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 -1.73% 37.00 1,078,867 11:30:30
Bid Price Offer Price High Price Low Price Open Price
36.00 38.00 38.65 37.00 37.40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial -10.38 -4.16 95
Last Trade Time Trade Type Trade Size Trade Price Currency
14:13:56 O 14,285 36.65 GBX

Duke Royalty (DUKE) Latest News (4)

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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 37.65p.
Duke Royalty Limited has a 4 week average price of 36p and a 12 week average price of 25p.
The 1 year high share price is 39.75p 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 562,540 shares. The market capitalisation of Duke Royalty Limited is £95,425,555.59.
btgman: all good news for Duke if they are recycling at 14.1% and paying say 8% they make 6% clear. 20m to reinvest will generate another £1.2m profit. 3p dividend 6% return share price = 50p this is only where this was a year or so ago. AIMHO GLA BTG
sphere25: All trades are naturally an exchange between buyers and sellers, but considering where the bid finished last week (34.5p) and how it has moved today, buyers have bid up the price to meet sellers in size at that 35.25p level i.e. a bullish sign in taking out stale bulls who have kept the price in the doldrums. Furthermore, this all ties in with the recent price moves, where there clearly has been significant demand for shares (with the price continually being bid up), as buyers in size come into gobble up shares and thus the chart continues to make new recent highs. If we look at recent volume here too, it can be seen just how much is required (particularly relative to average daily volumes) to get a share price shifting higher from the doldrums. In the event such volume had not come in, no doubt this share would not have broken the key resistance just above 30p, and would be sat bouncing around sideways as investors wondered just how much buying was needed to break higher. As per many others, it's just another example of how much can be needed to clear out major stale bulls to allow sustained positive price moves. All imo DYOR
btgman: Simplywallst has Duke fair value at 38p I have it at 42p Https:// AIMHO GLA BTG
btgman: Interesting podcast Twin Pete's. I think the debate around Duke underling quarterly Royalty of £2.5m which appears to be increasing and the likely impact this will have on the dividend. I will be surprised if we do not see an increase in the April dividend. The share price is currently at circa 14 times dividend as are the 2 Canadian Royal companies that I looked at. Assuming the dividend increases one would expect the share price to follow. Covid aside Duke appears to have been sat at over 40p for most of the last 4 years and quite significantly higher, I don't really see any reason that is isn't back above these levels in the near term. AIMHO GLA BTG
btgman: The math's behind current share price and potential for Duke to increase dividends from 0.5p per quarter makes this quite compelling The timing and cycle of where they are at with their portfolio of assets is similarly intriguing. One to tuck away AIMHO GLA BTG
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
Duke Royalty share price data is direct from the London Stock Exchange
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