Duke Capital Share Discussion Threads

[igbertsponk] 11/5/2022 10:14

Got my £5k in full.

[egrid1] 11/5/2022 09:50

More dilution to no doubt lend more money to that start up investment company.
I am glad I sold out of these a while back.
Yes, that start up is looking fine at the moment - but who knows what is concealed within its books. If they go belly up, then Duke is going to suffer big time.
Meanwhile the management in Duke will no doubt hike their salaries commensurate with the larger funds under management...
I wonder what the salaries are in relation to the ammounts of money each director has at risk in Duke shares that they are actually buying, rather than having options on?

[cwa1] 11/5/2022 09:09

Got almost all I applied for through PB, satisfactory for me

[bothdavis] 11/5/2022 08:59

Mine are all held in an ISA. HSDL won't allow ISA holders to participate in these raisings via Primary Bid. So you end up[ buying into a sharedealing account, then, transfering into you ISA, ie: selling then buying them into your ISA!! After dealing costs, and hassle.....not worth it.

[zangdook] 11/5/2022 08:27

Primarybid app update switched my notification preference off without asking so I missed it. >:-| Not very good.

[bountyhunter] 11/5/2022 07:31

Scaled up from £16.5m min target to £20m in total raised.

[bwm2] 11/5/2022 00:03

Placing lower than I expected but it can be scaled up on demand. I will be interested to see the new debt facility and margin.

[bountyhunter] 10/5/2022 21:10

IC a few weeks ago:

Normalised cash revenue surged a fifth to £4.7mn on the group’s £160mn portfolio of 15 royalty companies and the board forecast a further increase to £5mn in the current quarter, too. Duke has made £13.3mn of royalty investments in the past three months, including £4.1mn in Intec, a business that provides small- and medium-sized enterprises with IT infrastructure support (data storage, cloud-based services) and £6.2mn in Creo-Tech, a Canadian ‘buy and build’ group focused on engineering, procurement and construction services.

The full benefit of the new investments will be seen in the new financial year when house broker Cenkos Securities expects receipts from royalty investments to rise from £14.8mn to £20.5mn (upgrade from £19.2mn). In turn, this underpins free cash flow estimates of £12mn (3.3p a share). Moreover, the directors raised the latest quarterly dividend by 17 per cent to 0.7p a share, adding weight to Cenkos’s forecast of a 3p a share total payout in the 2022/23 financial year. On this basis, the shares offer a prospective dividend yield of 7.1 per cent and free cash flow yield of 7.9 per cent.

[bountyhunter] 10/5/2022 21:02

A near 10% discount, directors and related parties piling in for 1.5m shares, a decent yield well covered, seemed too good to miss but fully expecting to be scaled back with such a small amount in the PB offer.

[riverman77] 10/5/2022 20:17

Suspected this could be on the cards. It's always a risk with an investment company that trades at a premium to NAV and effectively keeps a lid on the share price.

[melody9999] 10/5/2022 18:49

Poor timing. If they wanted to raise more money, they should have gone at 42p when they were trading at 47p.

[igbertsponk] 10/5/2022 17:44

Cheap placing. I've gone for some.

[podgyted] 10/5/2022 17:32

FFS placings are following me around like a stray dog at the Mo.

[carcosa] 12/4/2022 08:15

'...The full benefit of the new investments will be seen in the new financial year when house broker Cenkos Securities expects receipts from royalty investments to rise from £14.8mn to £20.5mn (upgrade from £19.2mn). In turn, this underpins free cash flow estimates of £12mn (3.3p a share). Moreover, the directors raised the latest quarterly dividend by 17 per cent to 0.7p a share, adding weight to Cenkos’s forecast of a 3p a share total payout in the 2022/23 financial year. On this basis, the shares offer a prospective dividend yield of 7.1 per cent and free cash flow yield of 7.9 per cent.

Importantly, net debt of £41mn equates to 25 per cent of the portfolio valuation, so is not excessive nor is a price-to-book value of 1.2 times given that positive resets on royalties should drive valuation uplifts...'

[swiss paul] 11/4/2022 15:42

I hope we are not going down the route of fund raise and they use that to pay out or subsidise divvi's.

Seen it before and its annoying as its a bad use of capital and at the same time dilutes the holding

[bwm2] 11/4/2022 11:55

Carcosa
Is you read the Cenkso, house broker's analysis, they model performance with various fund raises at 30% and 40% LTV and show the potential dividends
So my read is that there is a fund raise and loan increase at lower margin coming
All for positive reasons IMO

[piedro] 11/4/2022 11:21

"our portfolio as a whole continues to perform well"

Interesting.
This raises the question of whether or not we as shareholders have the right to know how the companies are performing individually. Publication of the annual "adjustments" would be helpful in this respect.

I do have certain qualms as despite the big talk about numbers I find it hard to get my spreadsheets to agree and emails to the company are not answered.

AIMHO.

[carcosa] 11/4/2022 08:44

Perhaps the TU was released a month earlier than last year because of their presentation tonight at Mello (?)



(referenced earlier in this thread)

[cheshire man] 11/4/2022 08:29

Very happy with this TU :-)

[cwa1] 11/4/2022 07:55

Neil Johnson, CEO of Duke Royalty, said:

"It is pleasing to report that normalised cash revenue has continued to grow, with Q4 FY22 representing the sixth consecutive quarterly cash revenue increase since the initial impact of Covid. Given Duke's largely fixed cost base, the recent acceleration in deployments has led to a material increase in cashflow per share and we are delighted to be able to share this operational leverage with our shareholders through increasing the quarterly dividend which has risen 27% in the last year.

"We continue to see a strong pipeline of royalty opportunities to service both existing and new companies. Despite the macroeconomic and geopolitical headwinds, our portfolio as a whole continues to perform well. The resilience demonstrated is a benefit of our exposure to a range of underlying companies across diverse geographies and sectors."

[senttothegallows] 04/4/2022 08:22

Broker has this at 2.9p divi for year which suggests 2 quarters at current .07p then an increase to .075p which at current levels would be a 7.5% return compounding quarterly this is hugely powerful imho

[riverman77] 01/4/2022 13:56

Yes noticed the weakness here and bought some - very good inflation hedge, in my view.

[senttothegallows] 01/4/2022 13:28

Over 7% dividend looking cheap imho