Category Archives: Investor

These are notes taken during a Q&A session with Neil Johnson, CEO of Duke Royalty (DUKE), which was attended by Graham Neary and a Cube.Investments member.

Duke Royalty, a company that makes its money by providing capital to companies in exchange for rights to a small percentage of their future revenues over a typical term of 25-40 years, has made two smart announcements in the past few weeks.

Duke Royalty may operate in an area of finance that is under the radar, but it’s a company well worth getting acquainted with given that the directors have made smart progress investing the £79m proceeds from three equity raises (placings at 40p to 44p) to create a portfolio of sound royalty partners since listing its shares on London’s junior market in March 2017.

Downing bought a position in Duke Royalty (DUKE) in 2018. James elicits the key investment attractions of DUKE, and 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.

For this podcast, Graham was pleased to be joined by Neil Johnson, Executive Director and CEO of Duke Royalty (DUKE) (latest share price 41.4p, market cap £83 million).

The European royalty financing market is starting to gain traction and this firm has spotted the opportunity to replicate a business model that has a proven track record in North America (where the market for royalty financing is worth £50bn).

Despite all the uncertainty created by Brexit the latest reading from the Quoted Companies Alliance/YouGov Small & Mid-Cap Sentiment index suggests most small and medium-sized companies in the UK are optimistic about 2019.

AIM has achieved three consecutive years of strong growth, but it is set to decline in 2018. The FTSE AIM All Share index slumped by 11% during October, which compares with a 5% decline for the FTSE 100 index.

Investing in companies with a view to receiving royalty payments, is a new format to Europe. It’s a model that has been established in Canada, and AIM-listed Duke Royalty is now rolling out the model across Europe.