Last checked at 28 Sep 2018 07:00
28 September 2018
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
£1 million follow-on contribution to Lynx Equity (U.K.) Limited
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 that it has contributed a further £1 million into its existing royalty partner, Lynx Equity (U.K.) Limited ("Lynx UK").
Lynx UK will allocate Duke's further contribution towards the acquisition of Day 2 Interiors ("Day2") which was recently closed by Lynx and represents its fourth European acquisition.
Based on the new increased aggregate investment of £10 million, Duke will be entitled to higher monthly distributions from Lynx UK, beginning in October 2018, which will total £1.25 million per annum. The terms of the additional £1 million contribution match the previous investments made into Lynx UK.
Founded in 2001, Day2 is a 17-year-old profitable UK private company primarily focused on the supply of office furniture and interior design in the UK. Day2 represents the biggest investment made by Lynx UK to date and further strengthens the Company's consolidated profitability as well as the sector diversification amongst its underlying operating subsidiaries.
Neil Johnson, CEO of Duke Royalty, said:
"We are delighted with this investment because it significantly improves Duke's coverage ratio as well as its security package. Day2 represents the biggest investment made by Lynx UK to date, and we believe the Company will provide robust, stable and long term returns to our shareholders."
Duke Royalty Portfolio
Following the completion of the follow-on contribution to Lynx UK, the Company's portfolio of royalty investments is as follows with over £43 million of capital deployed to date:
| Royalty Partner | Current Royalty Investment Amount | Date of Original Royalty Agreement |
| Temarca B.V | Euro 9,000,000 | April 2017 |
| Lynx Equity (UK) Limited | GBP 10,000,000 | October 2017 |
| Trimite Global Coatings Limited | GBP 9,000,000 | March 2018 |
| Brownhills Investments Limited | GBP 6,500,000 | April 2018 |
| Interhealth Canada Holding Corp | GBP 10,000,000 | August 2018 |
***ENDS***
For further information, please contact www.dukeroyalty.com, or contact:
| Duke Royalty Limited | Neil Johnson/ Charlie Cannon-Brookes
| +44 (0) 1481 741 240 |
| Grant Thornton UK LLP (Nominated Adviser) | Colin Aaronson/ Samantha Harrison
| +44 (0) 20 7383 5100
|
| Cenkos Securities plc (Joint Broker)
| Julian Morse/ Michael Johnson | +44 (0) 207 397 8900 |
| Mirabaud Securities Limited (Joint Broker)
| Peter Krens/ Edward Haig-Thomas
| +44 (0) 20 3167 7222 |
| Redleaf Communications (PR)
| Elisabeth Cowell/ Ian Silvera/ Tom Carnegie | +44 (0) 20 3757 6880 Dukeroyalty@redleafpr.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.
About Lynx UK
Lynx UK is a subsidiary of Lynx Equity which is a Toronto-based private firm that seeks to acquire, own and operate mature, old-economy businesses in a diverse range of industries. Over its 10-year history, Lynx has made over 45 acquisitions and grown revenue to over C$400 million per annum for its financial year ended 31 July 2017.
Lynx has been recognized as one of Canada's Fastest-Growing Companies three years in a row in the PROFIT 500, the definitive ranking published by Canadian Business magazine based on five-year revenue growth. Day2 is a London based furniture dealership, that provides consultancy, procurement and installation services to organisations of all shapes and sizes. The company is committed to providing a tailored service to every one of their clients, focusing on innovation, integrity and the highest levels of customer services.
For further information on Lynx Equity, please visit www.lynxequity.com
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.