Duke Royalty Limited has announced its interim results for the six months ended 30 September 2023. The company reported a 35% increase in total cash revenue to £14.1 million compared to the prior period. Recurring cash revenue reached £12.2 million, up 17% from the same period last year. Free cash flow increased by 23% to £7.9 million, while adjusted earnings rose by 23% to 1.95 pence per share. The company also paid cash dividends of 1.40 pence per share to shareholders. Duke Royalty deployed over £18 million of capital into new and existing Royalty Partners during the period, bringing the total number of partners to 15. The company also had over £40 million of available liquidity for future deployments.
Nigel Birrell, Chairman of Duke Royalty, expressed satisfaction with the company's financial performance, stating, "Investors can be reassured that the dividend payout remains well covered by operating cashflow with the attractive yield representing a pillar of Duke's ongoing business model and its overall financial discipline." He also highlighted the company's attractive offering through its private credit and private equity hybrid product, as well as its ability to offer a long-term, partnership-based solution to SME business owners.
Despite the challenging business environment, Duke Royalty achieved strong results, with its simple investment philosophy and predictable cashflows protecting it from market volatility. The company's financial performance was also supported by its tight internal cost controls. However, the higher cost of borrowing has increased Duke's debt servicing costs and resulted in a reduction in consumer discretionary spend. The company expects interest rates to remain elevated for some time.
Overall, Duke Royalty remains well-positioned for growth and continues to provide alternative capital solutions to profitable and long-established businesses in Europe and abroad.