What a day for a “portfolio update” from Duke Royalty, the “provider of alternative capital solutions”. And just the thing for anyone “working towards financial independence”. Who knew Harry and Meg had already set up an Aim company?
Duke Royalty Ltd said Monday it completed three follow-on investments in December.
There is also quarterly-dividend paying Duke Royalty which lends money to private companies on a long-term basis, typically between 25 and 40 years, in exchange for part of their revenue.
Duke Royalty is unique in the UK, although its royalty model is well known in North America. Duke’s royalty income-based model provides cash generation and an attractive yield. Duke has the finance to grow the business and companies are becoming more aware of the attractions of royalty-based finance rather than bringing in private equity backers or floating on the stockmarket.
In line with its strategy of paying a high and stable dividend, and reflecting the firm’s rapid growth this year, the quarterly payout increased to 0.75p per share for September. This keeps Duke in the top 5% of dividend yielding companies listed on AIM.
Duke Royalty Ltd said Friday its revenue more than doubled during the first half, boosted by investments in royal partners.
The royalty financing company said for six months ended September 30, its revenue jumped to GBP5.9 million from GBP2.7 million in comparable period a year ago.
Duke Royalty said profit more than trebled in the first half of the year on a surge in revenue as investments in royal partners boosted growth.
For the six months ended 30 September 2019, pre-tax profit rose to £3.7m from £1.1m on-year as total income surged 119% to £5.9m and operational cash flow jumped 195% to £3.9m.
Duke Royalty (DUKE) provides capital to profitable businesses in exchange for rights to a small percentage of their future revenues. This model has worked very well in Canada, but people in the UK are less familiar with it.
Duke Royalty, 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 raised £17.4m at 44p a share through a placing, retail offer and small open offer. The new equity equates to 16 per cent of Duke’s enlarged share capital.