Duke Royalty Limited, a provider of alternative capital solutions to profitable businesses in Europe and North America, has provided a trading update for its third financial quarter ending on December 31, 2023. The company expects to achieve recurring cash revenue of £6.3 million in Q3 FY24, a 12% increase compared to the same period last year. This follows the record recurring cash revenue of £6.2 million in the previous quarter. The company has been experiencing consistent revenue growth over the past few quarters.
In addition to the trading update, Duke Royalty has announced a follow-on investment of CA$8.6 million (approximately £5.1 million) into its existing royalty partner Creō-Tech Industrial Group Inc. This brings Duke Royalty's total exposure to Creō-Tech to CA$27.1 million (£16.0 million). The investment will be used to facilitate the refinancing of Creō-Tech's existing senior lender.
During the quarter, Duke Royalty strengthened its investment team by adding two new associate hires to take advantage of market opportunities. The company also embarked on a review of its branding and positioning, with the results expected to be shared in the next quarter.
Neil Johnson, CEO of Duke Royalty, expressed satisfaction with the revenue growth despite ongoing macroeconomic uncertainties. He also highlighted the company's rebranding efforts and expanded investment team, which he believes will position Duke Royalty to take advantage of new opportunities in the private credit market.
Overall, Duke Royalty's trading update reflects continued revenue growth and investment activity, as well as strategic initiatives to position the company for future opportunities in the private credit market.