REG - Duke Capital - Follow-On Investment into Existing Capital Partner

Duke CapitalAnnouncement

02/04/2025 07:04

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RNS Number : 2460D  Duke Capital Limited  02 April 2025

2 April 2025

 

Duke Capital Limited

 

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

 

Follow-On Investment into New Path Fire and Security Limited

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital
solutions for SME business owners in Europe and North America, is pleased to
announce a follow-on investment of £3.3m into its existing capital partner,
New Path Fire and Security Limited ("New Path"). This investment will enable
New Path to complete a further acquisition, in line with its acquisitive
growth strategy.

New Path is a buy-and-build platform in the fire and security sector,
primarily servicing SME clients in and around London and the South of England.
New Path's operating subsidiaries are established businesses with strong
reputations in their local territories.

 

Highlights:

 

·       Duke's funds will facilitate New Path's acquisition of Elite
Entrance Systems Ltd ("Elite"), a specialist in the installation and
maintenance of automatic door entrance systems

·       The financing increases Duke's total credit financing in New
Path to £14.30 million. The investment terms are the same as Duke's initial
investment into New Path, including a starting yield of 13.5% and a +/- 6%
annual revenue adjustment factor in respect of royalty payments due

·       As part of the deal, Duke will purchase additional equity in
New Path, increasing their ownership stake from 15.0% to 20.9%

·       Duke has now supported seven New Path acquisitions. Following
the acquisition of Elite, the enlarged New Path Fire Group will have
strengthened operations across SE England and London, with more than 135
employees and a customer base exceeding 10,000

 

Neil Johnson, CEO of Duke Capital, said:

 

"The acquisition of Elite provides a great opportunity to expand New Path's
capabilities in the security space, and attain a wider base of clients,
including established institutions such as schools, universities and the NHS.
Additionally, we are excited to invest further equity in New Path and increase
Duke's stake, continuing to support the long-term partnership we have
established."

 

Further information regarding Elite

 

Founded in 2008, Elite specialises in the installation and maintenance of
automatic door entrance systems. This includes numerous types of automated
doors, roller shutters, fire doors and other entrance systems such as speed
lanes, gates and barriers. The company operates out of Chelmsford, Essex, and
have their main warehouse located nearby in Maldon, Essex.

 

Elite services a wide variety of customers across London, the South Coast and
the East of England, and currently have 4,500 doors and 1,500 roller shutters
under contract. Customers include established institutions such as
supermarkets, Universities, the NHS, public council buildings, schools and a
range of private companies.

 

Duke Capital Portfolio

A full list of Duke's current partners is included for reference on the
Partners page of the Company's website: www.dukecapital.com/partners
(http://www.dukecapital.com/partners) .

 

***ENDS***

 

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

 

 Duke Capital Limited                                                    Neil Johnson / Charles Cannon Brookes / Hugo Evans  +44 (0) 1481 231 816

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Stephen Keys / Callum Davidson / Michael Johnson    +44 (0) 207 220 0500

 Canaccord Genuity Limited                                               Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (Financial Communications)                                  Robin Tozer / Alice Cho / Olivia Hart               + +44 (0) 20 3757 6882 dukecapital@secnewgate.co.uk

 

 

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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