Share Name Share Symbol Market Type Share ISIN Share Description
Duke Royalty Limited LSE:DUKE London Ordinary Share GG00BYZSSY63 ORDS NPV
  Price Change % Change Share Price Shares Traded Last Trade
  -0.65 -2.39% 26.55 811,902 15:20:25
Bid Price Offer Price High Price Low Price Open Price
26.40 26.70 27.20 26.20 27.20
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial -10.38 -4.16 68
Last Trade Time Trade Type Trade Size Trade Price Currency
16:37:51 O 150,000 26.55 GBX

Duke Royalty (DUKE) Latest News (1)

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Duke Royalty (DUKE) Discussions and Chat

Duke Royalty (DUKE) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2021-01-22 17:37:5126.55150,00039,825.00O
2021-01-22 17:37:5126.55150,00039,825.00O
2021-01-22 16:14:1726.513,703981.81O
2021-01-22 16:13:5526.519,3812,487.28O
2021-01-22 16:02:3826.513,737990.83O
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Duke Royalty (DUKE) Top Chat Posts

Duke Royalty Daily Update: Duke Royalty Limited is listed in the General Financial sector of the London Stock Exchange with ticker DUKE. The last closing price for Duke Royalty was 27.20p.
Duke Royalty Limited has a 4 week average price of 25.85p and a 12 week average price of 19.70p.
The 1 year high share price is 50.50p while the 1 year low share price is currently 17.25p.
There are currently 257,906,907 shares in issue and the average daily traded volume is 901,253 shares. The market capitalisation of Duke Royalty Limited is £68,474,283.81.
johnroger: More cash coming in ! Duke's funds have been used by Step, in part, to acquire a majority equity stake in the Dublin-based private education subsidiary City Education Group ("CEG"), a long standing, profitable business with a strong balance sheet which will provide the foundation for Duke's future monthly royalty payments from Step -- Additionally, Duke's funds have been used in part to facilitate a further acquisition by a Step subsidiary of a majority interest in Adtower Digital Media ("Adtower"), a profitable Irish business within the digital out of home advertising sector, which has demonstrated resilience through the Covid-19 pandemic through their focus on supermarkets, petrol stations and convenience stores. This acquisition diversifies Step's revenues further and increases its EBITDA -- Now that this transaction has completed, Step will immediately resume monthly royalty payments to Duke including all catch up payments from 1 October 2020
johnroger: In light of the Company's growing pipeline of opportunities driven by business owners' desires turn to long-term capital solutions, Mr. Madouros' appointment provides Duke Royalty's Investment team with additional expertise, particularly in the European non-bank credit sector and increases capacity for origination and execution of new transactions. Formerly a senior member of the investment team at Pollen Street Capital, Duke Royalty's debt provider, Mr. Madouros has a strong track record of working closely with UK SMEs to assess their needs and structure appropriate capital solutions. He will be responsible for conducting the due diligence and negotiations on prospective investment opportunities, directing the execution of royalty transactions approved by the Duke Royalty board and monitoring royalty investments made by the Company.
stevie blunder: The two exits Duke have made point out a weakness in the business model. I knew that the agreements had an exit clause that could be triggered by the Partner, but I had not expected such exits to be common. The worry is that Duke loses Partners as soon as they achieve enough success to get a better offer from lenders, or in the case of Weltel, Private Equity. In the current easy money environment we may see more, leaving Duke with the less successful Partners. On the other hand the NAV has had a boost of about 3% and the market seems to like it, so maybe it is all in the price.
johnroger: After Investor's Champion posted their negative view on DUKE in November the share price increased by 20%. Here's hoping for the same again!
