Duke Royalty Makes 3 Investments In December; Confident For 2020

(Alliance News) - Duke Royalty Ltd said Monday it completed three follow-on investments in ...

Alliance News 13 January, 2020 | 11:42AM
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(Alliance News) - Duke Royalty Ltd said Monday it completed three follow-on investments in December.

The alternative financing firm invested about GBP2 million into Welltel Ltd, taking its total investment in telecommunications provider to GBP8.1 million.

Duke said the entire facility was re-financed on its "typical" investment terms.

"The proceeds were used to acquire Invistech Ltd, a long established and profitable IT managed service and telecommunications business," Duke added.

Also, Duke invested GBP1.0 million in Trimite Global Coatings Ltd, supporting the firm's operations expansion. Duke's total investment in Trimite is now GBP11.0 million.

Finally, Duke made a EUR4.3 million follow-on investment in Temarca BV, taking its total investment to EUR14.1 million - Duke's largest investment. The additional money was used by the riverboat cruise operator to acquire the only leased boat in its fleet. Temarca now owns three boats.

Duke retains a first mortgage on each of the three vessels owned by Temarca.

Chief Executive Neil Johnson said: "We enter 2020, and our last fiscal quarter, with enhanced monthly cash flows from a diversified portfolio which provides Duke shareholders with exposure to 19 underlying profitable companies.

"As these follow-on investments demonstrate, we are long-term partners to our companies, an approach which in turn provides Duke shareholders with the opportunity to participate in the growth of a diverse range of private companies. Helping existing Royalty Partners to acquire other businesses or hard assets enhances the underlying diversification and security of our revenue stream."

Following these investments, Duke holds GBP31 million additional liquidity available for new deployments.

This liquidity assumes a maximum of 30% loan to value in line with Duke's target maximum gearing percentage, the company said.

"We have significant means for further royalty investments to deploy against our pipeline of opportunities, and we look forward to updating the market in due course," Johnson added.

Shares in Duke Royalty were trading 1.3% higher in London on Monday at 50.40 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Duke Royalty Ltd 46.40 GBX -0.22 -

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