REG - Duke Capital - Trading and Operational Update

Duke CapitalAnnouncement

30/09/2024 07:00

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RNS Number : 1216G  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/
(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)                                  Elisabeth Cowell / Alice Cho / Matthew Elliott      + +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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