Duke Capital Share Discussion Threads

[spectoacc] 13/3/2018 07:22

All counts:

13 March 2018
Duke Royalty Limited
("Duke Royalty", "Duke" or the "Company")
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 its interim dividend has increased by 0.1 pence per share quarter-on-quarter to 0.6 pence per share, representing an increase of 20%.

[spectoacc] 08/3/2018 07:24

Some impressive director buys reported:

Shareholder Number of Ordinary Price paid
Shares acquired per Ordinary
Share
----------------------- ------------------- --------------
Neil Johnson 125,000 40 pence
----------------------- ------------------- --------------
Charlie Cannon-Brookes 427,000 39.72 pence
----------------------- ------------------- --------------
Arlington Group Asset 45,193 39.99 pence
Management Limited
----------------------- ------------------- --------------
Nigel Birrell 125,000 40 pence
----------------------- ------------------- --------------
Justin Cochrane 50,000 40 pence

[stevie blunder] 05/3/2018 11:39

Another brick n the wall today.

Good to see also that "In addition, we are pleased with the progress we are experiencing in terms of our future pipeline of deal opportunities"

[spectoacc] 05/12/2017 13:57

@otherwys,

Thanks for your comment. I understand where you're coming from, and the dilution in truth isn't huge, but two points:

1. Why not issue the new shares at say the mid-market price, or even a weighted price - or even better, a premium!

2. If it's going to be at a discount, all shareholders ought to have the opportunity to subscribe (rarely cost-effective, but back to point 1.)

DUKE last issued shares (37.5m) in March, at....40p. So at least they're consistent :)

[otherwys] 05/12/2017 11:05

Hi Specto,

Yes I too have suffered from dilution and in general don't like it. However I think this is a different circumstance. Normally there's a single asset producing revenue, and when more shares get issued that revenue gets split between more shares, so every share has less.

In this case, the extra funds will be used to add assets (new royalties) which will be earning revenue; and as the cost base for this type of business is low and pretty much fixed, the dilution is actually in how much of those fixed costs get attributed to each share, so the value per share increases.

Simplistic example:
£10m asset earning 10% revenue with costs of £0.5m, split between 10m shares: revenue = £1m, costs = £0.5m, profit attributable per share = £0.50.

Add £10m shares at £1 each and invest in further assets earning 10%. Then you have £20m assets earning £2m with costs of £0.5m; profit attributable to each share = (£2m-£0.5m)/20m shares = £0.75.

This is the beauty of Duke's model; this fundraising will allow an uplift in dividends, which then drives share price up, which then allows the next fundraising to be less dilutive, and so on. It's a virtuous circle. Look at Artemis (Canadian royalty company - share price history, dividend history, fundraising history - it's a proven model.

Needless to say, I love it; but of course DYOR!
GLA
Otherwys

[spectoacc] 05/12/2017 07:15

Reads well, BUT - I'm never happy about dilution, even when small.

[otherwys] 04/12/2017 22:05

"
Duke Royalty Limited (AIM: DUKE), the royalty financing company, is pleased to announce a proposed conditional placing and subscription ("Fundraising") to raise at least £20 million, before expenses, by way of a Placing of New Shares at a price of 40 pence per share (the Issue Price) and a Subscription by certain overseas investors on the same terms. The net proceeds of the Fundraising will allow the Company, inter alia, to continue to finance its diversified pipeline of royalty financing opportunities.

Highlights

£ Proposed Placing and Subscription to raise gross proceeds of at least £20 million

£ Net proceeds to diversify portfolio of royalty investments and provide working capital

£ Two new potential royalty partners in advanced stages of negotiation

£ Additional proceeds to execute on new identified opportunities and/or follow on investments in existing royalty partners

£ Following deployment of capital, Duke could have exposure to up to 6 underlying companies through four Royalty Partners

£ Increased dividend yield expected following deployment of capital

£ Issue price of 40p per share"

Excellent news, fundraising at minimal discount, targets for investment at very advanced stages of negotiation, returning >13% yield, and an expected dividend hike once completed. Not quite as I'd anticipated but very happy with this all the same.

Hope others join the party soon!
GLA
Otherwys

[otherwys] 20/11/2017 13:23

I agree they'll be looking for cash; but I'm expecting a dividend increase to be announced by end December first.

