Duke Royalty Limited – Fiscal 2019 Final Results

Duke Royalty Limited – Fiscal 2019 Final Results

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 its final results for the 12 months ended 31 March 2019 (“FY19”).

Highlights

·      Total income of £6.1 million (2018: £1.8 million), an increase of +240%

·      Operational cash flow of £4.1 million (2018: £0.2 million), an increase of +1,500%

·      Adjusted post tax profits of £2.9 million, 1.83p per share

·      Inaugural full year of profitability

·      Increased dividend to 2.8 pence per share (2018: 2.1 pence per share)

·      Quadrupled portfolio of Royalty Partners to 12 (2018: 3)

·      Royalty Partners’ annual adjustments all increased during the year

·      Raised £44 million in equity in Fiscal Q2

·      Acquired only known competitor to solidify Duke’s market leading position

·    Introduced a revolving line of credit with a view to creating working capital efficiencies and to providing enhanced returns to shareholders

Neil Johnson, CEO of Duke Royalty, said:

“I am delighted to report on the positive financial performance that our portfolio diversification strategy has delivered for our business. The operating cash flow, which is a key metric for our business, has grown substantially together with revenue. As a result of Duke’s high operating leverage, combined with the fact that we have quadrupled our royalty portfolio in the past year, we are pleased to see the financial benefits that have been generated, particularly in relation to our increased dividend.

“Looking forward, we see a strong pipeline of new opportunities and follow-on investments. The political headwinds being felt in the UK mean uncertain times, however near-term uncertainty makes the long-term nature of our capital more attractive to business owners who require capital.  Also, the predictability of our cash flow increases the confidence for shareholders in times of volatility. This is one of the characteristics which ensures that royalty finance businesses are well positioned to weather economic and political headwinds, such as those currently being felt in the UK. With our demonstrated cash flow generation, we are confident that the year ahead will be characterised by continued growth.”

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