Duke Royalty Announces Follow-On Investment in Existing Royalty Partner for Acquisition Funding

03 July 2023

Duke Royalty Limited

("Duke Royalty" or "Duke")

Follow-On Investment into Existing Royalty Partner

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 announce a follow-on investment of £1.9 million into existing royalty partner New Path Fire and Security Limited ("New Path"), to fund its latest acquisition.

New Path is a buy build platform in the Fire and Security sector, primarily servicing SME clients with some exposure to high end residential clients in London. New Path's operating subsidiaries are established operators with strong reputations in their local territories.

Highlights:

·       Duke's funds will facilitate New Path's acquisition of BDI Security Limited ("BDI"), a provider of installation and maintenance services focused on CCTV and access control, ANPR (Automatic Number Plate Recognition) & barrier access to commercial customers

·       The financing increases Duke's total investment in New Path to £6.9 million. The investment terms are the same as Duke's initial investment into New Path, including a starting yield of 13.5% and a +/- 6% annual revenue adjustment factor in respect of royalty payments due

·       BDI represents New Path's third acquisition supported by Duke, in line with New Path's stated buy & build strategy

Neil Johnson, CEO of Duke Royalty, said:

"We are pleased to support New Path as it executes its 'buy-and-build' strategy. New Path has sourced and acquired a target that shares both existing revenue streams with the group and adds new capabilities, at an attractive EBITDA multiple. New Path's stated acquisition criteria give us confidence about their disciplined approach to growth, and BDI is a good case study. We look forward to continuing to support New Path with its growing pipeline in the future." 

Further information regarding BDI

Founded in 2002, BDI Security Limited provides installation and maintenance services focused on CCTV and access control, ANPR (Automatic Number Plate Recognition) & barrier access to commercial customers. BDI Security is run from commercial premises near Huntingdon in Cambridgeshire. BDI's origins lie in serving life sciences customers and a strong raft of these clients persists to this day whilst it has now diversified into other sectors including manufacturing, pharmaceuticals and engineering research.

Duke Royalty Portfolio

A full list of Duke's current Royalty Partners are now included for reference on the Partners page of our website: www.dukeroyalty.com/partners

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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.

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