# Duke Capital reports £25.8m recurring revenue

- Link: https://www.directorstalkinterviews.com/duke-capital-reports-25-8m-recurring-revenue/4121204148
- Published: 2025-06-25T07:19:20+01:00
- Author: Amilia Stone

**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.”

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