REG - Duke Royalty Limited - Trading Update and Follow-on Investment

Duke CapitalAnnouncement

29/12/2023 07:00

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RNS Number : 1124Y  Duke Royalty Limited  29 December 2023

29 December 2023

Duke Royalty Limited

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

Trading Update and Follow-on Investment

 

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 provide guidance on its trading for its third financial
quarter ending 31 December 2023 ("Q3 FY24") and to announce a follow-on
investment of CA$8.6 million (approximately £5.1 million) into its existing
royalty partner Creō-Tech Industrial Group Inc. ("Creō-Tech").

 

Trading Update

 

Based on current trading, Duke expects to achieve recurring cash revenue* of
£6.3 million in Q3 FY24. This represents a 12% increase on Q3 FY23 (£5.6
million) and an increase on the prior quarter, Q2 FY24, which saw the Company
deliver record recurring cash revenue of £6.2 million.

 

Overview of quarterly revenue growth:

 

          Recurring Cash Revenue*  Total Cash Revenue**
 Q2 FY23  £5.3 million             £5.3 million
 Q3 FY23  £5.6 million             £5.6 million
 Q4 FY23  £5.7 million             £5.8 million
 Q1 FY24  £6.0 million             £7.8 million
 Q2 FY24  £6.2 million             £6.2 million

 

* Recurring cash revenue excludes buyback premium receipts and cash gains from
equity sales

** Total cash revenue is monthly cash distributions from Duke's royalty
partners plus cash gains received from the sales of equity assets and buyback
premiums

 

Other Highlights

 

·        In December, Duke invested a further CA$8.6 million into
Creō-Tech, taking its total exposure to CA$27.1 million (£16.0 million). The
investment will be used to facilitate the refinancing of its existing senior
lender.

·        During the quarter, Duke strengthened its investment team
adding two new associate hires to take advantage of the current market
opportunities.

·        Duke also embarked on a review of the Company's branding and
positioning. This review is still ongoing, and the Board looks forward to
sharing these exciting changes upon completion in the next quarter.

 

Neil Johnson, CEO of Duke Royalty, said:

 

"We are pleased to report that despite the ongoing macroeconomic
uncertainties, we continue to deliver revenue growth, with Q3 FY24 on course
to maintain this upward trend, underpinning our stable dividend which at the
current share price, represents an approximate 9% yield.

"We believe the Company's rebrand, alongside our expanded investment team,
will position Duke to take advantage of the abundance of new opportunities in
the Private Credit market, which has become increasingly mainstream in the SME
lending space."

 

 

***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

 Cavendish Capital Markets Limited     Stephen Keys / Callum Davidson / Michael Johnson    +44 (0) 207 220 0500

 (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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