Last checked at 20 Apr 2022 07:00
20 April 2022
Duke Royalty Limited
("Duke Royalty" or "Duke")
Follow-On Investment into Existing Royalty Partner
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 announce a follow-on investment of £2.3 million into existing royalty partner Tristone Healthcare Limited ("Tristone") to fund its latest acquisition as well as provide funding for capital expenditure.
Tristone provides specialist residential and domiciliary care in two end markets: i) high acuity adults with severe mental, physical or learning disabilities; and ii) care leavers, aged between 16 and 19, who are transitioning out of social care and into independent living.
Highlights:
· Duke's funds will facilitate Tristone's acquisition of Beyond Limits (Plymouth) Limited ("Beyond Limits"), which operates specialist care homes predominantly in the Southwest of England, providing long-term residential care to people with learning disabilities, mental health issues and other support needs
· The financing increases Duke's total investment into Tristone to £14.4 million. The investment terms are the same as Duke's previous follow-on investment into Tristone, including a starting yield of 13.5% and the normal +/- 6% annual revenue adjustment factor
· Beyond Limits represents Tristone's second acquisition supported by Duke, in line with Tristone's stated buy & build strategy
· Duke will also be providing £300k of funds to initiate the refurbishment of premises that will be used as an extension of Pro Care Wales, one of Tristone's existing businesses, which is seeing healthy demand from local authorities to place additional service users
· Tristone has a deep understanding of the demands of social care and has extensive experience of investing in businesses of this nature, having supported a number of different care businesses since formation in 2015.
Neil Johnson, CEO of Duke Royalty, said:
"It's pleasing to see Tristone executing on its 'buy-and-build' strategy using our capital. Once again, the company has sourced and acquired a target that shares both an existing culture of providing the highest quality of care, with the opportunity for further growth and betterment.
"Beyond Limits will be a great addition to the existing Tristone community. Supporting the acquisitions of our royalty partners allows them to grow and diversify which benefits both themselves and Duke."
Further information regarding Beyond Limits
Beyond Limits, established in 2012, is a successful provider of support to people with learning disabilities, mental health issues and other support needs. Beyond Limits was founded by Doreen Kelly who was formerly a mental health nurse and has been involved in the voluntary and independent sector since 1986. Beyond Limits is a Care Quality Commission (CQC) registered service provider and has achieved an overall rating of 'Outstanding'. The service specialises in providing care for adults with learning disabilities, autistic spectrum disorders, mental illness, or physical disabilities. The support is provided to Service Users in their own homes, or through a portfolio of residential homes primarily in Devon, Cornwall, and Somerset. The service currently supports 26 individuals from the age of 18 plus, with some people requiring support with personal care.
Duke Royalty Portfolio
A full list of Duke's current Royalty Partners are now included for reference on the Partners page of our website: www.dukeroyalty.com/partners
***ENDS***
For further information, please visit www.dukeroyalty.com or contact:
Duke Royalty Limited | Neil Johnson / Charles Cannon Brookes / Hugo Evans | +44 (0) 1481 730 613 |
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 |
SEC Newgate (PR) | Elisabeth Cowell/ Richard Bicknell/ Max Richardson | +44 (0) 20 3757 6880 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.