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
  0.25 0.73% 34.35 128,828 10:44:12
Bid Price Offer Price High Price Low Price Open Price
34.20 34.50 34.35 34.10 34.10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 16.06 5.75 6.0 143
Last Trade Time Trade Type Trade Size Trade Price Currency
10:58:17 O 719 34.452 GBX

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Posted at 27/1/2023 08:20 by 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 34.10p.
Duke Royalty Limited has a 4 week average price of 32.75p and a 12 week average price of 29.25p.
The 1 year high share price is 43p while the 1 year low share price is currently 27.50p.
There are currently 416,151,346 shares in issue and the average daily traded volume is 479,313 shares. The market capitalisation of Duke Royalty Limited is £142,531,836.01.
Posted at 02/1/2023 11:55 by masurenguy
Originally invested here @44p back in November 2018 and got out at breakeven in February 2020 as COVID started to impact the market. Have not followed since then but then this brief write-up brought it back onto my radar screen, especially since I have an investment in another royalty business, Ecora Resources, which yields me nearly 7%. At a closing offer of 34.5p on 30/12/22, the annual dividend of 2.8p now constitutes a yield of 8.1% so Duke is now back onto my watchlist.

Duke Royalty

Duke Royalty invests cash in businesses and receives a royalty income stream in return. This is a form of financing that is suitable for cash generative businesses. Duke Royalty is in the process of investing the cash it raised in the spring. The royalty deals can last for up to 40 years and the initial yield can be 12%-14% of capital. Due diligence is done on the business to ensure that the royalties can be comfortably paid out of cash flow. The security provided by the companies limits the downside. River cruising company Temarca, which was hit by Covid restrictions, is the only investee company that has failed, and Duke Royalty managed to recoup cash from selling riverboat assets.

In the year to March 2022, cash revenues increased from £12.1m to £18.4m and free cash flow was 3.5p a share. Interim cash revenues rose by two-thirds to £10.4m with free cash flow of 1.71p a share. Third-quarter recurring cash revenues were £5.5m. The dividend is expected to increase to 2.9p a share this year and it could rise to 3.1p a share in 2023-24.

During 2022, there was £20m raised at 35p a share and the debt facility was increased from £55m to £100m in December, while the interest rate was lowered. That means that Duke Royalty has cash to invest in new and existing investee companies and that will accelerate the growth of cash revenues. It also offers a yield of more than 8%. Buy.

Andrew Hore, Interactive Investor, 30 December 2022.

Posted at 12/12/2022 10:45 by riverman77
Yes seems fair price - I guess would only be significantly dilutive if the share price got to say 60p or above, which of course would be a nice problem to have.
Posted at 12/12/2022 08:05 by cwa1
Refinance and Upsize of Credit Facility to £100 million on
Improved Terms with Fairfax Financial

Duke Royalty, a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America , is pleased to announce that it has entered into a new £100 million credit facility agreement (the "New Credit Facility") with Fairfax Financial Holdings Limited and certain of its subsidiaries ("Fairfax").

The material terms of the New Credit Facility are as follows:

· Term facility of up to £100 million to replace Duke's existing £55 million term and revolving facilities

· Five-year term, expiring in January 2028 with a bullet repayment on expiry and no amortisation payments during the five-year term

· Interest rate equal to SONIA plus 5.00% per annum, which represents an improvement of 225bps on Duke's existing rate of SONIA plus 7.25%

· As part of the deal, Duke will issue 41,615,134 warrants to Fairfax with a five-year maturity and strike price of 45 pence reflecting the strategic nature of the deal

· Initial drawdown of the New Credit Facility expected to occur in mid/late January 2023 coinciding with the expiry of the non-call period enshrined in Duke's existing credit facilities

The New Credit Facility will provide Duke with a significant amount of additional liquidity and will push out the Company's requirement for additional equity capital. Furthermore, the New Credit Facility comes at a lower cost to the Company's existing credit facility thereby having an immediate and material impact on the free cash flow of the Company.

Neil Johnson, CEO of Duke Royalty, said:

"I am delighted to announce this upsized credit facility with Fairfax on improved terms for Duke shareholders. Fairfax is an internationally recognised and well respected company. Both Duke and Fairfax have similar philosophies of investing in a supportive way over the long term and I believe that this is the start of a long standing and mutually beneficial relationship.

"The upsizing of the New Credit Facility will allow Duke to accelerate its growth and deployment schedule without any near-term equity dilution. More strategically, Fairfax and Duke believe our partnership can benefit more businesses looking for long-term, flexible capital solutions by increasing Duke's capital base and diversification, as well as benefit Duke's shareholders through higher free cash flow per share."

Prem Watsa, Chairman and CEO of Fairfax, said:

"We are impressed with the degree to which Duke's investing philosophy aligns with our own - focusing on lending to established, profitable, cash-generating, well-managed companies, with incentivised management teams. We are delighted to be partnering with Duke and believe that there is a large group of companies that can benefit from Duke's long-term flexible support."

Posted at 31/7/2022 15:55 by swiftnick
Btgman, surely 8% yield corresponds to a share price of 35p? At the current share price of 33.75p I calculate a yield of 8.3%.Expecting a trading update this week.
Posted at 17/7/2022 09:09 by btgman
Looking at the current yield at 8% I still have a view that share price is undervalued but where should it be?

Duke Share price at varying yields
6.5% 43.07p

There are many things to consider and to compare against but all of the above are higher than the FTSE 100 average:-

Average FTSE 100 yield is under 4%
Highest is circa 7.5% tobacco companies
Lowest 2% with a small number paying nothing

There are stocks around in the FTSE 250 paying 9%+ but I would argue the share price is likely to be more volatile than Duke in the current climate.

