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
  0.00 0.0% 35.00 413,304 11:46:23
Bid Price Offer Price High Price Low Price Open Price
34.50 35.50 35.50 35.00 35.50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Financial 16.06 5.75 6.1 146
Last Trade Time Trade Type Trade Size Trade Price Currency
16:15:47 O 1,523 35.24 GBX

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Trade Time Trade Price Trade Size Trade Value Trade Type
2022-06-28 15:15:4935.241,523536.71O
2022-06-28 15:06:3235.24144.93O
2022-06-28 15:04:2934.63468162.05O
2022-06-28 14:53:0335.245,0001,762.00O
2022-06-28 14:45:0834.8030,00010,440.00O
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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 35p.
Duke Royalty Limited has a 4 week average price of 35p and a 12 week average price of 35p.
The 1 year high share price is 47.75p while the 1 year low share price is currently 33.25p.
There are currently 416,151,346 shares in issue and the average daily traded volume is 396,406 shares. The market capitalisation of Duke Royalty Limited is £145,652,971.10.
bend1pa: Sp now getting very close to the recent offer price. Glad I didn't bother to subscribe. Duke has become purely an income stock these days. I hope they can maintain this level of payout for the medium term at least. But it would be good to see the share price recover some of the recent lost ground.
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.
cwa1: 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."
cwa1: 17 March 2022 Duke Royalty Limited ("Duke Royalty", "Duke" or the "Company") Increased 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 North America, is pleased to announce that the Board has approved an interim dividend of 0.70 pence (sterling) per share, a 17% quarter-on-quarter increase of 0.10 pence. This increase, which equates to an annualised dividend of 2.8 pence per share, reflects the Company's strong trading performance during the financial year to 31 March 2022 driven by a record GBP45.2 million of deployments during H2 2022 to date. Duke Royalty CEO Neil Johnson said: " We are pleased to be able to continue raising the dividend, enabling our investors to benefit from the operational leverage in our business model following a period of record deployments. Normalised monthly cash revenues are at record levels and, with a largely fixed operating cost base, this is driving both a material increase in our operating margin and historically low payout ratios. The deal pipeline remains robust, and I look forward to updating the market with news of further deployments in due course." The ex-dividend date is 24 March 2022, the record date is 25 March 2022 and the payment date is 12 April 2022.
egrid1: I see Duke has made yet another investment into what appears to be a startup investment holding company that invests in other companies. I was concerned about the original investment in August last year, I sold out on the second investment in September, and wonder how much Duke is prepared to invest in this way, following the third. I fear that there may be a couple of years of good returns (interest payments) on these loans, followed by problems. Meanwhile, Duke seems to be exposing itself to larger and larger investments. Investing in Duke relies on trusting Duke managements own due diligence of the accounts of the company they themselves were investing in... Now it relies on a third party company, InTecs own accounts, which has I would suspect, the greater chance of missing problems in individual companies within InTecs portfolio, and so early warning of bigger problems for InTec may be hidden. This pattern of investment seems to go away from what I thought was the original intention of Duke, when I first invested, and does not give me the confidence to buy back in.
podgyted: Looking at this myself the investment has gone into Slake Bidco (described as "Loans" and secured by fixed and floating charges over the whole group) and until recently the 30% equity stake was in Slake Holdings Limited - is probably now in Slake Topco after the recent additional investment. Dukes investment is being used as venture capital in transfers of ownership/ moping-up of acquisition debt. Duke probably refers to "Miriad" as Miriad Products Limited is the only active trading company within the group - if you want to do your own research then you have to decide whether Miriad Products can support the Duke investment. However, if you're invested in Duke, surely the presumption is that Duke will have done thorough due-diligence. (Also they have a seat on the board of the ultimate holding companies) Looking at Miriad Products, if it continues to progress as it has, my personal opinion is that it looks like a good investment - BWDIK. Anyway, I'm looking forward to Simon Thompson coming back from holiday on 5th Jan to see what he says about a constituent of his 2021 bargain shares portfolio. As far as I can see Duke have delivered faster than expected on his article of 16 Sept, but we'll see.
johnroger: Simon Thompson Duke Royalty (DUKE:40p), an Aim-traded company that makes its money by providing capital to companies in exchange for rights to a small percentage of their future revenues, is putting to good use the £35m proceeds from April’s oversubscribed equity placing (at 35p a share) and an increased revolving credit facility of £35m. A new €10m (£8.6m) royalty agreement with Fairmed Healthcare gives Duke exposure to a company operating in well-established markets that have strong underlying demographic growth prospects. Fairmed is a provider of high quality generic prescription medicines, over-the-counter pharmaceuticals, and dietary supplements in various EU countries. It is majority owned by a subsidiary of Strides Pharma Science (STAR:NSI), a £681m market capitalisation Indian listed pharmaceutical company. Structured as a senior secured loan, the 30-year royalty agreement sits within Duke’s typical investment terms (12 to 15 per cent annual royalty) as well as diversifying Duke’s portfolio. House broker Cenkos Securities is maintaining adjusted pre-tax profit estimates of £8.6m for the financial year to 31 March 2022, up from £5.2m in 2020/21, but analyst James Fletcher notes that Fairmed is “an additional investment above and beyond those we expected….and should further deployments [into new royalty partners] occur as expected, we would upwardly revise forecasts.” To put the scale of potential upgrades into perspective, Duke’s pipeline of deals includes an £11m investment in an IT managed solutions business, £7.5m funding to a Canadian engineering and construction business, and £3.8m of funding to an existing royalty partner to facilitate the acquisition of a profitable company. Cumulatively, these three deals alone could generate £3m of annualised cash receipts in addition to £1.1m from the Fairmed deal, a hefty sum in relation to Cenkos’ £12.7m cash receipt forecast for the 2021/22 financial year. Moreover, with Duke’s cash receipts increasing from £2.5m to £2.8m in the last quarter, so more than covering annual operating costs of £2.3m, then a significant amount of incremental cash receipts is now being converted into operating profit. Expect Cenkos to push through material earnings upgrades in due course. Improving cash flow is good news for the quarterly dividend of 0.55p a share, too. Trading on a price-to-book value ratio of 1.3 times, offering a dividend yield of 5.5 per cent and a prospective yield of 6.75 per cent, I feel the 38 per cent re-rating since I included the shares in my 2021 Bargain Shares Portfolio has further to run. That’s because based on full deployment of Duke’s available liquidity, my financial models suggest the company could be generating annualised cash receipts of £22m and free cash flow of £12.2m (3.4p a share) in the 2022/23 financial year to support a 3.1p annual dividend. A target price of 50p is not unreasonable given that upward resets of royalty payments from existing partners and a reversal of last year’s Covid-19 induced asset impairments should drive up NAV sharply. Buy.
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 AIMHO GLA BTG
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!
Duke Royalty share price data is direct from the London Stock Exchange
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