Business
Trading and Dividend Update
Trading and Dividend Update.
About this update from Duke Capital Limited
[{"type":"text","content":"\n \n \n RNS Number : 8331M\n Duke Royalty Limited\n 14 May 2020\n \n \n \n \n 14 May 2020\n \n \n \n \n \n Duke Royalty Limited\n \n \n (\"Duke Royalty\", \"Duke\" or the \"Company\")\n \n \n \n \n \n Trading and Dividend Update \n \n \n \n \n \n Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, \n provides the following trading update.\n \n \n \n \n \n Current Trading\n \n \n Further to our trading update on 2 April 2020, Duke has been working closely with its royalty partners to understand the impact of the Covid-19 pandemic on their businesses and to ensure that they are provided with the necessary support to trade through this challenging period. By design, Duke's long-term capital is structured to be aligned with its royalty partners, their owners and managers through the ups and downs of economic cycles. \n \n \n 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. \n \n \n Nevertheless, cash revenue received in April totalled over £600,000 and this level of monthly cash revenue is expected to be maintained through the quarter ended 30 June 2020 (\"Q1 2020\"). While this is below the £1 million cash receipts of March, it should be noted that the reduction has not been waived or lost by Duke, rather it has resulted from the restructuring detailed above with the anticipation that the shortfall will be made up in subsequent periods as the pandemic stabilises and trading improves.\n \n \n 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 £1.8 million. Therefo...