Duke Royalty Limited - Trading and Dividend Update
Trading and Dividend Update
Further to our trading update on
Whilst impacts to Duke's portfolio are inevitable during the pandemic, management are pleased with the ongoing resilience demonstrated by the Group's portfolio as a whole. Through its diversified portfolio, Duke naturally has exposure to a range of sectors, some of which are impacted to a greater extent by Covid than others, such as hospitality & leisure. In certain situations where Covid-19 has had the greatest impact, Duke has elected to either accrue, capitalise or equitise its monthly cash payments in the short term with the intention of alleviating the negative cashflow impacts for its royalty partners during this time of unprecedented financial stress.
Nevertheless, cash revenue received in April totalled over
Based on the proactive cost cutting measures that were put in place by Duke in March, the Company estimates that its annual operating cost base is currently running at approximately
The Company's liquidity position also remains strong, with cash on hand of over
In light of the lower cash receipts expected in the short term, and the likely follow-on investments that Duke intends to make into its existing royalty partners in the coming months, the Company feels it would be prudent to retain cash as much as possible to support its portfolio. To that effect, for the upcoming June quarter, Duke will elect to pay shareholders a scrip dividend instead of its normal cash dividend, with the exact quantum to be announced in the normal timing cycle of mid-June. Since 2017, Duke has paid out more than
"While we face an unexpected business environment, royalty companies are designed to withstand downside economic shocks.
"Our short-term priority is to support our royalty partners in order to protect our portfolio, while helping the long-term future of each company. Like most lenders in the market, we have made our contribution towards the fight against this virus by way of restructuring some of the repayment terms where necessary. I would like to take this opportunity to thank our royalty partners, some of which have also altered their business to contribute in the quest to overcome Covid-19, for the resilience they have shown in recent weeks.
"Our commitment to our shareholders is also steadfast. Currently, the Board believes cash conservation is prudent, which has been the response of most businesses during this pandemic. However, rewarding shareholders through dividends is a priority, so we will continue the dividend through a scrip arrangement.
"Given the strong financial performance we delivered ahead of the outbreak, I believe we will move out of this extraordinary time having demonstrated the resilience of our model, the benefits of our capital over short dated bank debt, and the strength of our support for our partners in overcoming this unique trading period."
For further information, please contact www.dukeroyalty.com, or contact:
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+44 (0) 1481 741 240
Cenkos Securities plc
(Nominated Adviser and Broker)
+44 (0) 207 397 8900
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+ +44 (0) 20 3757 6880 [email protected]
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.
This information is provided by RNS, the news service of the
Quick facts: Duke Royalty Ltd
Market Cap: £54.81 m
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