Final Results for the year ended 31 March 2023
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 audited final results for the 12 months ended 31 March 2023 ("FY23").
· 46% year-on-year increase in recurring cash revenue* to £21.8 million (FY22: £14.9 million)
· 19% year-on-year increase in total cash revenue to £21.9 million (FY22: £18.4 million)
· Free cash flow of £13.1 million, up 9% from £12.1 million in FY22
· Free cash flow** per share reduced from 3.53p in FY22 to 3.30p in FY23, due to lack of investment buyouts
· 30% increase in recurring free cash flow per share from 2.52p per share to 3.27p per share
· 24% year-on-year increase in dividend per share of to 2.80p (FY22: 2.25p)
· Deployed over £26 million of capital, adding two new royalty partners to the portfolio and completed four material follow-on investments into existing royalty partners
· £20 million of equity capital raised in oversubscribed placing
· Refinanced and upsized a £100 million credit facility to facilitate more investment opportunities
Post Period End Highlights
· Achieved £6.0 million of recurring cash revenue in Q1 FY24, representing an 18% year-on-year increase (Q1 FY23: £5.1 million) and an increase on Q4 FY23
· Exited royalty partner Instor, receiving net cash of US$11.2 million at closing, delivering a total gain of US$2.4 million over Duke's initial investment amount and a triple digit IRR
· Two additional follow-on investments completed in Q1 into Tristone and New Path Fire & Security
* Recurring cash revenue excludes buyout premiums and cash gains from the sale of equity investments
** Free cashflow is defined as net cash inflows from operations plus cash gains from the sale of equity investments less interest paid on borrowings
Neil Johnson, CEO of Duke Royalty, said:
"We are delighted to announce that we have achieved a strong set of financial results across all our important financial metrics for the 12 months to 31 March 2023. Despite the prevailing macro uncertainties, it also brings forth opportunities. We understand that during times of short-term uncertainty, business owners seek long-term capital solutions, which further reinforces the attractiveness of our proposition to them, as our solution offers both investors and shareholders what they desire - a long-term, predictable revenue stream with a focus on dividends.
"Having achieved £2.0 million per month of cash revenue in Q1 FY24, this represents the 11th consecutive quarter of delivering increasing quarterly recurring cash revenue. With this in mind, we have witnessed a very healthy and promising pipeline of new partners. The recent increase in deal flow has been encouraging, as it demonstrates the attractiveness of our proposition in a difficult funding market, and we are confident that our product continues to demonstrate its competitiveness against other financing options available to small businesses."