Alternative capital provider Duke Royalty announced a follow-on investment of £3.1m into its existing royalty partner MRDB Holdings, trading as Miriad Products, on Tuesday.
UK stocks bounced on Tuesday after Monday’s sharp losses in reaction to stricter lockdown measures amid rising virus cases related to a new, potential more easily transmitted strain.
Shares in alternative financing business Duke Royalty (DUKE:AIM) gained 2.6% to 30.78p after reporting a resilient first-half and re-instating a third-quarter dividend of 0.5p per share.
Royalty finance is a £50 billion industry in North America but it remains relatively new in the UK. This possibly gives Duke an advantage as the only UK-quoted royalty company.
A housebuilder to play the seasonal sector rally, a crude palm oil producer benefiting from the sharp rally in CPO prices, a tech company that has just sold off a major holding for a massive premium and more.
Duke Royalty (DUKE:23p), an Aim-traded company that makes its money by providing capital to companies in exchange for rights to a small percentage of their future revenues over a typical term of 25-40 years, has issued results for the 12 months to 31 March 2020. They reveal the short-term financial hit from the Covid-19 pandemic on the portfolio, and the opportunity, too.
Alternative capital provider Duke Royalty said on Wednesday that the “general upturn” in trading seen across its partners in the first quarter had continued into the second.
The global pandemic has dealt yet another blow to business in general, and Small and Medium Enterprises (SMEs) in particular.
Even at the beginning of the year, the level of indebtedness across this community was untenable. To make matters worse, recent research has highlighted that a quarter of a million companies are at risk of collapsing under £35bn ($44bn) of unsustainable debt taken on during the COVID-19 pandemic. This is foreboding, to say the least.
Duke Royalty shares jumped by a fifth after the financing company reported a strong pickup in trading for the companies it backs.
Welltel, a Dublin-based telephony, network and connectivity solutions provider, has received an additional £2.3m (€2.5m) in backing from AIM-listed finance firm Duke Royalty.
The money will be used by Welltel to help bankroll the acquisition of Irish firm Globalnet Solutions, which trades as Novi.