REG - Duke Royalty Limited - Trading Update

Duke CapitalAnnouncement

01/02/2022 07:00

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RNS Number : 2271A  Duke Royalty Limited  01 February 2022

1 February 2022

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 North
America, is pleased to provide the following trading update for its third
financial quarter ended 31 December 2021 ("Q3 FY22"), and to provide guidance
on trading for the last quarter of the Company's financial year ending 31
March 2022 ("Q4 FY22").

Financial Highlights:

 ·        Q3 FY22 cash revenue, being monthly cash distributions from
 Duke's royalty partners plus cash gains received from the sales of equity
 assets and redemption premiums, totalled £3.9 million for the quarter which
 was in line with management's expectations and the trading update announced on
 23 December 2021
 ·        On a normalised cash revenue basis, which excludes the
 effects of redemption premium receipts and equity sales, normalised Q3 FY22
 cash revenue also totalled £3.9 million which represented a record quarter
 for the Company, surpassing the £3.3 million generated in Q2 FY22.  A table
 of the previous four quarters revenue is below.
 ·        Based on current trading, Duke expects Q4 FY22 normalised
 cash revenue to be £4.4 million, which would again represent another record
 quarter of normalised cash revenue for the Company

 

Capital Deployments:

 ·      Q3 FY22 saw record capital deployments by the Group in excess of
 £38 million which is more than double the amount deployed by Duke in any
 previous quarter
 ·      Duke completed its largest new royalty financing to date with a
 US$21 million (approximately £15.9 million) investment into Atlas Signs
 Holdings, Inc., further expanding its presence in North America
 ·      Also in December, Duke completed a £10.5 million royalty
 financing with Tristone Healthcare Limited ("Tristone"). As part of this
 financing, Duke has agreed to a total funding commitment of up to £20m to
 support Tristone's buy-and-build strategy
 ·        Three follow-on investments into existing royalty partners
 were also completed during Q3 FY22 as follows:

 ·        A £4.2 million investment into Bakchysarai (Ireland) Limited
 ("BIL") to finance their latest acquisition of Vantage Resources Limited
 ·      A £5.3 million investment into Miriad Products, enabling the
 business to release equity value to certain principals and restructure its
 share register as part of which Duke increased its own shareholding to 30%
 ·      A £5.3 million investment into Miriad Products, enabling the
 business to release equity value to certain principals and restructure its
 share register as part of which Duke increased its own shareholding to 30%

 

Duke Royalty's last four quarters of Normalised Cash Revenue and Total Cash
Revenue are as follows:

          Normalised Cash Revenue*  Total Cash Revenue
 Q4 FY21  £2.5 million              £2.5 million
 Q1 FY22  £2.9 million              £2.9 million
 Q2 FY22  £3.3 million              £4.9 million
 Q3 FY22  £3.9 million              £3.9 million

 

* Normalised cash revenue excludes redemption premium receipts and cash gains
from equity sales

 

Neil Johnson, CEO of Duke Royalty, said:

"I am delighted to report that normalised cash revenue continued to grow to
record levels in Q3 FY22. I expect this growth to continue into Q4 FY22 on the
back of substantial new deployments made into both new and existing royalty
partners.

"Duke's differentiated, long dated product offering is increasingly gaining
traction in the marketplace. Our capital perfectly suits those companies
wishing to minimise their refinancing risk and spend their time focussing on
running, and expanding, their businesses."

 

***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 / Julian Morse / Michael Johnson  +44 (0) 207 397 8900

 (Nominated Adviser

 and Joint Broker)

 Canaccord Genuity        Adam James / Georgina McCooke                                    +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (PR)         Elisabeth Cowell/ Richard Bicknell/ Megan Kovach                 +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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