Royalty Partner Operational Update

RNS Number : 5909H

Duke Royalty Limited

09 June 2017

 

9 June 2017

Duke Royalty Limited
("Duke Royalty" or the "Company")

Royalty Partner Operational Update

Duke Royalty Limited (AIM: DUKE) is pleased to announce that on 2 June 2017 Temarca B.V. ("Temarca"), Duke's inaugural royalty investment, successfully launched its maiden voyage for its third vessel, the Carmen.   This marks a memorable day for Temarca and demonstrates the rapid progress made since Duke's €8 million royalty investment (the "Financing") which was concluded in April 2017. 

In response to the growing demand from Temarca's customers, Duke is pleased to report that all three vessels are now sailing on the Rhine and Danube and each have sold out their total capacity for the remaining sailing season for 2017 as well as for the entire sailing season for 2018.  The sailing season encompasses 220 days from April - October but during the non-sailing season, Temarca is able to generate incremental revenues from its vessels by using them as mobile hotels as well as for corporate receptions and other functions. 

The Financing provides growth for Duke's shareholders by participating in the revenue growth of Temarca on an annual basis.  Given that the contracted sailing days for the Temarca fleet has grown 33 per cent., Duke is confident that it will benefit from the maximum possible increase in its royalty payment of 6 per cent. when the annual reset is made in July 2018.  Additionally, given that the contracted sailing days for the fleet in 2018 is already up 9 per cent. from 2017, this bodes well for a further increase in the royalty payment at the annual reset in July 2019 as well.

"This marks a milestone in the growth of our royalty partner, Temarca, and a culmination of a lot of hard work by its owners Teun and Marijke," said Neil Johnson, CEO of Duke. "Temarca has responded to increasing demand by acquiring an additional vessel for the 2017 season, and Duke is proud to partner with Temarca to finance the growth of the business." Mr. Johnson continued, "This is a great example of how Duke's capital may be used by our royalty partners."

In addition, Duke continues to work towards securing its second royalty investment and looks forward to being able to update the market in this regard in due course.

About Temarca B.V.

Temarca is a Netherlands based river cruise provider that offers luxury four-star multiday riverboat cruises on Europe's main rivers, the Rhine and Danube, covering an area stretching from the North Sea to the Black Sea. Founded in 1997 and family owned, Temarca has grown to become an established European river cruise provider with more than 100 employees and now manages a fleet of three vessels, two of which are wholly owned and one is leased. Temarca works with 28 different travel agencies across Europe, North America, and South Africa to design unique trips for its customers. Such travel agencies buy boat capacity approximately one year in advance of sailing.

About Duke Royalty

Headquartered in Guernsey, Duke Royalty Limited provides alternative financing solutions to a diversified range of businesses in Europe and abroad. Duke Royalty's experienced team and exclusive partnership 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. For more information, visit dukeroyalty.com.

For further information:

Duke Royalty Limited	Neil Johnson / Charlie Cannon-Brookes
	[phone]
Grant Thornton UK LLP (Nominated Adviser)	Colin Aaronson / Samantha Harrison / Jamie Barklem/ Carolyn Sansom
	[phone]
Mirabaud Securities LLP (Joint Broker)	Peter Krens / Edward Haig-Thomas
	[phone]
Cantor Fitzgerald Europe (Joint Broker)	Marc Milmo / Catherine Leftley / Callum Butterfield
	[phone]

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.

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