RE: Results - my target 35p19 Jun 2026 11:48
Revenue doesn't mean much on its own. It's just the cash taken in.
Free Cash Flow accounts for how much spare cash you have left over after expenses, wages, depreciation etc.... This spare cash can then be returned to shareholders as dividends.
FCF is a key metric, especially for DUKE's sector.
In the results published today, DUKE's FCF was equivalent to 2.82p per share, while the 4 annual dividend payments of 0.07p per share mean that FCF (2.82p per share) covers the total annual dividend payments (2.80p). Barely, but it does cover it.
The FCF rose by 13% over the past year, while divis were held. This is a sensible decision. The sp has fallen, so the divi yield has risen, even though payments themselves are unchanged. It sucks 'cos i paid a higher price for my shares, but this is a good price point to buy in at.
Should we see an equivalent rise in FCF in next year's results, we will most likely be looking at a higher share price and a slight divi increase (though with a commensurate drop in yield).
I'm pleased and will continue to hold and collect the excellent divi.