sweethaven is led by a highly capable senior team who have
worked with the business for an extended period of time and won several
industry awards. Education customers include primary schools, secondary
schools and multi-academy trusts and the service agreements with these clients
provide strong profit visibility via contracted recurring revenue. For FY23,
recurring revenue streams contributed 70% of the gross profits reported in
that year.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners is 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 / 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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