Duke Royalty Limited Trading Update (8533U)
August 04 2022 - 2:00AM
UK Regulatory
TIDMDUKE
RNS Number : 8533U
Duke Royalty Limited
04 August 2022
4 August 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 first financial quarter ended 30 June 2022
("Q1 FY23"), and to provide guidance on trading for the second
quarter of the Company's 2023 financial year, ending 30 September
2022 ("Q2 FY23").
Financial Highlights:
-- Normalised cash revenue* for Q1 FY23 reached a new record of
GBP5.1 million, an increase of 9% on the previous quarter and an
78% increase over Q1 FY22, exceeding the Company's expectations of
GBP5.0 million
-- Q1 FY23 total cash revenue** also totalled GBP5.1 million,
reflecting the fact that no buyouts or equity sales occurred during
the quarter
Normalised Cash Revenue* Total Cash Revenue**
Q1 FY22 GBP2.9 million GBP2.9 million
------------------------- ---------------------
Q2 FY22 GBP3.3 million GBP4.9 million
------------------------- ---------------------
Q3 FY22 GBP3.9 million GBP3.9 million
------------------------- ---------------------
Q4 FY22 GBP4.7 million GBP6.7 million
------------------------- ---------------------
Q1 FY23 GBP5.1 million GBP5.1 million
------------------------- ---------------------
* Normalised cash revenue excludes redemption premium receipts
and cash gains from equity sales
** Total cash revenue is monthly cash distributions from Duke's
royalty partners plus cash gains received from the sales of equity
assets and redemption premiums
-- Based on current trading, Duke expects Q2 FY23 normalised
cash revenue to increase to GBP5.2 million
Operational Highlights:
-- Completed a GBP2.3m follow-on investment into specialist
residential and domiciliary care provider Tristone Healthcare
Limited to fund the acquisition of Beyond Limits (Plymouth)
Limited, a profitable operator of specialist care homes
predominantly in the Southwest of England. The financing increases
Duke's total investment into Tristone to GBP14.4 million.
-- Completed a GBP3.1m follow-on investment into the IT managed
services provider, InTec Business Solutions Limited to fund the
acquisition of Astec Computing (UK), a profitable I.T. managed
services business with a 30 year trading history. The financing
increases Duke's total investment into InTec to GBP17.1
million.
-- GBP20m equity fundraising completed in May 2022. The proceeds
of the equity raise enable the temporary pay down of existing debt,
reducing interest costs and cash drag, in turn increasing total
liquidity available to the Company for additional investments into
existing Royalty Partners deploying a buy and build acquisition
strategy, and new opportunities.
-- Paid a dividend of 0.70p per share paid for the quarter,
representing an annualised yield of over 8% at the current share
price with the dividend well covered by operating cashflow.
Neil Johnson, CEO of Duke Royalty, said:
"Despite the headwinds prevalent in the world economy and the
volatility seen in global stock markets, it was business as usual
for Duke in the quarter. I am pleased to report that the Company
produced another record of normalised cash revenue in Q1 FY23 and I
expect this growth trend to continue into Q2 FY23 by virtue of
Duke's annual yield adjustments linked to underlying companies'
revenue performance in this inflationary macro-environment. Duke's
secured position and exposure to 48 different underlying operating
companies provides investors with exposure to a diverse portfolio
of profitable, long-established businesses in low-risk sectors
which are well managed to navigate through challenging
environments.
The Company's flexible model continues to be attractive to SMEs
operating 'buy and build' acquisition strategies and management
buy-out opportunities, as such we continue to review a healthy
number of new investment opportunities. While we have increased
total liquidity available, we will continue to deploy capital
prudently through our rigorous due diligence and evaluation process
in light of the changing macro-economic conditions. We look forward
to updating our shareholders on our progress in the near
future."
***ENDS***
For further information, please visit www.dukeroyalty.com or
contact:
Neil Johnson / Charles
Cannon Brookes / Hugo
Duke Royalty Limited Evans +44 (0) 1481 730 613
Cenkos Securities
plc
(Nominated Adviser Stephen Keys / Callum
and Joint Broker) Davidson / Michael Johnson +44 (0) 207 397 8900
Canaccord Genuity Adam James / Georgina
(Joint Broker) McCooke +44 (0) 207 523 8000
SEC Newgate (PR) Elisabeth Cowell / Richard +44 (0) 20 3757 6882
Bicknell / Max Richardson 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.
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END
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