Duke Royalty


Market Cap£59m

Last Close 23.75p

Duke Royalty is a financial services company providing royalty-based finance to small and growing businesses in selected sectors and with specific criteria. The royalty payments are either for a fixed term (typically 30 years) or perpetual.

More Duke Royalty content >

Investment summary

Royalty investing is a profitable and significant form of alternative finance in North America. However, it is still a nascent industry in Europe and Duke Royalty was set up in 2015 by an experienced team to change this. Its current portfolio is now close to £80m and it aims to add £45–100m in deals a year in the coming years. In October 2019, Duke raised £17.5m, which will allow it to invest another £45m in the next 12 months. We estimate a sustainable ROE of 14% for Duke and we see the current fair value range at 50–58p per share.

Y/E Mar
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 1.8 N/A 0.2 0.4 59.4 93.6
2019A 6.1 N/A 3.1 1.8 13.2 11.6
2020E 12.1 N/A 6.2 2.8 8.5 6.8
2021E 18.7 N/A 10.2 3.7 6.4 5.0
Industry outlook

Although royalty finance has grown from its mining and pharmaceutical industry roots to become a US$50bn sector in North America, it is still a new asset class in Europe. Duke is the market leader in the UK in what is an open field for growth. Royalty finance provides flexible, long-term finance while allowing the business owners to retain control and reducing repayment risks by extending amortisations beyond the first three to five years. For investors like Duke, it provides an attractive yield, with potential for growth and a scalable business model.

Last updated on 28/09/2020
Content on Duke Royalty
Executive interview – Duke Royalty
Financials | Edison TV | 25 October 2019
Duke Royalty – A new wave of lending
Financials | research Initiation | 4 October 2019
Company profile - Aberdeen Asian income fund feature image - 28062019- JPGmoney & pens
View more
Register to receive research on Duke Royalty as it is published
Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
Actual (15.2) (11.2) (49.6)
Relative* (14.4) (8.7) (38.0)
52-week high/low 49.8p/17.1p
*% relative to local index
Key management
Neil Johnson CEO
Charlie Cannon-Brookes Director