Duke Capital Regulatory News (DUKE)

16 September 2020

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 abroad, is pleased to provide the following trading update for its second financial quarter ending 30 September 2020 ("Q2 FY21").

The Company confirms that the general upturn experienced in the underlying trading of its royalty partners, as referred to in its Q1 FY21 trading update, has continued into Q2 FY21.

Based on current expectations, the Company expects that cash revenue for the quarter, being cash distributions from its Royalty Partners and cash gains from sales of equity assets, will total £2.4 million versus £2.0 million in Q1 FY21.

To put this into context, Duke reported its record quarterly cash revenue in Q4 FY20, when it generated cash receipts of over £2.8m, representing a normalised pre-COVID trading environment.

Subsequently, and as previously reported, the Company proactively entered into forbearance agreements in Q1 FY21 with those Royalty Partners which had been the most affected by the Covid-19 pandemic, in order to give them the financial flexibility to manage their way through the financial challenges that they were experiencing. These forbearance agreements initially covered the period from 1 April 2020 to 30 September 2020 and resulted in a short-term reduction in cash revenue for Duke, with the forgone revenue for the first six months of the pandemic either being accrued, capitalised or equitised.

However, as these agreements expire, Duke is cautiously optimistic that it will be able to announce a further increase in quarterly cash revenue for the period Q3 FY21.

Neil Johnson, CEO of Duke Royalty, said:

"It is very pleasing to see the increased cash revenue generated by the Company's royalty partners in Q2 FY21 over Q1 FY21. While the pandemic's effects are felt throughout all aspects of the economy and general life, I am proud of the team's response to the crisis, and of the resilience of our royalty partners and the royalty business model. We are focused on continuing to work with our existing royalty partners while also looking for new opportunities in which to deploy our capital."

***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.