REG - Duke Royalty Limited - Trading Update

Duke CapitalAnnouncement

03/03/2023 07:00

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RNS Number : 7456R  Duke Royalty Limited  03 March 2023

3 March 2023

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 and operational update
for the business for its third financial quarter ending 31 December 2022 ("Q3
FY23") as well as guidance on trading for its fourth financial quarter ending
31 March 2023 ("Q4 FY23").

 

Based on current trading, Duke expects to achieve recurring cash revenue* of
£5.7 million in Q4 FY23. This represents a 21% year on year increase (Q4
FY22: £4.7 million) and an increase on the prior quarter, Q3 FY23, which saw
the Company deliver record recurring cash revenue of £5.6 million.

Overview of quarterly revenue growth:

          Recurring Cash Revenue  Total Cash Revenue**
 Q3 FY22  £3.9 million            £3.9 million
 Q4 FY22  £4.7 million            £6.7 million
 Q1 FY23  £5.1 million            £5.1 million
 Q2 FY23  £5.3 million            £5.3 million
 Q3 FY23  £5.6 million            £5.6 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

 

Highlights:

·     During the quarter, Duke was pleased to announce the refinanced and
upsized credit facility, on improved terms, with Fairfax Financial Holdings
Limited. The new credit facility is a 225 bps improvement in cost. The new
credit facility is for up to £100 million and replaced Duke's previous £55
million term and revolving facilities.

·      Also during Q3 FY23, Duke completed a new £5.0 million royalty
investment into New Path Fire & Security ("NPFS"), a growing and
acquisitive platform, buying independent regional fire safety and security
companies across southern England. NPFS predominantly serves business
customers, helping them to protect their premises, assets, and most
importantly their people. Alongside the royalty investment, Duke invested
£0.5 million to acquire a 15 per cent equity stake in NPFS.

·      Duke also provided further financing to specialist residential and
domiciliary care provider, Tristone Healthcare Limited. Duke committed £3.2
million to fund the acquisition of K Bond Healthcare Limited, a well-respected
residential and nursing care provider with operations across Greater
Manchester.  The financing increases Duke's total investment into Tristone to
£17.6 million.

Neil Johnson, CEO of Duke Royalty, said:

"These strong results follow the addition of another royalty partner in New
Path Fire & Security to our portfolio, as well a follow-on investment into
social care platform Tristone Healthcare during the period. Our increasing
recurring cash revenues also reflect the good performance of our partners
despite the headlines of economic headwinds and inflation worries.

"With Fairfax Financial as our new senior lender, we have a world class
partner to continue our growth.  As we look ahead to Duke's 2024 financial
year, we believe we have a solid foundation to continue to grow the business
and add royalty partners to continue revenue growth and portfolio
diversification."

 

***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 / 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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