Trading and Operational Update

Duke Capital Limited

30 September 2024

 

30 September 2024

Duke Capital Limited

("Duke Capital", "Duke" or the "Company")

Trading and Operational Update

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, is pleased to provide the following trading update for its first quarter of the financial year ending 30 June 2025 ("Q1 FY25"), and to provide guidance on trading for its second quarter ending 30 September 2024 ("Q2 FY25").

Q1 FY25 Trading Update

·     Recurring revenue for Q1 FY25 totalled £6.3 million, an increase of 5% over Q1 FY24 and a 9% increase over the previous quarter (Q4 FY24).

·     Total cash revenue for the quarter was £6.8 million following the full exit of Fairmed Healthcare.

Q2 FY25 Trading Guidance

·     Based on current trading, Duke expects to achieve recurring cash revenue of £6.4 million in Q2 FY25.

Overview of quarterly revenue growth:

	Recurring Cash Revenue*	Total Cash Revenue**
Q2 FY24	£6.2 million	£6.2 million
Q3 FY24	£6.3 million	£6.3 million
Q4 FY24	£5.8 million	£10.2 million
Q1 FY25	£6.3 million	£6.8 million

* Recurring cash revenue excludes exit premium receipts and cash gains from equity sales

** Total cash revenue is monthly cash distributions from Duke's partners plus exit premium receipts and cash gains from equity sales

Operational Update

·      In July, Duke completed a £2.9 million follow-on investment into Step investments ("Step") to enable Step to acquire existing loan notes and increase its equity shareholding in Bay Broadcasting Limited.

·      In August, Step then completed the sale of one of its other operating subsidiaries, City Education & Learning Group Limited, delivering them €5.2 million of cash on completion with a further €3m deferred consideration payment due after two years.

·        In September, Duke invested a further £3.0 million of hybrid credit investment into United Glass Group ("UGG") to facilitate the acquisition of Premier Double Glazed Units Limited, the first acquisition by UGG since Duke completed the secondary share purchase transaction earlier in 2024, which saw Duke's equity stake in UGG increase to 73.8%.

Neil Johnson, CEO of Duke Capital, said:

"It is my pleasure to report another solid quarter of Duke's operating performance for Q1 FY25 and to forecast a record recurring revenue performance for Q2 FY25. In August, we welcomed the Bank of England's decision to deliver the first rate cut in over four years, since the UK economic backdrop certainly remains challenging relative to the United States.

"Despite the macro headwinds, it is pleasing to report that Duke's diversified portfolio across the UK, Ireland, Canada and the United States continues to deliver reliable returns resulting in a strong dividend stream being paid out to its shareholders."

***ENDS***

For further information, please visit https://dukecapital.com/ or contact:

Duke Capital Limited	Neil Johnson / Charles Cannon Brookes / Hugo Evans	[phone]
Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)	Stephen Keys / Callum Davidson / Michael Johnson	[phone]
Canaccord Genuity Limited (Joint Broker)	Adam James / Harry Rees	[phone]
SEC Newgate (Financial Communications)	Elisabeth Cowell / Alice Cho / Matthew Elliott	+ [phone] [e-mail]

About Duke Capital

Duke is a leading provider of hybrid capital solutions for SME business owners in Europe and North America, combining the best features of both equity and debt.

Since 2017, Duke has provided unique long-term financing which eliminates re-financing risk and necessity for a short-term exit by providing a unique 'corporate mortgage' while also aligning its returns to grow with the success of the business.

Duke is focused on generating attractive risk-adjusted returns for shareholders and has a track record of achieving this across market cycles. It's three investment pillars are capital preservation, attractive dividend yield, and to provide upside upon exits.  Duke is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.

 

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