Duke Capital Share Discussion Threads

[bagpuss67] 01/4/2023 11:22

good to see new facilities 2.25% cheaper as that must have been killing them...

cfro..do you know how much provision they are carrying against Trimite?

[cfro] 01/4/2023 11:18

Of course there is risk in DUKE's portfolio of companies, there is no ducking that issue. In the future it is very likely that DUKE will have to exit some companies at a loss, suffer loan impairments, and even have large loans written off.

It is the nature of what they do. Understandably there are reasons these types of companies go to DUKE above other, perhaps easier, funding options.

I rather like a lot of their portfolio companies myself. There are some interesting ones in there. I would hope that DUKE's experienced investment team who look at these in depth also like them too as they are the whittled down selected few of the dozens and dozens that go to them.

We must look at the bigger picture. Many of the portfolio companies have only come on-board in the last two or three years. In that time we have had Covid, high inflation, supply chain disruptions, War, banking crisis etc...Is it any wonder?

The Global economic situation could get worse, perhaps much worse too which will see many more struggling companies go to the wall.

One hopes though that the winners offset the losers which is the basic idea. I am sure there will be winners in the portfolio.

Don't forget as the economic wheel turns DUKE will move on. It has plenty of resources to invest and will find new companies that will inevitably replace what falls out.

[bagpuss67] 01/4/2023 11:17

tag57. Looked at Trimite and whilst I appreciate PE structures often have substantial interest costs...this doesn't even make an operating profit! I can't readily see ow much provision they have but it looks like a pretty substantial exposure to this company...a bit worrying I would say but have only done some initial research...

[tag57] 01/4/2023 10:53

Melody9999, you need to dig a bit deeper into the actual accounts of Trimite. They took significant losses in 2020, followed by further losses in 2021. The group is currently insolvent and only remaining a going concern due to Duke waving covenant misses.
Trimite’s group accounts were due to be filed yesterday and was missed which is a big red flag!
I am invested here so need to check how Duke have treated this investment as they should have already significantly written this down.
With most of Duke’s investments in the UK and therefore at risk to any significant recession it is certainly work keeping a close eye on the results of the underlying investments, especially after Covid as Trimite is a good example of how UK manufacturing companies have been and continue to be effected by the Covid lockdowns and recoveries.

[carcosa] 01/4/2023 10:20

Yes, I have studied the whole portfolio as much as is listed in Companies House. I started to do this a couple of years ago.

LG; Technically yes different companies but ultimate holding.

if you want to DYOR then see:


Other companies you can find out about are:
FABRIKAT (NOTTINGHAM) LIMITED (01910661)
UNITED GLASS GROUP LTD (07995246)
TRIMITE LIMITED (01564257)
LABEL EXPRESS LIMITED (02508174)
MRDB HOLDINGS LIMITED (06772302)
MIRIAD PRODUCTS LIMITED (03580475)
INTEC BUSINESS SOLUTIONS LIMITED (10148775)
TRISTONE HEALTHCARE LIMITED (09826810
PEARL & DEAN CINEMAS LIMITED (00614063)
LYNX EQUITY (U.K.) LIMITED (10998765)

Look forward to your comments.

[lord gnome] 01/4/2023 10:13

I take it that we are discussing two completely different companies here?

[melody9999] 01/4/2023 07:57

Carcosa - correct but any equity appreciation is another kicker - its the royalty pincome that pays our dividend. I don't see Trimate Top Co. Ltd. I do see this.

Trimite is a 80-year-old UK private company that formulates and manufactures high performance and technologically superior coatings and paints for speciality industrial markets. It has more than 120 employees in four UK plants based in Birmingham, the Midlands and West London.

The company is a key supplier of industrial coatings to several global brands and organisations in sectors including defence and aerospace, agricultural and construction equipment, and automotive. Trimite has a history of profitable operations in highly technical applications, has low debt and enjoys robust gross margins relative to the overall paint industry.

Trimite is led by a highly experienced team of executives who have spent their careers in the UK manufacturing sector and in senior management positions in global coatings suppliers like Axalta Coating Systems Ltd. With this in mind, Trimite is well-positioned to expand its market presence and take advantage of its strong and growing sales pipeline.
Industry: Manufacturing
Capital Invested: £11.7 million
Website: www.trimite.com
Partner Since: March 2018

[bagpuss67] 01/4/2023 07:29

Carcosa. Have you studied the whole portfolio. How many of these non performing invetments are there?

[carcosa] 01/4/2023 04:27

It's something of a misnomer to only consider DUKE as a loan company. They have large equity positions. For example they are the majority shareholder of Trimate Top Co. Ltd. In Trimates latest results the company made a thumping loss, has negative equity, unable to service their debt obligations including those to Duke.

Trimate is just one of a number of companies struggling in a similar vein.

[riverman77] 31/3/2023 11:52

From memory they have a couple of investments which make up 10-15% fund. If one of these goes pop then I can see the share price taking a bit of a hit - might not be a disaster but would set them back a bit and make it difficult to raise new equity. I think they have a fair bit of exposure to a care home provider which I can't say I'm keen on.

[melody9999] 31/3/2023 11:46

DUKE 0.7p ex divi yesterday - but no capital appreciation yet.

They have 20 ‘investments’ so I don’t see any disasters even if one goes pop. Maybe investors are confusing the DUKE royalty model which is effectively a loan and % of revenue kicker – with other models where valuation is dependent on asset values of the investee companies

[senttothegallows] 22/3/2023 12:20

Over 8% compounding very solid investment imho

[starpukka] 21/3/2023 22:08

Low on sentiment here, or a persistent seller ?

[lord gnome] 09/3/2023 10:58

Just added at 33.075p Somebody wants out but is trying to work the offer without trashing the bid.

[tag57] 08/3/2023 17:55

Also at this pricing level it will compound nicely over time, assuming divi and financial performance maintained

[melody9999] 08/3/2023 17:38

in a bull market, you would probably be looking elsewhere at high growth opps. in this market, DUKE has nicely diversified with 20 investee companies - so even if one got into difficulties - it would not be a disaster. And paying a 9% divi means IMV its a low risk place to park some cash

[bothdavis] 08/3/2023 14:46

Definitely overlooked...mind you I am down 20% since Jun 2019 have intially purchased at 47p!! That is with divis reinvested.............

[owenski] 08/3/2023 14:07

A quiet BB, DUKE is a bit overlooked but seems to be doing well, nice divi payouts too.

[starpukka] 07/3/2023 17:02

sp still not reacted though. What will it take ?

[lord gnome] 07/3/2023 07:42

The RNS reads well. I like a management buyout. I wonder how they came across this opportunity?

[eeza] 07/3/2023 07:11

New Royalty RNS

[melody9999] 03/3/2023 09:05

from the TU all looks to be going along fine here.

think it would help the story if Neil brushed up on his presentation skills - though he seems like a nice bloke I find his style very irrittating - too much hesitation, repetition and detail means for any potential new investors it must be difficult to see the wood from the trees. either get some professional training or let someone else do it.

[starpukka] 23/2/2023 13:01

Was the follow-on investment RNS, the TU here ? Or are we still waiting ?

[melody9999] 21/2/2023 12:33

Yeah would be nice to have absolute clarity - what is deemed negligible?

On the bright side, the number of follow on investments that DUKE are achieving does suggest they have happy customers and a 'product' in demand.

[carcosa] 21/2/2023 08:39

Thanks Zangdook.