Duke have 30 year contracts in place with over 20 Royalty Partners linked to turnover across multiple sectors and countries with positive royalty kickers likely in September 2022 results announcement.

Hidden benefits also exist with potential for over £30m of exit fees as Royalty partners exit at some point. Recycling of this cash and the compounding effect is powerful as highlighted previously.

Finally we have many equity stakes in our Royalty partners valued in accounts at circa £3.5m upside for this is quite significant.

So back to original question where should share price be I think 6% would be a decent rate of dividend return and given the 6% kickers and equity stakes I don't feel that would be challenging which puts Duke share price target at 46.67p v the current 32.5p


Posted at 13/7/2022 18:22 by btgman
A simple £10k investment at 32p dividends quarterly reinvested price at 40p by October and constant thereafter, Dividend maintained at .007 per quarter share price
10 year view

Duke Price Shares Total
Invest 10,000.00 0.32 31,250.00
Jul-22 Divi 0.007 218.75 0.32 683.59 31,933.59
Oct-22 0.007 223.54 0.40 558.84 32,492.43
Jan-23 0.007 227.45 0.40 568.62 33,061.05
Apr-23 0.007 231.43 0.40 578.57 33,639.62
Jul-23 0.007 235.48 0.40 588.69 34,228.31
Oct-23 0.007 239.60 0.40 599.00 34,827.31
Jan-24 0.007 243.79 0.40 609.48 35,436.78
Apr-24 0.007 248.06 0.40 620.14 36,056.93
Jul-24 0.007 252.40 0.40 631.00 36,687.92
Oct-24 0.007 256.82 0.40 642.04 37,329.96
Jan-25 0.007 261.31 0.40 653.27 37,983.24
Apr-25 0.007 265.88 0.40 664.71 38,647.94
Jul-25 0.007 270.54 0.40 676.34 39,324.28
Oct-25 0.007 275.27 0.40 688.17 40,012.46
Jan-26 0.007 280.09 0.40 700.22 40,712.68
Apr-26 0.007 284.99 0.40 712.47 41,425.15
Jul-26 0.007 289.98 0.40 724.94 42,150.09
Oct-26 0.007 295.05 0.40 737.63 42,887.71
Jan-27 0.007 300.21 0.40 750.53 43,638.25
Apr-27 0.007 305.47 0.40 763.67 44,401.92
Jul-27 0.007 310.81 0.40 777.03 45,178.95
Oct-27 0.007 316.25 0.40 790.63 45,969.58
Jan-28 0.007 321.79 0.40 804.47 46,774.05
Apr-28 0.007 327.42 0.40 818.55 47,592.60
Jul-28 0.007 333.15 0.40 832.87 48,425.47
Oct-28 0.007 338.98 0.40 847.45 49,272.91
Jan-29 0.007 344.91 0.40 862.28 50,135.19
Apr-29 0.007 350.95 0.40 877.37 51,012.56
Jul-29 0.007 357.09 0.40 892.72 51,905.28
Oct-29 0.007 363.34 0.40 908.34 52,813.62
Jan-30 0.007 369.70 0.40 924.24 53,737.86
Apr-30 0.007 376.16 0.40 940.41 54,678.27
Jul-30 0.007 382.75 0.40 956.87 55,635.14
Oct-30 0.007 389.45 0.40 973.61 56,608.75
Jan-31 0.007 396.26 0.40 990.65 57,599.41
Apr-31 0.007 403.20 0.40 1,007.99 58,607.40
Jul-31 0.007 410.25 0.40 1,025.63 59,633.02
Oct-31 0.007 417.43 0.40 1,043.58 60,676.60
Jan-32 0.007 424.74 0.40 1,061.84 61,738.44
Apr-32 0.007 432.17 0.40 1,080.42 62,818.87
Jul-32 0.007 439.73 0.40 1,099.33 63,918.20

25,567.28 Value year 10
1,789.71 Annual Dividend

Posted at 13/7/2022 18:10 by btgman
A 40p share price and a 7% yield is where this should be in my view.

I think the market always ignores the fact that some of the Royalty partners will settle up the loan paying Duke a 20% premium and they have a fair few equity holdings which is likely to bring further share price rises.

The model of putting the dividends back in effectively books a close to 9% yield on the reinvestment depending on when it went back in. That is very powerful compounding up quarterly on those numbers


Posted at 03/6/2022 06:23 by carcosa
I also think it's worthwhile considering what is not in the NAV;

The buyout premiums on existing investments, which typically sit at 20% of the total investment size. The company estimates these to be c£36m.

The equity holdings where Duke has taken a stake in a portfolio company. The equity stakes are of particular value in buy and build companies where the eventual onward sale of the company is a stated objective. Duke can typically help the company scale up from £2-3m EBITDA to £8-10m EBITDA, at which point they can demand higher multiples upon exit.

Furthermore it is not unreasonable to assume upward revaluations in the carrying values of the portfolio companies post Covid.

Additionally it is likely that several of the portfolio company collars will incur the +6% limit on annual review going forward.

Having said all that I would prefer to see 2022/23 result in new companies entering the portfolio, the sale of one or two existing companies and an absolute maximum limit of 30% equity shareholding going forward as I think that disincentives founders/managers somewhat and exposes DUKE shareholders to too much risk.

Bottom line is that I believe buying Duke at current prices offers excellent scope for share price growth over the 2-5 year time frame not least of which is because the company has no practical growth limitations.

Posted at 27/4/2021 14:46 by btgman
Really disappointed to have missed the IC Forum just had something else on. Once the funds are re-invested Duke share price should kick on. I suspect we should be hearing news fairly soon


Posted at 16/11/2020 13:30 by 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.

Duke Royalty share price data is direct from the London Stock Exchange
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