johnroger: Those readers looking for an AIM share tip which would seem to have significant recovery potential could do worse than invest in DUKE ROYALTY. It will probably come as no surprise to readers to learn that the share price has more than halved this year, falling from a high of over 50p at the start of the year to a low of 17.5p in April. Although the share price has rallied subsequently, it still stands at just over 50% of the 2020 high, and the positive trading statement released last Thursday indicates that better times may lie ahead. Duke Royalty is an unusual company operating in an interesting niche market, providing royalty finance to companies in the UK and Europe. The business of royalty finance is well-established in North America, notably Canada, and the founders of the business decided that the business model could be replicated over here. Essentially, the business provides finance to SME’s in exchange for a percentage of the latter’s future revenues. This allows the business owners to retain control over their company as Duke does not take an equity stake whilst also providing the business owners with another source of capital. There is also no refinancing risk as the royalty payments made by the borrower include both principal and interest and these repayments are made over the long term. Last week, the group issued a trading statement including the news that it intends to pay a dividend of 0.5p per share foe the upcoming quarter, which covers the three month period to 31 December. The group had 12 royalty partners at the start of the pandemic and seven of these have maintained their monthly cash payments to Duke throughout the period. Four of the five royalty partners who entered into forbearance agreements have now resumed payments and in some cases this has resulted in Duke taking equity stakes in the businesses in lieu of the payments that were not made. In last week’s statement, the company also confirmed that it has substantial capital to deploy and, with the current outlook for SME’s being challenging, this is expected to provide significant investment opportunities going forward. BUY
red ninja: Yep looks like Duke share price has still got legs. According to lse website Duke Royalty has no shorters. As previously stated Investor Champion tip site do not appear to be backers, but Downings and other investment houses appear to like them.
johnroger: This is the article referred to in the above posts. The analysis seems a little superficial. Duke is one of my largest holdings but thought I would copy the article [free to read]in the hope it might encourage a little more discussion. Bazzer1000 thank you for your research. This royalty financing group now has considerable equity exposure to numerous companies of questionable worth and that’s even before one factors in the considerable impact of the pandemic. There are far too many red flags for us! Duke Royalty (LON: DUKE), the finance provider adopting a royalty lending model, issued what at first glance appeared to be an encouraging update for its 3rd quarter ending 31 December, with the reinstatement of a 0.5p quarterly dividend. However, delve deeper and it appears far from rosy. Cash revenue for the period, being cash distributions from its Royalty Partners and cash gains from sales of equity assets, is anticipated to increase to £2.5m, compared to £2.0m in Q1 FY21 and £2.4 m in Q2 FY21. Of Duke's 12 Royalty Partners at the start of the pandemic, seven of them maintained their monthly cash payments throughout with 5 granted forbearance. Duke also provided additional capital to certain Partners in support of growth opportunities and achieved a first cash exit from one, returning more than 1.5x the capital lent. That was the good news! Four out of the five royalty partners which entered into forbearance agreements have now come out of forbearance and Duke has assumed equity positions in 3 of these of c. 30% in lieu of foregone cash revenues. The equity investments may compromise Duke’s qualification for Inheritance Tax planning purposes. You can use our AIMsearch facility here to check on this. The net debt position is currently £14.0m. Management considers that at the current share price of 27.80p Duke trades at a substantial discount to its underlying net asset value per share, which stood at approximately 30.9p per share at 31 March 2020. While the shares rose 10% on the day of the announcement the discount doesn’t look terribly substantial to us. Furthermore, it is very difficult to value its Partner assets with any confidence given the uncertain operating environment for many of them. Duke may also need to make a further significant impairment to many of these claimed royalty investments to add to the charge applied in the year ending March. It currently has significant (30%) equity stakes in numerous private companies which could be extremely difficult to realise, given the royalty lending arrangements in place with Duke i.e. Duke is now the only viable buyer of these businesses. One of its equity positions is in a well-known business called Trimite Global Coatings (Trimite Top Co), whose balance sheet at 31 March 2019 (note, well before the pandemic hit) reveals that it was effectively insolvent. Duke has £9m exposure to Trimite, equivalent to 12% of Duke’s NAV. It’s a similar situation with other partners United Glass Group and MRDB Holdings/Slake Holdings. In the case of another partner. Temarca, Duke has been forced to take ownership of its 3 river cruise vessels. It all looks very flakey to us and the reinstatement of a cash dividend is at odds with the precarious position of several of its Partners, five of whom appear to be based in Ireland. Many of these Partners need a proper equity injection of capital not another layer of high cost debt. There could be trouble brewing here!
