Duke is raising £16.1-20.0m (gross) in new equity to enlarge and balance out its portfolio of royalty partners. The placing also unlocks new debt finance for investing, such that Duke could have 16+ royalty partners funded by £131-141m of invested capital, producing royalty income of c£17m+ pa. This income will be met with a stabilised cost base from FY20E, producing significant operating leverage, more material FCF and with it DPS increases for this top 5% yielding AIM stock
07 Oct 2019
Cenkos: Duke Royalty Ltd - Larger scale, more diversified and rising DPS!
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Cenkos: Duke Royalty Ltd - Larger scale, more diversified and rising DPS!
Duke Capital Limited (DUKE:LON) | 32.2 0 0.0% | Mkt Cap: 134.0m
- Published:
07 Oct 2019 -
Author:
Cavendish Research -
Pages:
21
Duke is raising £16.1-20.0m (gross) in new equity to enlarge and balance out its portfolio of royalty partners. The placing also unlocks new debt finance for investing, such that Duke could have 16+ royalty partners funded by £131-141m of invested capital, producing royalty income of c£17m+ pa. This income will be met with a stabilised cost base from FY20E, producing significant operating leverage, more material FCF and with it DPS increases for this top 5% yielding AIM stock