Duke Capital Share Discussion Threads

[tole] 05/5/2020 19:41

Blackrock been selling then as per rns

[tole] 05/5/2020 16:27

Added here

[itsnotmeitsy0u] 05/5/2020 16:00

i was expecting this to drop but not at this rate - leaky ship?

[purplepelmets] 05/5/2020 13:44

Don't suppose the river cruise business has been or will be booming any time soon.

[itsnotmeitsy0u] 05/5/2020 12:26

*the not tue ffs

[itsnotmeitsy0u] 05/5/2020 12:26

think i might wait until tue mid teens...

[tole] 05/5/2020 08:32

Have picked up a few at 19p

[itsnotmeitsy0u] 04/5/2020 15:53

if i was invested here (and am tempted to) I would have expected the board to update the market given the share price slide...

[fredfishcake] 04/5/2020 15:11

I suspect that with recruitment, cruises and cinemas as partners, there's a good chance that we'll have to skip some royalty payments entirely for a while at least - but at this point I don't think anyone can estimate what sort of drop in income Duke will have over the next year or so. I do think that they will survive though.

[melody9999] 04/5/2020 11:48

why 10p? justification please. or are you just plucking a figure?

[itsnotmeitsy0u] 04/5/2020 10:23

10p on the cards?

[piedro] 27/4/2020 12:31

I agree this one is a "bit of a shock in the dark" but if the partners do not default on their monthly payments, then the worse case would be a 6% reduction in income.

I have added a few more.

[masurenguy] 27/4/2020 09:50

Taking the debt into account, this has an EV of almost 28p against a projected eps of circa 3p (Y/E 31/3/20) before taking into account any impact from COVID in Feb/Mar or in the new financial year. Sales from many component companies are likely to be down over the next 12 months impacting royalty income, especially with circa 40% of their current portfolio invested in Leisure and Business Services and 75% invested in the UK & Ireland on a geographic basis. A bit of a shot in the dark at the moment with also the unknown impact of Brexit next year on 50% of the portfolio invested in the UK.

I will keep this on my watchlist but it seems too early to validate an investment criteria when one cannot determine the forward impact of COVID/Brexit at this stage.

[petewy] 26/4/2020 19:21

when will the price rise?

[masurenguy] 02/4/2020 07:19

Obviously, an unpredictable scenario going forward due to the variable impact the COVID crisis will have upon the different constituent components of their existing portfolio companies.
No position - still on my watchlist.

Trading Update re: COVID-19
As we enter our financial year ending 31 March 2021 ("FY21"), the rapidly evolving Covid outbreak and the government's response to it has created an uncertain economic outlook. We know that some of our royalty partners have had, or will have, business interruption. While Duke has been able to build a diversified portfolio of royalty partners across geographies and industries, this will no doubt lead to a reduction in its royalty payments in the coming months. This in turn will have a negative impact on the fair value of the portfolio assets, leading to potential write downs in the FY20 year-end financials.

At this stage, it is too early to accurately assess the medium and longer-term impact of Covid across the Duke portfolio as a whole. Therefore, the Company wishes to withdraw its market guidance at this time, pending further clarity on the outlook. Every royalty partner has enacted cost-reduction plans and they are assessing what government relief funding may be available to assist them in trading during the Covid outbreak. Duke is conservatively geared; after paying its dividend announced 11 March 2020, it will have net debt of approximately £13m and a cash balance of £2.7m. Based on an internal 30% maximum loan to value limit, Duke currently has access to additional liquidity of approximately £18m.

[stevie blunder] 26/3/2020 15:05

There is still a royalty payment based on the turnover. The Royalties are typically capped at 6% increase per anum, ie they increase inline with turnover up to 6% then are rebased for the next year. see :



Each of Duke's royalty partners is subject to an annual adjustment, which triggers a reset
of the monthly payment amount due to Duke, subject to a collar (a maximum adjustment up or down)

So in fact if turnover collapses then the payment to Duke can become more onerous.

[bwm2] 26/3/2020 12:18

Isn't the key advantage to the companies that there will be no royalty payment in adversity ie no funding pressure

[piedro] 26/3/2020 11:12

There must be quite a few of the partners with problems.
Pleasure boats, cinemas, recruiters - any others?

[tole] 24/3/2020 12:22

Likewise I've also picked up a small amount.

[johnsoho] 24/3/2020 11:38

I’ve also just purchased my first tranche of shares in Duke

[tonytyke] 23/3/2020 16:51

Now invested and had been tracking for a while. Simon Thompson(IC) highlighting on Friday a buy @ 33.5p. Will watch and buy more where I can.

[panshanger1] 20/3/2020 13:34

ST ramping in the I/C today

[piedro] 18/3/2020 17:09

I was going to top up at these levels but
I feel there is a certain sloppiness on the
part of the BoD and they also seem reluctant
to give information Re: 'annual ajustments'.

[piedro] 17/3/2020 10:59

mikkydhu,
Yes, that announcement is for Lynx Equity for £1m.
The Royalty Portfolio summary shows the Step Investments amount
but does not mention the £1.24m contribution.