REG - Duke Royalty Limited - Follow-on investment into existing royalty partner

Duke CapitalAnnouncement

24/12/2020 07:00

RNS Number : 7646J
  
Duke Royalty Limited
  
24 December 2020
  
 

24 December 2020
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
Follow-on investment into existing royalty partner
 
Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce a follow-on investment of €1.1 million (£1.0 million) into its existing royalty partner, BHPC Limited ("BHP"). BHP is an Irish brokerage specialising in the niche not-for-profit insurance space and has performed resiliently throughout 2020.
Highlights:
·     Funds will provide growth capital to BHP which will position the business well for the 2021 year as Ireland recovers from Covid-19
·     The upsize will be completed on the same terms as the existing facility, which will be accretive to the Duke portfolio as a whole
·     Since the SIL acquisition of BHP, M&A activity in the Irish broker market has increased materially pushing acquisition multiples increasingly higher
·     This capital and the business growth it will facilitate will further increase the equity value that Duke believes exists in the business, and where Duke is a 10.5% equity shareholder
·     Duke's original investment into BHP via Capital Step in August 2019 totalled €4.6 million with this investment increasing Duke's invested capital to €5.7 million
·     As a result of resilient performance during the pandemic, BHP is expected to achieve full-year profitability roughly in-line with its pre-Covid-19 budget
·     Duke's monthly royalty payments have been unaffected during FY2021
 
Neil Johnson, CEO of Duke Royalty, said:
"We are delighted to be making this follow-on investment into BHP and further strengthening the company's balance sheet. BHP operates in a sector with healthy M&A activity, currently transacting at multiples well above where BHP was acquired in the original Duke transaction - we believe BHP has real equity value and Duke will participate in that upside." 
 
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For further information, please visit 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 Joint Broker)
 


Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson
 


+44 (0) 207 397 8900
 




Canaccord Genuity
(Joint Broker)
 


Adam James / Georgina McCooke
 


+44 (0) 207 523 8000




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.
 
 

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