Duke Royalty, 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 over a typical term of 25-40 years, has reported a robust set of annual results and a new credit line that has prompted analysts to materially upgrade their forecasts.
Duke Royalty said annual profit more than doubled following a surge in total income as new royalty investments bolstered growth.
Duke Royalty Ltd on Monday said it hiked its dividend and swung to annual profit for the first time following a sharp increase in total income.
Duke Royalty, 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 over a typical term of 25-40 years, has reported a robust trading update ahead of the release of its annual results on Monday 9 September.
Duke Royalty Ltd said Wednesday it expects its annual results to show a “significant uplift” from the year before.
The royalty-focused finance investment firm said that revenue and cashflow for the year to the end of March were in line with market expectations, and has seen its positive momentum continue into the first quarter of its current financial year.
Duke Royalty brings royalty finance concept to Britain, investing millions in established SMEs in exchange of share of revenue.
In a wide ranging podcast, Johnson discusses investment opportunities and short-term challenges in equal measure. He also touches on portfolio optimisation and the sort of synergies the company hopes to achieve via the Capital Step acquisition and what potential and existing investors can expect over the medium-term.
Duke Royalty, a UK-quoted royalty financing company, is set to increase its portfolio in Ireland following the acquisition of British financier Capital Step in February.
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 odds are that if you live in the UK and rest of Europe you have never heard of royalty finance. However, more than a decade after the 2008 financial crisis and on the back of a recent sell-off in global equity markets, the word around royalty financing is inevitably spreading rapidly.
Thanks to a relatively light-touch regulatory environment, the UK’s ‘alternative finance’ sector has flourished in the eight years or so since the first equity crowdfunding and peer-to-peer lending platforms came on stream.
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.
A form of alternative finance is facing a reputational revival in the UK. Royalty financing, where capital is provided to a business in return for a cut of that company’s revenue, is typically associated with mining, particularly with development projects.
Alternative capital solutions provider Duke Royalty said Tuesday it had increased its interim dividend by 17%, or 0.1p per share, quarter-on-quarter to 0.7p per share, supported by a rising royalty portfolio.
Bank lending to small and medium-sized businesses has virtually halved since the financial crisis. New rules make it much tougher for banks to lend to most firms and many no longer even want to borrow from traditional lenders.
Thomas Hoegh tells a story about the aftermath of 9/11. Back then, the Norwegian internet investor was the largest shareholder in the travel website lastminute.com. The start-up had made progress in convincing airlines to offer discounted seats, yet had struggled to persuade hoteliers to list empty rooms on the platform.