(Alliance News) - Duke Royalty Ltd said Wednesday it expects its annual results to show a "significant uplift" from the year before.
The royalty-focused finance investment firm said that revenue and cashflow for the year to the end of March were in line with market expectations, and has seen its positive momentum continue into the first quarter of its current financial year.
Duke Royalty said, in fact, that June represented the single highest month of cash revenue to date.
Operationally, the annual adjustment factors for royalty partners were revised during its recently ended financial year and Duke Royalty's current one, expected to lead to an increase in revenue for the firm.
In terms of financing, Duke Royalty has agreed to improved terms with its existing lender concerning its current debt facility. Restructuring of the facility is expected to take place in the coming weeks, and will lead to reduced debt servicing costs.
Looking ahead, Duke Royalty said its near-term pipeline for both follow-on and new investment opportunities remains strong.
"Fiscal 2019 was a busy year for the company, with the raising of GBP44 million new equity capital and the tripling of the number of royalty partners from four to 12. This was in part through the acquisition of Capital Step and the completion of several follow-on transactions into existing royalty partners," said Chief Executive Officer Neil Johnson.
"With Duke's high operating leverage, we feel confident that assuming continued positive annual adjustments, combined with future additional capital deployment, the company will be able to produce a higher dividend pay-out to shareholders," Johnson added.
Shares in Duke Royalty were up 3.1% a 45.15 pence on Wednesday.
Duke Capital (DUKE)