Duke Royalty Limited – Interim Results

Duke Royalty Limited – Interim 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 interim results for the six months ended 30 September 2019 (“H1 2019”).


·      Revenue of £5.9 million (H1 2018: £2.7 million) an increase of 119%

·      Positive net cash inflow from operations rose 195% to £3.9 million (H1 2018: £1.3 million)

·      Net profit before tax of £3.7 million (H1 2018: £1.1 million)

·    Two follow-up investments into Welltel Ireland Limited and Step Investments Limited completed, totalling £1.65 million

·      Extension of three senior loan agreements with existing royalty partners, increasing future cashflows

·   Entered into a new £30 million revolving facility agreement with existing debt provider, Honeycomb Investment Trust PLC, on improved terms, providing greater financial flexibility

·     Strengthened operational team to reflect the scale achieved during the period

·    Post period end, raised £17.45 million via a Placing, an Open Offer and a Retail Offer to build the Company’s royalty portfolio and to pay down the inherited credit facility

Dividend Declaration

The Company is pleased to report that during the interim period, Duke paid quarterly dividends of 0.7p per share to shareholders on 17 April 2019 and 0.7p per share paid on 12 July 2019. Additionally, for the September 2019 quarterly dividend, the Board announced the Company’s third increase to 0.75p per share. This increase was in line with its strategy to maintain a high and stable dividend.

Neil Johnson, CEO of Duke Royalty, said, “I am delighted to report that H1 2019’s activities have materially increased our revenue, profitability and cashflow. Having entered the second half of the year with a strong pipeline of new royalty opportunities and greater financial flexibility, thanks to our new credit facility and our recent successful equity raise, we are confident that we can continue the rapid growth achieved to date. Importantly, we increased our dividend for the third time since inception, in line with our strategy, due to the follow-on investments made in existing royalty partners. We look forward to supporting our existing royalty partners further and making additional investments during the period to build on the rapid growth achieved to date.”

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