Duke Capital Limited (DUKE)

Sector:

Financials

Index:

FTSE AIM All-Share

33.50p
   
  • Change Today:
      1.00p
  • 52 Week High: 35.00
  • 52 Week Low: 28.70
  • Currency: UK Pounds
  • Shares Issued: 421.49m
  • Volume: 438,594
  • Market Cap: £141.20m

Duke Royalty invests another ?3.1m in Miriad Products

By Josh White

Date: Tuesday 22 Dec 2020

LONDON (ShareCast) - (Sharecast News) - Alternative capital provider Duke Royalty announced a follow-on investment of £3.1m into its existing royalty partner MRDB Holdings, trading as Miriad Products, on Tuesday.

The AIM-traded firm described Miriad as the largest privately-owned recreational vehicle parts wholesaler in the UK.

It said the funds would enable Miriad to buy out and cancel all of its subordinated vendor loan notes) at a material discount to their current face value plus accrued interest, which stood at £4.9m.

The notes were due to begin amortising in 2021, and carried a 15% compound interest rate, and therefore an upsize of Duke's long-dated and low amortisation product would be "accretive and beneficial" to Miriad both from an interest and capital repayment perspective.

As part of the deal, Duke would also increase its equity interest in Miriad to 30%, before the effect of any dilution from the company's share option scheme.

As the UK's leading RV and caravan parts distributor, Miriad had reportedly benefitted from the changing behaviour of UK consumers who had, in increasing numbers, decided or been required to stay in the UK for their holidays.

After an initial drop in business volumes in April and May, both revenue and EBITDA had recovered "strongly" since June.

Duke's monthly royalty payments had been unaffected during the 2021 financial year thus far, and Miriad's underlying liquidity position remained strong.

The company's original investment into Miriad in April 2019 totalled £10m.

Duke said the new investment increased its invested capital to £13.1m, making Miriad one of Duke's largest investments.

Monthly payments starting in January 2021 would total about £0.15m.

"We are delighted to be making this follow-on investment into Miriad, as the company's preferred long-term capital partner," said chief executive officer Neil Johnson.

"Using Duke's capital to refinance this subordinated debt prior to its amortising start date will allow Miriad's executive team to focus on growing the company rather than the distraction of the 'refinancing treadmill'."

Johnson said Duke's ability to support the company was "welcomed", as management did not want the uncertainty that could arise by seeking financing during a pandemic.

"Miriad's business continues to expand and it has been one of the beneficiaries of the Covid-19 pandemic as UK residents make the decision to holiday at home rather than travel abroad."

At 0854 GMT, shares in Duke Royalty were up 6.43% at 29.8p.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

DUKE Market Data

Currency UK Pounds
Share Price 33.50p
Change Today 1.00p
% Change 3.08 %
52 Week High 35.00
52 Week Low 28.70
Volume 438,594
Shares Issued 421.49m
Market Cap £141.20m

DUKE Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
36.8% below the market average36.8% below the market average36.8% below the market average36.8% below the market average36.8% below the market average
10.34% above the sector average10.34% above the sector average10.34% above the sector average10.34% above the sector average10.34% above the sector average
Income Not Available
Growth
Market averageMarket averageMarket averageMarket averageMarket average
18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average18.52% below the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

DUKE Dividends

  Latest Previous
  Q4 Q3
Ex-Div 28-Mar-24 28-Dec-23
Paid 12-Apr-24 12-Jan-24
Amount 0.70p 0.70p

Trades for 28-Mar-2024

Time Volume / Share Price
16:22 1 @ 33.03p
15:47 6,000 @ 33.83p
15:15 3,500 @ 33.68p
15:06 3 @ 34.00p
14:58 5,903 @ 33.18p

DUKE Key Personnel

CEO Neil A Johnson

Top of Page