Duke Royalty Limited Trading Update (7456R)
03 März 2023 - 8:00AM
UK Regulatory
TIDMDUKE
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 GBP5.7 million in Q4 FY23. This represents a 21% year
on year increase (Q4 FY22: GBP4.7 million) and an increase on the
prior quarter, Q3 FY23, which saw the Company deliver record
recurring cash revenue of GBP5.6 million.
Overview of quarterly revenue growth:
Recurring Cash Revenue Total Cash Revenue**
Q3 FY22 GBP3.9 million GBP3.9 million
----------------------- ---------------------
Q4 FY22 GBP4.7 million GBP6.7 million
----------------------- ---------------------
Q1 FY23 GBP5.1 million GBP5.1 million
----------------------- ---------------------
Q2 FY23 GBP5.3 million GBP5.3 million
----------------------- ---------------------
Q3 FY23 GBP5.6 million GBP5.6 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
GBP100 million and replaced Duke's previous GBP55 million term and
revolving facilities.
-- Also during Q3 FY23, Duke completed a new GBP5.0 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 GBP0.5 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 GBP3.2 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
GBP17.6 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 or
contact:
Neil Johnson / Charles
Cannon Brookes / Hugo
Duke Royalty Limited Evans +44 (0) 1481 730 613
Cenkos Securities
plc
(Nominated Adviser Stephen Keys / Callum
and Joint Broker) Davidson / Michael Johnson +44 (0) 207 397 8900
Canaccord Genuity
(Joint Broker) Adam James / Harry Rees +44 (0) 207 523 8000
SEC Newgate (PR) Elisabeth Cowell / Matthew +44 (0) 20 3757 6882
Elliott 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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END
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