Duke Capital Regulatory News (DUKE)

18 June 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 £2.3 million into its existing royalty partner Welltel (Ireland) Limited ("Welltel"), the Dublin-headquartered telecoms, IT and network specialist.

Highlights:

· Additional funds will enable Welltel to complete a further acquisition, representing its fourth acquisition financed with Duke's capital

· Acquired business is a long-standing and profitable private company in a complementary sector

· The financing is expected to be accretive to Duke's earnings and in line with the Company's standard terms

· Deal shows strength of Duke's flexible and supportive funding model for SMEs

Duke's capital will be used by Welltel to finance the acquisition of Globalnet Solutions Limited, trading as Novi ("Novi"), which was founded in 1999 in Ireland. Today, Novi is a well-regarded brand in the Irish technology market and a leading provider of proactive IT and cyber security services, including support and manged services, Cloud and Infrastructure, Data Protection and Recovery, Professional Services and other technologies that support the modernise and transform agenda. Novi is based in Kildare, Ireland, and has been operating profitably for many years, with a strong corporate customer base with fast-growing levels of contracted, recurring revenue.

This follow-on financing represents the fourth tranche of capital invested by Duke in the business since 2017, providing on-going support for Welltel's acquisition roll-up strategy. Welltel has grown to be one of the largest technology service providers in Ireland, with over 3,000 enterprise clients. It has continued to expand year-on-year through a combination of organic growth and strategic M&A and in 2019 was named in the Deloitte "Fast 50" (Ireland) for the sixth consecutive year, as well as the "Fast 500" (EMEA) for the first time.

Based on the increased total investment of £10.5 million into Welltel, Duke will be entitled to higher distributions of approximately £1.4 million per annum beginning in July 2020, which represents a pro forma cash yield of 13.2% on Duke's total invested capital. Duke remains supportive of Welltel's buy and build strategy and retains the right, but not the obligation, to provide additional senior secured funding to Welltel as part of the overall funding solution for its next acquisition.

Neil Johnson, CEO of Duke Royalty, said:

"We are delighted to be making this follow-on investment into Welltel, as the Company's preferred long-term capital partner. We have developed a strong working relationship with the Executive team, who are also large shareholders in the business with a clear vision for its future. Our ability to grow in step with Welltel, as it continues to pursue sensibly priced, strategic M&A alongside organic growth, is a highly attractive feature of our funding, whilst the Company's recurring, contracted and diversified earnings base serves as a great fit for our royalty model.

"Notwithstanding the current economic climate, this transaction also reinforces the fact that Duke Royalty is open for business for the right deals. This follow-on further highlights our track-record of being a flexible and long-term funding partner for businesses in the UK, Europe and abroad."

***ENDS***

For further information, please contact www.dukeroyalty.com, or contact:

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.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

About Welltel

Welltel is a fast growing technology service provider providing Connectivity, Phone System and Unified Communications, Contact Centre, Network Infrastructure, Cyber Security, and I.T Managed Service Solutions to over 3,000 customers with service operations in Dublin, Cork and Limerick, Ireland.

For more information, visit www.welltelgroup.com.