Duke Royalty Limited (DUKE)

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43.50p
   
  • Change Today:
    -0.30p
  • 52 Week High: 48.10p
  • 52 Week Low: 38.00p
  • Currency: UK Pounds
  • Shares Issued: 199.87m
  • Volume: 191,692
  • Market Cap: £86.94m
  • Beta: 0.00

Duke Royalty pours another £1m into Brownhills

By Josh White

Date: Monday 17 Dec 2018

LONDON (ShareCast) - (Sharecast News) - Alternative capital solutions provider Duke Royalty announced a further contribution of £1m into its royalty partner Brownhills on Monday.
The AIM-traded company said Brownhills was one of three subsidiary companies of United Glass Group - formerly Brownhills Investments - which it described as a UK-based independent glass merchant and processor, established in the 1970s.

As it had announced on 24 April, Duke originally invested £6.5m into Brownhills, with an option to increase - at Duke's sole option - its investment by a further £1m at any time prior to 31 December 2019.

To that end, Duke said that in support of Brownhills' growth plans, it had decided to exercise that right and invest the additional cash, with the additional investment being made on the same initial cash-on-cash yield of more than 13%, and the same duration of 30 years.

Post the additional investment, Duke's aggregate exposure to Brownhills had increased to £7.5m.

Duke also reported that the first adjustment factor period for Brownhills on the initial £6.5m investment ended on 30 November, and that the turnover growth for the consolidated Brownhills group year-on-year exceeded the maximum possible adjustment factor of 6% upwards.

As a result, the payments due to Duke would increase from April 2019 on a cash basis by 6%.

Following that positive adjustment on the original £6.5m, as well as the initial cash-on-cash yield on the new £1m investment, Brownhills' increased payments to Duke would now total about £1.06m per annum from April.

Use of proceeds for the additional £1m investment included acquiring the freehold property from which one of Brownhill's key operating subsidiaries operated, as well as buying additional toughening and processing equipment to enable Brownhills to satisfy the high level of demand that it was currently experiencing throughout the group, Duke explained.

"We are very pleased to make this additional investment into our existing partner Brownhills," said Duke Royalty chief executive officer Neil Johnson.

"Brownhills has experienced strong year on year turnover growth which has resulted in Duke benefitting from its third consecutive maximum adjustment factor reset.

"Given that this additional investment is primarily being used to fund growth initiatives within Brownhills we are hopeful that this turnover growth will be continued into the future."

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DUKE Market Data

Currency UK Pounds
Share Price 43.50p
Change Today -0.30p
% Change -0.68 %
52 Week High 48.10p
52 Week Low 38.00p
Volume 191,692
Shares Issued 199.87m
Market Cap £86.94m
Beta 0.00

DUKE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
51.78% below the market average51.78% below the market average51.78% below the market average51.78% below the market average51.78% below the market average
7.25% below the sector average7.25% below the sector average7.25% below the sector average7.25% below the sector average7.25% below the sector average
Price Trend
38.58% below the market average38.58% below the market average38.58% below the market average38.58% below the market average38.58% below the market average
45.81% above the sector average45.81% above the sector average45.81% above the sector average45.81% above the sector average45.81% above the sector average
Income
Market averageMarket averageMarket averageMarket averageMarket average
42.50% above the sector average42.50% above the sector average42.50% above the sector average42.50% above the sector average42.50% 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 21-Mar-2019

Time Volume / Share Price
15:31 25,000 @ 43.60p
14:04 10,000 @ 43.65p
13:55 7,000 @ 43.70p
13:48 1,250 @ 43.25p
12:35 22,635 @ 43.85p

DUKE Key Personnel

CEO Neil A Johnson

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