Last checked at 1 Feb 2022 10:02
The following replaces the announcement on 1 February 2022 released at 7:00 am under RNS No. 2271A, with a correction to the third follow-on investment into an existing royalty partner, which was a £2.1 million investment into Step Investments Limited. The previous version of the announcement repeated the £5.3 million investment into Miriad Products.
All other details remain the same and the full corrected announcement is set out below.
1 February 2022
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 update for its third financial quarter ended 31 December 2021 ("Q3 FY22"), and to provide guidance on trading for the last quarter of the Company's financial year ending 31 March 2022 ("Q4 FY22").
Financial Highlights:
· Q3 FY22 cash revenue, being monthly cash distributions from Duke's royalty partners plus cash gains received from the sales of equity assets and redemption premiums, totalled £3.9 million for the quarter which was in line with management's expectations and the trading update announced on 23 December 2021
· On a normalised cash revenue basis, which excludes the effects of redemption premium receipts and equity sales, normalised Q3 FY22 cash revenue also totalled £3.9 million which represented a record quarter for the Company, surpassing the £3.3 million generated in Q2 FY22. A table of the previous four quarters revenue is below.
· Based on current trading, Duke expects Q4 FY22 normalised cash revenue to be £4.4 million, which would again represent another record quarter of normalised cash revenue for the Company
Capital Deployments:
· Q3 FY22 saw record capital deployments by the Group in excess of £38 million which is more than double the amount deployed by Duke in any previous quarter
· Duke completed its largest new royalty financing to date with a US$21 million (approximately £15.9 million) investment into Atlas Signs Holdings, Inc., further expanding its presence in North America
· Also in December, Duke completed a £10.5 million royalty financing with Tristone Healthcare Limited ("Tristone"). As part of this financing, Duke has agreed to a total funding commitment of up to £20m to support Tristone's buy-and-build strategy
· Three follow-on investments into existing royalty partners were also completed during Q3 FY22 as follows:
- A £4.2 million investment into Bakchysarai (Ireland) Limited ("BIL") to finance their latest acquisition of Vantage Resources Limited
- A £5.3 million investment into Miriad Products, enabling the business to release equity value to certain principals and restructure its share register as part of which Duke increased its own shareholding to 30%
- A £2.1 million investment into Step Investments Limited, facilitating the purchase of an 85% equity interest in Adtower Limited
Duke Royalty's last four quarters of Normalised Cash Revenue and Total Cash Revenue are as follows:
- | Normalised Cash Revenue* | Total Cash Revenue |
Q4 FY21 | £2.5 million | £2.5 million |
Q1 FY22 | £2.9 million | £2.9 million |
Q2 FY22 | £3.3 million | £4.9 million |
Q3 FY22 | £3.9 million | £3.9 million |
* Normalised cash revenue excludes redemption premium receipts and cash gains from equity sales
Neil Johnson, CEO of Duke Royalty, said:
"I am delighted to report that normalised cash revenue continued to grow to record levels in Q3 FY22. I expect this growth to continue into Q4 FY22 on the back of substantial new deployments made into both new and existing royalty partners.
"Duke's differentiated, long dated product offering is increasingly gaining traction in the marketplace. Our capital perfectly suits those companies wishing to minimise their refinancing risk and spend their time focussing on running, and expanding, their businesses."
***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/ Megan Kovach | +44 (0) 20 3757 6882 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.