3 March 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 the business for its third financial quarter ending 31 December 2022 ("Q3 FY23") as well as guidance on trading for its fourth financial quarter ending 31 March 2023 ("Q4 FY23").

Based on current trading, Duke expects to achieve recurring cash revenue* of £5.7 million in Q4 FY23. This represents a 21% year on year increase (Q4 FY22: £4.7 million) and an increase on the prior quarter, Q3 FY23, which saw the Company deliver record recurring cash revenue of £5.6 million.

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

Highlights:

·     During the quarter, Duke was pleased to announce the refinanced and upsized credit facility, on improved terms, with Fairfax Financial Holdings Limited. The new credit facility is a 225 bps improvement in cost. The new credit facility is for up to £100 million and replaced Duke's previous £55 million term and revolving facilities.

·      Also during Q3 FY23, Duke completed a new £5.0 million royalty investment into New Path Fire & Security ("NPFS"), a growing and acquisitive platform, buying independent regional fire safety and security companies across southern England. NPFS predominantly serves business customers, helping them to protect their premises, assets, and most importantly their people. Alongside the royalty investment, Duke invested £0.5 million to acquire a 15 per cent equity stake in NPFS.

·      Duke also provided further financing to specialist residential and domiciliary care provider, Tristone Healthcare Limited. Duke committed £3.2 million to fund the acquisition of K Bond Healthcare Limited, a well-respected residential and nursing care provider with operations across Greater Manchester.  The financing increases Duke's total investment into Tristone to £17.6 million.

Neil Johnson, CEO of Duke Royalty, said:

"These strong results follow the addition of another royalty partner in New Path Fire & Security to our portfolio, as well a follow-on investment into social care platform Tristone Healthcare during the period. Our increasing recurring cash revenues also reflect the good performance of our partners despite the headlines of economic headwinds and inflation worries.

"With Fairfax Financial as our new senior lender, we have a world class partner to continue our growth.  As we look ahead to Duke's 2024 financial year, we believe we have a solid foundation to continue to grow the business and add royalty partners to continue revenue growth and portfolio diversification."

***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.