13 September 2023

Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

Trading Update

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to provide the following trading and operational update for its first quarter of the financial year 2024, ending 30 June 2023 ("Q1 FY24"). The Company also provides guidance on trading for its second quarter, ending 30 September 2023 ("Q2 FY24").

Q1 FY24 Financial Highlights:

·        Recurring cash revenue for Q1 FY24 reached a new record of £6.0 million, an increase of 17% over Q1 FY23, and a £300,000 increase on the prior quarter

·       The £6.0 million for the quarter meant Duke delivered an average monthly recurring cash revenue of £2.0 million for the first time in the Company's history, a significant milestone

·     Q1 FY24 total cash revenue reached £7.8 million, marking another quarterly cash revenue record, surpassing the previous record of £6.7 million in Q4 FY22, on account of the Instor buyback

·        0.70p interim dividend paid out in April 2023

Overview of quarterly revenue growth:

* Recurring cash revenue excludes buyback premium receipts and cash gains from equity sales

** Total cash revenue is monthly cash distributions from Duke's royalty partners plus cash gains received from the sales of equity assets and buyback premiums

Q1 FY24 Operational Highlights:

·        In May 2023, Duke announced the successful exit of its investment in royalty partner Instor Solutions, Inc. Duke received net cash of US$11.2 million at closing, delivering a total gain of US$2.4 million and a triple-digit IRR

·        Duke also completed two material follow-on investments in the quarter as follows:

-     a £1.9 million investment into New Path Fire and Security to facilitate its acquisition of BDI Security Limited

-      a £1.8 million investment int Tristone Healthcare to enable the company to complete its acquisition of South West Intervention Service Limited

Financial Forecast for Q2 FY24:

·     Based on current trading, Duke expects to achieve recurring cash revenue of £6.2 million in Q2 FY24

·   The £6.2 million of cash revenue would represent a 17% year-on-year increase (Q2 FY23: £5.3 million) and a further increase on Q1 FY24

Neil Johnson, CEO of Duke Royalty, said:

"We are pleased to report another quarter marked by record-breaking cash performance, underpinned by solid growth. This underscores the resilience of Duke's business model, especially in the face of ongoing economic challenges. Looking ahead, we remain confident that the consistent quarterly growth we have generated in recurring revenue will continue, and Duke is committed to working with our partners for their long-term growth."

Change of Name of Nominated Adviser and Joint Broker

The Company also announces that its Nominated Adviser and Joint Broker has changed its name to Cavendish Securities plc following completion of its own corporate merger.

***ENDS***

For further information, please visit www.dukeroyalty.com or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team 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 and is headquartered in Guernsey.