REG - Duke Royalty Limited - Trading Update

Duke CapitalAnnouncement

13/09/2023 07:15

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RNS Number : 2324M  Duke Royalty Limited  13 September 2023

13 September 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 its first quarter of the financial year 2024, ending 30 June 2023 ("Q1
FY24"). The Company also provides guidance on trading for its second quarter,
ending 30 September 2023 ("Q2 FY24").

 

Q1 FY24 Financial Highlights:

 

·        Recurring cash revenue for Q1 FY24 reached a new record
of £6.0 million, an increase of 17% over Q1 FY23, and a £300,000 increase
on the prior quarter

·       The £6.0 million for the quarter meant Duke delivered an average
monthly recurring cash revenue of £2.0 million for the first time in the
Company's history, a significant milestone

·     Q1 FY24 total cash revenue reached £7.8 million, marking another
quarterly cash revenue record, surpassing the previous record of £6.7 million
in Q4 FY22, on account of the Instor buyback

·        0.70p interim dividend paid out in April 2023

Overview of quarterly revenue growth:

          Recurring Cash Revenue*  Total Cash Revenue**
 Q1 FY23  £5.1 million             £5.1 million
 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

 

* 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

 

 

Q1 FY24 Operational Highlights:

·        In May 2023, Duke announced the successful exit of its
investment in royalty partner Instor Solutions, Inc. Duke received net cash of
US$11.2 million at closing, delivering a total gain of US$2.4 million and a
triple-digit IRR

·        Duke also completed two material follow-on investments in the
quarter as follows:

-     a £1.9 million investment into New Path Fire and Security to
facilitate its acquisition of BDI Security Limited

-      a £1.8 million investment int Tristone Healthcare to enable the
company to complete its acquisition of South West Intervention Service Limited

 

Financial Forecast for Q2 FY24:

 

·     Based on current trading, Duke expects to achieve recurring cash
revenue of £6.2 million in Q2 FY24

·   The £6.2 million of cash revenue would represent a 17% year-on-year
increase (Q2 FY23: £5.3 million) and a further increase on Q1 FY24

 

Neil Johnson, CEO of Duke Royalty, said:

 

"We are pleased to report another quarter marked by record-breaking cash
performance, underpinned by solid growth. This underscores the resilience of
Duke's business model, especially in the face of ongoing economic challenges.
Looking ahead, we remain confident that the consistent quarterly growth we
have generated in recurring revenue will continue, and Duke is committed to
working with our partners for their long-term growth."

 

Change of Name of Nominated Adviser and Joint Broker

 

The Company also announces that its Nominated Adviser and Joint Broker has
changed its name to Cavendish Securities plc following completion of its own
corporate merger.

 

***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

 Cavendish 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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