Duke Royalty puts another £1.8m into Tristone Healthcare

Alternative capital provider Duke Royalty announced an additional investment of £1.8m into its existing partner Tristone Healthcare on Monday.

The AIM-traded firm said the funding would support Tristone's latest acquisition, and further enhance its position in the market.

It said Tristone specialises in delivering residential, nursing, and domiciliary care and support services in two specific segments.

The first segment was focussed on providing high acuity care for adults with severe mental, physical, or learning disabilities, while the second caters to children and young individuals who require specialised care, support, and education.

Duke said its investment would enable Tristone to acquire South West Intervention Services (SWIS) - a provider of customised learning packages to young people at risk of exclusion from mainstream education.

Based in Buckfastleigh, near Plymouth, SWIS would serve as a valuable addition to Tristone's portfolio of services.

The new investment from Duke Royalty raised its total investment in Tristone to £19.4m.

Duke said the terms remained consistent with its previous follow-on investment in Tristone, including a starting yield of 13.5% and an annual revenue adjustment factor of plus-or-minus 6% concerning royalty payments.

“I'm excited to see Tristone further strengthen its position in the social care sector via the acquisition of SWIS,” said Duke chief executive officer Neil Johnson.

“Given the outstanding level of care that they provide, SWIS is a natural fit for Tristone, and will also add new specialisms to Tristone's expanding portfolio.”

At 1011 BST, shares in Duke Royalty were flat at 31.8p.

Reporting by Josh White for Sharecast.com.