Duke Capital Regulatory News (DUKE)

6 August 2020

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

Trading Update & Notice of FY 2020 Results

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 Q1 FY2021.

Additionally, Duke Royalty announces that its Full Year results for the financial year ended 31 March 2020 (FY2020) are expected to be published on 17 September 2020.

Current Trading

Duke Royalty is pleased to report that most of its Royalty Partners have experienced a significant upturn in trading during May and June, further to the reduction in revenue experienced by most of its Royalty Partners at the start of the pandemic as described in our previous trading update. The general upturn in trading has continued into Q2 FY2021.

The Company is therefore pleased to report that Q1 FY2021 cash revenue, being cash distributions from its Royalty Partners and cash gains from sales of equity assets, totalled over £2.0 million. Duke's cash revenue therefore was only down 20% from the comparable quarter a year ago, while its operating cash costs decreased 15% from the same period 12 months ago, on the back of the decisive action taken by Duke in regards to its cost base at the start of the pandemic.

On this basis, it is important to note that the Company's Q1 cash revenue would surpass the full year operating cash costs. In addition, Duke estimates that the cash revenue it will receive from its Royalty Partners in Q2 FY2021 will exceed Q1 FY2021.

Since April, the Company has focused its efforts on ensuring that its Royalty Partners most impacted by the Covid-19 pandemic have been given the financial flexibility to manage the challenges they are experiencing in relation to cash flow, while also backing those Royalty Partners who are benefitting in the current climate. In certain circumstances, forbearance agreements have been structured to cover the six-month period ending September 2020. Rather than surrendering its revenue, these agreements mean Duke's forgone cash distributions for the first six months of the pandemic have been either accrued, capitalised or equitized.

Although it is clear that the macro environment is still highly volatile and uncertain, and that this is expected to continue for the foreseeable future, based on current trading, Duke does not expect that these agreements will need to be extended.

With this in mind, as the current forbearance agreements expire and are replaced with normalised monthly cash payments from most of its Royalty Partners commencing October 2020, the Company is cautiously optimistic that it will be able to announce a positive trend of increasing quarterly cash revenues over the coming quarters and that quarterly cash revenue growth will accelerate further into Q3 FY2021.

Neil Johnson, CEO of Duke Royalty, said:

"I am pleased to report that the feedback from our Royalty Partners is one of a relatively improving operating environment and that we are beginning to see some positive momentum re-emerging from the portfolio as a whole, notwithstanding the fact that we continue to face an unprecedented operating environment.

"While the long-term outlook for each Royalty Partner varies, Duke has taken a series of proactive measures to help its few hardest hit, consumer-facing Royalty Partners. All of the businesses within our portfolio have withstood prior market turbulence and have a long term track record of profitability and growth, so we support them as they navigate their way through this difficult trading period.

"I firmly believe that the recent challenging operating environment has strengthened the relationship that Duke has with its current Royalty Partners and has provided confirmation that Duke is a long term and supportive capital provider."

***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.