REG - Duke Royalty Limited - Trading Update

Duke CapitalAnnouncement

16/09/2020 07:01

RNS Number : 0953Z
  
Duke Royalty Limited
  
16 September 2020
  
 

16 September 2020
 
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
Trading Update
Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to provide the following trading update for its second financial quarter ending 30 September 2020 ("Q2 FY21").  
The Company confirms that the general upturn experienced in the underlying trading of its royalty partners, as referred to in its Q1 FY21 trading update, has continued into Q2 FY21.  
Based on current expectations, the Company expects that cash revenue for the quarter, being cash distributions from its Royalty Partners and cash gains from sales of equity assets, will total £2.4 million versus £2.0 million in Q1 FY21. 
To put this into context, Duke reported its record quarterly cash revenue in Q4 FY20, when it generated cash receipts of over £2.8m, representing a normalised pre-COVID trading environment. 
Subsequently, and as previously reported, the Company proactively entered into forbearance agreements in Q1 FY21 with those Royalty Partners which had been the most affected by the Covid-19  pandemic, in order to give them the financial flexibility to manage their way through the financial challenges that they were experiencing. These forbearance agreements initially covered the period from 1 April 2020 to 30 September 2020 and resulted in a short-term reduction in cash revenue for Duke, with the forgone revenue for the first six months of the pandemic either being accrued, capitalised or equitised. 
However, as these agreements expire, Duke is cautiously optimistic that it will be able to announce a further increase in quarterly cash revenue for the period Q3 FY21.  
Neil Johnson, CEO of Duke Royalty, said:
"It is very pleasing to see the increased cash revenue generated by the Company's royalty partners in Q2 FY21 over Q1 FY21. While the pandemic's effects are felt throughout all aspects of the economy and general life, I am proud of the team's response to the crisis, and of the resilience of our royalty partners and the royalty business model. We are focused on continuing to work with our existing royalty partners while also looking for new opportunities in which to deploy our capital."
 
***ENDS***
 
For further information, please contact www.dukeroyalty.com, or contact:
 




Duke Royalty Limited


Neil Johnson / Charlie Cannon Brookes / Hugo Evans
 


+44 (0) 1481 741 240




Cenkos Securities plc 
(Nominated Adviser and Broker)
 


Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson
 


+44 (0) 207 397 8900




Newgate Communications (PR)


Elisabeth Cowell/ Ian Silvera/ Megan Kovach


+ +44 (0) 20 3757 6880 dukeroyalty@newgatecomms.com
 




 
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.
 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
TSTFLFSTALIELII