The maiden divi was announced off the back of their first deal, which gave them £900k in income. They now have almost twice that, and their business model seems to be:

raise funds
do deals
increase div
watch share price rise
raise more funds at higher share price
etc

At least that's what Artemis have done successfully in Canada, and Duke seem to be modelling themselves on them.

Very happy to be invested here.

GLA, and DYOR!

Otherwys

PS new to ADVFN but I use the same name on iii and LSE

[stevie blunder] 13/11/2017 12:25

Now they have 4 royalties underpinned by :

A River cruise company
A Storage company specialising in the kitchen and bathroom business
A window cleaning company in Denmark.
A label supplier.

14 Million invested, cash payouts to Duke 1.74 million so 12.4%

Decent diversification.

But now out of cash so a share placing on the way IMO, at least they have a decent story to tell.

[stevie blunder] 08/11/2017 16:31

Good to see they will be cash flow positive going forward
On the down side a lot of new warrants and shares issued
Partner Value Investments looks complicated and no proper explanation of what they did to earn the warrants. But if PVI have 9.6% of Duke they are incentivised to get some more deals
It is all about execution as ever, painfully slow at the moment.
Roll on the next deal!

[spectoacc] 08/11/2017 16:07

Read pretty well today I thought (I didn't read it all).

[stevie blunder] 06/10/2017 09:12

Yes a slow burner until they build a track record.

[spectoacc] 06/10/2017 08:47

Missed that this morning, ta.

Been weak, & on a dreadful spread - and they take "esoteric" to a whole new level.

But at least the cash is finally getting deployed. As you say - possibility they'll try to raise more in near future.

[stevie blunder] 06/10/2017 08:36

Good news this morning.

Perpetual deal, with a buyback option after 5 years? Guessing the buyback would be eye-wateringly expensive for Lynx

12% headline return, slightly reduced from the first deal

Running out of money now with more deals in the pipeline, so share issue on the way.

[spectoacc] 29/6/2017 14:12

Not a bad move on (small) XD day.

[stevie blunder] 23/6/2017 17:53

Yes, market cap of £18 million and assets at year end of £14.4 M


I suspect they have one other deal nearly completed hence the size of the cash raise, but WDIK.
Their running costs will be pretty much fixed, so getting scale by doing some deals will be really important in spreading costs. Currently their costs would eat up most of the cash from the first investment.

Encouraging to see AXA, Henderson and Walker Crips on the register.

[spectoacc] 23/6/2017 13:07

Compared to what they said at the fundraising re pipeline, making the "first investment" seems to have taken a while - and presumably not much happening with the rest of the cash?

Like the fact the d's are in; not so keen on the premium to (last stated) NAV.

[stevie blunder] 22/6/2017 17:05

!FOLLOWFEED

I have sold out of these on 08 Feb 21.
--------------------------------------------------
---------------------------------------------------

Duke Royalty is the first mover in London to apply the Royalty Model to Businesses outside the Mining Industry.

"Headquartered in Guernsey, Duke Royalty Limited has been established to provide alternative financing solutions to a diversified range of businesses in Europe and abroad. Duke Royalty's experienced team and exclusive partnership provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders."

"Receive capital, Retain control.
Our capital empowers you to focus on your long term business goals without giving up control or diluting ownership. Duke Royalty provides capital to companies in exchange for rights to a small percentage of future revenues. Our criteria focuses on intellectual property assets and stable, cash flowing businesses."

Presentation Nov 2019








Altogether I think it is an interesting company and have made a small investment, about 1.5% of my fol

This Podcast interview is well worth listening to, explains the finances more clearly.


Cube podcast 28/02/2019:

[xvzc] 21/2/2005 10:22

Thats about it.

[wc1] 16/12/2002 17:11

The guys at trumedia are quite sentimental-- bound to offer
a good deal for presents for Mum. wc1

[pork belly] 16/12/2002 17:07

thanks all. much appreciated.am loking right now.

GF - i'm sure i don't know who you mean ;¬))

porky

[mi££ions] 16/12/2002 16:58

Droogy,
you'll get a reputation sneaking up on people like that!

goodfella,
Drink ya milk, ged on ya hoss and git th' hell outta here or I'll run ya outta town, ya scum suckin' varmint!

[thehairydagger] 16/12/2002 16:53

LIKE HELL I DO.

[goodfella] 16/12/2002 16:46

porky

IF you cannot get John Wayne their are some cowboys in the boardroom of a company you may know