Duke Royalty Limited (DUKE)

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Financials

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45.40p
   
  • Change Today:
    -0.20p
  • 52 Week High: 48.10p
  • 52 Week Low: 40.00p
  • Currency: UK Pounds
  • Shares Issued: 199.87m
  • Volume: 110,465
  • Market Cap: £90.74m
  • Beta: 0.01

Duke Royalty signs £7.5m financing deal with Brownhills Glass

By Josh White

Date: Tuesday 24 Apr 2018

LONDON (ShareCast) - (WebFG News) - Alternative capital solutions provider Duke Royalty has entered into a royalty financing agreement of up to £7.5m, with £6.5m drawn down immediately, with Brownhills Investments.
The AIM-traded firm said Brownhills is the holding company for a UK-based group, which represents "one of the UK's leading" independent glass merchants and processors, established in the 1970s, Brownhills Glass.

It said that, as Duke's fourth European royalty partner, the deal broadened its revenue base and demonstrated its value proposition as a viable alternative finance solution for well established, profitable businesses in the UK and Europe.

Initial cash-on-cash yield would be more than 13% per annum, via monthly payments immediately post investment.

The deal consisted of a 30 year term of secured financing, with distributions to be adjusted annually to reflect Brownhills' revenue growth.

Duke closed on an initial commitment of £6.5m, with a further option for up to £1m until 31 December 2019.

Brownhills had already drawn down the funds and used the proceeds to refinance most of its outstanding debt, and to complete the buyout of the remaining 70% equity stake, from its current 30% stake, of an operating subsidiary, Tufwell Glass.

That transaction was said to have been "immediately earnings accretive" for Brownhills.

Brownhills has 130 employees across three UK plants, and remained majority owned and managed by the same family for a number of years.

"We are delighted that yet another private, successful industrial company, also based in the UK, has chosen Duke to be a capital partner over other options," said CEO Neil Johnson.

"This underpins our plan to bring an alternative finance solution, which represents a £50bn sector in North America and does not carry refinancing risk and is non-dilutive for owners, to UK and European businesses."

Johnson said that, in terms of Duke's investors, the deal provided access to a well-run private company.

"Mark and Nick Harrison's proven business acumen and increased equity ownership means that they are aligned with us to deliver continued growth over the long term.

"With four royalty agreements now in place, and more in the pipeline via our relationship with our Fortune 500 partner, Oliver Wyman, investors stand to benefit from the robust, predictable, long term returns and a strong associated yield, delivered by Duke Royalty."

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DUKE Market Data

Currency UK Pounds
Share Price 45.40p
Change Today -0.20p
% Change -0.44 %
52 Week High 48.10p
52 Week Low 40.00p
Volume 110,465
Shares Issued 199.87m
Market Cap £90.74m
Beta 0.01

DUKE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
53.72% below the market average53.72% below the market average53.72% below the market average53.72% below the market average53.72% below the market average
14.48% below the sector average14.48% below the sector average14.48% below the sector average14.48% below the sector average14.48% below the sector average
Price Trend
39.98% below the market average39.98% below the market average39.98% below the market average39.98% below the market average39.98% below the market average
61.54% above the sector average61.54% above the sector average61.54% above the sector average61.54% above the sector average61.54% above the sector average
Income
Market averageMarket averageMarket averageMarket averageMarket average
23.81% above the sector average23.81% above the sector average23.81% above the sector average23.81% above the sector average23.81% above the sector average
Growth Not Available

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 1
strong_buy
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DUKE Dividends

  Latest Previous
  Q1 Q4
Ex-Div 04-Apr-19 27-Dec-18
Paid 17-Apr-19 12-Jan-19
Amount 0.70p 0.70p

Trades for 24-May-2019

Time Volume / Share Price
16:09 2,764 @ 45.20p
16:09 2,764 @ 45.20p
15:49 32,748 @ 45.80p
15:30 1,417 @ 45.26p
15:29 4,000 @ 45.80p

DUKE Key Personnel

CEO Neil A Johnson

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