Duke Capital Limited (LON:DUKE), a leading provider of hybrid capital solutions for SME business owners in Europe and North America, has announced its audited results for the 12 months ended 31 March 2025.
Financial Highlights:
· Recurring cash revenue* of £25.8 million (2024: £24.3 million), an increase of 6%
· Total cash revenue of £26.6 million (2024: £30.3 million), a decrease of 12% and reflective of the lack of investment exits in FY25 (2024: three exits)
· Free cash flow** of £12.6 million (2024: £17.9 million), a decrease of 30%, reflecting lack of exits
· Free cash flow per share of 2.83 pence per share (2024: 4.34 pence)
· Net income of £2.0 million (FY24: £11.6 million), down 83% reflecting the non-cash reduction in fair value of the portfolio
· Adjusted earnings of £15.4 million, (FY24: £20.0 million), a decrease of 23%
· Dividend of 2.80 pence per share (2024: 2.80 pence)
· The cash position ended FY25 at £19.8m. With £10m still available on the credit line with Fairfax, Duke’s liquidity position at 31 March 2025 was a robust £29.8m
Operational Highlights:
· Over £24 million deployed into existing capital partners
· Increased equity stakes in six current partners
· Completed an oversubscribed £23.5 million equity raise in November 2024 to provide additional capital to current partners to support M&A activity and allow flexibility on the timing of Duke’s third-party, non-dilutive funding strategy
Post-Period End Highlights:
· £6.6 million of recurring cash revenue expected in Q1 FY26, representing a 4% year-on-year increase (Q1 FY25: £6.3 million)
· In April 2025, invested £3.3 million into New Path Fire and Security Limited to further its acquisitive growth strategy. Duke purchased additional equity in New Path, increasing our ownership from 15.0% to 20.9%
· In June 2025, invested £2.0m into Tristone Healthcare Limited to complete the acquisition of Serenity Care Homes Limited. As part of the deal, Duke invested £500k of additional equity in Tristone, increasing our ownership stake from 21.3% to 28.4%.
* Recurring cash revenue excludes exit premiums and cash gains from the sale of equity investments
** Free cash flow is defined as net cash inflows from operations plus cash gains from the sale of equity investments less net transaction costs less interest paid on borrowings
Nigel Birrell, Chairman of Duke Capital, said: “Despite a persistently challenging global and UK macroeconomic environment, Duke Capital delivered solid results in FY25. Duke Capital has once again maintained a stable and reliable dividend, underlining the resilience of our income-generating model and our disciplined approach to capital allocation.
“Duke’s investment philosophy for some time has been to “stay in for longer” with its investments and to attract higher EBITDA multiples upon exit as the portfolio matures. We announced five follow-on investments into our existing capital partners during 2025, all of whom are operating buy and build models. The proceeds were used by these partners to acquire long standing, profitable businesses. The operating performance from all these new portfolio investments has been positive which underlines the strict criteria and extensive due diligence that is undertaken prior to any transaction closing.
“Looking ahead, there are some positive signs emerging with inflationary pressures beginning to ease and interest rates expected to decline further. Our business model and attractiveness to investors improves in times of lower interest rates. Duke Capital will continue to work with its longstanding, private, profitable partners to ensure that we are able to deliver our operational and financial objectives to the benefit of our shareholders.”