sphere25: Indecisive first move but here's a view from an investment trust today: Duke Royalty PLC (Duke) (3.51% of net assets) Cost: £2.08m. Value as at 31 August 2020, £1.29m Duke Royalty is a diversified royalty investment company providing alternative capital solutions to a range of profitable businesses Update to the investment case Trading update confirmed recovery in trading of Royalty Partners Final results were positive; cash distributions from royalty partners increased by 91% and net cash inflow from operating activities up 65% Dividend per share of 2.95p – a 5% increase Increased revolving credit facility to £30m on improved terms Deployed £20.4m of further capital into existing royalty partners resulting in a more balanced portfolio The Group offers a 17.5% free-cash-flow yield at the current share price Progress against investment case We were encouraged by the group’s most recent trading update, issued post reporting period end, which covered its second financial quarter ending 30 September 2020. Management stated that the general upturn experienced in the underlying trading of its royalty partners had continued into Q2 FY21. Current expectations suggest that cash revenue for the quarter - cash distributions from its royalty partners and cash gains from sales of equity assets - will total £2.4 million versus £2.0 million in Q1 FY21. In context, the group reported record quarterly cash revenues in Q4 FY20, when it generated cash receipts of over £2.8m, representing a normalised pre-COVID trading environment. Duke proactively entered into forbearance agreements in Q1 FY21 with those royalty partners which had been the most affected by the pandemic, in order to give them the flexibility to manage their way through the financial challenges that they were experiencing. These forbearance agreements initially covered the period from 1 April 2020 to 30 September 2020 and resulted in a short-term reduction in cash revenue, with the forgone revenue for the first six months of the pandemic either being accrued, capitalised or equitised. As these agreements expire, the group is cautiously optimistic that it will be able to announce a further increase in quarterly cash revenue for the period Q3 FY21. As its royalty partners return to normalised trading levels, the group aims to strengthen its portfolio through follow-on investments to existing partners who are seeing opportunity in the current environment, and in new royalty partnerships. Royalty finance businesses in North America have a proven track record of weathering economic cycles and Duke could emerge from the pandemic with an enhanced reputation in the UK market.
egrid1: The balance sheet does not change, money is not paid out, and so shareholder funds do not change. The company has a book value of exactly the same before and after the scrip dividend, but now that book value is divided by an increased number of shares. All shareholder now hold more shares. But the share price is likely to fall, to reflect more shares in issue v's book value of company. The EPS will fall, because of more shares in issue but same number of shares, and so for the P/E to remain the same, the share price must fall. BWM2 - that assumes the 0.75p dividend is: 1. Not reduced, because of more shares to pay to with scrip 2. Would not have been higher due to fewer shares to pay to without Scrip
santos123: "The real kicker is, they said they are going to increased the divi, after the good results." I would have ignored that comment santos123 but you got 2 thumbs-up. Please indicate where they said that Hi Piedro. Its from the trading update issued on 16 Sept However, as these agreements expire, Duke is cautiously optimistic that it will be able to announce a further increase in quarterly cash revenue for the period Q3 FY21 If you look at the news section on the top of this page you can see it there, 3rd one from the top. Piedro, I do lots of research into companies, I have held shares in this company for a long time, but now I,m doubting the company executives and, non executives commitment to the ordinary shareholders. I will not go into why a share distribution instead of divi payment is not in the interests of ordinary shareholders, but I expect you are already aware of share dilution and its effects on share price, that's why companies buy back shares, not issue them. Good luck in your investing Piedro. D.Y.O.R. Santos123.
Duke Royalty share price data is direct from the London Stock Exchange
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