Duke Capital Share Discussion Threads

[piedro] 01/4/2021 12:35

astreix,

"hopefully they have identified opportunities on where to invest this extra cash"

From the Placing document:
The net proceeds from the Fundraising are intended to be used together with funds available under the New Credit Facility:
o to fund investments into two new Royalty Partners we have identified currently in due diligence process;
o to provide follow on investment into an existing royalty partner for a business acquisition in due diligence process; and
o to fund the longer-term pipeline of future royalty investments.

- and there are further details re: the 'two new Royalty Partners'

DYOR.

[solarno lopez] 01/4/2021 06:48

Thanks Igbert

[bagpuss67] 31/3/2021 19:31

Anyone got any clue of what the potential scale back may be.

[btgman] 31/3/2021 18:55

Duke is a fantastic investment great business model proven through the recent Covid pandemic excellent dividend yield good value at 35p it is like a life long annuity.
AIMHO
GLA
BTG

[igbertsponk] 31/3/2021 17:04

Yes. And only on the App too!

[solarno lopez] 31/3/2021 16:59

Do existing shareholders have to apply through Primary Bid to obtain shares ?

[astreix] 31/3/2021 16:54

I think the exit of investment into River Cruising Vessels for a small loss is a good outcome - there is a loss (- 2% IRR) but it is a hugely impacted sector so all in all not a bad outcome. What do people make of the placing? They already I think have bank finance facility and still want to raise £30m more - hopefully they have identified opportunities on where to invest this extra cash. I'm a new to Duke but having entered at 27 no reason to complain - but I'm not sure whether it makes sense to participate in this offer or not?

[igbertsponk] 31/3/2021 16:47

Primary Bid fund raise at 35p for Duke on now.

[piedro] 29/3/2021 15:51

It remains to be seen whether Duke Royalty is a "cyclical" stock or otherwise.
They have been getting through the COVID hiccup surprisingly well.

AIMO

[johnroger] 29/3/2021 15:33

Bruce Packard for Sharescope,

Opinion
I think rather than large cap banks, miscellaneous financials like Cenkos, Equals, Duke Royalty,FinnCap, perhaps even K3 and RBG Holdings are a good way to play the recovery.

These stocks are cyclical, benefiting from pent-up demand from last year and perhaps before that Brexit uncertainty. How long this lasts is anyone’s guess; the bear case is that we see a strong H1, but then disappointment later in the year.

[bg23] 26/3/2021 16:22

Still firm considering ex div

very happy with this little gem

[abergele] 22/3/2021 09:41

Just been offered buys at 37p,,on the bid price,,strange.

[btgman] 20/3/2021 08:45

Interesting coverage on ii.
Over the coming year I do expect Duke dividend to increase quite significantly.
AIMHO
GLA
BTG

[cheshire man] 18/3/2021 07:34

"Increase to Interim Dividend and Dividend Declaration

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad, is pleased to announce that the Board has approved an interim dividend of 0.55 pence (sterling) per share, an increase quarter-on-quarter of 0.05 pence, representing a 10% increase.

The ex-dividend date is 25 March 2021, the record date is 26 March 2021 and the payment date is 12 April 2021".

[bg23] 17/3/2021 16:53

Shareprice is trading very well, as if there were an expectation of news ??

just saying ?

although I have been called a cynic in my past life!

[beech1] 16/3/2021 12:52

Riverman77 you are correct that the 14% includes capital repayments but a typical day 1 investment in a royalty partner has an implied interest rate of around 10% although the whole royalty payment is treated as revenue. Duke borrowing is relatively expensive but it provides considerable flexibility and provides a 30 year repayment term.

[riverman77] 15/3/2021 09:59

As mentioned before on here, the 14% represents both interest and capital repayments - the interest they're effectively receiving is around 8% so on this basis libor plus 7.25% is not far off what DUKE themselves are lending at. I guess DUKE also have upside potential from higher royalty payments if revenue grows more quickly.

[btgman] 15/3/2021 09:53

all good news for Duke if they are recycling at 14.1% and paying say 8% they make 6% clear. 20m to reinvest will generate another £1.2m profit. 3p dividend 6% return share price = 50p this is only where this was a year or so ago.

AIMHO
GLA
BTG

[mnuttall69] 15/3/2021 08:58

Positives in the extended facility and potential to increase to 55m but I agree cost of finance is currently 14% approx to partners less 7.25%. I know for sure there is better available out there

[cartmans_mom] 15/3/2021 08:40

Nice update this morning on extension of revolving credit to 2026Only thing that bothers me is interest rate of libor + 7.25% seems high! Its a fairly big hurdle and surely cound find cheaper?However apparently net debt only 15.3m and think they had some cash from the welltel exit

[paulo435] 14/3/2021 20:56

Not a subscriber tight-fist but will have a search. Tend to agree with you spatial if looking at the graph over the past year - breakout on the cards here potentially given the previous resistance levels

[tightfist] 14/3/2021 07:57

Interesting updating piece on page 55 of this week's IC, by Simon Thompson

[btgman] 12/3/2021 14:32

I expect we will hear about the dividend next week FWIW I have an expectation that it will increase from the current 0.5p per quarter

AIMHO
GLA
BTG

[bg23] 11/3/2021 12:50

thank you Johnroger, I'd not seen the Quarterly expectation. I'd be very happy with an annualised 2p or better

[johnroger] 11/3/2021 11:30

From the December results

Highlights

-- Cash revenue of GBP4.4m for the period under review (2019: GBP5.0m)
-- Net cash inflow from operations of GBP3.6m (2019: GBP3.9m)
-- Reduced cash operating costs to GBP890,000 (2019: GBP1.1m)
-- Scrip dividends of 1.0p/share paid to shareholders
-- Reinstatement of quarterly cash dividend, with 0.50p announced for Q3 FY21
-- First successful exit of investment in royalty partner XtremePush
-- Deployed over GBP5.7m of capital into existing royalty partners