Duke Royalty To Report "Significant Uplift" In Annual Performance

(Alliance News) - Duke Royalty Ltd said Wednesday it expects its annual results to show a ...

Alliance News 14 August, 2019 | 4:29PM
Email Form

(Alliance News) - Duke Royalty Ltd said Wednesday it expects its annual results to show a "significant uplift" from the year before.

The royalty-focused finance investment firm said that revenue and cashflow for the year to the end of March were in line with market expectations, and has seen its positive momentum continue into the first quarter of its current financial year.

Duke Royalty said, in fact, that June represented the single highest month of cash revenue to date.

Operationally, the annual adjustment factors for royalty partners were revised during its recently ended financial year and Duke Royalty's current one, expected to lead to an increase in revenue for the firm.

In terms of financing, Duke Royalty has agreed to improved terms with its existing lender concerning its current debt facility. Restructuring of the facility is expected to take place in the coming weeks, and will lead to reduced debt servicing costs.

Looking ahead, Duke Royalty said its near-term pipeline for both follow-on and new investment opportunities remains strong.

"Fiscal 2019 was a busy year for the company, with the raising of GBP44 million new equity capital and the tripling of the number of royalty partners from four to 12. This was in part through the acquisition of Capital Step and the completion of several follow-on transactions into existing royalty partners," said Chief Executive Officer Neil Johnson.

"With Duke's high operating leverage, we feel confident that assuming continued positive annual adjustments, combined with future additional capital deployment, the company will be able to produce a higher dividend pay-out to shareholders," Johnson added.

Shares in Duke Royalty were up 3.1% a 45.15 pence on Wednesday.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Duke Royalty Ltd 24.25 GBX -3.96 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies