Duke Royalty Limited Further Contribution to Royalty Partner (2938W)
November 13 2017 - 3:39AM
UK Regulatory
TIDMDUKE
RNS Number : 2938W
Duke Royalty Limited
13 November 2017
13 November 2017
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
Duke Royalty provides follow-on contribution to Royalty
Partner
Duke Royalty Limited (AIM: DUKE) is pleased to announce a
further contribution into its royalty partner Lynx Equity (U.K.)
Limited ("Lynx UK") of GBP2.5 million. Based on the increased
aggregate investment of GBP 7.0 million, Duke will be entitled to
higher monthly distributions ("Distributions") from Lynx UK
beginning in December 2017 which will total GBP 840,000 per annum.
Lynx UK has recently closed the acquisition of their third European
company, PartnerService, a Danish commercial cleaning business
started in 2003 by two brothers. The royalty coverage ratio in Lynx
UK has been increased above 2.0x target EBITDA due to this
transaction.
The Lynx UK Distributions will be paid monthly and adjusted
annually with the first adjustment occurring in August 2018, based
on the percentage change in Lynx UK's gross revenues for the fiscal
year to July 2018 compared to the prior year. The annual adjustment
in the Distributions will be subject to a collar and the term of
the investment is perpetual. Duke also has a senior secured
position over all present and future property and assets of Lynx UK
and shares of the subsidiaries of Lynx UK and has also been granted
a guarantee by Lynx UK's parent company, Lynx Equity.
With the addition of Lynx UK's third portfolio company, which
like the other two has no debt, Duke now has a portfolio of four
different companies contributing to its Distributions. Duke's
Distributions are also diversified over four distinct industries in
three countries. The aggregate capital deployed by Duke in 2017 is
over GBP 14 million and from December 2017 the total monthly
Distributions are over GBP 145,000.
The Company continues to make good progress on its pipeline of a
number of other potential royalty partners and looks forward to
updating shareholders in due course.
Neil Johnson commented: "We are delighted to make this
additional investment into Lynx UK. PartnerService is a
well-managed, profitable company that meets all of Duke's
investment criteria. Furthermore, Lynx UK has more diversified
revenue, a larger asset base and provides Duke with a larger
royalty coverage ratio than before the acquisition of
PartnerService. Therefore, we believe as Lynx UK grows, Duke and
its shareholders benefit."
About Duke Royalty
Headquartered in Guernsey, Duke Royalty Limited provides
alternative financing solutions to a diversified range of
businesses in Europe and abroad. Duke Royalty's experienced team
and exclusive partnership 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.
For more information, visit dukeroyalty.com.
About Lynx UK
Lynx UK is a subsidiary of Lynx Equity which is a Toronto-based
private firm that seeks to acquire, own and operate mature,
old-economy businesses in a diverse range of industries. Over its
10-year history, Lynx has made over 40 acquisitions and grown
revenue to over C$300 million per annum for its financial year
ended 31 July 2017. Lynx has been recognized as one of Canada's
Fastest-Growing Companies three years in a row in the PROFIT 500,
the definitive ranking published by Canadian Business magazine
based on five-year revenue growth. PartnerService offers commercial
cleaning services to offices, schools, retail shops and other
commercial institutions and has been operating profitably for over
a decade and has many years of continued revenue growth.
For further information on Lynx Equity, please visit
www.lynxequity.com
For further information:
Duke Royalty Limited Neil Johnson / Charlie Cannon-Brookes
+44 (0) 1481 741 240
Grant Thornton UK LLP Colin Aaronson / Samantha
(Nominated Adviser) Harrison / Carolyn Sansom
+44 (0) 20 7383 5100
Cenkos Securities plc Julian Morse / Michael Johnson
(Joint Broker)
+44 (0) 207 397 8900
Mirabaud Securities Peter Krens / Edward Haig-Thomas
Limited (Joint Broker)
+44 (0) 20 3167 7222
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
END
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