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I think you will see the Mcap grow substantially this year, the Company is in Growth Trajectory , they have a few other Companies that they are looking at, and they will be back for more equity in the coming months, imo. they seem to have a good eye for picking up good Companies that will be paying these Royalties for years to come.
GLA LTH Dividends will continue to be paid, as the Royalty Stream continues, i hope they continue with the PB theme
I applied and got full allocation but that was per chance I had cash available and noticed it in time, such is the way often though.
£20M raised with a market cap of £135 is a hefty dilution but as they say " The net proceeds from the Fundraising are intended to be used to invest further capital into existing Royalty Partners deploying a buy and build acquisition strategy, and new opportunities. "
This is yet to be approved at an EGM though but I'd guess it'll sail through
Note to self to remember to vote down the directors' remuneration at the next AGM. This is not acceptable. To say that I am irritated is an understatement!
Well, I'm in here now. Bought £20k worth at 35.75p average. OK I paid 0.75p more than the placing, but no trouble with size and it's in my SIPP. So a 7.8% gross yield. Very happy.
i don't have non ISA cash to play with, so doesn't work for me. Plus the time allowed in these overnight raises is hardly user friendly if you need to move cash around to facilitate.
Totally agree with you Genghis, but your not locked out. Almost all my holdings are now in my ISAs, but that doesn't stop us taking part in PB offers. Annoying, but just play them. Take the offer at 35p, accept them into a normal account, and sell them when they are back at 40p...or not. Anyway, I got full allocation of 6000 shares.
Primary bid is great for companies, useless for PIs. No ISA facility means it is unusable to many who, like me, are locxked out.
duke have a great business model, but like many BoDs, cannot resist raising and dragging down SP) for new capital. A simple build, wait, exit/realisation policy of organic growth would be much better s holder value imho.
If raises could be done at current SP, or a premium. I would have no problem. But every time, existing holders are shafted in a discounted raise.
Yes, at least until Covid came along. They have nearly recovered to pre-covid levels.
https://www.dukeroyalty.com/investors/aim-26-checklist#dividends
But the past is no perfect guide to the future.
nomlungo, does DUKE have a history of a progressive dividend policy?
I just got email too but says offer now closed. I hate the Primary Bid!
This just popped up on the PB app.
Not sure why a profitable business needs to place £15m. Bit of a red flag.
Me too, applied to double my holding
For a couple of K, I like the business model of the Royalty, for a long term growth, one for the ISA
GLA LTH Will see how it performs over the next 12 months
I posted on the 17th of March that another Primary Bid offering at 35p would not surprise...
So a few more for me... this purchase takes me close to what I am comfortable having in a single share, but this is an investment in a diversified investment pot.
"Normalised cash revenue surged a fifth to £4.7mn on the group’s £160mn portfolio of 15 royalty companies and the board forecast a further increase to £5mn in the current quarter, too. Duke has made £13.3mn of royalty investments in the past three months, including £4.1mn in Intec, a business that provides small- and medium-sized enterprises with IT infrastructure support (data storage, cloud-based services) and £6.2mn in Creo-Tech, a Canadian ‘buy and build’ group focused on engineering, procurement and construction services.
The full benefit of the new investments will be seen in the new financial year when house broker Cenkos Securities expects receipts from royalty investments to rise from £14.8mn to £20.5mn (upgrade from £19.2mn). In turn, this underpins free cash flow estimates of £12mn (3.3p a share). Moreover, the directors raised the latest quarterly dividend by 17 per cent to 0.7p a share, adding weight to Cenkos’s forecast of a 3p a share total payout in the 2022/23 financial year. On this basis, the shares offer a prospective dividend yield of 7.1 per cent and free cash flow yield of 7.9 per cent."
And a nice dividend landed in our accounts today. That will come in handy over Easter
4 or 5 large trades today 10K and couple at 21K and 42K
Tipped again in IC after market closed.
https://www.investorschronicle.co.uk/ideas/2022/04/11/bargain-shares-small-cap-recovery-plays/
GLA
Nice update . I am a longterm holder of DUKE and its never failed me ... .I top up on the dips and continue to hold..
Cracking income share
Duke Royalty are making a presentation at the Mello event this evening at 7.30pm. Reference may be made to a future placing and/or remaining liquidity
Link below to register:
georgina@melloevents.com
Genghis15,
I agree with you... a boring share with regular rewards from a diversified portfolio of investments. The dividend increase reinforces management's comments about the profitability of leveraging the fixed cost base with additional investments.
Clearly a placing would not be unexpected as the "strong pipeline of royalty opportunities to service both existing and new companies" will require funding, and it is not clear from the RNS how much is left to invest - the only relevant statement was "unlocking additional liquidity" following "drawdown of the £20 million accordion facility ".
2 other comments: A 6% dividend yield takes this to 47p a share; there is no mention of foul headwinds from Ukraine.
This is a relatively small but core holding for me. Good divi, well managed, good business model.
Can see increasing divis and a steady rise thru 50p by 2023.
topped up at 40p
the steady dividend helps
Massively undervalued at these levels can see 50p as a more realistic price
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 a follow-on investment of CA$10.3 million (approximately £6.2 million) into its existing royalty partner Creo-Tech Industrial Group Inc. ("Creo-Tech").
Creo-Tech is a Canadian holding company that acquires businesses within the engineering, procurement and construction ("EPC") sector in both commercial and industrial settings.
Highlights:
· Creo-Tech will use this contribution from Duke to acquire California based MD Stainless Services, which specialises in the design, engineering, fabrication and installation of sanitary processing systems for the pharmaceutical, biotech, diary, food and beverage industries
· The financing increases Duke's total investment into Creo-Tech to CA$18.5 million (approximately £10.9 million)
· MD Stainless Services represents Creo-Tech's first acquisition supported by Duke, in line with Creo-Tech's stated buy-and-build strategy
· All other terms of the follow-on contribution are the same as Duke's previous investment into Creo-Tech
Neil Johnson, CEO of Duke Royalty, said: