Duke Royalty Limited Trading Update (0953Z)
16 September 2020 - 4:00PM
UK Regulatory
TIDMDUKE
RNS Number : 0953Z
Duke Royalty Limited
16 September 2020
16 September 2020
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 abroad, is pleased to provide the following trading
update for its second financial quarter ending 30 September 2020
("Q2 FY21").
The Company confirms that the general upturn experienced in the
underlying trading of its royalty partners, as referred to in its
Q1 FY21 trading update, has continued into Q2 FY21.
Based on current expectations, the Company expects that cash
revenue for the quarter, being cash distributions from its Royalty
Partners and cash gains from sales of equity assets, will total
GBP2.4 million versus GBP2.0 million in Q1 FY21.
To put this into context, Duke reported its record quarterly
cash revenue in Q4 FY20, when it generated cash receipts of over
GBP2.8m, representing a normalised pre-COVID trading
environment.
Subsequently, and as previously reported, the Company
proactively entered into forbearance agreements in Q1 FY21 with
those Royalty Partners which had been the most affected by the
Covid-19 pandemic, in order to give them the financial flexibility
to manage their way through the financial challenges that they were
experiencing. These forbearance agreements initially covered the
period from 1 April 2020 to 30 September 2020 and resulted in a
short-term reduction in cash revenue for Duke, with the forgone
revenue for the first six months of the pandemic either being
accrued, capitalised or equitised.
However, as these agreements expire, Duke is cautiously
optimistic that it will be able to announce a further increase in
quarterly cash revenue for the period Q3 FY21.
Neil Johnson, CEO of Duke Royalty, said:
"It is very pleasing to see the increased cash revenue generated
by the Company's royalty partners in Q2 FY21 over Q1 FY21. While
the pandemic's effects are felt throughout all aspects of the
economy and general life, I am proud of the team's response to the
crisis, and of the resilience of our royalty partners and the
royalty business model. We are focused on continuing to work with
our existing royalty partners while also looking for new
opportunities in which to deploy our capital."
***ENDS***
For further information, please contact www.dukeroyalty.com , or
contact:
Neil Johnson / Charlie
Cannon Brookes / Hugo +44 (0) 1481 741
Duke Royalty Limited Evans 240
Cenkos Securities
plc Stephen Keys / Callum
(Nominated Adviser Davidson / Julian Morse +44 (0) 207 397
and Broker) / Michael Johnson 8900
Newgate Communications Elisabeth Cowell/ Ian + +44 (0) 20 3757
(PR) Silvera/ Megan Kovach 6880 dukeroyalty@newgatecomms.com
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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