Ripley94
07 Oct 2019
Primary bid weekend offer DUKE… XXXX They raised 461,500 … making total raise placing and retail 16.55 million. There will now be an OO 2 for 51 !!! Price has fallen this morning to offer price.
jamesm
22 Aug 2019
Duke Royalty Overview Video Intro to Duke Royalty with CEO Neil Johnson. Not specifically for investors & more of a general intro to the company and Royalty Finance - however should still be useful to some:
piw
19 Mar 2019
DUKE CEO Neil Johnson interviewed by James Lynch, Fund Manager, Downing Here’s DUKE CEO Neil Johnson, interviewed by James Lynch, Downing Fund Manager. Downing bought into DUKE in the placing in 2018. James elicits the key investment attractions of DUKE. Neil gives a great overview of DUKE, royalty finance, the market place, risk management and much more, to answer all the questions investors may have. [link] An excellent interview.
newtonukequities
19 Feb 2019
Any holders out there? I know Graham on Stockopedia SCR is a fan of this company. He did a very good interview, there’s a link to it in yesterdays report.
Gunnergadin
18 Feb 2019
Any holders out there? Anyone got any views on this?
frusset
30 Apr 2018
Competition from banks? This is about the possibility of banks giving strong competition, through having a lot of capital they're able to loan out, while paying hardly any interest on deposits. I have little knowledge of or interest in UK or European banks. The comment is prompted by something I heard about in the US. This is just a "heads-up", which I think is most useful for someone considering a big investment in DUKE. My own holding is a quite small part of my portfolio.I heard someone on Bloomberg Radio saying why he liked the stock of small US banks. He sounded like some sort of fund manager. He said that the small (US) banks only recently had relatively big amounts of spare capital they could loan out, while they were still paying very little interest on deposits. Apparently, interest rates generally (and the yield curve) weren't relevant, so long as banks could pay minimal interest on deposits. He claimed that as a result, BDCs have been suffering. BDCs (Business Development Companies) make loans, mostly to "middle" size businesses, sometimes to small ones, and sometimes for management buyouts or other business-related stuff. BDCs have a tax advantage, but have to pay out most of their profit in dividends. They've tended to grow quite a lot by borrowing and issuing stock.In principle, banks in the regions DUKE covers could sort themselves out, have a lot of capital to loan out, and have cheap access to deposits. I'm not too worried, because paying royalties based on revenue is safer for the borrower. I think BDCs often wanted equity and/or warrants as part of the deal, which would make them less attractive. BDCs are supposed to help management, which might sometimes be wanted but it might also be unwanted interference. That's a point of differentiation for DUKE (though DUKE is competing with banks, not BDCs). According to Investopedia [link] , BDCs "provide permanent capital", which if literally true seems competitive with DUKE's loans for about 25 to 30 years. BDCs are supposed to invest in "emerging businesses". That's another point of difference, but if US banks are outcompeting in lending to emerging businesses, presumably they can offer strong competition in less risky areas, with the possibility that something similar could happen on this side of the Atlantic.
frusset
30 Apr 2018
'Midas' tip in Mail on Sunday There's good info in the tip. It's on Hargreaves Lansdown, after stuff about Centrica, without the ads you'd get on MoS. "Sunday share tips: Centrica, Duke Royalty" Sun 22 April 2018 [link] point is that DUKE is likely to issue stock to raise capital to expand, but would only do so when there's a good pipeline of deals. In a recent raising, new stock was issued at a 5% discount to the share price (my calculation). I suppose the "blue-chip names" on the share register should help with keeping the discount small when stock is issued, assuming nothing happens to put them off.
frusset
26 Mar 2018
this & that I bought some today. There's a piece from January [link] . One point I like is that the overhead is more or less fixed at about £600,000 a year. There's a presentation dated January here [link] . It's light on financials, for the interims click on 2017. From an RNS, "The ex-dividend date is 29 March 2018, the record date is 3 April 2018 and the payment date 12 April 2018.".I'm thinking, if the share price goes down much more, the yield is going to be even better and I'll add. There's a limit to how much I'll add because there is some risk. What I really like is that the business model (providing capital in return for royalties) seems to be unique in Europe at present, though common in North America.
Otherwys
04 Dec 2017
RNS - fundraising "Duke Royalty Limited (AIM: DUKE), the royalty financing company, is pleased to announce a proposed conditional placing and subscription ("Fundraising"
to raise at least £20 million, before expenses, by way of a Placing of New Shares at a price of 40 pence per share (the Issue Price) and a Subscription by certain overseas investors on the same terms. The net proceeds of the Fundraising will allow the Company, inter alia, to continue to finance its diversified pipeline of royalty financing opportunities.Highlights£ Proposed Placing and Subscription to raise gross proceeds of at least £20 million£ Net proceeds to diversify portfolio of royalty investments and provide working capital£ Two new potential royalty partners in advanced stages of negotiation£ Additional proceeds to execute on new identified opportunities and/or follow on investments in existing royalty partners£ Following deployment of capital, Duke could have exposure to up to 6 underlying companies through four Royalty Partners£ Increased dividend yield expected following deployment of capital£ Issue price of 40p per share"Excellent news, fundraising at minimal discount, targets for investment at very advanced stages of negotiation, returning >13% yield, and an expected dividend hike once completed. Not quite as I'd anticipated but very happy with this all the same.Hope others join the party soon!GLAOtherwys
Otherwys
14 Nov 2017
Dividend hike coming... First!So, off the back of their first royalty deal DUKE announced a dividend of 2p per quarter: that's dividend payments of £900k pa from annual royalty income of c. £950k. A little bit stretched perhaps, but since then they have announced further deals with Lynx which are estimated to bring in another £840k pa.They have tied up all their original investment capital, they have a strong pipeline of opportunities and will be looking to raise more capital quite soon. The DUKE model is as follows:raise capitalinvest capital in royalty dealsincrease dividendshare price appreciates because of increased dividendraise more capital at higher share pricerinse and repeat...Having invested all their available capital, and having a dividend that's now I estimate just under c. 2x covered by income, I am expecting DUKE's next move to be the announcement of an increased quarterly dividend. Based on last dividend announcement having been towards the end of September, I think we will see this land just before Christmas. How much they will increase the dividend by is anyone's guess, but here are some indicators of what it could do
.5ppspq (current div) gives yield of 4.8% at current share price of 42p0.6ppspq = 5.7% yield (or 4.8% yield at a share price of 50p)0.7ppspq = 6.7% yield (or 4.8% yield at a share price of 58p)So here is a share with both income and capital growth potential. I am very happy to have found this still on the ground floor, and I will be adding as and when I can.DYOR, GLA and hope to see some other investors on this board in due course!Otherwys
