Duke Royalty Limited Follow-on contribution to royalty partner (5969K)
December 17 2018 - 2:00AM
UK Regulatory
TIDMDUKE
RNS Number : 5969K
Duke Royalty Limited
17 December 2018
17 December 2018
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
GBP 1.0 million follow-on contribution to existing royalty
partner Brownhills Glass Co Limited ("Brownhills")
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 a further contribution of GBP 1.0 million into its royalty
partner Brownhills. Brownhills is one of three subsidiary companies
of United Glass Group Limited (formerly Brownhills Investments
Limited) (the "Group"), a UK based group which represents one of
the UK's leading independent glass merchants and processors and was
established in the 1970s.
As previously announced on 24 April 2018, Duke originally
invested GBP 6.5 million into the Group with an option to increase
(at Duke's sole option) its investment by a further GBP 1.0 million
at any time prior to 31 December 2019. In this regard, Duke is
pleased to announce that, in support of Brownhills' growth plans,
it has now decided to exercise its right and invest the additional
GBP 1.0 million with this additional investment being made on the
same initial cash-on-cash yield of more than 13% and the same
duration of 30 years. Post this additional investment, Duke's
aggregate exposure to Brownhills has increased to GBP 7.5
million.
Duke is also pleased to report that the first adjustment factor
period for Brownhills on the initial GBP 6.5 million investment
ended on 30 November 2018 and that the turnover growth for the
consolidated Brownhills group year-on-year exceeded the maximum
possible adjustment factor of +6%. As such, the payments due to
Duke will increase from April 2019 on a cash basis by 6%. Following
this positive adjustment on the original GBP 6.5 million, as well
as the initial cash-on-cash yield on new GBP 1.0 million
investment, Brownhill's increased payments to Duke will now total
approximately GBP 1.06 million per annum (starting April 2019).
Use of proceeds for the additional GBP 1.0 million investment
includes acquiring the freehold property from which one of
Brownhill's key operating subsidiaries operates as well as buying
additional toughening and processing equipment to enable Brownhills
to satisfy the high level of demand that it is currently
experiencing throughout the group.
Neil Johnson, CEO of Duke Royalty, said:
"We are very pleased to make this additional investment into our
existing partner Brownhills. Brownhills has experienced strong year
on year turnover growth which has resulted in Duke benefitting from
its third consecutive maximum adjustment factor reset. Given that
this additional investment is primarily being used to fund growth
initiatives within Brownhills we are hopeful that this turnover
growth will be continued into the future."
***ENDS***
For further information, please contact www.dukeroyalty.com, or
contact:
Neil Johnson/ Charlie
Duke Royalty Limited Cannon-Brookes +44 (0) 1481 741 240
Grant Thornton UK
LLP Colin Aaronson/ Samantha
(Nominated Adviser) Harrison +44 (0) 20 7383 5100
-------------------------- ------------------------------
Cenkos Securities
plc Julian Morse/ Michael
(Joint Broker) Johnson +44 (0) 207 397 8900
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Mirabaud Securities
Limited Peter Krens/ Edward
(Joint Broker) Haig-Thomas +44 (0) 20 3167 7222
-------------------------- ------------------------------
Newgate Communications Elisabeth Cowell/ +44 (0) 20 3757 6880
(PR) Ian Silvera / Tom Dukeroyalty@newgatecomms.com
Carnegie
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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.
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.
About Brownhills
Brownhills is one of three operating subsidiaries of holding
company United Glass Group ltd, formerly Brownhills Investment
Ltd.
The other two subsidiaries are Tufwell and Peterlee Glass. As a
group it is one of the UK's leading independent glass merchants and
processors.
For further information, please see the websites for the
group:
www.tufwellglass.co.uk
www.peterleeglass.com
www.brownhillsglass.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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