Duke Capital Share Discussion Threads

[senttothegallows] 07/3/2024 07:52

36% IRR excellent result for Duke once again

[piedro] 07/3/2024 07:48

Feeling duped.

Yesterday's announcement was ambiguous and
today's does not give an exit price.

[peter27] 07/3/2024 07:14

Contrast today's Fabricat announcement with yesterday's announcement and draw your own conclusion.

[peter27] 06/3/2024 13:53

Given the transparency we normally get I was surprised there was so little information and no comment on IRR.

[senttothegallows] 06/3/2024 10:55

TIDMDUKE

RNS Number : 7443D

Duke Royalty Limited

01 July 2021

1 July 2021

Duke Royalty Limited

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



-- The EUR10 million royalty is a 30-year senior secured financing, with monthly payments commencing immediately in July 2021 on Duke's typical investment terms.

[peter27] 06/3/2024 09:24

Website says £10m.

[melody9999] 06/3/2024 08:11

invested E10M in Fairmed rpyalty on 010721 and since then Duke has received monthly royalties, plus E1.4M gain on exit

[senttothegallows] 06/3/2024 07:23

Successful Exit of Investment in Fairmed Healthcare AG



Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to announce the successful exit of its investment in Fairmed Healthcare AG ("Fairmed"), a Switzerland-based provider of high-quality generic prescription medicines, over-the-counter pharmaceuticals, dermocosmetics and dietary supplements in various EU countries.



Overview



· Headline cash consideration of €11.4 million, providing Duke with additional liquidity for new deployments into its pipeline of long-established, profitable businesses

· Payment of €6.0 million has been received with the balance of €5.4 million to be paid by 31 March 2024

· This represents the seventh exit for Duke, delivering its sixth profitable exit. The exit of Fairmed is at the upper end of the expected rate of return for Duke with no equity participation

· Duke's financing solution enabled Fairmed's management team to retain its minority equity stake, while receiving the capital to support the expansion of its product portfolio

· Duke's investment exit was facilitated by Fairmed's majority owner, Strides Pharma Global Pte Ltd, a fully owned subsidiary of Strides Pharma Science Limited ("Strides"). The prepayment of Duke's investment paves the way for Strides to initiate the next phase of its European strategy, utilising Fairmed to expand and strengthen its presence in the region

[peter27] 06/3/2024 07:21

Fairmed exit at a small cash loss. Additionally management time and opportunity cost.

[santos123] 05/3/2024 20:12

Very interesting ramellous.

[ramellous] 04/3/2024 18:01

Duke is nearest example to an annuity share. According to ii.

[piedro] 04/3/2024 15:40

Quite a surprise.

"Duke Capital Limited, a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to announce it has increased its equity stake in United Glass Group ("UGG") from 30.0% to 73.8% through a £2.9 million secondary share purchase from existing shareholders."

That is just about a buyout with
money to splash without repayment

[shepc] 22/2/2024 17:17

Think some of those trades at the end were buys not sells, I know mine was @ 30.6pName amended to Capital, still a good buy with Divi over 9 percent

[gregb] 16/2/2024 20:34

If anyone would like a free ticket to the Mello event, enter the promo code: Corp100 at the checkout.

[davidosh] 16/2/2024 11:12

Duke Royalty are on the MelloMonday show next week

5:00pm James Ashton, CEO at the Quoted Companies Alliance presents What is the QCA?
5:30pm Company presentation by Poolbeg Pharma
6:00pm Company presentation by Time Finance
6:30pm Trading Update from Duke Royalty
6:50pm BASH Panel with Mark Simpson, Kevin Taylor & Graham Neary

[btgman] 12/2/2024 15:13

From Trading statement December 2023

Trading Update

Based on current trading, Duke expects to achieve recurring cash revenue* of GBP6.3 million in Q3 FY24. This represents a 12% increase on Q3 FY23 (GBP5.6 million) and an increase on the prior quarter, Q2 FY24, which saw the Company deliver record recurring cash revenue of GBP6.2 million.

AIMHO
GLA
BTG

[34adsaddsa] 12/2/2024 12:36

I'm getting downvoted, but I haven't heard any counter argument. Why do they keep gaining equity stakes in companies they've lent money to?

Are the companies just giving the equity away?
Do Duke think the underlying businesses are just amazing investment opportunities?

I think the answer is the obvious one: The companies are giving up equity because they're struggling to cover repayment costs to Duke.

[34adsaddsa] 12/2/2024 09:34

Yes there is, because otherwise it could be obvious they couldn't afford the repayments.

[purplepelmets] 12/2/2024 00:49

A lot of write-offs will happen here. No reason at all to take equity stakes in failing established businesses

[34adsaddsa] 11/2/2024 19:56

There's a reason they've ended up with equity stakes in so many companies they lent money to, and it's not because the companies are flush with cash.

[riverman77] 10/2/2024 09:48

I don't really see DUKE as a venture funder since all the companies they invest in are long established and cash generative - the exact opposite of venture. Also, I don't think the interest rates are sky high - the headline rate looks high since it combines an interest payment with a repayment of capital with no final payment (a bit like a mortgage). I can see why this form of finance would be attractive for a company not wanting refinancing risk or not wanting to give an equity stake (although that part does seem to be changing). Still a bit undecided on this, but so far hasn't really put a foot wrong and cashflow seems to be increasing very nicely every time they report.

[melody9999] 10/2/2024 09:40

I don't think either is the case 34. But if you do, then you should not be invested here!

[34adsaddsa] 07/2/2024 09:25

I'm not sure if Duke are ruthlessly leeching from hapless businesses or if Duke have just unwittingly chained themselves to walking corpses.

[carcosa] 07/2/2024 06:11

I first bought into DUKE February 2021. I liked the idea of a what was being touted as long terms loans into well researched and run businesses. It seemed relatively low risk, high return and a growth business for DUKE.

Clearly when the pandemic struck practically all businesses were in survival mode and DUKE managed it well.

Around the same time DUKE were taking on equity stakes which to me seemed a reasonable outcome as a consequence of the pandemic. Other businesses also did the same thing e.g. Avation and others. But those equity stakes were supposed to be a short term situation to get over the hump post covid.

Subsequently from the few customers DUKE has that issue financial reports mostly through Companies House some were and had been for years in a distressed situation. One or two clearly rely on DUKE to stay in business. In the long term it 'should' be okay because progress over many years will sort themselves out. However these business's were struggling before DUKE came along and I started to question the robustness (or their parameters) of their due diligence research.

The question that is often raised is why would a business pay extraordinary interest over and above the normal financing options. Duke has certainly marketed their advantages which also included not taking equity stakes, having board representation etc., However it they were such a great option then they should have been signing up new customers by the month.

Some months ago I stated that I saw Duke as being a quasi venture capitalist. For example they have deals whereby they have committed several follow on funds to an investee.

Following this 'rebranding' by Duke I am very much of the belief that that is what Duke is turning toward. 30% equity stakes is a very different proposition to how Duke started out.


Whilst I was okay with sitting back and collecting the dividends, seeing it as a bit of a passive income stream the company has changed, in my opinion, to a venture capitalist company or a investment company; much higher risk. Not what I signed up for. Hence I have been selling out of my reasonably large position since September last year and finally sold the last of my shares earlier this week. I just see better opportunities elsewhere.

On a wider picture falling interest rates will make Duke more valuable as a shareholder and indeed the investee companies should mostly benefit from a reducing inflation/bank rate so anyone who sticks with Duke for a few years is likely to be ok with it IMO.

Bye :-)